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Sectorwatch: Advanced Analytics June 2018

Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

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Page 1: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

Sectorwatch:Advanced AnalyticsJune 2018

Page 2: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

2

Advanced AnalyticsJune 2018

Sector Dashboard [4]

Public Basket Performance [5]

Operational Metrics [7]

Valuation Comparison [10]

Recent Deals [13]

Appendix [14]

7 Mile Advisors appreciates the opportunity to present this confidential information to the Company. This document is meant to be delivered only inconjunction with a verbal presentation, and is not authorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of the document. Alldata cited in this document was believed to be accurate at the time of authorship and came from publicly available sources. Neither 7 Mile Advisors nor 7MSecurities make warranties or representations as to the accuracy or completeness of third-party data contained herein. This document should be treated asconfidential and for the use of the intended recipient only. Please notify 7 Mile Advisors if it was distributed in error.

Page 3: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

3

Overview

7MA provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally. We advise on M&A and private capital transactions, and provide market assessments and benchmarking. As a close knit team with a long history together and a laser focus on our target markets, we help our clients sell their companies, raise capital, grow through acquisitions, and evaluate new markets. We publish our sectorwatch, a review of M&A and operational trends in the industries we focus.

Dashboard• Summary metrics on the sector

• Commentary on market momentum by

comparing the most recent 12-month

performance against the last 3-year

averages.

Public Basket Performance• Summary valuation and operating metrics for

a basket of comparable public companies

Valuation Comparison• Graphical, detailed comparison of valuation

multiples for the public basket

Recent Deals• The most recently announced deals in the

sector

Page 4: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

4

Dashboard

Operating Metrics

Valuation

Revenue Growth Momentum

-0.02 1 - year revenue growth compared to revenue growth

average for last 3 years

Pricing / Gross Margin Momentum

0.6% 1 - year gross profit % compared to gross profit %

average for last 3 years

Profitability Momentum

-0.1% 1 - year EBITDA % compared to EBITDA % average for

last 3 years

Current revenue growth rate is less than the average of the last 3 years,

indicating that the market may be flattening or declining

Current gross profit margin exceeds the average of the last 3 years gross profit

margin by this amount, indicating supplier pricing power

Current EBITDA margin is less than the average of the last 3 years EBITDA

margins, which may signal further consolidation

8.4%

22.8%

69.5%

0% 20% 40% 60% 80%

Median LTM Rev. Growth %

Median LTM EBITDA Margin %

Median LTM GP Margin %

6.7x

19.2x

22.4x

28.9x

0x 10x 20x 30x

Median TEV / LTM Revenue

Median TEV / LTM EBITDA

Median TEV / LTM EBIT

Median Price / LTM Earnings

Page 5: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

5

Public Basket

Company TEV $mLTM Rev

$m

Rev Growth

YoY GP %EBITDA

%TEV / Rev X

TEV / EBITDA

X # FTEsRev / FTE $k

Alteryx, Inc. 2,218 146 52% 85% -9% 15.2 0.0 555 263

Fair Isaac Corporation 6,569 977 6% 70% 23% 6.7 29.4 2,168 451

Tableau Software, Inc. 7,638 923 8% 87% -16% 8.3 0.0 3,489 265

Accenture plc 102,209 37,126 10% 32% 16% 2.8 16.9 425,000 87

Adobe Systems Incorporated 119,514 8,122 24% 87% 36% 14.7 41.0 17,973 452

SAP SE 139,987 28,875 4% 70% 27% 5.2 19.2 88,543 326

International Business Machines Corporation 165,843 80,056 1% 46% 21% 2.1 10.0 366,600 218

Alphabet Inc. 717,365 117,251 24% 58% 31% 6.1 19.5 80,110 1,464

Microsoft Corporation 731,275 99,259 8% 63% 35% 7.4 20.8 124,000 800

Average 221,402 41,415 15% 66% 18% 7.6 17.4 123,160 481

Median 119,514 28,875 8% 70% 23% 6.7 19.2 80,110 326

share price as of 20Jun18

Page 6: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

6

Public Basket Valuation Trends

Public EBITDA Multiples over Time

Public Revenue Multiples over Time

14.7x

4.4x

0x

5x

10x

15x

20x

25x

Sep

-13

Dec

-13

Mar

-14

Jun

-14

Sep

-14

Dec

-14

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

Jun

-18

TEV/EBITDA - Median TEV/Revenue - Median

TEV/EBITDA - Average TEV/Revenue - Average

0x

2x

4x

6x

8x

Sep

-13

Dec

-13

Mar

-14

Jun

-14

Sep

-14

Dec

-14

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

Jun

-18

TEV/Revenue - Median TEV/Revenue - Average

0x

5x

10x

15x

20x

25x

Sep

-13

Dec

-13

Mar

-14

Jun

-14

Sep

-14

Dec

-14

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

Jun

-18

TEV/EBITDA - Median TEV/EBITDA - Average

Page 7: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

7

Operational Metrics

LTM Gross Profit Margin % LTM EBITDA %

(20%) - 20% 40%

Median

Tableau Software, Inc.

Alteryx, Inc.

Accenture plc

International Business MachinesCorporation

Fair Isaac Corporation

SAP SE

Alphabet Inc.

Microsoft Corporation

Adobe Systems Incorporated

- 20% 40% 60% 80% 100%

Median

Accenture plc

International Business MachinesCorporation

Alphabet Inc.

Microsoft Corporation

Fair Isaac Corporation

SAP SE

Alteryx, Inc.

Adobe Systems Incorporated

Tableau Software, Inc.

Page 8: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

8

Operational Metrics

LTM Revenue Growth %LTM Revenue per

Full Time Employee x 000’s

- 20% 40% 60%

Median

International Business MachinesCorporation

SAP SE

Fair Isaac Corporation

Tableau Software, Inc.

Microsoft Corporation

Accenture plc

Alphabet Inc.

Adobe Systems Incorporated

Alteryx, Inc.

$- $500 $1,000 $1,500

Median

Accenture plc

International Business MachinesCorporation

Alteryx, Inc.

Tableau Software, Inc.

SAP SE

Fair Isaac Corporation

Adobe Systems Incorporated

Microsoft Corporation

Alphabet Inc.

Page 9: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

9

Operational Metrics

Accounts Receivable TurnoverAverage Days

Sales Outstanding

0x 2x 4x 6x 8x 10x

Median

SAP SE

Accenture plc

Alteryx, Inc.

Tableau Software, Inc.

Fair Isaac Corporation

Microsoft Corporation

Alphabet Inc.

Adobe SystemsIncorporated

International BusinessMachines Corporation

0 20 40 60 80 100

Median

International BusinessMachines Corporation

Adobe SystemsIncorporated

Alphabet Inc.

Microsoft Corporation

Fair Isaac Corporation

Tableau Software, Inc.

Alteryx, Inc.

Accenture plc

SAP SE

Page 10: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

10

Valuation

TEV / LTM Revenue TEV / LTM EBITDA

0x 4x 8x 12x 16x 20x

Median

International BusinessMachines Corporation

Accenture plc

SAP SE

Alphabet Inc.

Fair Isaac Corporation

Microsoft Corporation

Tableau Software, Inc.

Adobe SystemsIncorporated

Alteryx, Inc.

0x 20x 40x 60x

Median

International BusinessMachines Corporation

Accenture plc

SAP SE

Alphabet Inc.

Microsoft Corporation

Fair Isaac Corporation

Adobe SystemsIncorporated

Page 11: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

11

Valuation

TEV / LTM EBIT Price / LTM Earnings

0x 10x 20x 30x 40x 50x

Median

International BusinessMachines Corporation

Accenture plc

SAP SE

Alphabet Inc.

Microsoft Corporation

Fair Isaac Corporation

Adobe SystemsIncorporated

0x 20x 40x 60x 80x

Median

International BusinessMachines Corporation

Accenture plc

SAP SE

Alphabet Inc.

Fair Isaac Corporation

Adobe SystemsIncorporated

Microsoft Corporation

Page 12: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

12

Valuation

Historical Valuation Multiples versus Gross Profit

Historical Valuation Multiples versus Revenue Growth Rate

0x 0x 10x 17x 19x 20x 21x 29x 41x

84.9% 87.1%

45.6%

31.5%

70.2%

58.0%

62.7%

69.5%

86.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0x

5x

10x

15x

20x

25x

30x

35x

40x

45x

LTM

GP

%

EBIT

DA

(x)

EBITDA(x) LTM GP%

0x 0x 10x 17x 19x 20x 21x 29x 41x

52.1%

8.0% 0.8%

10.0% 3.6%

23.7%

8.4% 5.9%

24.5%

0%

10%

20%

30%

40%

50%

60%

0x

5x

10x

15x

20x

25x

30x

35x

40x

45x

LTM

RG

R%

EBIT

DA

(x)

EBITDA(x) LTM RGR%

Page 13: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

13

Recent TransactionsDate Target Buyer / Investor

Total Transaction

Value Target

Revenue TEV /

Revenue TEV /

EBITDA

23May18 Evolusys SA Bechtle AG - 5.03 - -

15May18 Cyient Insights Private Limited Cyient Limited 0.52 1.96 0.5x -

14Mar18 Avarea Oy Digia Oyj - 4.44 - -

10Jan18 CBIG Consulting, LLC Trianz Holdings Pvt. Limited - - - -

14Dec17 Innowera LLC Magnitude Software, Inc. - - - -

25Oct17 Zettafox Mazars Group - - - -

7Sep17 Logmatic.io Datadog, Inc. - - - -

21Aug17 Affecto Oyj CGI Nordic Investments Limited 132.94 140.98 0.8x 16.3x

8Jun17 Elite Analytics LLC Aviana Global Technologies, Inc. - - - -

1Jun17 4i, Inc. Fractal Analytics Inc. - - - -

1Feb17 YourMembership.com, Inc. Insight Venture Partners LLC; MBP Holdings Limited - - - -

24Jan17 BlueFlare, LLC Robots and Pencils Corp. - - - -

1Dec16 The Encima Group, Inc. Indegene Lifesystems Pvt Ltd. 16.00 - - -

18Aug16 INTELLEGO S.C Southern Cross Group - - - -

31May16 Syslogic Technical Services Inc. Incedo Inc. - - - -

31Oct15 Bring Focus 2 Group, S.A. Oxy Capital - Sociedade de Capital de Risco SA; Fundo Revitalizar Centro

1.69 - - -

2Jun16 Recommind, Inc. Open Text Corporation 163.00 - - -

11May16 Vestrics, Inc. The Ultimate Software Group, Inc. 10.10 - - -

19May16 ProbaYes SAS Mediapost Holding SAS - - - -

17May16 Datalytics Technologies LLC Magnitude Software, Inc. - - - -

3Apr16 Mphasis Limited The Blackstone Group L.P. 892.05 916.37 1.1x 6.3x

29Mar16 EagleEye Analytics, Inc. Guidewire Software, Inc. 42.00 - - -

20Mar16 Boire Filler Group Environics Analytics Group Ltd. - - - -

Page 14: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

14

APPENDIX:

Public Basket

Constituents

7 Mile Advisors appreciates the opportunity to present this confidential information to the Company. This document is meant to be delivered only inconjunction with a verbal presentation, and is not authorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of the document. Alldata cited in this document was believed to be accurate at the time of authorship and came from publicly available sources. Neither 7 Mile Advisors nor 7MSecurities make warranties or representations as to the accuracy or completeness of third-party data contained herein. This document should be treated asconfidential and for the use of the intended recipient only. Please notify 7 Mile Advisors if it was distributed in error.

Advanced AnalyticsJune 2018

Page 15: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

15

Public Basket

Alteryx, Inc.

Alteryx, Inc. operates a self-service data analytics software

platform that enables organizations to enhance business

outcomes and the productivity of their business analysts. Its

software platform includes Alteryx Designer for data preparation,

blending, and analytics that could be deployable in the cloud and

on premise; Alteryx Server, a secure and scalable server-based

product for scheduling, sharing, and running analytic processes

and applications in a Web-based environment; Alteryx Connect,

a collaborative data exploration platform for discovering

information assets and sharing recommendations across the

enterprise; Alteryx Promote, an analytics model management

product for data scientists and analytics teams to build, manage,

monitor, and deploy predictive models to production; and Alteryx

Analytics Gallery, a cloud-based collaboration offering that

allows users to share workflows in a centralized repository. The

company also provides technical support, instruction, and

customer services. Alteryx, Inc. was founded in 1997 and is

headquartered in Irvine, California.

Date Key Development Headline5/14/18 Alteryx Mulls Acquisitions

0x

5x

10x

15x

20x

Revenue Multiples - Alteryx, Inc.

TEV/Revenue Average

Page 16: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

16

Public Basket

Fair Isaac Corporation

Fair Isaac Corporation develops analytic, software, and data

management products and services that enable businesses to

automate, enhance, and connect decisions. The company offers

analytical solutions, credit scoring, and credit account

management products and services to banks, credit reporting

agencies, credit card processing agencies, insurers, retailers,

healthcare organizations, and public agencies. It operates

through three segments: Applications, Scores, and Decision

Management Software. The Applications segment offers pre-

configured decision management applications designed for

various business problem or process, such as marketing,

account origination, customer management, fraud, collection,

and insurance claims management, as well as associated

professional services. The Scores segment provides business-

to-business scoring solutions and services, including myFICO

solutions for consumers that give clients access to analytics to

be integrated into their transaction streams and decision-making

processes, as well as associated professional services. Fair

Isaac Corporation was founded in 1956 and is headquartered in

San Jose, California.

Date Key Development Headline7/31/17 Fair Isaac Seeks Acquisitions

0x

2x

4x

6x

8x

10x

Revenue Multiples - Fair Isaac Corporation

TEV/Revenue Average

0x

6x

12x

18x

24x

30xEBITDA Multiples - Fair Isaac Corporation

TEV/EBITDA Average

0x

15x

30x

45x

60xP/E Multiples - Fair Isaac Corporation

P/E Average

Page 17: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

17

Public Basket

Tableau Software, Inc.

Tableau Software, Inc. provides business analytics software

products. It offers Tableau Desktop, an analytics product that

empowers people to access and analyze data; and Tableau

Server, a business intelligence platform with data management

and scalability to foster sharing of analytics, as well as to

enhance the dissemination of information in an organization and

promote decision-making. The company also provides Tableau

Online, a hosted software-as-a-service version of Tableau

Server; and Tableau Public, a cloud-based platform that allows

various users, such as bloggers, journalists, researchers, and

government workers to visualize public data on their Websites. In

addition, it offers Visual Query Language (VizQL) for databases,

which is a computer language for describing pictures of data,

including graphs, charts, maps, time series, and tables of

visualizations; Live Query Engine that interprets abstract queries

generated by VizQL into syntax understandable by various

database systems. Tableau Software, Inc. was founded in 2003

and is headquartered in Seattle, Washington.

Date Key Development Headline6/12/18 Tableau Software, Inc. (NYSE:DATA) acquired Empirical

Systems, Inc.

8/8/17 Tableau Software, Inc. (NYSE:DATA) acquired ClearGraph from

RRE Ventures LLC, Great Oaks Venture Capital LLC and others

for $24.1 million.

0x

6x

12x

18x

24x

30xRevenue Multiples - Tableau Software, Inc.

TEV/Revenue Average

250x

270x

290x

310x

330xEBITDA Multiples - Tableau Software, Inc.

TEV/EBITDA Average

Page 18: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

18

Public Basket

Accenture plc

Accenture plc provides consulting, technology, and outsourcing

services worldwide. Its Communications, Media & Technology

segment provides professional services that help clients

accelerate and deliver digital transformation, and enhance

business results through industry-specific solutions for

communications, media, and high tech industries, as well as for

software platforms. The company’s Financial Services segment

offers services that address profitability pressures, industry

consolidation, regulatory changes, and the need to continually

adapt to new digital technologies. This segment serves clients in

banking, capital markets, and insurance industries. Its Health &

Public Service segment provides research-based insights and

offerings, including consulting services and digital solutions to

help clients deliver social, economic, and health outcomes. This

segment serves healthcare payers and providers, as well as

government departments and agencies, public service

organizations, educational institutions, and non-profit

organizations. Accenture plc was founded in 1989 and is based

in Dublin, Ireland.

Date Key Development Headline6/7/18 Accenture plc (NYSE:ACN) entered into an agreement to acquire

designaffairs GmbH.

6/4/18 SAP SE to Team with Accenture, Capgemini and Deloitte to

Accelerate Customer Adoption of SAP S/4Hana(R) Cloud in

Target Industries

0x

1x

2x

3x

4xRevenue Multiples - Accenture plc

TEV/Revenue Average

0x

5x

10x

15x

20xEBITDA Multiples - Accenture plc

TEV/EBITDA Average

0x

10x

20x

30x

40x P/E Multiples - Accenture plc

P/E Average

Page 19: Sectorwatch: Advanced Analytics - 7 Mile Advisors€¦ · Sectorwatch: Advanced Analytics June 2018. 2 Advanced Analytics June 2018 Sector Dashboard [4] Public Basket Performance

19

Public Basket

Adobe Systems Incorporated

Adobe Systems Incorporated operates as a diversified software

company worldwide. Its Digital Media segment provides tools

and solutions that enable individuals, small and medium

businesses, and enterprises to create, publish, promote, and

monetize their digital content. Its flagship product is Creative

Cloud, a subscription service that allows customers to download

and install the latest versions of its creative products. The

company’s Digital Marketing segment offers solutions for how

digital advertising and marketing are created, managed,

executed, measured, and optimized. The company was founded

in 1982 and is headquartered in San Jose, California.

Date Key Development Headline5/21/18 Adobe Systems Incorporated, Magento, Inc. - M&A Call

5/20/18 Adobe Systems Incorporated (NasdaqGS:ADBE) entered into a

definitive agreement to acquire Magento, Inc. from Permira

Advisers Ltd. and Hillhouse Capital Management, Ltd. for $1.7

billion.

4/15/18 Adobe Systems Incorporated (NasdaqGS:ADBE) acquired

Sayspring, Inc.

12/15/17 Adobe Systems Mulls Acquisitions

8/22/17 Hootsuite and Adobe Collaborate to Unlock the Value of Creative

Content Across Social

0x

5x

10x

15x

20xRevenue Multiples - Adobe Systems

Incorporated

TEV/Revenue Average

0x

15x

30x

45x

60x

75xEBITDA Multiples - Adobe Systems

Incorporated

TEV/EBITDA Average

0x

60x

120x

180x

240x

300xP/E Multiples - Adobe Systems

Incorporated

P/E Average

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Public Basket

SAP SE

SAP SE operates as an enterprise application software, and

analytics and business intelligence company worldwide. It offers

SAP HANA, which enables businesses to process and analyze

live data; SAP Data Hub, a solution that enables businesses to

manage data from various sources; SAP Cloud Platform, which

enables businesses to connect and integrate applications; SAP

BW/4HANA, a data warehouse solution; SAP Leonardo, a

system that enables customers to make business sense and

opportunity of disruptive technologies; and SAP Analytics Cloud,

which leverages the intersection of business intelligence,

planning, and predictive analytics. SAP SE was founded in 1972

and is headquartered in Walldorf, Germany.

Date Key Development Headline6/4/18 SAP SE (DB:SAP) acquired Coresystems AG.

6/4/18 SAP SE to Team with Accenture, Capgemini and Deloitte to

Accelerate Customer Adoption of SAP S/4Hana(R) Cloud in

Target Industries

5/8/18 Accenture plc Teams with SAP SE to Help High-Tech Companies

Create Digital As-A-Service Business Models Quickly and Easily

3/20/18 Accenture and SAP Build and Deploy Extended Planning

Solutions on SAP S/4HANA®

2/12/18 SAP Seeks Acquisition

0x

2x

4x

6x

8x

10xRevenue Multiples - SAP SE

TEV/Revenue Average

0x

6x

12x

18x

24x

30xEBITDA Multiples - SAP SE

TEV/EBITDA Average

0x

10x

20x

30x

40x

50xP/E Multiples - SAP SE

P/E Average

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21

Public Basket

International Business Machines Corporation

International Business Machines Corporation operates as an

integrated technology and services company worldwide. Its

Cognitive Solutions segment offers Watson, a cognitive

computing platform that interacts in natural language, processes

big data, and learns from interactions with people and

computers. This segment also offers data and analytics

solutions, including analytics and data management platforms,

cloud data services, enterprise social software, talent

management solutions, and solutions tailored by industry; and

transaction processing software that runs mission-critical

systems in banking, airlines, and retail industries. International

Business Machines Corporation was founded in 1911 and is

headquartered in Armonk, New York.

Date Key Development Headline6/14/18 International Business Machines Corporation (NYSE:IBM)

acquired Oniqua Pty Ltd.

6/7/18 Intellect Design Arena Limited and International Business

Machines Corporation to Deliver Seamless Digital Transformation

to the Large Banks with IBM Cloud

4/26/18 Host Hotels & Resorts, Inc. Announces Joint Development

Agreement with IBM Research

2/22/18 Industrial Realty Group, LLC completed the acquisition of the

Rochester, Minnesota technology campus of International

Business Machines Corporation (NYSE:IBM) for $33.9 million.

2/15/18 IBM and SpaceBelt Collaborate on Innovative Architecture for

Secure Cloud Management and Storage in Space

0x

1x

2x

3x

4x

5xRevenue Multiples - International Business

Machines Corporation

TEV/Revenue Average

0x

6x

12x

18x

24x

30xEBITDA Multiples - International Business

Machines Corporation

TEV/EBITDA Average

0x

10x

20x

30x

40xP/E Multiples - International Business

Machines Corporation

P/E Average

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22

Public Basket

Alphabet Inc.

Alphabet Inc., through its subsidiaries, provides online

advertising services in the United States and internationally. The

company offers performance and brand advertising services. It

operates through Google and Other Bets segments. The Google

segment includes principal Internet products, such as Ads,

Android, Chrome, Commerce, Google Cloud, Google Maps,

Google Play, Hardware, Search, and YouTube, as well as

technical infrastructure and newer efforts, including Virtual

Reality. This segment also offers digital content, enterprise cloud

services, and hardware products, as well as other miscellaneous

products and services. The Other Bets segment includes

businesses, such as Access, Calico, CapitalG, GV, Nest, Verily,

Waymo, and X, as well as fiber Internet and Television services.

Alphabet Inc. was founded in 1998 and is headquartered in

Mountain View, California.

Date Key Development Headline5/22/18 Blue Prism Collaborates with Google Cloud to Drive Adoption of

AI and Intelligent Automation in the Enterprise

5/13/18 Alphabet Inc. (NasdaqGS:GOOGL) acquired Cask Data, Inc.

5/8/18 Alphabet Inc. (NasdaqGS:GOOGL) entered into an agreement to

acquire Velostrata Ltd.

3/19/18 Alphabet Inc. (NasdaqGS:GOOGL) acquired Chelsea Market in

New York from Jamestown L.P. for $2.4 billion.

3/17/18 Alphabet's Cloud Boss Seeks Acquisitions

0x

2x

4x

6x

8x

10x

Revenue Multiples - Alphabet Inc.

TEV/Revenue Average

0x

6x

12x

18x

24x

30x

EBITDA Multiples - Alphabet Inc.

TEV/EBITDA Average

0x

15x

30x

45x

60x

75x

P/E Multiples - Alphabet Inc.

P/E Average

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Public Basket

Microsoft Corporation

Microsoft Corporation develops, licenses, and supports software

products, services, and devices worldwide. The company’s

Productivity and Business Processes segment offers Office 365

commercial products and services for businesses, including

Office, Exchange, SharePoint, Skype for Business, and related

Client Access Licenses (CALs); Office 365 consumer services,

such as Skype, Outlook.com, and OneDrive; Dynamics business

solutions, such as financial management, enterprise resource

planning, customer relationship management, supply chain

management, and analytics applications for small and mid-size

businesses, large organizations, and divisions of enterprises;

and LinkedIn online professional network. The company was

founded in 1975 and is headquartered in Redmond, Washington.

Date Key Development Headline6/17/18 Microsoft Corporation (NasdaqGS:MSFT) acquired Flipgrid, Inc.

6/13/18 Thales Signs Preferred Partnership Deal with Microsoft for the

Development of Defence Cloud Solution for Military Use

6/9/18 Microsoft Corporation (NasdaqGS:MSFT) acquired Playground

Games Limited.

6/9/18 Microsoft Corporation (NasdaqGS:MSFT) signed a letter of intent

to acquire Just Add Monsters Ltd.

6/9/18 Microsoft Corporation (NasdaqGS:MSFT) entered into a letter of

intent to acquire Undead Labs LLC.

6/9/18 Microsoft Corporation (NasdaqGS:MSFT) acquired Compulsion

Games.

0x

2x

4x

6x

8x

10x

Revenue Multiples - Microsoft Corporation

TEV/Revenue Average

0x

6x

12x

18x

24x

30xEBITDA Multiples - Microsoft Corporation

TEV/EBITDA Average

0x

20x

40x

60x

80x

100xP/E Multiples - Microsoft Corporation

P/E Average

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Contact Information7MA provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally.

We advise on M&A and private capital transactions, and provide market assessments and benchmarking. As a close-

knit team with a long history together and a laser focus on our target markets, we help our clients sell their

companies, raise capital, grow through acquisitions, and evaluate new markets. Securities offered through 7M

Securities LLC.

Leroy Davis, Partner 704.899.5962 [email protected]

Tripp Davis, Partner 704.899.5762 [email protected]

Andy Johnston, Partner 704.899.5961 [email protected]

Tom Dinnegan, Managing Director 310. 426.2410 [email protected]

Ben Lunka, Managing Director 704.496.2995 [email protected]

Jeff Stoecklein, Managing Director 312.373.3737 [email protected]

Kristina Sergueeva, Director 704.899.5149 [email protected]

Neil Churman, Director 704.899.5960 x 121 [email protected]

John Cooper, Director 704.973.3996 [email protected]

Tim Frye, Director 704.973.3994 [email protected]

Casey Augustine, Business Development - Manager 704.973.3999 [email protected]

Nicholas Prendergast, Financial Analyst 704.899.5960 [email protected]

Ariail Siggins, Marketing Director 704.899.5960 x 123 [email protected]

Sydney Larese, Associate 704.899.5960 [email protected]

Marty Johnson, Associate 704.899.5960 [email protected]

Rory Julyan, Associate 704.899.5960 [email protected]

Garth Martin, Associate 704.899.5960 x 109 [email protected]

Chevonese Dacres, Analyst 360.499.1502 [email protected]