Headwaters' Internet Advertising Market Update 3Q 2015

Internet Advertising Market Update Q3 2015

Member FINRA

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Capital Markets – U.S. Internet Advertising companies continue to outpace their international counterparts and outperform the NASDAQ, S&P 500 and MSCI Europe indexes

Trading Multiples – U.S. Internet Advertising companies are trading at a median LTM revenue multiple of 1.3x, while International Internet Advertising companies are trading at a median LTM revenue multiple of 3.3x

M&A Activity – M&A activity reached a 3-year high in Q3 2015, with 55 deals, after it had dropped in Q1 2015 and Q2 2015, with 42 deals and 40 deals respectively, although aggregate transaction value continues to decline. Notable recent transactions include Rubicon’s acquisition of Chango ($100M), Oracle’s acquisition of Datalogix ($1.1B), Twitter’s acquisition of TellApart ($532M), BlueFocus’ acquisition of Domob Network Technology ($289M), and AOL’s acquisition of Millennial Media ($248M)

Investment Activity – Investment volume and aggregate values declined in Q3 2015 to 60 investments and $456M in value, from Q2 2015’s 65 investments and $458M in value. Notable recent investments include Kahuna ($45M), Demandbase ($30M), Panshi ($200M), Lattice Engines ($28M), and Magnetic Media ($25M)

Executive Summary

3

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

Capital Markets Performance Since 2012, U.S. Internet Advertising companies (+87.4%) have outperformed the NASDAQ (+74.4%), S&P 500 (+50.3%), and MSCI Europe (+15.0%) indexes, along with their international counterparts (+8.9%)

NASDAQ: +74.4%

MSCI Europe: +15.0%

S&P 500: +50.3%

Int'l. Internet Advertising Companies: +8.9%

Source: Capital IQ; refer to public comps for constituents

U.S. Internet Advertising Companies: +87.4%

4

4.6x 5.0x

3.3x 3.4x

2.0x

0.7x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0xLTM Revenue Multiple

Internet Advertising Comparable Public Companies

International Internet Advertising Companies

U.S. Internet Advertising Companies

5.5x 4.7x

1.7x

4.8x

6.8x

1.7x

3.6x

1.3x 0.7x 0.4x 0.7x 0.6x 0.7x 0.4x 0.1x

0.0x

2.0x

4.0x

6.0x

8.0xLTM Revenue Multiple

Median: 1.3x

Median: 3.3x

Source: Capital IQ; companies arranged by descending enterprise value

5

Public Trading Comparables: Internet Advertising

_______ Source: Capital IQ

Trading Metrics($ in millions, except per share data) Stock

Price 52-Week Price Range Market Enterprise EV / Revenue EV / EBITDACompany Ticker 09/30/15 Low High Cap. Value LTM CY 2015E CY 2016E LTM CY 2015E CY 2016E

U.S. COMPANIESGoogle NasdaqGS:GOOG.L $638.37 $490.91 $713.33 $442,058 $382,260 5.5x 5.2x 4.5x 16.9x 12.8x 10.9xYahoo! NasdaqGS:YHOO 28.91 27.20 52.62 27,311 22,758 4.7x 5.4x 5.5x 42.0x 22.7x 22.8xIAC/InterActive NasdaqGS:IACI 65.27 56.50 84.66 5,193 5,412 1.7x 1.7x 1.5x 13.5x 11.3x 8.3xcomScore NasdaqGS:SCOR 46.15 35.03 65.00 1,833 1,676 4.8x 4.5x 3.8x NM 17.8x 14.6xMarketo NasdaqGS:MKTO 28.42 23.17 35.63 1,315 1,210 6.8x 5.8x 4.3x NM NM NMConstant Contact NasdaqGS:CTCT 24.24 22.75 43.18 796 616 1.7x 1.7x 1.5x 14.0x 8.3x 6.7xRubicon Project NYSE:RUBI 14.53 8.76 20.59 690 590 3.6x 2.4x 1.8x NM 15.8x 11.4xJive Software NasdaqGS:JIVE 4.67 3.51 7.14 353 241 1.3x 1.2x 1.2x NM NM 27.7xQuinStreet NasdaqGS:QNST 5.55 3.78 6.83 250 205 0.7x 0.7x 0.6x NM 16.2x 11.0xRocketFuel NasdaqGS:FUEL 4.67 4.41 21.10 199 201 0.4x 0.4x 0.3x NM 43.4x 7.3xSizmek NasdaqGS:SZMK 5.99 4.85 8.47 177 110 0.7x 0.6x 0.5x 8.3x 4.8x 3.7xMaxPoint NYSE:MXPT 4.08 3.93 11.24 110 82 0.6x 0.9x 0.7x NM NM NMMarin Software NYSE:MRIN 3.13 3.04 9.68 116 76 0.7x 0.7x 0.6x NM NM NMMarchex NasdaqGS:MCHX 4.03 3.15 5.32 166 62 0.4x 0.4x 0.4x 9.2x 4.5x 5.0xReachLocal NasdaqGS:RLOC 2.11 2.01 4.67 62 59 0.1x 0.2x 0.1x NM 38.7x 4.0x

High 6.8x 5.8x 5.5x 42.0x 43.4x 27.7xMean 2.3x 2.1x 1.8x 17.3x 17.8x 11.1x

Median 1.3x 1.2x 1.2x 13.8x 15.8x 9.6xLow 0.1x 0.2x 0.1x 8.3x 4.5x 3.7x

INTERNATIONAL COMPANIESBaidu NasdaqGS:BIDU 137.41 100.00 251.99 48,286 42,593 4.6x 4.0x 3.0x 15.4x 18.2x 14.1xYahoo! Japan TSE:4689 3.79 3.21 4.82 21,614 17,986 5.0x 4.7x 4.4x 10.2x 9.8x 9.1xRakuten TSE:4755 12.73 9.44 20.00 18,125 17,401 3.3x 3.0x 2.6x 14.0x 13.2x 10.7xYandex NasdaqGS:YNDX 10.73 9.94 28.87 3,429 3,265 3.4x 3.5x 3.0x 10.3x 10.4x 8.3xCriteo NasdaqGS:CRTO 37.54 28.09 57.30 2,485 2,181 2.0x 4.1x 3.1x 25.0x 16.0x 11.1xMatomy LSE:MTMY 1.66 1.38 3.85 154 169 0.7x 0.6x 0.5x 8.7x 6.5x 4.7x

High 5.0x 4.7x 4.4x 25.0x 18.2x 14.1xMean 3.2x 3.3x 2.8x 13.9x 12.3x 9.7x

Median 3.3x 3.8x 3.0x 12.2x 11.8x 9.9xLow 0.7x 0.6x 0.5x 8.7x 6.5x 4.7x

6

Public Operating Comparables: Internet Advertising

_______ Source: Capital IQ

Operating Metrics($ in millions, except per share data)

LTM Revenue Growth LTM Revenue EBITDACompany Ticker As Of '14A-'15E '15E-'16E GM LTM CY 2015E CY 2016E LTM CY 2015E CY 2016E

U.S. COMPANIESGoogle NasdaqGS:GOOG.L Jun 2015 11% 15% 62% $69,611 $73,079 $84,217 $22,620 $29,955 $35,173Yahoo! NasdaqGS:YHOO Jun 2015 (9%) (1%) 67% 4,870 4,195 4,156 542 1,001 1,000IAC/InterActive NasdaqGS:IACI Jun 2015 4% 9% 73% 3,157 3,221 3,515 400 478 651comScore NasdaqGS:SCOR Jun 2015 14% 16% 70% 351 376 437 19 94 115 Marketo NasdaqGS:MKTO Jun 2015 40% 33% 65% 178 210 280 (55) NA NAConstant Contact NasdaqGS:CTCT Jun 2015 12% 14% 73% 353 372 424 44 74 92 Rubicon Project NYSE:RUBI Jun 2015 98% 33% 81% 164 248 331 (10) 37 52 Jive Software NasdaqGS:JIVE Jun 2015 9% 7% 63% 190 194 207 (26) 1 9 QuinStreet NasdaqGS:QNST Jun 2015 7% 9% 11% 282 294 321 (3) 13 19 RocketFuel NasdaqGS:FUEL Jun 2015 23% 17% 42% 466 504 590 (53) 5 28 Sizmek NasdaqGS:SZMK Jun 2015 4% 13% 65% 165 178 201 13 23 30MaxPoint NYSE:MXPT Jun 2015 (16%) 32% 50% 129 90 119 (13) NA NAMarin Software NYSE:MRIN Jun 2015 7% 12% 63% 106 106 119 (30) NA NAMarchex NasdaqGS:MCHX Jun 2015 (20%) 1% 43% 159 145 146 7 14 12 ReachLocal NasdaqGS:RLOC Jun 2015 (18%) 4% 44% 425 391 408 (34) 2 15

INTERNATIONAL COMPANIESBaidu NasdaqGS:BIDU Jun 2015 36% 32% 68% 9,172 10,657 14,055 2,767 2,343 3,024Yahoo! Japan TSE:4689 Jun 2015 (7%) 7% 79% 3,590 3,834 4,114 1,770 1,844 1,984Rakuten TSE:4755 Jun 2015 18% 15% 17% 5,347 5,888 6,751 1,243 1,315 1,630Yandex NasdaqGS:YNDX Jun 2015 12% 19% 72% 972 927 1,101 316 315 395Criteo NasdaqGS:CRTO Jun 2015 46% 31% 36% 1,069 537 704 87 137 196Matomy LSE:MTMY Jun 2015 3% 15% 23% 255 268 308 19 26 36

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Internet Advertising M&A Reaches New Heights

_______ Source: 451 Group; includes transactions with disclosed, estimated, undisclosed transaction values Top 3 acquisitions with disclosed transaction values

Average LTM Revenue Multiple 2012 2013 2014 6.7x 6.1x 4.9x

Top 3 Acquisitions by Quarter ($M) – Target / Acquirer 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

Eloqua / Oracle ($956)

Channel Intel / Google ($125)

ExactTarget / Salesforce ($2,500)

DG (assets) / Extreme Reach

($485)

Responsys / Oracle

($1,607)

Valassis / Harland Clarke

($1,947)

Vocus / GTCR

($413)

Conversant / ADS

($2,216)

Datalogix / Oracle

($1,100)

eXelate / Nielsen ($195)

TellApart / Twitter ($532)

DT (assets) / Stroeer ($331)

Pardot / ExactTarget

($96)

AfterDownload / ironSource

($28)

Hybris / SAP

($1,341)

Adap.tv / AOL

($465)

Dealer.com / DealerTrack

($987)

BlueKai / Oracle ($320)

Adconion / Amobee ($209)

LiveRail / Facebook

($382)

BrightRoll / Yahoo! ($640)

Chango / Rubicon ($100)

Domob / BlueFocus

($289)

Mil. Media / AOL

($248) ClickMotive /

DealerTrak ($62)

Akamai (asset) / MediaMath

($25)

Neolane / Adobe ($600)

Locu / GoDaddy

($70)

Aggregate / NeuStar ($119)

FreeWheel / Comcast ($320)

Adometry / Google ($150)

[x+1] / Rocket Fuel

($230)

Videoplaza / Ooyala ($80)

Yashi / Nexstar

($33)

Bronto / NetSuite ($200)

Unruly Media / News Corp

($90)

27

18

31 34 34

51 53

41

53

42 40

55

$1,180

$191

$4,810

$1,167

$2,865 $3,049

$845

$3,305

$1,945

$389

$1,220 $820

0

10

20

30

40

50

60

0

1,000

2,000

3,000

4,000

5,000

6,000

4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015

# Deals $ in millions Deal Volume Deal Value ($M)

8

Top Acquirers in Internet Advertising Market

Buyer # Acquisitions Total Value ($M) Targets

Google 8 1,025.0 Admeld, Adometry, Channel Intelligence, Incentive Targeting, mDialog, Red Hot Labs, Wildfire, Zave Networks

Yahoo! 8 975.5 5to1.com, AdMovate, Brightroll, Flurry, Interclick, Luminate, Palaran, Ztelic

Oracle 6 4,408.7 BlueKai, Datalogix, Eloqua, Involver, Responsys, Vitrue

Adobe 6 1,178.0 Auditude, Demdex, Efficient Frontier, Neolane, Search Discovery, Tumri

Facebook 5 382.0 LiveRail, Microsoft Corporation (Atlas Advertiser Suite Assets), Onavo, Pryte, Threadsy

Top Acquirers by Volume – Five or More Acquisitions, 2011 – Present

Buyer Total Value ($M) Targets

Oracle 4,408.7 BlueKai, Datalogix, Eloqua, Involver, Responsys, Vitrue

Salesforce 3,515.0 Buddy Media, ExactTarget, Radian6

Alliance Data Systems 2,300.0 Conversant

Harland Clarke 1,947.0 Valassis

SAP AG 1,381.0 Hybris, KXEN, SeeWhy

Adobe 1,178.0 Auditude, Demdex, Efficient Frontier, Neolane, Search Discovery, Tumri

DealerTrack Holdings 1,048.5 ClickMotive, Dealer Dot Com

Google 1,025.0 Admeld, Adometry, Channel Intelligence, Incentive Targeting, mDialog, Red Hot Labs, Wildfire, Zave Networks

Yahoo! 975.5 5to1.com, AdMovate, Brightroll, Flurry, Interclick, Luminate, Palaran, Ztelic

DG 597.6 EyeWonder, MediaMind Technologies, Peer39, Republic Project

Twitter 532.6 AdGrok, RestEngine, TellApart

IBM 500.1 Now Factory, The Silverpop Systems, Tealeaf Technology, Inc.

Extreme Reach 485.0 DG

Top Acquirers by Total Transaction Value – $450M or More, 2011 – Present

_______ Source: 451 Group

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Internet Advertising Market: M&A Case Study

On September 3rd, 2015

ACQUIRED

Transaction Overview: $247.9M acquisition of Millennial Media by AOL

- All cash offer for an enterprise value of $218.2M - $1.75 per share, representing a 31% premium

Millennial Media had $285.3M LTM revenue at the time of acquisition, representing a 0.8x revenue multiple

Millennial Media was not profitable at the time of the transaction

Target Description: Provides supply-side mobile advertising campaign management and

application monetization software for businesses.

Transaction Commentary: “As we continue to invest in our platforms and technology, the

acquisition of Millennial Media accelerates our competitive mobile offering in ONE by AOL and enhances our current publisher offering with an ‘all in’ monetization platform for app developers,” said Bob Lord, President of AOL

"By joining AOL, we will be adding additional mobile expertise to AOL's growing technology assets,” said Michael Barrett, President & CEO of Millennial Media. “I am excited by what this acquisition means for our shareholders, our employees and our partners.”

_______ Source: 451 Group, Acquirer Press Release, WSJ

10

Internet Advertising Investment Declining Slightly

_______ Source: PitchBook; includes transactions with disclosed, estimated, undisclosed transaction values Top 3 investments with disclosed investment values

Top 3 Investments by Quarter ($M) 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

ignitAd ($65)

AppNexus ($75)

Brand Ntwk ($68)

Droga5 ($225)

Komli Media ($30)

Appforma ($80)

Campaign Monitor ($250)

AppNexus ($85)

AppNexus ($110)

Red Ventures ($250)

Panshi ($200)

Kahuna ($45)

HubSpot ($35)

Infusionsoft ($60)

BrightEdge ($43)

Videology ($68)

BrightTag ($27)

Turn ($80)

MediaMath ($176)

Hootsuite ($60)

Matomy Media ($82)

Harbor City ($100)

Lattice Engines ($28.3)

Emarsys ($33)

Emailvision ($30)

AVITO.ru ($50)

MarketShare ($38)

SugarCRM ($40)

Vungle ($19)

Integral Ad ($30)

AdRoll ($70)

xAd ($50)

Infusionsoft ($55)

Volusion ($55)

Magnetic ($25)

Demandbase ($30)

# Investments

69 71

85

63

45

59

71

61

53

65 65 60

$432 $519 $488

$554

$268 $459

$1,071

$478

$462

$827

$458 $456

0

10

20

30

40

50

60

70

80

90

$0

$200

$400

$600

$800

$1,000

$1,200

4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015

$ in millions

Investment Volume Investment Value ($M)

11

Top Investors in Internet Advertising Market

_______ Source: PitchBook; number of investments may include follow-on investments in same target

Investor Investments Targets

500 Startups 31 AdStage, BackType, Boostable, BrandCont, Capseo, Central Mayoreo, Conekta, Crowdrally, Ginzamarkets, Iterable, LocBox, MarketVibe, Newswhip Media, OwnLocal, PostRocket, Privy, Regresa Pronto, Samba Ads, ShareRoot, Skimbit, Spinnakr, Unbounce Marketing, Vid Network, Virool, Vungle

First Round Capital 22 33Across, Altruik, AppNexus, DoubleVerify, Elicit, Flurry, Handshakez, Jirafe, Moat, Nomi, Say Media, SinglePlatform, Solve Media, VigLink

Greycroft Partners 22 33Across, Custora, Elicit, Media Armor, Molio, Netsertive, Nomi, Performance Horizon Group, Radiate Media, Resonate Networks, Skimbit, SteelHouse, TagMan

SV Angel 21 Booshaka, Boostable, Custora, Heap, Moat, Nomi, NowSpots, Pipewise, SocialFlow, SteelHouse, TellApart, TT Labs, Tubular Labs, Vungle, WibiData, Wish, Yext

Draper Fisher Jurvetson 19 4INFO, AdXpose, Flurry, ignitAd, InsightSquared, iSocket, Komli Media, PubMatic, Servio, StrikeAd, SugarCRM, Tremor Video, Virool, Yodle

Sequoia Capital 19 AgilOne, Dianping.com, Flite, HubSpot, Innovid, Kahuna, Kenshoo, Kontera Technologies, Lattice Engines, Taykey

Accel Partners 18 AdRoll, AVITO.ru, BEBB India, ChargeBee, Collective, Dealer.com, Genius.com, HootSuite, LocBox, MoPub, myThings, Nomi, OpenX Software, Origami Logic, YuMe

Battery Ventures 17 BrightEdge Technologies, ExactTarget, Kontagent, Lotame Solutions, Marketo, Smarter Remarketer, Sprinklr, Tapad, Tealium

Intel Capital 15 [x+1], BrightEdge Technologies, Delivery Agent, HookLogic, Movable Inc, SmartZip Analytics, Sprinklr, Vizury, YuMe, Zamplus Technology

New Enterprise Associates 15 BloomReach, Compass Labs, Lattice Engines, Millennial Media, RezNext Global, Say Media, Spare5, SugarCRM, TrackMaven, Videology, WibiData

Atlas Venture 12 Bluetrain Mobile, DataXu, InsightSquared, Integral Ad Science, Overdog, Privy, Unbounce Marketing

Bertelsmann Digital Media Investments 12 Adomic, Content Fleet, CrowdTwist, Deal United, Regiohelden, Semasio, SensorTower, Skimbit

Y Combinator 11 AdGrok, BackType, Boostable, Custora, Heap, LocalOn, Orankl, Reebee, TT Labs, Virool

SoftTech VC 10 iSocket, Kahuna, Rapleaf, StrikeAd, TurnHere, VigLink, Vungle

Top Investors by Volume, 2011 – Present

12

Top Seed and Series A Investors in Internet Advertising Market


500 Startups 26 AdStage, BackType Boostable, Capseo, Central Mayoreo, Conekta, Crowdrally ,Iterable, LocBox, MarketVibe, PostRocket, Privy, Regresa Pronto, Samba Ads, ShareRoot, Spinnakr, Unbounce Marketing, Vid Network, Virool, Vungle

SV Angel 14 Booshaka, Boostable, Custora, Heap, Moat, Nomi, NowSpots, Pipewise, SocialFlow, TT Labs, Tubular Labs, Vungle

RRE Ventures 11 Bloglovin, BlueTrain Mobile, Deepomatic, ividence, Klaviyo, Pontiflex, Say Media, SinglePlatform, SocialFlow, Yieldbot

Y Combinator 11 AdGrok, BackType, Boostable, Custora, Heap, LocalOn, Orankl, Reebee, TT Labs, Virool

First Round Capital 10 Altruik, Elicit, Handshakez, Jirafe, Moat, Nomi, Say Media, SinglePlatform, Solve Media

TechStars 10 AdYapper, Bizible, inRentive, MarketVibe, Mavrck, Mobintent, Simple Energy, SimpleRelevance, Splashscore

Lerer Hippeau Ventures 8 Bloglovin, Bottlenose, Brandtale, Fuisz Media, GraphEffect, Moat, Tubular Labs

Greycroft Partners 7 Custora, Elicit, Media Armor, Molio, Nomi, TagMan

Betaworks 6 Bloglovin, Namo Media, SocialFlow, Teleportd

Atlas Venture 5 Bluetrain Mobile, InsightSquared, Privy, Unbounce Marketing

CommonAngels 5 InsightSquared, Linkable Networks, Yieldbot

Draper Associates 5 Autopilot, MomentFeed, Vungle

ff Venture Capital 5 Bottlenose, Elicit, Movable Inc, Parse.ly

Founder Collective 5 BackType, Custora, GraphEffect, Moat, ThriveHive



13

Top Series B and C Investors in Internet Advertising Market


Greycroft Partners 10 Netsertive, Performance Horizon Group, Resonate Networks, Skimbit, SteelHouse, TagMan

Sequoia Capital 10 AgilOne, Dianping.com, Flite, Innovid, Kahuna, Lattice Engines, Taykey

Battery Ventures 8 BrightEdge Technologies, Kontagent, Sprinklr, Tapad, Tealium

Lightspeed Venture Partners 8 BloomReach, Dianping.com, Evariant, Eyeviewdigital, MediaV, MyBuys, Origami Logic

First Round Capital 7 33Across, DoubleVerify, Moat, Solve Media, VigLink

Intel Capital 7 BrightEdge Technologies, HookLogic, Movable Inc, SmartZip Analytics, Sprinklr, Vizury

New Enterprise Associates 6 BloomReach, Compass Labs, Lattice Engines, TrackMaven, Videology, WibiData

Redpoint Ventures 6 55social, Adap.tv, nadco, Intent Media, The Miaozhen Systems

Baird Capital 5 BrightTag, ClickFuel, eDo Interactive, WordStream

Draper Fisher Jurvetson 5 ignitAd, InsightSquared, iSocket, Servio

Ignition Partners 5 Dianping.com, Moz, Visible Technologies



14

Top Series D+ Investors in Internet Advertising Market


Norwest Venture Partners 8 Act-On Software, Komli Media, True[x] Media, Turn

Draper Fisher Jurvetson 7 4INFO, AdXpose, Flurry, Komli Media, PubMatic, SugarCRM, Tremor Video, Yodle

Accel Partners 5 AdRoll, Genius.com, OpenX Software, YuMe

Battery Ventures 5 BrightEdge Technologies, Lotame, Marketo, Sprinklr, Tealium

Focus Ventures 5 Delivery Agent, Marin Software, Turn

Institutional Venture Partners 5 AdRoll, Buddy Media, Marketo, xAd, Yext

Menlo Ventures 5 DataXu, Flurry, YuMe

SAP Ventures 5 Criteo, Marin Software, OpenX Software, Tremor Video

Crosslink Capital 4 Flurry, Marin Software

First Round Capital 4 33Across, AppNexus, Flurry

Intel Capital 4 BrightEdge Technologies, Delivery Agent, Sprinklr, YuMe

Panorama Capital 4 33Across, JiWire, Zoove

Scale Venture Partners 4 BrightRoll, Demandbase, HubSpot

Trident Capital 4 BrightRoll, JiWire, Turn



15

On August 19h, 2015

INVESTED IN

Transaction Overview: $45 million of Series B venture funding from lead investor Tenaya Capital.

Sequoia Capital, Lumia Capital, and SoftTech VC also participated Puts pre-money valuation at $141M

Target Description Provider of an email and mobile marketing and analytics platform. The

company's platform utilizes data insights to deliver messages to consumers on the right channel, at the right time

Transaction Commentary: “The rules for marketing have changed, and so have the technology

requirements,” said Adam Marchick, co-founder and CEO of Kahuna. “With the latest evolution of the Kahuna platform, businesses will be able to augment their ability to connect meaningfully with people across all channels and devices, today and in the future. The Series B investment will enable us to further build on the platform’s capabilities to serve the evolving needs of our customers.”

“The company is just getting started, yet is already serving many of the world’s best marketers,” said Ben Boyer, managing director of Tenaya Capital. “It is a once-in-a-generation opportunity to guide the entire marketing industry through a major paradigm shift. It’s the age of ‘personal communication at scale,’ and Kahuna is front and center.”

Internet Advertising Investment Case Study

_______ Source: PitchBook, Company Press Release

16

15+ Years of Internet Advertising Success

IPO

Lead Manager

IPO

Lead Manager

IPO

Lead Manager

HAS ACQUIRED

Fairness Opinion to the Buyer

IPO

Co-Manager

HAS BEEN ACQUIRED BY

Financial Advisor to the Seller

_______ Certain transactions executed by Headwaters TMT bankers at prior firms














A DIVISION OF






17

Recent Awards and Nominations






A DIVISION OF



A PORTFOLIO COMPANY OF



A PORTFOLIO COMPANY OF


Headwaters Technology, Media & Telecom (TMT) team has won awards for

2014 Online and Mobile Tech Deal of the Year and 2014 Consumer Services Deal of the Year

and back-to-back M&A Advisor TMT Deal of the Year awards

2012 TMT DEAL OF THE YEAR <$100M

CONSUMER SERVICES

DEAL OF THE YEAR



CORPORATE / STRATEGIC ACQUISITION

OF THE YEAR

2014 ONLINE AND MOBILE TECH DEAL

OF THE YEAR





18

Contact Us

www.headwatersmb.com

John Batdorf Managing Director

Head of Software & Internet Investment Banking

Office: (415) 926-7454

Cell: (415) 847-8805 [email protected]

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19

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