2014 Software Equity Group Flash Report and Financial and …sandhill.com/wp-content/files_mf/seg_monthly_flash_report_december... · Software Equity Group is an investment bank and

Decem

ber

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Software Equity Group

Flash Report

Select M&A Transactions and Valuations and

Financial and Valuation Performance of 250+ Publicly Traded Software, SaaS and Internet

Companies by Product Category

• Industry leading boutique investment bank, founded in

1992, representing public and private software and

internet companies seeking:

• Strategic exit

• Growth capital

• Buyout

• Inorganic growth via acquisition

• Buy and sell-side mentoring

• Fairness opinions and valuations

• Sell-side client revenue range: $5 - 75 million

• Buy-side clients include private equity firms and

NASDAQ, NYSE and foreign exchange listed companies

• Clients span virtually every software technology, product

category, delivery model and vertical market

• Global presence providing advice and guidance to more

than 2,000 private and public companies throughout US,

Canada, Europe, Asia-Pacific, Africa and Israel

• Strong cross-functional team leveraging transaction,

operating, legal and engineering experience

• Unparalleled software industry reputation and track

record.

• Highly referenceable base of past clients

LEADERS IN SOFTWARE M&A

We Do Deals.

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

EXTENSIVE GLOBAL REACH

SEG Research Distribution

Current Sell-side Representation

Recent Sell-side Representation

• SEG currently represents software companies in the United States, Canada, France, Germany, Australia & Saudi Arabia

• In addition to the countries listed above, SEG has recently represented software companies in the United Kingdom, France, Netherlands, Israel, and South Africa

• SEG’s Quarterly and Annual Software Industry Equity Reports and Monthly Flash Reports are distributed to an opt-in list of 50,000 public software company CEOs, software entrepreneurs, private equity managing directors, VCs, high tech corporate lawyers, public accountants, etc. in 76 countries.


Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has guided and advised companies on five continents, including privately-held software and technology companies in the United States, Canada, Europe, Asia Pacific, Africa and Israel. We have represented public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also advises several of the world's leading private equity firms. We are ranked among the top ten investment banks worldwide for application software mergers and acquisitions.

Our value proposition is unique and compelling. We are skilled and accomplished investment bankers with extraordinary software, internet and technology domain expertise. Our industry knowledge and experience span virtually every software product category, technology, market and delivery model, including Software-as-a-Service (Saas), software on-demand and perpetual license. We have profound understanding of software company finances, operations and valuation. We monitor and analyze every publicly disclosed software M&A transaction, as well as the market, economy and technology trends that impact these deals. We're formidable negotiators and savvy dealmakers who facilitate strategic combinations that enhance shareholder value.

Perhaps most important are the relationships we've built and the industry reputation we enjoy. Software Equity Group is known and respected by publicly traded and privately owned software and technology companies worldwide, and we speak with them often. Our Quarterly and Annual Software Industry Equity Reports are read and relied upon by more than thousands of industry executives, entrepreneurs and equity investors in sixty-one countries, and we have been quoted widely in such leading publications as The Wall Street Journal, Barrons, Information Week, The Daily Deal, The Street.com, U.S. News & World Report, Reuters, Mergers & Acquisitions, USA Today, Arizona Republic, Detroit Free Press, Entrepreneur Magazine, Softletter, Software Success, Software CEO Online and Software Business Magazine.

To keep your finger on the pulse of the software equity markets, subscribe to our Annual and Quarterly Research Reports.

Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. For a confidential consultation without obligation, please contact Kris Beible, Director, Business Development (858) 509-2800, [email protected] .

CONTACT INFORMATION:

Software Equity Group, L.L.C.12220 El Camino Real, Suite 320San Diego, CA 92130www.softwareequity.comp: (858) 509-2800

The information contained in this Report is obtained from sources we believe to be reliable, but no representation or guarantee is made about the accuracy or completeness of such information, or the opinions expressed herein. Nothing in this Report is intended to be a recommendation of a specific security or company or intended to constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any security. Software Equity Group LLC may have an interest in one or more of the securities or companies discussed herein. Financial data provided by Capital IQ.

This Report may not be reproduced in whole or in part without the expressed prior written authorization of Software Equity Group, L.L.C.Software Equity Group registers each Report with the U.S. Copyright Office and vigorously enforces its intellectual property rights.

ABOUT SOFTWARE EQUITY GROUP


List of Commonly Used Acronyms

CRM Customer Relationship Management

EBITDA Earnings before Interest, Taxes, Depreciation, and Amortization

ERP Enterprise Resource Planning

EV Enterprise Value

FCF Free Cash Flow

FORWARD Current EV / Next Four Quarters' Consensus Financial Estimates

NASDAQ National Association of Securities Dealers Automated Quotation System

PLM Product Lifecycle Management

R&D Research and Development

S&P Standard & Poor's

SaaS Software-as-a-Service

SEG Software Equity Group

SG&A Selling, General, & Administrative

SW Software

TTM Trailing Twelve Month

YoY Year-over-Year

YTD Year-to-date


http://www.softwareequity.com/


Additions:

Removals:

Acquired by Alliance Data Systems ($2.4B)

Conversant

Company Ticker Index

SEG Index Changes

Category

Upland Software UPLD SaaS Other


Previous Category

- Internet Ad Tech

Company Ticker Previous Index


Table of Contents

SEG Software Index

Select Software Industry M&A Transactions

SEG SaaS Index

SEG Internet Index




SEG Software Index


SEG SaaS Index

SEG Internet Index



Select November 2014 Software Industry M&A Transactions

Date

Announced Target

Target TTM

Revenue

($mm)

Enterprise

Value

($mm)

EV/

Revenue

EV/

EBITDA

Nov-01-2014 HCA Holdings, Inc. (NYSE:HCA) PatientKeeper, Inc. - - - -

Nov-01-2014 Safeguard Business Systems, Inc. MHC Associates, Inc. - - - -

Nov-01-2014 Ascensor Limited Refreshing Web Design Limited - - - -

Nov-02-2014 Samsung Electronics Co. Ltd. (KOSE:A005930) Proximal Data, Inc. - - - -

Nov-02-2014 SouthComm Communications, Inc. Cygnus Business Media, Inc., 11 Publications

And Seven Related Websites

- - - -

Nov-03-2014 Beijing Watertek Information Technology Co. Ltd

(SZSE:300324)

CS&S Intelligent Technology Co., Ltd. $74.1 $25.6 - -

Nov-03-2014 IHS Nigeria Plc (NGSE:IHS) Emerging Markets Telecommunication

Services Limited, 2,136 Towers In Nigeria

- - - -

Nov-03-2014 Actua Corporation (NasdaqGS:ACTA) FolioDynamix, Inc. - $210.0 - -

Nov-03-2014 Symphony Technology Group Dodge Data & Analytics LLC $170.0 $320.0 1.9x -

Nov-03-2014 Cornerstone OnDemand, Inc. (NasdaqGS:CSOD) Evolv, Inc. - $44.5 - -

Nov-03-2014 The Deal, LLC Management Diagnostics Limited - - - -

Nov-03-2014 GB Group plc (AIM:GBG) Transactis Limited $10.1 $9.6 1.0x -

Nov-03-2014 Epicor Software Corporation QuantiSense, Inc. - $15.9 - -

Nov-03-2014 Mindspark Interactive Network, Inc. Apalon Studio - - - -

Nov-03-2014 SheKnows LLC BlogHer Inc. - - - -

Nov-03-2014 West Corporation (NasdaqGS:WSTC) GroupCast, L.L.C. - $13.5 - -

Nov-03-2014 JP/Politikens Hus A/S Riidr ApS - - - -

Nov-03-2014 Unchained Apps Limited Social Agent Limited - - - -

Nov-03-2014 Freelancer Limited (ASX:FLN) SydStart - - - -

Nov-03-2014 Omnigon Communications LLC Touch Instinct ltd - - - -

Nov-04-2014 Biosign Technologies Inc. (OTCPK:BITK.F) QLine Solutions Inc. $1.0 $3.1 3.1x 7.8x

Nov-04-2014 Hostnordic A/S Servicegruppen For Dataudstyr A/S, Outsourcing & Hosting Activities - - - -

Nov-04-2014 Safaricom Limited (NASE:SCOM.O) Essar Telecom Kenya Limited - - - -

Nov-04-2014 LOGO d.o.o. Dir.BG AD (BUL:6DI) $1.7 $3.7 2.3x -

Nov-04-2014 ABB Ltd. (SWX:ABBN) Spirit IT b.v. - - - -

Nov-04-2014 KTCS Corporation (KOSE:A058850) KT Commerce Inc. $427.8 $20.0 0.0x -

Nov-04-2014 MasterCard Advisors, LLC 5one Marketing Limited - - - -

Nov-04-2014 Sterling Computers Corporation BlueSpace Software Corporation - - - -

Nov-04-2014 T2 Systems, Inc. CASE Parking, LLC - - - -

Nov-04-2014 Fuse Powered Inc. Corona Labs Inc. - - - -

Nov-04-2014 - DAILY DEALY Groupe Holdings, Inc. - - - -

Nov-04-2014 FilmTrack Inc. Dashbox Inc. - - - -

Nov-04-2014 eLearning Brothers, LLC eLearningImages.com - - - -

Nov-04-2014 Immobilien Scout GmbH Flowfact AG - - - -

Nov-04-2014 Ogilvy South Africa (Proprietary) Limited Gloo Digital Design (Proprietary) Limited $6.4 - - -

Nov-04-2014 Grace Hill, Inc. LeaseHawk, LLC, Wings and PLU Learning Management Systems and Catalog of Online Educational Courses - - - -

Nov-04-2014 Behavioral Science Technology, Inc. Regulatory Consultants, Inc. - - - -

Nov-04-2014 Ipreo Holdings LLC Shareholder InSite, Inc. - - - -

Nov-04-2014 Infogroup Inc. Specialized Fundraising Services, Inc. - - - -

Nov-04-2014 The CHR Group, Inc. The Idea Workshop Limited - - - -

Nov-04-2014 NonProfitEasy, Inc. URUUT, Inc. - - - -

Nov-04-2014 WebPT, Inc. WebOutcomes, LLC - - - -

Nov-05-2014 ICF International Inc. (NasdaqGS:ICFI) Olson, Inc. - $295.0 - -

Nov-05-2014 Adapt IT (Pty) Limited AspiviaUnison Proprietary Limited - $18.4 - -

Nov-05-2014 Gawk Incorporated (OTCPK:GAWK) WebRunners Inc. - $1.0 - -

Nov-05-2014 Sogelink, SAS Atlog SARL $15.0 - - -

Nov-05-2014 JUST EAT plc (LSE:JE.) Eatcity Limited - - - -

Nov-05-2014 Xero Limited. (NZSE:XRO) Monchilla, Inc. - $7.1 - -

Nov-05-2014 Matrix42 AG Silverback MDM Pty Ltd - - - -

Nov-05-2014 - Valpak of Silicon Valley - - - -

Nov-05-2014 Ankama Com Wizcorp Inc. - - - -

Acquirer



Date

Announced Target

Target TTM

Revenue

($mm)

Enterprise

Value

($mm)

EV/

Revenue

EV/

EBITDA

Nov-06-2014 BrandMaker GmbH advertzoom GmbH - - - -

Nov-06-2014 GeoSpectrum Technologies Inc. Akoostix, Inc. - - - -

Nov-06-2014 MiX Telematics Limited (JSE:MIX) COMPASS FLEET MANAGEMENT (PTY) LTD - $5.2 - -

Nov-06-2014 Sysoco SAS Easyphone France SAS - - - -

Nov-06-2014 The Jackson Clinic eRAD Image Medical, Inc. - - - -

Nov-06-2014 Dentsu Aegis Network Ltd. Fetch Media Ltd - - - -

Nov-06-2014 Copyright Clearance Center, Inc. Infotrieve, Inc. - - - -

Nov-06-2014 Remarkable Pendragon Pendragon Consultants, Ltd. - - - -

Nov-06-2014 Ticketmaster Entertainment, LLC Seatwave Limited - - - -

Nov-06-2014 Velocis The Strategy Artists LLC - - - -

Nov-06-2014 IT-Ernity Internet Services B.V. XL Internet Services BV - - - -

Nov-07-2014 LivePerson Inc. (NasdaqGS:LPSN) ContactAtOnce! LLC - $70.0 - -

Nov-07-2014 Manodaktaras.lt Sveikas.lt, Manodieta.lt and Mydiet.pl - - - -

Nov-08-2014 Searce, Inc. EraTera Technologies Private Limited - - - -

Nov-08-2014 Track Media, LLC Rockford Record American - - - -

Nov-09-2014 24/7 Inc. IntelliResponse Systems Inc. - - - -

Nov-10-2014 NeoFirma, Inc. Agelio Networks, Inc. - - - -

Nov-10-2014 Times Internet Limited Akuate Internet Services Private Limited - - - -

Nov-10-2014 AppDirect Leftronic, Inc. - - - -

Nov-10-2014 Market Track, LLC Media Iris, LLC - - - -

Nov-10-2014 Martello Technologies, Inc. NetVitesse SARL - - - -

Nov-10-2014 Legacy Education Alliance, Inc. (OTCBB:LEAI) Priced In Corp. - - - -

Nov-10-2014 MediaMath, Inc. Rare Crowds, Inc. - - - -

Nov-10-2014 Fullscreen, Inc. Rooster Teeth Productions, LLC - - - -

Nov-10-2014 Bray Leino Limited Speed Communications Limited - $0.4 - -

Nov-10-2014 Yahoo Japan Corporation (TSE:4689) FROSK, Inc. - - - -

Nov-10-2014 H.I.G. Capital, LLC Pegasus Electronic Distribution Services - - - -

Nov-11-2014 Hilan Ltd. (TASE:HLAN) Ness Technologies Israel Ltd. $200.7 $42.0 0.2x -

Nov-11-2014 Keywords Studios plc (AIM:KWS) Lakshya Digital Pvt. Ltd. $4.1 $4.0 1.0x -

Nov-11-2014 Bouygues Telecom S.A. 1913 SAS - - - -

Nov-11-2014 Trimble Navigation Limited (NasdaqGS:TRMB) Amtech Group Limited - - - -

Nov-11-2014 MDLIVE Inc. Breakthrough Behavioral, Inc. - - - -

Nov-11-2014 Cloud Equity Group Just199 Hosting - - - -

Nov-11-2014 Porta Communications Plc (AIM:PTCM) PPS Group Ltd. - $8.7 - -

Nov-11-2014 Liaison International, Inc. Spectrum Edu Solutions LLC - - - -

Nov-11-2014 Northedge Capital Partners Sumo Digital Ltd. - - - -

Nov-11-2014 MWW Group, Inc. The Braben Company (London) Limited - - - -

Nov-11-2014 Semcasting, Inc. The Marketing Grid Inc. - - - -

Nov-11-2014 Thompson Brand Partners Ltd. What Creative Limited - - - -

Nov-11-2014 HockeyTech Canada ULC NewSport Media Inc. - - - -

Nov-12-2014 Overtech Corp. (OTCBB:OVET) Overtech Corp., Prior to Reverse Merger with Beatmungspflege 24 GmbH - - - -

Nov-12-2014 ABILITY Network Inc. MD On-Line, Inc. - - - -

Nov-12-2014 Truven Health Analytics Inc. HBE Solutions LLC - - - -

Nov-12-2014 PSI Aktiengesellschaft für Produkte und Systeme der Informationstechnologie (XTRA:PSAN)Broner Metals Solutions Ltd - $15.0 - -

Nov-12-2014 Ansira, Inc. Co-Optimum, Inc. - - - -

Nov-12-2014 SocialRadar, Inc. Gridskippr, Inc. - - - -

Nov-12-2014 Tempest Interactive Media, LLC Internet Destination Sales System, Inc. - - - -

Nov-12-2014 SeoPult.Ru MultiLogin - - - -

Nov-12-2014 Target Corp. (NYSE:TGT) PoweredAnalytics, Inc. - - - -

Nov-12-2014 Lotus Innovations, LLC Resolve Systems - - - -

Nov-12-2014 Idera, Inc. spyn Corporation - - - -

Acquirer



Date

Announced Target

Target TTM

Revenue

($mm)

Enterprise

Value

($mm)

EV/

Revenue

EV/

EBITDA

Nov-12-2014 - Cubed Asia Pte. Ltd. - - - -

Nov-13-2014 News Corporation (NasdaqGS:NWSA) Move, Inc. $239.7 $916.4 3.8x 115.4x

Nov-13-2014 Waterfall International Inc. Archer USA Inc., Marketing Services Business - $3.9 - -

Nov-13-2014 Microsoft Corporation (NasdaqGS:MSFT) Aorato Ltd. - - - -

Nov-13-2014 Bray Leino Limited Brandon Hill Communications Limited - - - -

Nov-13-2014 Nordstjernan AB Bygghemma Sverige AB - - - -

Nov-13-2014 Get It, LLC Employ Insight LLC - - - -

Nov-13-2014 MakerBot Industries, LLC Layer By Layer, Inc. - - - -

Nov-13-2014 Eventbase Technology Inc. LetsLynk - - - -

Nov-13-2014 The Foundry Visionmongers Ltd. Made With Mischief, Inc. - - - -

Nov-13-2014 My.com US Inc. MapsWithMe GmbH - - - -

Nov-13-2014 Gemalto NV (ENXTAM:GTO) Marquis ID Systems - - - -

Nov-13-2014 Jigsaw Systems Limited Matrix Software Ltd - - - -

Nov-13-2014 Blackboard Inc. ParentLink - - - -

Nov-13-2014 Zhong Nan Investments Limited Changshu Jinshi Advertising Media Company Limited $1.2 $17.8 14.8x -

Nov-14-2014 GSE Power Systems, Inc. Hyperspring, LLC and 50% interest in IntelliQlik, LLC - $11.9 - -

Nov-14-2014 Conway, Dierking & Hillman, Inc. Blue Sphere Solutions, Inc. - - - -

Nov-15-2014 Born To Sell, LLC CoveredCallCalculator.net - - - -

Nov-15-2014 EFactor Group Corp. (OTCPK:EFCT) Robson Dowry Associates Limited - $0.3 - -

Nov-17-2014 SkyFii Ltd. RKS Consolidated Limited (ASX:SKF) $0.0 - - -

Nov-17-2014 Billion Fair International Investment Limited Redgate Ventures Limited - $0.1 - -

Nov-17-2014 The Rubicon Project, Inc. (NYSE:RUBI) Shiny Inc. - - - -

Nov-17-2014 Castleton Technology plc (AIM:CTP) Documotive Limited $4.4 $6.4 1.5x 9.3x

Nov-17-2014 X Factor Digital Marketing CreepyCupid.com - - - -

Nov-17-2014 Just-Eat Canada Inc. Delivery Town Ltd. - - - -

Nov-17-2014 The Rubicon Project, Inc. (NYSE:RUBI) isocket, inc. - $23.2 - -

Nov-17-2014 foodpanda GmbH Kinboy International SA, Mexican Business - - - -

Nov-17-2014 Meredith Corporation (NYSE:MDP) MyWedding LLC - - - -

Nov-17-2014 Clever Age SAS Progiweb SA $2.2 - - -

Nov-17-2014 E-LOUE SAS Sejourning SA - $4.4 - -

Nov-17-2014 Squarespace, Inc. Sendspree, Inc. - - - -

Nov-17-2014 Groupon, Inc. (NasdaqGS:GRPN) Swarm Solutions, Inc. - - - -

Nov-17-2014 foodpanda GmbH Trinket Info Services Pvt. Ltd. $1.6 - - -

Nov-17-2014 Accruent, LLC VFA, Inc. - - - -

Nov-18-2014 Shenzhen Infotech Technologies Co.,Ltd. (SZSE:300085) Beijing eMay Softcom Technology Ltd. - $48.1 - -

Nov-18-2014 Intel Corporation (NasdaqGS:INTC) LSI Corporation, Axxia Networking Business and Related Assets $113.0 $650.0 5.8x -

Nov-18-2014 Cox Automotive, Inc. Xtime Inc. - $325.0 - -

Nov-18-2014 Cross Marketing Inc. (TSE:3675) Kadence International Business Research Pte. Ltd. $27.7 $2.9 0.1x -

Nov-18-2014 Merkle Inc. 500friends, Inc. - - - -

Nov-18-2014 - Censornet Ltd. - - - -

Nov-18-2014 Ve Interactive Ltd. GDM Digital - $11.0 - -

Nov-18-2014 Campaign Monitor Pty Ltd GetFeedback - - - -

Nov-18-2014 Cupcake Digital, Inc. Little Bit Studio, LLC - - - -

Nov-18-2014 Fingerpaint Marketing, Inc. Olson Communications, Inc. - - - -

Nov-18-2014 MedeAnalytics, Inc. ONFocus Healthcare, Inc. - - - -

Nov-18-2014 ROLI Ltd. Raw Material Software ltd. - - - -

Nov-18-2014 SOPRANO Design Pty Ltd. SITmobile S.L. - - - -

Nov-19-2014 VimpelCom Ltd. (NasdaqGS:VIP) 61.67% of Smarts Cheboksary and 100% of Astrakhan GSM Zao - - - -

Nov-19-2014 ScholarChip Card LLC ABE Systems, Inc. - - - -

Nov-19-2014 Kik Interactive, Inc. Endemic Mobile Inc. - - - -

Nov-19-2014 Return Path, Inc. Motley Bunch Inc. - - - -

Acquirer



Date

Announced Target

Target TTM

Revenue

($mm)

Enterprise

Value

($mm)

EV/

Revenue

EV/

EBITDA

Nov-19-2014 Kik Interactive, Inc. Relay - - - -

Nov-19-2014 Pluralsight LLC Smarterer, Inc. - $75.0 - -

Nov-19-2014 Graham Media Group, Inc. SocialNewsdesk, Inc. - - - -

Nov-19-2014 Charles Mason & Associates Limited Vibe Ltd. - - - -

Nov-19-2014 The Descartes Systems Group Inc (TSX:DSG) AirClic, Inc. - $29.7 - -

Nov-20-2014 Cognizant Technology Solutions Corporation (NasdaqGS:CTSH) TriZetto Corporation - $2,700.0 - -

Nov-20-2014 Micro Focus International plc (LSE:MCRO) The Attachmate Group, Inc. $933.4 $2,302.4 2.5x 13.7x

Nov-20-2014 Vista Equity Partners NAVEX Global, Inc. - - - -

Nov-20-2014 Global Healthcare Exchange, LLC Vendormate, Inc. - - - -

Nov-20-2014 Zizzo Group Advertising and Public Relations, Inc. Clear Verve Marketing, LLC - - - -

Nov-20-2014 The Red Agency Pty Ltd. Gray Media Services Pty Ltd. - - - -

Nov-20-2014 Automic Software GmbH levatis Software Service GmbH - - - -

Nov-20-2014 Madison Capital Funding LLC; GE Asset Management Incorporated; RLJ Equity Partners, LLC; Brookside Mezzanine Partners; RLJ Credit Opportunity FundMarketCast, Inc. - - - -

Nov-20-2014 OptionsCity Software, Inc. Optionshop Brokerage, LLC - - - -

Nov-20-2014 Central Data Storage Optyn, Inc. - - - -

Nov-20-2014 AvidXchange, Inc. Piracle, Inc. - - - -

Nov-20-2014 VimpelCom Ltd. (NasdaqGS:VIP) Yaroslavl-GSM PJSC - - - -

Nov-21-2014 Yahoo! Inc. (NasdaqGS:YHOO) Cooliris, Inc. - - - -

Nov-21-2014 iVentureCapital GmbH Dating Café Vermittlungsagentur GmbH - - - -

Nov-21-2014 Accela, Inc. Decade Software Company, LLC - - - -

Nov-21-2014 League Sports Services, LLC DMT Web Ventures Inc., DirectRoster - - - -

Nov-21-2014 ANXBTC Bitcoin Exchange Justcoin AS - - - -

Nov-21-2014 Rampart Hosting, LLC Q1 Communicators, Inc. - - - -

Nov-21-2014 Upland Software, Inc. (NasdaqGM:UPLD) Solution Q, Inc. - $5.8 - -

Nov-21-2014 Mobile Embrace Limited (ASX:MBE) The Performance Factory Pty. Ltd. - $6.1 - -

Nov-24-2014 Asmodée Editions SAS Fantasy Flight Publishing, Inc. - - - -

Nov-24-2014 - Cellular GmbH $10.0 - - -

Nov-24-2014 Flick Fusion, L.L.C. Dealer Fusion, Inc. - - - -

Nov-24-2014 Speed Commerce, Inc. (NasdaqGM:SPDC) Fifth Gear, LLC $50.0 $74.5 1.5x -

Nov-24-2014 Webedia SAS Gameo Consultin, SARL - - - -

Nov-24-2014 Global Experience Specialists, Inc. N200 Holding B.V. - $13.7 - -

Nov-24-2014 Altisource Portfolio Solutions S.A. (NasdaqGS:ASPS) Owners Advantage, LLC - $27.0 - -

Nov-24-2014 Slice Technologies, Inc. Unroll.Me Inc. - - - -

Nov-24-2014 Equities.com, Inc. Vantage Communications Ltd. - - - -

Nov-25-2014 EA Holdings Berhad (KLSE:EAH) Murasaki Technology Sdn Bhd - $5.7 - -

Nov-25-2014 Aetna Inc. (NYSE:AET) bswift, LLC - $400.0 - -

Nov-25-2014 QHR Corporation (TSXV:QHR) Medeo Corporation - $3.0 - -

Nov-25-2014 - ABC PROD, abctoutvu.com - - - -

Nov-25-2014 The Chope Group Pte. Ltd. Appic Technologies Pte Ltd. - - - -

Nov-25-2014 Alpix Management, SAS EUTECH-SSII SARL - - - -

Nov-25-2014 ATR Systems, Inc. F & E TimeSystems - - - -

Nov-25-2014 GAMEVIL Inc. (KOSDAQ:A063080) Waplesoft Corporation - - - -

Nov-26-2014 Genscape, Inc. Energy Fundamentals GmbH - - - -

Nov-26-2014 Founder Collective Hellopeter.com - - - -

Nov-26-2014 Accel Partners; Monashees Capital+; Endeavor Global, Inc., Investment Arm Neoway Tecnologia Integrada e Negocios S.A. - - - -

Nov-26-2014 SecureAlert, Inc (OTCPK:SCRA) G2 Research Ltd. - $4.1 - -

Nov-26-2014 - BTX Trader LLC - - - -

Nov-27-2014 YFM Equity Partners LLP Business Collaborator Limited - $6.3 - -

Nov-28-2014 Next Co., Ltd. (TSE:2120) Trovit Search S.L. $22.2 $101.0 4.6x 13.6x

Nov-28-2014 Newtree Group Holdings Limited (SEHK:1323) DigiSmart (Group) Limited $0.7 - - -

Nov-28-2014 accesso Technology Group plc (AIM:ACSO) VisionOne Worldwide Ltd. $7.6 $33.4 4.4x 12.4x

Acquirer



Date

Announced Target

Target TTM

Revenue

($mm)

Enterprise

Value

($mm)

EV/

Revenue

EV/

EBITDA

Nov-28-2014 Koha Capital Ou Alma Media Oyj, City24 - - - -

Nov-28-2014 First 10 Digital Limited Fist of Fury Ltd. - - - -

Nov-28-2014 Ve Interactive Ltd. qunb SAS - - - -

Nov-28-2014 AWS Truepower, LLC Mistaya Engineering Inc. - - - -

Nov-28-2014 - Digital Vision (UK) Limited - $0.8 - -

Nov-30-2014 ZenithOptimedia AG AKM3 GmbH - - - -

Nov-30-2014 SS&C Technologies Holdings, Inc. (NasdaqGS:SSNC) DST Global Solutions Limited - $95.0 - -

Nov-30-2014 QuestionPro Inc. RapidEngage - - - -

Acquirer



SEG Software Index


SEG SaaS Index

SEG Internet Index



SEG Software Index: All Categories

Market Cap EV

TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

SEG Software Index $2,129.7 $2,045.4 $605.3 67.5% 18.1% 7.8% 3.0x 15.2x 2.9x 11.4x 0.9%

Billing & Service Management $862.4 $937.0 $424.3 55.4% 26.1% 12.9% 2.2x 9.9x 1.9x 8.5x 4.7%

Business Intelligence $2,094.8 $2,222.5 $574.5 77.1% 12.6% 12.5% 3.2x 14.3x 3.0x 13.1x -6.1%

Development Platforms $1,294.3 $1,033.0 $325.6 71.1% 18.9% 4.4% 2.0x 10.2x 2.5x 8.8x 1.0%

Engineering & PLM $4,861.0 $4,815.9 $1,061.9 84.2% 20.7% 6.2% 3.5x 16.3x 3.5x 13.0x -4.3%

Enterprise Resource Planning $6,855.2 $7,419.5 $2,119.9 61.4% 28.3% 2.9% 3.5x 12.4x 3.5x 9.5x 1.1%

Financial & Accounting $2,235.5 $2,745.5 $789.0 56.0% 25.2% 6.1% 3.2x 14.0x 3.4x 12.1x -7.4%

Gaming $2,472.6 $2,251.8 $2,150.8 63.6% 19.2% 3.1% 1.3x 9.7x 1.2x 9.0x 24.4%

Healthcare $1,155.4 $1,550.8 $577.5 53.2% 16.6% 3.2% 2.4x 14.5x 2.2x 10.1x 2.1%

IT Conglomerates $160,493.2 $169,462.6 $91,505.0 61.4% 35.1% 2.9% 3.6x 9.9x 3.3x 8.5x 13.4%

Mobile Solutions/Content $704.3 $556.9 $306.4 56.9% 2.5% 22.0% 2.6x 25.0x 2.0x 11.1x -9.2%

Networking & Network Performance Management $1,956.6 $1,723.0 $483.6 70.6% 9.8% 15.1% 2.3x 20.3x 2.1x 10.1x -1.0%

Security $1,259.0 $1,090.0 $182.4 75.5% 7.6% 18.5% 5.4x 25.7x 4.8x 20.5x 14.2%

Storage, Data Mgmt & Integration $6,466.2 $5,738.2 $1,615.8 79.8% 17.5% 3.1% 2.7x 9.2x 2.8x 7.5x -4.5%

Systems Management $11,173.6 $11,041.0 $2,380.2 85.3% 25.0% 16.3% 4.6x 19.2x 4.1x 12.4x 8.7%

Vertical - Finance $4,627.6 $4,876.7 $927.2 44.5% 29.9% 5.6% 4.4x 14.0x 4.1x 12.6x 9.9%

Vertical - Other $1,921.5 $2,038.6 $456.6 47.4% 11.8% 16.5% 3.7x 26.9x 3.3x 17.1x 4.8%

TTM Revenue Growth 7.8%

TTM EBITDA Growth -17.4%

TTM Earnings Growth -44.3%

Gross Profit Margin 67.5%

EBITDA Margin 18.1%

Net Income Margin -23.2%

SG&A Expenses as a % of Total Revenue 57.3%

R&D Expenses as a % of Total Revenue 19.2%

Current Ratio 2.1

Quick Ratio 2.0

Cash as Percent of Market Cap 11.1%

Avg Days Outstanding: Accounts Receivable 63

Avg Days Outstanding: Accounts Payable 29

Working Capital to TTM Operating Expense Ratio 0.4x

Levered FCF Margin 5.5%

Cash from Operations Growth (YoY) 22.3%

Cash from Investing Growth (YoY) -82.5%

Cash from Financing Growth (YoY) 61.8%

Levered FCF Growth (YoY) 27.5%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved December 2014 Monthly Flash Report

Category Name

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

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SEG SW Index Software Stock Market Return: January - November 2014

DOW S&P NASDAQ SEG SW Index


SEG Software Index


SEG SaaS Index

SEG Internet Index



SEG SaaS Index: All Categories

Market Cap EV

TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

SEG SaaS Index $948.7 $844.3 $142.0 65.5% -6.9% 29.1% 5.6x 61.1x 4.8x 33.8x -10.8%

CRM & Marketing $1,073.0 $905.3 $157.9 68.5% -6.7% 28.4% 5.0x 90.9x 4.1x 30.5x -8.6%

ERP & Supply Chain $948.7 $807.9 $120.5 68.2% -8.7% 30.6% 5.5x 60.7x 4.4x 27.5x -18.9%

Vertically Focused $1,122.3 $940.2 $145.3 62.3% 7.9% 38.1% 6.4x 46.2x 5.2x 27.1x -8.2%

Workforce Management $1,445.0 $1,372.2 $128.7 59.9% -14.8% 31.8% 7.0x 59.3x 5.3x 42.7x -3.4%

SaaS Other $557.9 $644.3 $163.9 64.6% -11.2% 23.9% 4.4x 74.5x 3.8x 75.5x -12.8%


TTM EBITDA Growth -17.4%

TTM Earnings Growth -44.3%


EBITDA Margin -6.9%

Net Income Margin -23.2%



Current Ratio 2.1

Quick Ratio 2.0




Working Capital to TTM Operating Expense Ratio 0.4x





Levered FCF Growth (YoY) 27.5%


Category Name




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SEG SaaS Index Stock Market Return: January - November 2014

DOW S&P NASDAQ SEG SaaS


SEG Software Index


SEG SaaS Index

SEG Internet Index



SEG Internet Index: All Categories

Category Name Market Cap EV

TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

SEG Internet Index $1,224.9 $1,257.8 $495.7 63.7% 8.5% 20.5% 2.4x 24.7x 2.1x 13.7x -5.3%

Ad Tech & Lead Generation $1,311.5 $1,186.5 $658.4 53.3% 3.7% 27.7% 2.2x 31.2x 2.0x 19.3x -28.6%

Commerce $674.6 $585.1 $418.6 39.7% 7.7% 13.5% 1.5x 29.2x 1.4x 14.9x -6.5%

Content & Media $2,664.1 $2,328.8 $597.4 49.3% 10.6% 12.4% 2.2x 28.1x 2.2x 11.0x -5.3%

Gaming $2,147.63 $1,630.8 $751.6 69.8% 18.3% 19.2% 2.5x 22.9x 2.0x 12.1x -19.1%

Infrastructure $736.47 $539.0 $317.6 62.4% 4.7% 7.2% 1.4x 17.5x 1.3x 11.3x 1.1%

Search $46,935.17 $44,857.5 $5,128.3 67.4% 32.8% 29.1% 5.6x 16.5x 5.0x 12.0x -1.8%

Services $815.49 $721.7 $235.4 73.3% 7.1% 29.6% 2.5x 32.2x 2.1x 15.4x -13.5%

Social $15,471.00 $14,022.3 $1,017.1 72.9% 7.8% 54.5% 12.0x 73.8x 8.5x 34.9x -12.7%

Travel $5,327.21 $5,144.9 $1,014.3 82.8% 14.5% 23.7% 4.9x 18.4x 5.1x 15.1x 4.4%


TTM EBITDA Growth 8.4%

TTM Earnings Growth 10.7%


EBITDA Margin 8.5%

Net Income Margin 1.0%



Current Ratio 2.5

Quick Ratio 2.1




Working Capital to TTM Operating Expense Ratio 0.5





Levered FCF Growth (YoY) -0.1%





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SEG Internet Index Stock Market Return: January - November 2014

DOW S&P NASDAQ SEG Internet Index

To download the remaining portions of Software Equity Group’s complimentary Software Industry Flash Report, which includes the complete list of software M&A transactions as well as detailed financial and market performance of more than 250 publicly traded software, SaaS, and Internet companies, sorted across nearly 30 product categories, visit our website: http://www.softwareequity.com/research_flash_reports.aspx

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