2014 Software Equity Group Flash Report and Financial …sandhill.com/wp-content/files_mf/201409monthlyflashreportsandhill.pdf · 2014 Software Equity Group Flash Report ... Software

Septe

mber

20

14

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.

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

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

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/


Removals:

Acquired by Oracle Corporation ($5.3 bn)


Previous Category

Vertical - OtherSoftware-

SEG Index Changes

Company Ticker Previous Index

Micros Systems


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 August 2014 Software Industry M&A Transactions

Date

Announced Target

Target TTM

Revenue

($mm)

Enterprise

Value

($mm)

EV/

Revenue

EV/

EBITDA

Aug-01-2014 PTL International Ltd. Apco Limited - - - -

Aug-01-2014 Oi Arcade Creative Limited - - - -

Aug-01-2014 Google Inc. (NasdaqGS:GOOGL) Baarzo, Inc. - - - -

Aug-01-2014 Exelis Inc. (NYSE:XLS) Barco Orthogon GmbH - $17.5 - -

Aug-01-2014 cloudControl Inc. Docker, Inc., DotCloud PaaS Business - - - -

Aug-01-2014 Project: WorldWide, Inc. Pitch - - - -

Aug-01-2014 - Simpel BV - - - -

Aug-01-2014 CYBERLINKS co.,LTD. (JASDAQ:3683) Smarts Japan Co., Ltd., SEIL Series

Business

- - - -

Aug-01-2014 Elite Group Alliance SQCC LLC - - - -

Aug-01-2014 Runge ICT Group Pty Limited VostroCloud - - - -

Aug-03-2014 Frontline Technologies Group LLC Aspex Solutions - - - -

Aug-03-2014 HumanTouch, LLC CorasWorks Corporation - - - -

Aug-03-2014 ALTABOX S.L. Focus on Emotions SL - - - -

Aug-04-2014 KPMG LLP AXIA Consulting, LLC., Workday Consulting Practice - - - -

Aug-04-2014 Gill Studios Inc. Barton Nelson, Inc. - - - -

Aug-04-2014 Revamp Corporation Bemool - - - -

Aug-04-2014 Square, Inc. Caviar - - - -

Aug-04-2014 Educational Credit Management Corporation College Abacus - - - -

Aug-04-2014 Possible Worldwide, LLC Double Encore, Inc $8.0 - - -

Aug-04-2014 Civica Pty Limited England Consulting Pty Ltd - - - -

Aug-04-2014 Rhapsody International Inc. Extension Entertainment, Inc. - - - -

Aug-04-2014 Legend Pictures, LLC Geek & Sundry - - - -

Aug-04-2014 BRQ IT Services InfoSolution - - - -

Aug-04-2014 Technology Nexus AB INTEGID GmbH - - - -

Aug-04-2014 PROACTIS Holdings PLC (AIM:PHD) Intelligent Capture Limited $2.4 $2.3 1.0x -

Aug-04-2014 Enghouse Systems Limited (TSX:ESL) Jinny Software Ltd. $22.7 $17.7 0.8x -

Aug-04-2014 State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank)LLC Interproject - - - -

Aug-04-2014 TractManager, Inc. MD Buyline, Inc. - - - -

Aug-04-2014 comScore, Inc. (NasdaqGS:SCOR) MdotLabs, Inc. - $4.5 - -

Aug-04-2014 Tune, Inc MobileDevHQ - - - -

Aug-04-2014 Taboola.com Ltd. Perfect Market, Inc. - - - -

Aug-04-2014 LexisNexis Risk Solutions, Inc. PoliceReports.US, LLC - - - -

Aug-04-2014 April-Six Limited Proof Communication Ltd. - - - -

Aug-04-2014 Continuum Managed Services, LLC Righteous Software, Inc. - - - -

Aug-04-2014 Rhapsody International Inc. Schematic Labs, Inc. - - - -

Aug-04-2014 InComm Holdings, Inc. SIRAS, Inc. - - - -

Aug-04-2014 BroadSoft, Inc. (NasdaqGS:BSFT) Systems Design & Development, Inc. - - - -

Aug-04-2014 The News Funnel, LLC The CRE App Review - - - -

Aug-05-2014 Rocket Fuel Inc. (NasdaqGS:FUEL) [x+1], Inc. $72.0 $236.0 3.3x -

Aug-05-2014 Tapjoy, Inc. 5Rocks, Inc. - - - -

Aug-05-2014 Foxit Software Incorporated Dataintro Software SL - - - -

Aug-05-2014 CityGro, Inc. Digital Blitz Marketing - - - -

Aug-05-2014 Segulah Advisor AB Docu Group Sweden AB $45.7 - - -

Aug-05-2014 Epic Games, Inc. Epic Games UK - - - -

Aug-05-2014 SurveyMonkey Inc. Fluidware - $20.0 - -

Aug-05-2014 Lamar Advertising Co. (NasdaqGS:LAMR) Marco Outdoor Advertising, Inc. - - - -

Aug-05-2014 Delivery Agent, Inc. Musictoday, LLC - - - -

Aug-05-2014 Ocean Outdoor Advertising Limited Signature Outdoor Ltd. - $25.3 - -

Aug-05-2014 Comverse, Inc. (NasdaqGM:CNSI) Solaiemes, S.L. - - - -

Aug-05-2014 Bullhorn, Inc. The Code Works Inc. - - - -

Aug-05-2014 Premier Healthcare Solutions, Inc. TheraDoc, Inc. - $117.0 - -

Acquirer



Date

Announced Target

Target TTM

Revenue

($mm)

Enterprise

Value

($mm)

EV/

Revenue

EV/

EBITDA

Aug-05-2014 Yume Technology Co., Ltd. (JASDAQ:2458) Unitech Soft Inc. $3.7 $0.9 0.3x -

Aug-06-2014 u-blox Holding AG (SWX:UBXN) Advanced Network Technologies S.A. - $6.9 - -

Aug-06-2014 UpLexis Clip DO Ltda - - - -

Aug-06-2014 YouTube, LLC Directr, Inc. - - - -

Aug-06-2014 Coupons.com Incorporated (NYSE:COUP) Eckim, LLC - - - -

Aug-06-2014 Home Marketing Limited McGrath Rainey Laird Ltd. - - - -

Aug-06-2014 FuseMail, LLC MXSweep Limited - - - -

Aug-06-2014 Unee Solutions Inc. Omni West Research LLC - - - -

Aug-06-2014 BluePhoenix Solutions USA Inc. Sophisticated Business Systems, Inc. - $23.5 - -

Aug-06-2014 Alpheus Communications, L.P. StratITsphere Data Center Solutions LLC, Retail Colocation Business Unit - - - -

Aug-06-2014 Corindus Vascular Robotics Inc. Your Internet Defender, Inc. (OTCPK:CVRS) $0.0 - - -

Aug-07-2014 IHS Nigeria Plc (NGSE:IHS) Emerging Markets Telecommunication Services Limited, 2,136 Towers In Nigeria - - - -

Aug-07-2014 MSDSonline Inc. Knowledge Management Innovations, Ltd. - - - -

Aug-07-2014 Digital Payments plc M2 Systems Corporation - $14.6 - -

Aug-07-2014 Intuit Inc. (NasdaqGS:INTU) PaySuite Limited - - - -

Aug-07-2014 Facebook, Inc. (NasdaqGS:FB) PrivateCore Inc. - - - -

Aug-07-2014 Yahoo Japan Corporation (TSE:4689) Synergy Marketing, Inc. (JASDAQ:3859) $39.0 $66.2 1.7x 12.0x

Aug-08-2014 Alpine 4 Automotive Technologies, Ltd. AutoTek, Inc., LotWatch and ServiceWatch Technology - - - -

Aug-08-2014 Misys Limited Custom Credit Systems, L.P. - - - -

Aug-08-2014 Valtech SA (ENXTPA:LTE) Neon Stingray Private Limited - - - -

Aug-08-2014 Huobi Technology Co.,Ltd Quick Wallet - - - -

Aug-08-2014 Gemalto NV (ENXTAM:GTO) SafeNet, Inc. - $890.0 - -

Aug-09-2014 Beaqon Pte. Ltd. Pacific Wave Pte Ltd. - $1.7 - -

Aug-11-2014 Get Real USA, Inc. (OTCPK:GTRL) 1Bitcoin network Inc. - - - -

Aug-11-2014 Sizmek Inc. (NasdaqGS:SZMK) Aerify Media LLC - $6.3 - -

Aug-11-2014 Apax Partners LLP Answers Corporation - - - -

Aug-11-2014 CMI Marketing, Inc. BabyNameWizard.com and

NameCandy.com

- - - -

Aug-11-2014 International Risk Management Institute, Inc. Captive.com, LLC - - - -

Aug-11-2014 Command Alkon Incorporated FiveCubits Inc. - - - -

Aug-11-2014 Alten GmbH ICT Automatisering NV, German Activities - - - -

Aug-11-2014 International Business Machines Corporation (NYSE:IBM) Lighthouse Security Group, LLC - - - -

Aug-11-2014 Allgeier SE (XTRA:AEI) Metasonic AG - - - -

Aug-11-2014 Cloudberry Mobile AS Nextnet AS, 2.6 GHz Spectrum License - - - -

Aug-11-2014 Beeline International Company OnForce, Inc. - - - -

Aug-11-2014 BSM Technologies Inc. (TSXV:GPS) Praxis Transportation Solutions Inc. - $3.0 - -

Aug-11-2014 Asure Software, Inc. (NasdaqCM:ASUR) Roomtag, LLC - $1.7 - -

Aug-11-2014 Space Time Insight, Inc. UTILICASE Inc., EPS-M Software - - - -

Aug-11-2014 Thinking Phone Networks, Inc. Whaleback Systems Corporation - - - -

Aug-12-2014 Oodrive Group Active Circle SA - - - -

Aug-12-2014 SmileGate Inc. AfreecaTV Co., Ltd., Tales Runner Game Business $11.1 $2.9 - -

Aug-12-2014 CLEAResult Consulting, Inc. Applied Proactive Technologies, Inc. - - - -

Aug-12-2014 Singapore eDevelopment Limited (Catalist:5QZ) Cloudtel Pte. Ltd. - - - -

Aug-12-2014 LexisNexis Risk Solutions, Inc. Coplogic, Inc. - - - -

Aug-12-2014 AC Business Media Inc. Cygnus Business Media, Inc., Heavy Construction and Logistics Groups - - - -

Aug-12-2014 Cherwell Software, LLC Express Metrix, LLC - $10.0 - -

Aug-12-2014 Eventure Interactive, Inc. (OTCBB:EVTI) Gift Ya Now - - - -

Aug-12-2014 Manhattan Associates, Inc. (NasdaqGS:MANH) GlobalBay Technologies Inc. - - - -

Aug-12-2014 iQU B.V. HoneyTracks GmbH - - - -

Aug-12-2014 Singapore eDevelopment Limited (Catalist:5QZ) HotApps International Pte. Ltd. - $0.1 - -

Aug-12-2014 Mystery Researchers, LLC Insula Research, Inc. - - - -

Aug-12-2014 Beanstock Media, Inc. Lulo Ventures Inc. - - - -

Acquirer



Date

Announced Target

Target TTM

Revenue

($mm)

Enterprise

Value

($mm)

EV/

Revenue

EV/

EBITDA

Aug-12-2014 SHE Software Ltd Mobile Safety Solutions Limited - - - -

Aug-12-2014 King Digital Entertainment plc (NYSE:KING) NonStop Games Ltd - $90.0 - -

Aug-12-2014 Kaseya International Shared Services Sàrl Scorpion Software Corp. - - - -

Aug-12-2014 IPG Mediabrands S.A. Traffic4u B.V. - - - -

Aug-12-2014 Ozonetel Systems Pvt.Ltd YantraSoft Inc., Speech Recognition Vertical - - - -

Aug-13-2014 Koninklijke KPN N.V. (ENXTAM:KPN) Argeweb BV - - - -

Aug-13-2014 Vocus Communications Limited (ASX:VOC) ASG Group Limited, Bentley Data Centre - $10.9 - -

Aug-13-2014 - Hands Empreendimentos, Ltda. - - - -

Aug-13-2014 IgnitionOne, Inc. Human Demand, Inc. - - - -

Aug-13-2014 B² Interactive LLC Hurrdat Social Media LLC - - - -

Aug-13-2014 JumpForward, LLC Innovative Sports Strategies, LLC - - - -

Aug-13-2014 Intel Corporation (NasdaqGS:INTC) LSI Corporation, Axxia Networking Business and Related Assets $113.0 $650.0 5.8x -

Aug-13-2014 TLT Lottotainment Group Limited (SEHK:8022) Worthy Victory Limited - $3.9 - -

Aug-14-2014 Daily Internet Plc (AIM:DAIP) Evohosting Ltd $0.7 $0.7 0.9x 2.5x

Aug-14-2014 RedeHost Internet Ltda. Mailee - - - -

Aug-14-2014 Wonders Information Co., Ltd (SZSE:300168) Ningbo KingT software Co., Ltd - $73.1 - -

Aug-14-2014 MYOB Finance NZ Limited PayGlobal Limited - - - -

Aug-14-2014 Samsung Electronics Co. Ltd. (KOSE:A005930) Physical Graph Corporation - - - -

Aug-14-2014 Lieferheld GmbH pizza.de GmbH - - - -

Aug-14-2014 5just (Dalian) Computer System Co.,Ltd Red Flag Software Co., Ltd. - $6.3 - -

Aug-14-2014 INFOR, INC. SalesLogix, N.A., LLC - - - -

Aug-14-2014 Song Liao Automotive Co., Ltd (SHSE:600715) Shanghai Douwan Network Technology Co., Ltd. $13.4 $232.0 17.3x -

Aug-14-2014 Sprinklr Inc. TBG Digital Limited - - - -

Aug-14-2014 Empirix, Inc. Verios Software & Systems Limited - - - -

Aug-15-2014 Beijing Tongtech Co., Ltd. (SZSE:300379) Beijing Hugeland Technologies Co., Ltd. $9.4 $68.3 7.3x -

Aug-15-2014 Yahoo! Inc. (NasdaqGS:YHOO) ClarityRay - - - -

Aug-15-2014 SMTP, Inc. (NasdaqCM:SMTP) InterInbox S.A. and ERNEPH 2012A (Pty) Ltd. and ERNEPH 2012B (Pty) Ltd. and Quattro Hosting LLC $4.0 $5.8 1.5x -

Aug-15-2014 Google Inc. (NasdaqGS:GOOGL) Jetpac Inc. - - - -

Aug-15-2014 Transformyx Inc. No Hassle Computing, LLC - - - -

Aug-15-2014 SMTP, Inc. (NasdaqCM:SMTP) SharpSpring, LLC - $15.0 - -

Aug-15-2014 EyeEm Mobile GmbH Sight.io - - - -

Aug-15-2014 SheKnows LLC StyleCaster Media Group LLC - - - -

Aug-17-2014 Realvolve, LLC Mark-It Systems, Inc., Advantage Xi - - - -

Aug-18-2014 Coinbase, Inc. Blockr.io - - - -

Aug-18-2014 Changepoint Corporation Daptiv, Inc. - - - -

Aug-18-2014 Search Optics LLC DigiGo - - - -

Aug-18-2014 Big Colors Limited GetViable Pty Ltd. - - - -

Aug-18-2014 Science Media LLC Hiq Lockscreen - - - -

Aug-18-2014 Fucata SA Nextel Chile $72.7 - - -

Aug-18-2014 Montagu Private Equity LLP Open International Limited - - - -

Aug-18-2014 SyQic Plc (AIM:SYQ) PlayTV Asia Sdn Bhd, Maaduu $0.3 $1.8 7.2x -

Aug-18-2014 Evolve24, LLC Sherpa, LLC - - - -

Aug-19-2014 Digital Dimension Aspserveur Sarl $4.7 - - -

Aug-19-2014 Sygic a.s. Be-On-Road App - - - -

Aug-19-2014 Gaming Realms plc (AIM:GMR) Blueburra Holdings Limited - $17.5 - -

Aug-19-2014 Shanghai Chenghai Enterprise Development Co., Ltd. (SHSE:600634) DIANDIAN Interacitve (Beijing) Technology Ltd. - $960.0 - -

Aug-19-2014 J. Stokes & Associates, Inc. EMC Creative - - - -

Aug-19-2014 Readyforce, Inc. HireBrite, LLC - - - -

Aug-19-2014 Datapipe, Inc. Layered Technologies, Inc. - - - -

Aug-19-2014 Fluendo S.A. LongoMatch - - - -

Aug-19-2014 Trimble Navigation Limited (NasdaqGS:TRMB) Manhattan Software Group Limited - - - -

Acquirer



Date

Announced Target

Target TTM

Revenue

($mm)

Enterprise

Value

($mm)

EV/

Revenue

EV/

EBITDA

Aug-19-2014 Global Payout, Inc. (OTCPK:GOHE) Maxie Mobile, LLC - - - -

Aug-19-2014 Accelyst Solutions Pvt. Ltd. Preburn Pvt. Ltd. - - - -

Aug-19-2014 PT Valadoo Indonesia PT. Cipta Buru Sukses - - - -

Aug-19-2014 Kirusa, Inc. Saya Mobile Ltd - - - -

Aug-19-2014 FashionQlub BV shopVIP BV - - - -

Aug-20-2014 VMware, Inc. (NYSE:VMW) CloudVolumes, Inc. - - - -

Aug-20-2014 - Core (NI) Limited - - - -

Aug-20-2014 TeamSnap, Inc. Easy Team Manager - - - -

Aug-20-2014 Streamworks LLC Imagewerks Marketing - - - -

Aug-20-2014 GoDaddy Inc. Mad Mimi, LLC - - - -

Aug-20-2014 Polygraph Media Offergraph, LLC - - - -

Aug-20-2014 Screen Engine LLC Screen Engine/ASI - - - -

Aug-20-2014 - Technically Compatible Ltd - - - -

Aug-20-2014 GreaterGood.com, Inc. The FamilyPet Network - - - -

Aug-20-2014 Unity Technologies, Inc. Tsugi, Inc. - - - -

Aug-21-2014 Zomato Media Private Limited Creative Web, s.r.o., Obedovat.sk - $1.0 - -

Aug-21-2014 - deep AG - - - -

Aug-21-2014 ESO Solutions, Inc. JefBar Software Services, LLC - - - -

Aug-21-2014 National Auto Auction Association, Inc. Kink or Bend LLC - - - -

Aug-21-2014 Zomato Media Private Limited Lunchtime.cz s.r.o. - $2.3 - -

Aug-21-2014 Stream Networks SIA SIA Latnet Serviss $2.7 - - -

Aug-21-2014 Host Europe WVS Limited Sign-Up Technologies Ltd. - - - -

Aug-21-2014 SkillSoft Corporation SumTotal Systems, LLC - - - -

Aug-21-2014 Ticketfly, Inc. WillCall, Inc. - - - -

Aug-21-2014 Amris Limited Zao.com, Ltd. - - - -

Aug-22-2014 S&T AG (XTRA:GRO) Echelon Corporation, Grid Operations $40.3 $6.0 0.1x -

Aug-22-2014 The Riverside Company Lexipol, LLC - - - -

Aug-22-2014 Zhejiang WHWH Industry Co., Ltd. (SHSE:600576) Mega-info Media Co.,Ltd. - $178.8 - -

Aug-22-2014 Hitcents Inc. Moonshark, Inc. - - - -

Aug-22-2014 PetHub, Inc. PetQRtag.com - - - -

Aug-22-2014 Delticom AG (XTRA:DEX) Toroleo Tyres GmbH & Co KG - - - -

Aug-22-2014 Zhejiang WHWH Industry Co., Ltd. (SHSE:600576) XTone Animation Group - $203.2 - -

Aug-22-2014 Sonata Software Limited (BSE:532221); Sonata Software North America Inc.Xyka Software Pvt. Ltd. and Controlling Stake in Rezopia, Inc. - - - -

Aug-25-2014 Evalueserve SEZ (Gurgaon) Private Limited Beyond Data GmbH - - - -

Aug-25-2014 Dynamic Signal Inc. PaperShare, Inc. - - - -

Aug-25-2014 DraftKings, Inc. StarStreet, Inc. - - - -

Aug-25-2014 Amazon.com Inc. (NasdaqGS:AMZN) Twitch Interactive, Inc. - $970.0 - -

Aug-26-2014 IM Medical Ltd. (ASX:IMI) ADX Management Pty Ltd - $0.0 - -

Aug-26-2014 Super Rewards, Inc. deal united GmbH - - - -

Aug-26-2014 Auctane LLC Finale Inventory - - - -

Aug-26-2014 Veeder-Root Company Inc. FuelQuest, Inc. - - - -

Aug-26-2014 Centurion Securities and Investment Services Pty Ltd GoConnect Limited (ASX:GCN) $0.4 - - -

Aug-26-2014 Millward Brown UK Limited InsightExpress LLC $26.4 - - -

Aug-26-2014 GroupM SAS Keyade SAS $9.2 - - -

Aug-26-2014 Mailigen Limited Leadersend ltd. - - - -

Aug-26-2014 Funding Circle USA LeapPay Inc. - - - -

Aug-26-2014 Plus Consulting, Inc. Markinson Business Solutions Pty Ltd, Saleslogix Business Operations - - - -

Aug-26-2014 Tastebuds Media Ltd. moosify Inc. - - - -

Aug-26-2014 Homeexchange.Com Inc. Only in America Home Exchange - - - -

Aug-26-2014 Automattic Inc. Parka, LLC - - - -

Aug-26-2014 The Riverside Company The Database Marketing Agency Inc. - - - -

Acquirer



Date

Announced Target

Target TTM

Revenue

($mm)

Enterprise

Value

($mm)

EV/

Revenue

EV/

EBITDA

Aug-26-2014 Google Inc. (NasdaqGS:GOOGL) ZYNC INC. - - - -

Aug-27-2014 SmartFocus SA Content Savvy Inc. - - - -

Aug-27-2014 Brazoria County Library System Gale, Inc., Gale Courses - - - -

Aug-27-2014 Tecmark Limited JDG MEDIA LTD. - - - -

Aug-27-2014 VLEX NETWORKS, S.L. Quolaw S.A. - - - -

Aug-27-2014 AAA Internet Publishing, Inc. Semlag - - - -

Aug-27-2014 SmartFocus SA TagPoints Ltd - - - -

Aug-27-2014 GL Education Group Limited The Test Factory Limited - - - -

Aug-28-2014 Monecor (London) Limited Ariel Communications Ltd - - - -

Aug-28-2014 AllOver Media, Inc. Brite Media Group LLC, Gas Station Radio - - - -

Aug-28-2014 ICube Technology Holdings Limited (SEHK:139) Jifutong Payment Company Limited - $77.4 - -

Aug-28-2014 Global Links Corp. (OTCPK:GLCO) MainStreetChamber LLC - - - -

Aug-28-2014 DNA Connect Pty Ltd. PushPull Marketing Pty Ltd - - - -

Aug-28-2014 Direct ChassisLink, Inc. REZ-1, Inc. - - - -

Aug-28-2014 Good Squire Marketing, Inc. Social FlyWay - - - -

Aug-28-2014 Alternative Energy & Environmental Solutions, Inc.

(OTCBB:ALNE)Zaycon Foods LLC - - - -

Aug-29-2014 Iponweb Limited Adternity GmbH - - - -

Aug-29-2014 Affle Holdings Private Limited AppStudioz Technologies Pvt. Ltd. $1.0 - - -

Aug-29-2014 Intema Solutions Inc. (TSXV:ITM) Cabestan-Canada, Portfolio of Client Contracts and Related Assets - - - -

Aug-29-2014 Morpho SA Dictao Siege - - - -

Aug-29-2014 Kenyon Fraser Ltd. Gavin and Page - - - -

Aug-29-2014 - Imacom SARL - - - -

Aug-29-2014 Crowd Mobile Pty Ltd Q Limited (ASX:QXQ) $0.1 - - -

Aug-29-2014 Canon Marketing Japan Inc. (TSE:8060) AZE, Ltd. - - - -

Aug-29-2014 Zhangjiagang Chemical Machinery Co., Ltd. (SZSE:002564) Shanghai Baoku Network Technology Co Ltd - $170.9 - -

Aug-29-2014 General Word Ventures, LLC Educational Holdings, LLC - - - -

Aug-29-2014 OmniEarth Inc. IRISmaps, Inc. - - - -

Aug-29-2014 Blackbaud Inc. (NasdaqGS:BLKB) MicroEdge, LLC - $160.0 - -

Aug-29-2014 Omnitracs, LLC XRS Corporation (NasdaqCM:XRSC) $53.0 $177.5 3.4x 28.9x

Aug-29-2014 U.S. Department of Labor Global Computer Enterprises Inc., Certain Assets - $5.3 - -

Aug-29-2014 General Services Administration Global Computer Enterprises Inc., Remaining Certain Assets - $18.3 - -

Aug-29-2014 Control4 EMEA Limited Extra Vegetables Limited - $0.7 - -

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 $2,021.1 $2,002.6 $757.7 62.3% 19.2% 6.4% 3.2x 15.3x 2.9x 11.5x 3.1%

Billing & Service Management $961.5 $1,032.3 $388.9 56.3% 21.1% 8.2% 2.0x 9.8x 2.0x 9.1x 0.2%

Business Intelligence $1,570.1 $1,202.5 $508.6 77.1% 5.1% 14.2% 2.9x 18.4x 2.8x 15.0x -9.2%

Development Platforms $2,048.0 $2,002.6 $983.5 69.4% 19.2% 2.1% 2.7x 15.6x 2.8x 8.6x 4.3%

Engineering & PLM $5,113.4 $4,891.4 $1,189.0 82.9% 19.0% 6.4% 3.4x 15.8x 3.8x 11.6x 1.2%

Enterprise Resource Planning $7,049.3 $7,647.4 $2,207.7 61.3% 29.5% 2.9% 3.5x 11.8x 3.4x 10.6x 3.6%

Financial & Accounting $2,021.1 $2,481.5 $757.7 56.6% 26.0% 2.5% 3.5x 13.7x 3.3x 11.5x -5.5%

Gaming $2,587.6 $2,456.3 $2,255.7 63.0% 15.6% 0.2% 1.4x 12.2x 1.4x 8.8x 26.5%

Healthcare $1,196.1 $1,527.7 $568.1 54.0% 14.1% 1.1% 2.2x 15.3x 2.1x 10.7x 3.4%

IT Conglomerates $185,011.5 $170,928.5 $86,833.0 61.3% 34.5% 2.2% 3.6x 9.7x 3.1x 8.3x 10.8%

Mobile Solutions/Content $709.6 $609.7 $319.3 58.9% -0.3% 21.1% 2.8x 20.5x 1.9x 12.5x 3.1%

Networking & Network Performance Management $1,279.3 $1,142.6 $243.7 69.2% 4.0% 8.5% 2.5x 21.0x 2.3x 10.0x -2.7%

Security $1,099.4 $1,008.5 $208.3 76.5% 7.0% 15.2% 3.2x 12.0x 2.9x 13.9x -11.0%

Storage, Data Mgmt & Integration $9,481.2 $7,473.0 $3,347.4 70.0% 20.7% 4.2% 2.8x 10.0x 2.8x 8.2x 4.2%

Supply Chain Management & Logistics $1,611.5 $1,549.1 $277.0 62.3% 28.1% 16.4% 5.5x 19.4x 5.0x 16.7x -1.4%

Systems Management $11,537.7 $10,967.0 $2,321.3 85.5% 25.3% 15.4% 5.4x 19.7x 4.7x 12.9x 11.3%

Vertical - Finance $4,273.8 $4,540.6 $909.1 44.4% 29.3% 6.3% 4.4x 13.7x 4.1x 12.3x 4.2%

Vertical - Other $1,249.0 $1,355.7 $402.5 49.3% 10.7% 16.9% 3.7x 25.3x 3.2x 17.8x -5.9%

TTM Revenue Growth 7.1%

TTM EBITDA Growth -24.8%

TTM Earnings Growth -35.9%

Gross Profit Margin 67.9%

EBITDA Margin 18.3%

Net Income Margin -16.6%

SG&A Expenses as a % of Total Revenue 58.4%

R&D Expenses as a % of Total Revenue 19.4%

Current Ratio 2.2

Quick Ratio 2.1

Cash as Percent of Market Cap 11.6%

Avg Days Outstanding: Accounts Receivable 65

Avg Days Outstanding: Accounts Payable 29

Working Capital to TTM Operating Expense Ratio 0.6x

Levered FCF Margin 6.5%

Cash from Operations Growth (YoY) 27.2%

Cash from Investing Growth (YoY) -38.0%

Cash from Financing Growth (YoY) 82.0%

Levered FCF Growth (YoY) 33.1%

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

Category Name

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

SEG SW Index Software Stock Market Return: January - August 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 $948.5 $848.4 $153.3 65.2% -8.1% 27.3% 6.3x 57.4x 5.0x 29.9x -12.1%

CRM & Marketing $988.4 $848.4 $173.8 70.2% 0.1% 29.6% 3.3x 112.9x 2.8x 31.1x -6.0%

ERP & Supply Chain $908.2 $771.7 $115.0 68.0% -8.1% 30.2% 5.7x 68.9x 5.0x 27.5x -14.0%

Vertically Focused $1,041.0 $922.5 $169.8 63.8% 8.7% 30.1% 6.9x 41.4x 5.4x 23.1x -5.5%

Workforce Management $1,562.9 $1,514.0 $170.8 61.7% -14.2% 35.9% 8.9x 61.3x 6.8x 104.1x -20.0%

SaaS Other $855.1 $788.3 $153.3 64.0% -13.7% 20.4% 4.6x 41.6x 3.9x 25.6x -15.8%


TTM EBITDA Growth -24.8%

TTM Earnings Growth -35.9%


EBITDA Margin -8.1%




Current Ratio 2.2

Quick Ratio 2.1




Working Capital to TTM Operating Expense Ratio 0.6x





Levered FCF Growth (YoY) 33.1%


Category Name




-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

SEG SaaS Index Stock Market Return: January - August 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 $1,203.7 $1,144.2 $438.3 64.9% 8.5% 19.8% 2.5x 20.4x 2.0x 13.6x -12.5%

Ad Tech & Lead Generation $1,466.3 $1,587.3 $514.0 62.4% 6.3% 26.8% 2.0x 22.5x 1.8x 15.1x -28.4%

Commerce $488.3 $395.1 $373.7 37.9% 6.3% 14.1% 1.0x 18.2x 1.3x 12.5x -14.8%

Content & Media $2,951.0 $2,377.8 $550.6 46.0% 13.7% 10.8% 2.8x 18.2x 2.6x 12.4x -3.1%

Gaming $2,432.98 $1,879.7 $749.6 69.1% 21.0% 14.1% 2.7x 10.4x 2.3x 17.6x -22.4%

Infrastructure $643.29 $487.7 $309.3 62.4% 5.1% 9.8% 1.4x 17.1x 1.1x 11.4x -10.0%

Services $872.98 $685.9 $208.6 73.7% 7.2% 34.5% 2.6x 27.3x 2.2x 17.7x -10.2%

Social $5,940.96 $5,590.1 $867.7 63.0% 10.6% 63.7% 13.7x 33.3x 10.1x 29.1x 8.7%

Travel $5,931.84 $5,549.7 $943.7 83.0% 15.6% 22.1% 5.4x 20.7x 5.8x 18.0x 19.2%


TTM EBITDA Growth 14.3%

TTM Earnings Growth 11.2%


EBITDA Margin 8.5%




Current Ratio 2.5

Quick Ratio 2.2




Working Capital to TTM Operating Expense Ratio 0.5





Levered FCF Growth (YoY) -4.4%





-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

SEG Internet Index Stock Market Return: January - August 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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