Centaur Partners Cybersecurity Market Update · 2017-09-14 · •Through Q3 technology deal value in 2016 was $227.5B •Q3’s volume of $102.5B was a 24% increase from Q2 2016,

© 2017, Centaur Partners │Confidential │

Centaur PartnersCybersecurity Market Update

Centaur PartnersMergers & Acquisitions, Private Placement Advisory, and Transaction Consulting

1

© 2017 Centaur Partners │Confidential │

Source: CapIQ 8/28/2017Cybersecurity Index: SPLK, AVG, SYMC, CHKP, FTNT, PANW, FIRE, IMPV, VDSI, PFPT, FEYE, QLYS, VRSN, MANT, CYBRSaaS Horizontal Index: CRM, N, ULTI, JCOM, TRAK, APPF, BCOV, DWRE, LOGM, CTCT, CSOD, LPSN, MKTG, IL, TNGO, SPSC, SQI, ZIXI, NOW, WDAY, LOCK, QLYS, NEWRCARB, TNET, CALD, BOX, PCTY, BV, ZEN, RNG, FIVN, ECOM, AMBR, UP, XTLYSaaS Vertical Index: ATHN, MODN, VEEV, GWRE, RP, FLTX, ELLI, MDSO, RP, SHOP, BSFT, BNFT, TEAM, TWOU, ATHN, CSLT, CSGP, MRIN,RMD, ECOM, JKHY, MTLS, ECOM, INST, EBIX, MB, OMCLBig Data Index: TDC, INFA, MSTR, SPLK, DWCH, ATTUF, NTAP, DATA, FIO, FALC, IBM, NEWR, INTU, HDP, RHT, AKAMInfrastructure Index: VMW, NTAP, CA, RHT, SWI, OTEX, CVLT, CPWR, QLIK, PEGA, MVSN, PRGS, NTCT, BLOX, GUID, MGIC, FALC, FIO, GIMO, SSNI, CYNI

Annualized Sector Growth by Market Capitalization

12%

24%Infrastructure

44%

SaaS (Horizontal)

32%

Big Data

19%

Cybersecurity

25%

SaaS (Vertical)

34%

2

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul$70

$90

$110

$130

$150Annualized Sector Growth by Market Capitalization

Cybersecurity SaaS (Vertical) Infrastructure BigData SaaS (Horizontal)

(In Billions)


Cybersecurity Index Component Returns (6/5/15 – 8/30/17)

3

Source:CapIQ 8/30/2017Note: Rapid7, Sophos, Alarm.com, and Mimecast were not public as of 6/5/15 but are components of the Cybersecurity Index

-67%

-57%

-42%

-40%

-16%

-14%

-12%

-5%

10%

10%

12%

16%

33%

64%

94%

-80% -55% -30% -5% 20% 45% 70% 95%

FEYE

VDSI

CUDA

CYBR

PANW

IMPV

MOBL

FTNT

SYMC

QLYS

ATEN

CHKP

TrendMicro

PFPT

VRNS

Stock Return


Projected Revenue Growth (2016 – 2017E)Medians

<5% 5% - 15% 15% - 25% >25%

EBIT

DA M

argi

n (2

016E

)

>25%

Median EV/Rev: 3.6xMedian EV/EBITDA: 11.6x

5 companiesCA , CTXS , MSTR, PRGS , VMW


5 companiesAKAM, CHKP , FFIV, QLYS, ZIXI


2 companiesELLI, UPLD

Median EV/Rev: 5xMedian EV/EBITDA: 14.6x

4 companiesANET, JCOM, LOGM, OTEX

4.3 EV/Rev14.2 EV/EBITDA

15%

-25

% Median EV/Rev: 1.5xMedian EV/EBITDA: 8.5x

3 companyGIMO, NTAP, TDC


2 companiesATHN, SYMC


12 companiesALRM, CARB, CYBR, FTNT, GDDY,

GWRE, MDSO, NTCT , PEGA , RP, RHT , ULTI


4 companiesPANW, PCTY, NOW, VEEV


<15%

Median EV/Rev: 1.7xMedian EV/EBITDA: 43x

7 companiesHIVE, BV, BCOV, FEYE, GUID , SSNI,

VDSI


12 companiesATEN, AMBR, CUDA, ECOM, CVLT , CSOD, MOBL, SOPH, SPSC, DATA,

TNET, WK


5 companiesCALD, DWCH, FIVN, RPD, VRNS


13 companiesAPPF, BOX, CSLT, HDP, NEWR, PFPT,

PSTG, RNG, CRM, SPLK, WDAY, XTLY, ZEN


Medians2.2 EV/Rev

15.8 EV/EBITDA3.7 EV/Rev



22.2 EV/EBITDA

Valuation Matrix: Revenue Growth vs. EBITDA Margin

Source: CapIQ as of 8/28/17Projected Revenue Growth and EBITDA Margin based on consensus estimates from CapIQ. Companies with TEV / EBITDA multiples that fall outside the range of 0x –55x are excluded from the above valuation matrix

Revenue growth typically commands a premium over profitability but that is not always the case

4


IPO Date Company Company Abstract Shares ( in millions) Offer Price 1st Day Closing

PriceCurrent Price(as

of 8/29)

% Return (On Offer Price as of

8/29)

6/29/17 Uses building blocks similar to public cloud—to simply manage enterprise and cloud native applications 8.57 $7.00 $7.27 $6.05 -13.57%

4/28/17 Provides Apache Hadoop-based software, support and services, and training to business customers 15 $15 $18.10 $18.52 23.46%

4/28/17 An online-only used car dealer that allows customers to shop, finance, and trade in cars through their website. 15 $15.00 $11.10 $15.74 5%

04/13/17 Helps businesses facilitate face-to-face and digital interactions that boost brand awareness, drive foot traffic, and increase sales 10.5 $11.00 $13.41 $13.21 20.09%

04/07/17 A provider of identity for the enterprise 11.0 $17.00 $23.51 $24.49 44.11%

03/24/17Self-service data analytics that allows analysts to easily prep, blend, and analyze

all their data 9.0 $14.00 $15.50 $22.86 63.28%

03/18/17 Enterprise application integration platform for building application networks 13.0 $17.00 $24.75 $21.55 26.76%

10/06/16 Offers a fully unified suite of financial applications for business spend management 7.4 $18.00 $25.90 $30.03 66.00%

09/30/16 A virtualized datacenter platform that provides disruptive datacenter infrastructure solutions for implementing enterprise-class 14.9 $16.00 $37.00 $22.19 38.68%

Recent Tech IPO’s and Aftermarket Performance

Source: Crunchbase, Yahoo Finance 8/29/2017 5


Cybersecurity Market Valuation – 2016

Mean 5.3x

Median 15.6%

Median 5.1x

Median 16.9%

Source: Capital IQ 8/2/17 6

0%10%20%30%40%50%60%

Revenue Growth & EBITDA Margin

'15-'16 Revenue Growth 2016 EBITDA Margin Median '15-'16 Revenue Growth Median 2016 EBITDA Margin

0.0x2.0x4.0x6.0x8.0x

10.0x12.0x

TEV / Revenue

EV / 2016 Revenue Multiple Mean EV / 2016 Revenue Multiple Median EV / 2016 Revenue Multiple


Cybersecurity Market Valuation – 2017

Mean 4.7x

Median 16.9%

Median 4.5x

Median 12.4%

Source: Capital IQ 8/2/17 7

0.0x2.0x4.0x6.0x8.0x

10.0x

TEV / Revenue

EV / 2017 Revenue Multiple Mean EV / 2017 Revenue Multiple Median EV / 2017 Revenue Multiple

0%10%20%30%40%50%60%

Revenue Growth & EBITDA Margin

16-'17 Revenue Growth 2017 EBITDA Margin Median '16-'17 Revenue Growth Median '2017 EBITDA Margin

© 2017, Centaur Partners │Confidential |

Cybersecurity Annual VC Financing History (2012-16)

8

$1,316

$1,749

$2,647

$3,668

$3,074

176

216

279273 278

0

50

100

150

200

250

300

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2012 2013 2014 2015 2016

Dollars (in millions)

# of Deals

Sources: CB Insights, Gartner, Crunchbase, Capital IQ, 2016 Venture Capital Report (Wilmerhale)

© 2017, Centaur Partners │Confidential |

Cybersecurity VC Investment Activity by Stage

9

31% 34% 32% 33%26%

26% 22% 29% 25%30%

11% 17%14% 16% 17%

10% 4%8% 8% 9%

6% 6%1% 3% 5%

9%6% 8%

8% 5%

7% 11% 9% 6% 8%

2012 2013 2014 2015 2016

Seed/Angel Series A Series B Series C Series D Series E+ Other

Sources: CB Insights, Gartner, Crunchbase, Capital IQ, 2016 Venture Capital Report (Wilmerhale)


Cybersecurity High Growth Subsectors

10

Analytics – Cyber oriented UEBA plus Machine Learning

Provides user centric data tracking and analyzing user behavior as well as information on endpoints, networks and applications

Advanced correlated analytics teaches the combined analysis to be more accurate and a sophisticated method to detect threats.

Cloud Access Security Brokers

As multiple SaaS applications scale throughout enterprises, cybersecurity teams need to be able to have end to end visibility and real time detection to foil intruders

CASB fills in the gaps in individual cloud cybersecurity services across the growing number of “infrastructure as a service” and “platform as a service providers”

Threat Intelligence

Modern intelligence-driven security operations center must scale beyond traditional defenses, with an adaptive architecture and context-aware components.

Traditional security operations center must evolve to become the real time intelligence-driven

Endpoint Protection

2 primary forces driving this model: the emerging necessity to detect potential larger than normal breaches - react faster so that damage is minimized.

Deception

By 2018, Gartner predicts that 10 percent of enterprises will use deception tools and tactics, and actively participate in deception operations against attackers

Source: Gartner 8/2/17


Cybersecurity High Growth Subsectors Continued

11

Pervasive Trust Services

Key aspects of IoT security are: secure provisioning, data integrity, confidentiality, device identity and authentication

Innovative, massively scalable security models must account for managing “trust services” for billions of newly connected devices

Remote Browser

Increasing number of attacks stemming from email, URLs or malicious websites that warrant the creation of a “browser server” running either on premise or in the cloud

Cloud based browser allows compartmentalized functionality within the company to reduce risk of entire server being compromised

Security Testing for DevOps

Security needs to become integral part of DevOps; constant scanning for vulnerabilities during development process

Workload is minimized and desired outcome of automated, transparent, and compliant infrastructure is deployed

Microsegmentation and Flow Visibility

Growing level of importance in solutions which provide visibility and monitoring of the communication flows

Source: Gartner 8/2/17


Cybersecurity Growing Subverticals

Source: CBInsights, Forbes 12

Quantum Encryption Predictive Intelligence Deception Security

Autonomous Systems IoT Security Mobile Security

Automobile Security Critical Infrastructure Security Cyber Insurance

Target Cyber Kill Chain AI ‘Software-Defined’ Security

The future of secure digital communications Tools to identify threats early and help prevent attacks Startups turning the tables by deceiving attackers

Software that automatically executes security protocols Startups securing internet connected devices Securing smartphones and the mobile-workforce

Startups developing security for connected cars Cybersecurity for industrial control systems Tools for quantifying cyber-risk and sizing premiums

Startups targeting the links in the cyber kill chain Leveraging AI to better understand human behavior Cybersecurity as a software-based model


Technology M&A Trends

Key M&A FactsTechnology M&A – Transactions Since 2015

Select Largest Technology Transactions 2016:

(1) PWC US technology deals insights(2) JEGI Q1 2017 M&A Overview

Buyer Microsoft Oracle Micro Focus Salesforce Vista Equity Cisco

Target LinkedIn NetSuite HPESoftware Demandware Marketo Jasper

Value $26B $9.3B $8.8B $2.8B $1.8B $1.4B

2016 M&A Activity•Through Q3 technology deal value in 2016 was $227.5B•Q3’s volume of $102.5B was a 24% increase from Q2 2016, and an 89%increase from Q3 2015•Increasing activity from “non-digital” businesses picked pace in 2016,representing $66.7B in transaction value. While buyers have coveredthe gamut of industries, Retail & Consumer, Automotive and Healthcarestand out as particularly focused on technology acquisitions that canhelp speed their transition into more digital business models•Software and Semiconductor public company revenue and EBITDAmultiples increased through Q3 2016, while the Internet, Services andHardware sectors remained stable

13

2017 Q1 M&A Activity•Q1 technology deal value in 2017 was $31.8B, down from $39.7B in Q12016•M&A activity for the b2b media and technology sector saw stronggrowth in deal value in the first quarter of 2017, totaling $899 million vs.$262 million in Q1 2016•Deal volume in the consumer media and technology sector jumped to66 transactions in Q1 2017 vs. 54 deals in Q1 2016. Deal value for thequarter rose exponentially to $3.5 billion, up from $939 million in Q12016, due to several large transaction announcements, including theAmazon acquisition of Souq.com for $650M.•The tech-enabled services sector led the quarter in terms of deal value,totaling $10.2 billion, although this was an 8% decline vs. Q1 2016’s$11.1 billion.

518 510 468

422

380

414347 472

486 518

-100

100

300

500

700

900

1100

1300

1500

$-

$50

$100

$150

$200

$250

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017Deal Value ($ Billions) Deal Volume


Top 10 Recent Cybersecurity Software Transactions by Deal Size ($ in millions)

Source: CapIQ 8/28/17

Cybersecurity has remained as one of the hottest verticals within technology for M&A activity

There were 137 acquisitions in 2016, 133 in 2015, and 109 in 2014,

Symantec's $4.65B acquisition of BlueCoat is the largest cybersecurity M&A transaction in 2016 thus far

Activity such as the TPG spinoff of Intel Security into McAfee for $3.1B continues to push cybersecurity multiples into higher and higher territory.

Announced Acquirer Target Target Abstract Val./Rev. Total Deal Amt.

Target TTM Rev.

9/7/16 Provider of security and networking solutions 7.8x 4,650 598

9/7/16 Developer of proactive software solutions alongside enhanced hardware to help stop attacks 5.7x 3,100 537

3/19/15 Provides enterprise mobility solutions worldwide 3.3x 2651 812

3/10/15 Provider of security and networking solutions 5.1x 2400 467.2

4/18/15Develops software to protect organizations from cyber

attacks and data theft with cybersecurity systems. 5.3x 1900 359.4

7/7/16Offers antivirus software for both consumers and

enterprises 2.9x 1,300 N/A

8/2/17 Secure and manage Web traffic by filtering Web malware threats NA 950.0 NA

4/7/15 Provides data cybersecurity and payment card industry compliance management solutions

6.7x 810 121.2

5/10/17Makes cloud-based software that allows developers to test and monitor the security of their applications during

the building and deployment processN/A 614 N/A

6/1/16

frees the digital enterprise by providing secure access that enables the right people to access the right things,

seamlessly and securely.N/A 600 N/A

14


Announced Acquirer Target Target Abstract Val./Rev. Total Deal Amt.

Target TTM Rev.

2015-10-27 Provides flow-based network security, performance and application monitoring solutions for enterprises. 34.5x 452.5 13.1

2015-11-07 Leader in Data Science Powered™ Cloud Application Security 24.1x 280 11.6

2015-05-06 Solutions for endpoint security and trusted infrastructure. 13.1x 114 8.7

2015-10-21 Provides network-based intrusion prevention systems and appliances 13.0x 300 23

2015-10-19 Provides enterprise encryption and key management services that enable corporations to protect their data. 11.4x 400 35.2

2015-10-07 E-signature solutions to help businesses of all sizes prepare & sign documents quickly and securely 8.9x 85 9.6

2015-04-07 Provides data security and payment card industry compliance management solutions 6.7x 810 121.2

2016-09-07Developer of proactive software solutions alongside enhanced hardware to help stop attacks 5.7x 3,100 537

2015-04-18 Develops software to protect organizations from cyber attacks and data theft with security systems. 5.3x 1900 359.4

2015-03-19 Provider of security and networking solutions 5.1x 2400 467.2

Top 10 Recent Cybersecurity Software Transactions by Rev. Multiple($ in millions)

15Source: CapIQ 8/2/17

Since 2011, disclosed TEV / LTM Revenue multiples for cybersecurity M&A transactions have been completed at a mean and median of 8.4x and 7.5x, respectively

Median TEV / LTM Revenue multiples for cybersecurity M&A has increased in 2015 over the previous year to 7.8x For 2014, cybersecurity M&A transactions had a median TEV / LTM Revenue multiple of 3.7x For 2013, cybersecurity M&A transactions had a median TEV / LTM Revenue multiple of 8.5x


Number of Acquisitions since 2015

16

M&A Activity of Selected Large Cybersecurity VendorsSelected Recent Acquisitions

AkamaiBloxx, Xerocole, Prolexic Technologies, Velocius Networks, Verivue, FastSoft, Blaze Software

CAVeracode, Xceedium, IdmLogic, Grid-Tools, Rally Software, Agreed Escrow, Nolio, Layer 7 Technologies

CiscoSynata, Leaba Semiconductor, CliQr Technologies, Jasper, Acano, 1 Mainstream, Lancope, ParStream, Portcullis Computer Security,

Pawaa Software, MaintenanceNet, OpenDNS, Piston Cloud Computing, Tropo, Embrane, Neophapsis, Memoir SystemsDell

EMC, Statsoft, Kobalt Music Group, enstratius, CREDANT Technologis, Gale Technologies, Kitenga, Quest Sotware, MAKE Technologies, Clerity Solutions, Wyse Technology, SonicWALL

EMCVirtustream, Cloudlink Technologies, Maginatics, Spanning Cloud Apps, VCE Company, The Cloudscaling Group, TwinStrata, DSSD, Sky

Socket, Xtreme LabsHewlett Packard Enterprise

ActiveState's Stackato BU, NetCam Systems, ConteXtream, Mind Pirate, Aruba Networks, Voltage Security, Eucalyptus Systems, Digital Risk, HIFLEX GmbH, H3C Technologies, Palm

IBMOptevia, Resilient Systems, Resource Ventures, Ustream, Ecx.io, Truven Health Analytics, Aperto, IRIS Analytics, Clearleap, Gravitant,

The Weather Company's Product Unit, Cleversafe, Deloitte's Revisionsaktieselskab, Meteorix, Advanced ApplicationIntel

Yogitech, Replay Technologies, Ascending Technologies, RealityCap, Saffron Technology, Doces Power, Via's Baseband Processor Unit, Recon Instruments, Altera

JuniperBTI Systems, WANDL, Webscreen Systems Limited, Contrail Systems, Mykonos Software, SMobile Systems, Altor Networks, Trapeze

Networks, Ankeena Networks, Funk SoftwareOracle

Opower, Textura, Crosswise, Ravello, AddThis, Stack Engine, Maxymiser, DataLogix, Front Porch, TOA Technologies, MICROS Systems, LiveLOOK, GreenBytes, Blue Kai

SymantecNarus, Nitrodesk,Passwordbank Technologies, Odyssey Software, Nukona, LiveOffice, Clearwell Systems, VeriSign (IAM div), PGP,

GuardianEdge, MessageLabs, Gideon TechnologiesTIBCO (Acquired by Vista Equity)

Mashery, Agape Creative, JasperSoft,Extended Results, StreamBase Systems, Maporama Solutions, LogLogic Inc., Nimbus Partners Ltd., LoyaltyLab Inc., OpenSpirit Corp., Proginet Corp.

VMWare (Dell)Immidio B.V., MomentumSI, Continuent, CloudVolumes, Third Sky, Airwatch, Desktone, WaveMaker Software, Virsto Software, Pattern

Insight, Nicira, DynamicOps, Wanova

Source: CapitalIQ, Crunchbase 8/28/17

0 10 20 30 40 50

2015 2016 2017


Announced Target Investors Target Abstract Total Deal Amt.

2017-08-03 Prudential Capital Group, SunTx Capital Partners Provides cloud-based IP managed security services 125.0

2016-02-03 Providence Equity Partners Provides risk analytic tools for enterprise cyber security management 96.0

2017-04-05 Singapore Technologies Telemedia Pte Offers customer-centric security outcomes for e-Commerce, healthcare, and finance. 89.0

2017-01-25 Sound Ventures, Third Point Ventures, Granite Hill Capital Partners Offers real-time, next-generation endpoint protection software across major threat vectors. 70.0

2016-09-29 Sequoia Capital India, Economic Development Board Investments Provides cloud platform for data availability and information governance 51.0

2017-07-11Cisco Systes, Intel, Trident Capital, EPIC Ventures, VMWare, Fortinet, Vanedge Capital, Sway Ventures, Advance Venture Partners

Offers administrative control visibility, auditing, and data security for clouds 36.0

2017-06-26 Verizon Ventures, Boeing HorizonX Provides cognitive security analytics solutions 32.5

2017-02-07 Lightspeed Venture Partners, Cisco Investments Provides advanced security intelligence platform that helps you detect, analyze, and respond to modern cyber threats. 30.0

2016-04-20 Institutional Venture Partners, General Catalyst, Google Ventures, Paladin Capital Group

Threat intelligence platform that correlates tens of millions of threat indicators against your real time network activity logs and up to a year or more of forensic log data 30.0

2016-03-15Intel Capital, Sutter Hill Ventures, Index Ventures, InstantScale Ventures, Northgate Capital, ThomvestVentures, Cisco Investments, GV

Develops hyper-secured infrastructure that ensures the security of mission-critical IT and corporate assets 30.0

Top Ten Cybersecurity Software Private Placements ($ in millions)

Source: CapitalIQ, Crunchbase, 8/28/1717


Number of Private Placements since 2015

18

Recent Private Placement Activity of Most Active Corporate VCs

Selected Recent Private Placements


CiscoAdbrain, Veniam, ActionPacked Networks, eSentire, Kii Corporation, Kumu Networks, VelocCloud,

Innovid, Platfora, WorldSensing S.L.N.E., Sensity Systems, 6Wind, Qwilt, Evrthng Limited, Piston Cloud Computing, MuleSoft, Bit Stew Systems, Flashpoint Global, One Mobikwik Systems, HyTrust,

Innovid, CloudVelox, Team8, Alchemist Accelerator, Shanghai Ketong, Stratoscale, Loggly, eSentire, ActionPacked Networks,Bolt

GoogleMAPR,Gusto,LendingClub,Armo Biosciences, Oscar Insurance, Uber, Cloudera, Flurish, Plexxi,

Shape Security, Alector, Nest, One Medical Group, Jet.com, Tiny RX, Udacity, ClassPass, HiveMapper, SOCOMO Technologies, CollectiveHealth, Mobvoi, EmergentVR, Niantic, Symphony

Communication Services, Thumbtack,Intel

Inpria, Reflektion, MariaDB, IP Commerce, GigaSpace Technologies, Savioke, TrigenceSemiconductor, NextInput, SBA Materials, Eyefluence, Schoology, JBF Interlude, LISNR,

What3Words, Chargifi, Prieto Battery, Perfant Technology, Microprogram Information, Sckipio, Parrallel Machines, Two Bit Circus, Arrayent

MicrosoftSnapLogic, Teambition, Uber, Cloudflare, Turbodealer,Nokia Teamkey, Innomedia, Kurerra,

SponsorByuro, FitnessClubs.Pro, Labrika,Tekhnovizor, Turbodealer, Otkrytoe kladbishe, InsideSales.com, Unify Square, Reveal Chat, Playtabase, Wallflowr, ISI Technology,

Qualcomm63Ideas InfoLabs,99 iFuture Systems, Airspan, Swift Navigation, MindTickle Interactive, Attune

Technologies, Bracket Computing, SJ Semiconductor, Kaleo Software, Reverie Language Technologies, Loggi Tecnologia, Siklu Communication, YourStory Media, MyPoolin, Workspot, Matterport, Curbside, WorldVu Satellites, MangoPlate, Meus Pedidos Software, Mantis Vision,

Cohesity, Bitbar Technologies, Zeek MobileSalesforce

Augment, QuBit Digital, Goodpatch, Crunchbase, Bloomreach, NewVoiceMedia, Buidscale, Hottolink, FinanceApp, San San, Pierry, Fluidio, MapAnything, Full Circle Insights, BrightFunnel, Toreta, Gainsight, Cogito, BizGround, Moneytree, FollowAnalytics, Uhuru, SteelBrick, Pendo.io,

Optimizely, Tectonic, Wrap Media

0 50 100 150 200

2015 2016 2017


Number of Private Placements since 2015

Recent Private Placement Activity of Other Corporate VCsSelected Recent Private Placements


AmazonQwikCilver Solutions, Musaic, Rachio, Who What Wear, A & A Dukaan Financial, Dragon Innovation, alottazs labs, QwikCilver Solutions, Wikia, Shanghai Yummy77, Acquia, ColisPrive, The Talk Market, Songza Media, LivingSocial, WhoSay, Cirtas Systems, ParAccel,

Cicekspeti Internet Hizmetleri, Foxit Software, Yieldex, Animoto, Luma

DellCylance, DocuSign, Exablox, Nexenta, Lastline, Invincea, CorrelSense, Skyera, Mirantis,

Qliance Medical ManagementEMC

Cenx, Zscaler, Blue Medora, HyTrust, Adallom, Jfrog, Puppet Labs, Vorstack, Crittercism, Aria Systems, MongoDB, HyTrust, Maginatics, FeedHenry, Terascala, Silver

Spring Networks, Intalio, Net One Systems, Futong Technology, FatWire Corporation, Varonis Systems, Pivotal

IBMApply.Property, WayBlazer, Pathway Genomics, Modernizing Medicine, Welltok,

Sellpoints, FluidHP

SafeBreach, VenueNext, Hortonworks, Clique IntelligenceSAP

Table 8, TableNow, Alminder, Visage Mobile, Virtuestream, StayNTouch, Trove, Yapta, Room 77, Nor1, Evature, getTalent, buuteeq, Vivanda, MindTouch

VmwareBlue Medora, Pivotal, HyTrust, Jfrog, Puppet Labs, Crittercism, Aria Systems,

Maginatics, FeedHenry, Workday

Wavefront, MediaCore, Tidemark Systems, Anaplan, Datameer

19

0 5 10 15 20 25 30

2015 2016 2017

© 2017, Centaur Partners │Confidential │ 20

Comparable Company Valuation Multiples (US$ in millions, except per share values)

Source: Capital IQ 8/2/17N/M = not meaningful/multiple outside of relevant range, N/A = Not Applicable

Cybersecurity Comparable Analysis

% 52-wk Dil Shares Market Cap

Cash & ST

Ent. Val EV/Rev EV/EBITDA P/ECompany FYE Price High Debt (Diluted) 2015A 2016E 2017E 2015A 2016E 2017E 2015A 2016E 2017ECheck Point Software Technologies Ltd. 31-Dec $107.0 90% 169 $17,487 $1,599 $0 $15,888 9.7x 9.1x 8.5x 18.7x 18.4x 15.2x 28.0x 25.1x 20.6x

Palo Alto Networks, Inc. 31-Jul $133.1 79% 90 $12,220 $1,372 $518 $11,366 12.2x 8.2x 6.5x NM NM NM NM NM 51.4x

Symantec Corp. 31-Mar $31.2 93% 618 $19,057 $4,256 $8,186 $22,987 5.8x 6.4x 5.7x NM NM NM 24.5x 8.4x NM

Fortinet, Inc. 31-Dec $36.8 87% 178 $6,468 $1,207 $0 $5,261 5.2x 4.1x 3.5x NM NM 17.4x NM NM 38.5x

Trend Micro 31-Dec $50.5 93% 138 $6,940 $1,113 $0 $5,816 5.6x 5.1x 4.4x 17.8x 14.9x 12.8x 38.5x 32.9x 29.7x

Proofpoint, Inc. 31-Dec $86.2 90% 43 $3,831 $429 $378 $3,779 14.2x 10.1x 7.5x NM NM NM NM NM NM

FireEye, Inc. 31-Dec $14.7 83% 170 $2,620 $871 $761 $2,510 4.0x 3.5x 3.4x NM NM NM NM NM NM

Sophos 31-Mar $6.3 97% 452 $2,907 $68 $346 $3,201 7.2x 6.7x 6.0x NM NM NM NM NM NM

Cyber-Ark Software 31-Dec $42.1 68% 36 $1,464 $287 $0 $1,177 7.3x 5.4x 4.6x NM NM 20.8x 52.5x 50.6x 39.1x

Imperva, Inc. 31-Dec $45.3 77% 33 $1,514 $320 $0 $1,194 5.1x 4.5x 3.7x NM NM NM NM NM NM

Alarm.Com 31-Dec $38.7 96% 48 $1,794 $63 $74 $1,805 8.6x 6.9x 5.5x NM NM NM NM NM 51.2x

Qualys, Inc. 31-Dec $41.9 92% 39 $1,552 $245 $0 $1,307 8.0x 6.6x 5.8x NM NM 18.2x NM NM 49.6x

Barracuda Networks, Inc. 28-Feb $22.9 85% 54 $1,212 $207 $4 $1,009 3.6x 3.2x 2.9x NM NM NM NM NM NM

VASCO Data Security International, Inc. 31-Dec $13.5 68% 40 $539 $156 $0 $383 1.6x 2.0x 2.0x 7.0x 23.6x 24.3x 12.7x 51.0x 43.5x

Varonis Systems, Inc. 31-Dec $37.9 95% 27 $1,030 $121 $0 $909 7.1x 5.5x 4.5x NM NM NM NM NM NM

Rapid7 31-Dec $15.3 79% 42 $664 $79 $0 $585 5.3x 3.7x 3.0x NM NM NM NM NM NM

Mimecast Limited 31-Mar $28.0 94% 55 $1,579 $112 $2 $1,469 12.7x 10.4x 7.9x NM NM NM NM NM NM

A10 Networks 31-Dec $7.2 65% 68 $497 $132 $0 $365 1.8x 1.6x 1.6x NM NM NM NM NM NM

MobileIron 31-Dec $4.6 65% 90 $419 $89 $0 $330 2.2x 2.0x 1.8x NM NM NM NM NM NM

Mean: 6.7x 5.5x 4.7x 14.5x 19.0x 18.1x 31.2x 33.6x 40.5xMedian: 5.8x 5.4x 4.5x 17.8x 18.4x 17.8x 28.0x 32.9x 41.3x


Cybersecurity Comparable Analysis (cont.)

21

Comparable Company Operating Metrics (US$ in millions, except per share values)


Revenue Growth MRQ Gross EBITDA Margin FCF MarginCompany 14-'15 15-'16 16-'17 Margin 2015A 2016E 2017E 2015A 2016E 2017ECheck Point Software Technologies Ltd. 9% 7% 7% 88% 52% 50% 56% 41% 37% 54%

Palo Alto Networks, Inc. 55% 49% 26% 71% NA NA 23% 26% 29% 38%

Symantec Corp. -5% -9% 12% 77% 17% 25% 18% 3% 30% 1%

Fortinet, Inc. 31% 26% 17% 74% 6% 8% 20.3% 19% 16% 23%

Trend Micro 8% 9% 18% 79% 32% 35% 34% 9% 20% 20%

Proofpoint, Inc. 36% 41% 35% 72% NA NA 12% 23% 26% 21%

FireEye, Inc. 46% 15% 4% 64% NA NA 11% 18% 19% NA

Sophos 18% 7% 11% 77% 14% 8% 2% NA 6% 22%

Cyber-Ark Software 56% 35% 18% 84% 22% 20% 22% 31% 20% 21%

Imperva, Inc. 43% 13% 21% 79% NA NA 12% 16% 13% 11%

Alarm.Com 25% 25% 25% 64% 14% 17% 20.2% 7% 7% 6%

Qualys, Inc. 23% 20% 14% 77% 24% 24% 32% 19% 23% 24%

Barracuda Networks, Inc. 19% 15% 10% 75% 3% 3% 11% 25% 20% 12%

VASCO Data Security International, Inc. 20% -20% -3% 70% 23% 8% 8% 26% 15% 13%

Varonis Systems, Inc. 26% 29% 23% 88% NA NA 2% 1% 7% 4%

Rapid7 44% 42% 24% 73% NA NA NA 4% 7% 1%

Mimecast Limited 31% 22% 32% 74% 8% 6% 1% 6% 7% 7%

A10 Networks 11% 16% 1% 76% NA NA 2% 7% 7% 3%

MobileIron 13% 10% 10% 81% NA NA NA NA 3% NA

Mean: 27% 19% 16% 76% 19% 18% 17% 17% 16% 17%Median: 25% 16% 17% 76% 17% 17% 12% 18% 16% 13%

© 2017, Centaur Partners │Confidential │ 22

Comparable Company Estimates (US$ in millions, except per share values)


Cybersecurity Comparable Analysis (cont.)

Revenue EBITDA EPS EPS FCF MRQ

Company 2014A 2015A 2016E 2017E 2015A 2016E 2017E 2015A 2016E 2017E LTG 2015A 2016E 2017E End Revenue Gross Profit

Check Point Software Technologies Ltd. $1,496 $1,630 $1,741 $1,872 $852 $865 $1,043 $3.83 $4.26 $5.18 9% $669 $646 $1,008 06/17 $459 $406

Palo Alto Networks, Inc. $598 $928 $1,379 $1,740 ($105) ($147) $400 ($2.02) ($2.59) $2.59 32% $239 $406 $659 04/17 $432 $308

Symantec Corp. $4,183 $3,956 $3,600 $4,019 $673 $897 $727 $1.27 $3.71 ($0.17) 10% $136 $1,075 $38 03/17 $1,115 $856

Fortinet, Inc. $770 $1,009 $1,275 $1,491 $56 $96 $302 $0.05 $0.19 $0.96 19% $193 $210 $338 06/17 $363 $268

Trend Micro $962 $1,034 $1,130 $1,335 $326 $390 $456 $1.31 $1.54 $1.70 11% $97 $224 $273 03/17 $316 $249

Proofpoint, Inc. $196 $265 $375 $506 ($49) ($42) $61 ($2.48) ($2.66) $0.64 28% $60 $98 $106 06/17 $122 $88

FireEye, Inc. $426 $623 $714 $742 ($396) ($296) $80 ($3.50) ($2.94) ($0.21) 16% $114 $138 ($35) 06/17 $185 $119

Sophos $379 $447 $478 $530 $65 $40 $11 ($0.15) ($0.16) ($0.10) 56% ($5) $30 $117 03/17 $136 $105

Cyber-Ark Software $103 $161 $217 $255 $35 $42 $57 $0.80 $0.83 $1.08 20% $49 $43 $54 03/17 $59 $50

Imperva, Inc. $164 $234 $264 $321 ($43) ($53) $40 ($1.64) ($2.18) $0.81 22% $38 $33 $35 06/17 $74 $59

Alarm.Com $167 $209 $261 $326 $30 $45 $66 ($0.30) $0.22 $0.76 18% $14 $18 $20 03/17 $74 $48

Qualys, Inc. $134 $164 $198 $227 $39 $48 $72 $0.47 $0.55 $0.84 17% $31 $45 $55 03/17 $53 $41

Barracuda Networks, Inc. $234 $277 $320 $353 $8 $8 $38 ($1.30) ($0.08) $0.20 11% $70 $64 $41 05/17 $94 $71

VASCO Data Security International, Inc. $202 $241 $192 $187 $55 $16 $16 $1.07 $0.26 $0.31 24% $63 $29 $25 06/17 $46 $32

Varonis Systems, Inc. $101 $127 $164 $203 ($17) ($14) $4 ($0.84) ($0.67) ($0.00) 20% $2 $11 $8 03/17 $40 $36

Rapid7 $77 $111 $157 $196 ($39) ($42) ($23) ($4.00) ($1.19) ($0.63) 15% $4 $11 $3 03/17 $45 $33

Mimecast Limited $88 $116 $142 $187 $9 $8 $2 $0.01 ($0.08) ($0.10) 20% $8 $9 $14 03/17 $52 $39

A10 Networks $180 $199 $230 $231 ($28) ($9) $3 ($0.64) ($0.32) ($0.08) 24% $15 $17 $7 06/17 $54 $41

MobileIron $132 $149 $164 $180 ($69) ($62) ($13) ($1.07) ($0.78) ($0.19) 0% ($14) $5 ($1) 06/17 $43 $35


Recent Cybersecurity Private Placements

23Source: CapitalIQ, Crunchbase, PEHub 8/28/17(*) denotes low growth and low margins(**) denotes financial data based on Centaur estimates


2017-08-29 LookingGlass Cyber Solutions

Eastward Capital Partners, NewSpring Capital, Alsop Louie Partners, Triangle Peak Partners, Neuberger Berman Group

Develops and provides threat intelligence-driven solutions that enable security teams to prevent, detect, and respond to analyzed threats. 26.30

2017-08-03 Interface SecuritySystems Prudential Capital Group, SunTx Capital Partners Provides cloud-based IP managed security services 125.0

2017-07-11 HyTrust Cisco Systes, Intel, Trident Capital, EPIC Ventures, VMWare, Fortinet, VanedgeCapital, Sway Ventures, Advance Venture Partners Offers administrative control visibility, auditing, and data security for clouds 36.0

2017-06-26 SparkCognition Verizon Ventures, Boeing HorizonX Provides cognitive security analytics solutions 32.5

2017-05-15 Wandera Bessemer Venture Partners, 83 North, Sapphire Ventures Provides enterprise mobile security and data management solutions 27.5

2017-04-05 Armor Singapore Technologies Telemedia Pte Offers customer-centric security outcomes for e-Commerce, healthcare, and finance. 89.0

2017-04-04 SlashNext Norwest Venture Partners, Wing Venture Capital Cybersecurity solution developed based on idea that the best defense is strong offense. 9.0

2017-03-20 Bayshore Networks Samsung NEXT Ventures, Trident Capital Cybersecurity Cybersecurity leader for the Industrial Internet 4.4

2017-02-07 Exabeam Lightspeed Venture Partners, Cisco Investments Provides advanced security intelligence platform that helps you detect, analyze, and respond to modern cyber threats. 30.0

2017-01-25 SentinelOne Sound Ventures, Third Point Ventures, Granite Hill Capital Partners Offers real-time, next-generation endpoint protection software across major threat vectors. 70.0

2017-01-18 ProtectWise Inc. Arsenal Venture Partners, Top Tier Capital Partners, Tola Capital Offers cloud-based network security services, layered with refined analytics 25.0

2016-10-05 WealthIntel, Inc. Legion Capital America Designs and develops software and sells consumer products and services in the payment, finance, banking, e-commerce, and m-commerce sectors 2.0

2016-09-29 Druva Sequoia Capital India, Economic Development Board Investments Provides cloud platform for data availability and information governance 51.02016-08-08 Jumio Corporation Millennium Technology Venture Partners,Centenna Growth Partners, Developers and delivers digital ID verification and scanning solutions 15.9

2016-04-20 Anomali Institutional Venture Partners, General Catalyst, Google Ventures, Paladin Capital Group

Threat intelligence platform that correlates tens of millions of threat indicators against your real time network activity logs and up to a year or more of forensic log data 30.0

2016-03-15 Skyport Systems Intel Capital, Sutter Hill Ventures, Index Ventures, InstantScale Ventures, Northgate Capital, Thomvest Ventures, Cisco Investments, GV

Develops hyper-secured infrastructure that ensures the security of mission-critical IT and corporate assets 30.0

2016-02-25 Signifyd QED Investors, IA Ventures, Allegis Capital, Menlo Ventures Provides enterprise-grade fraud technology solutions for e-commerce stores 20.0

2016-02-25 enSilo Rembrandt Venture Partners, Lightspeed Venture Partners, Carmel Ventures Offers a real-time targeted attack exfiltration prevention platform and protects data from threat actors 19.0

2016-02-11 InAuth Bain Capital Ventures, Commerce Ventures offers mobile authentication and anti-fraud solutions for financial institutions and the mobile transaction market. 29.9

2016-02-03 Skybox Security Providence Equity Partners Provides risk analytic tools for enterprise cyber security management 96.0

2016-02-03 eSentire, Inc. Georgian Partners, Edison Partners, Cisco Investments, Information Venture Partners, Northleaf Venture Catalyst Fund

Provides information security solutions and protects enterprises from advanced cyber threats 19.5

($ in millions)


Recent Cybersecurity Private Placements (cont.)

24


2016-02-01 Kaymera Technologies Foundation Capital, Gilat opponent, Eddy Shalev mobile cyber defense system providing organizations with a solution to defend against mobile threat vectors 10.0

2016-01-28 Pindrop Security, Inc. Google Capital, Felicis Ventures, Citi Ventures, IVP, Andreessen Horowitz, GV provides anti-fraud solutions for audio-based authentication and threat detection 75.0

2016-01-13 Appthority Knollwood Investment Advisory, Blue Coat Systems App-risk management service that helps enterprises identify and manage the risks hidden in mobile apps 10.0

2016-01-12 Smashfly Bessemer Venture Partners, OpenView Venture Partners Marketing Automation for Recruiting (Recruitment Marketing) 22.0

2016-01-12 Shape Security Northern Light Venture Capital, Baseline Ventures, Epic Ventures Offers cybersecurity software to prevent automated web and mobile attacks 25.0

2015-01-21 ForeScout Technologies Wellington Management Allows control of network-connected devices and orchestrate information sharing and operation among disparate security tools 76.0

2015-10-13 SentinelOne Data Collective, SineWave Ventures, Tiger Global Management, Granite Hill Capital Partners Provides endpoint security solutions 25.0

2015-10-13 Cybereason Spark Capital, CRV, SoftBank Operates an automated platform to detect, visualize, and terminate cyber attacks. 59.0

2015-10-06 Code42 NEA, JMI Equity, Accel, Split Rock Partners Provides cloud endpoint data protection and security solutions to business customers and organizations, including recognized brands in business and education. 85.0

2015-09-30 Vectra Networks AME Cloud Ventures, Juniper Networks, Intel Capital, IA Ventures, Accel, Khosla Ventures Develops an X-series platform that instantly identifies cyber attacks in organizations. 35.0

2015-09-30 Exabeam Icon Ventures, Aspect Ventures, Norwest Venture Partners Offers data security solutions. 25.0

2015-09-29 Tanium, Inc. Institutional Venture Partners, TPG Security and systems management solution that allows real-time data collection at enterprise scale 120.0

2015-09-22 Zscaler, Inc. NA Integrated, cloud-delivered Internet security 10.0

2015-09-22 CloudFlare Fidelity, Baidu, Google Capital, Microsoft Ventures, Qualcomm Ventures is a web performance and security company that provides online services to protect and accelerate websites online. 110.0

2015-09-21 Morphick Cyber Security Orchard Holding Group platform-enabled managed service to enable their customers to prevent, detect, and respond to even the most advanced attacks. 10.0

2015-09-15 Onapsis .406 Ventures, Arsenal Venture Partners, Evolution Equity, Schlumberger provides the most comprehensive solutions for securing SAP and Oracle enterprise applications 17.0

2015-09-03 Netskope The Social+Capital Partnership, Lightspeed Venture Partners, Accel Partners, Iconiq Capital

Addressing the issue of rapid cloud adoption by enterprises, Netskope performs deep usage analytics and enforces business and security policies in cloud apps 75.0

2015-08-12 AlienVault Institutional Venture Partners, KPCB, Trident Capital, GGV Capital Provides unified securitymanagement and crowd-sourced threat intelligence solutions 55.02015-08-03 Zscaler, Inc. EMC, Lightspeed Venture Partners, Sand Hill East Ventures, TPG Growth Operates a cloud-based Internet security platform. 100.0

Source: CapitalIQ, Crunchbase, PEHub 8/28/17(*) denotes low growth and low margins(**) denotes financial data based on Centaur estimates

($ in millions)


Recent Cybersecurity Private Placements (cont.)

25


2015-07-28 Cylance, Inc.Capital One Ventures, Dell Corporate Ventures, Draper Fisher Jurvetson, Draper Nexus Venture Partners, Fairhaven Capital Partners, Khosla Ventures, KKR & Co, Ten Eleven Ventures, The Blackstone Group, Thomvest Ventures

Provides enterprise, critical infrastructure, and embedded dcyber security solutions to companies, governments, and end users. 42.0

2015-07-22 DarkTrace Summit Partners world leader in Enterprise Immune System technology 22.5

2015-07-13 CrowdStrike, Inc. Google Capital, Accel Partners, Warburg Pincus, Rackspace provider of security technology and services 100.0

2015-06-30 Venafi Intel Capital, Silver Lake Partners, QuestMark Partners a cyber security company, provides enterprise key and certificate management security solutions. 39.0

2015-06-25 Checkmarx Institutional Venture Partners Provides next generation Static Code Analysis solutions which identify security vulnerabilities within application's source code. 84.0

2015-05-19 CounterTack, Inc. Alcatel-Lucent, Arsenal Ventures, Fairhaven Capital, Goldman Sachs, Razor's Edge, Siemens Venture

Provides real-time endpoint threat detection and response solutions to enterprises and government organizations. 14.9

2015-05-11 Electronic Warfare Associates American Capital Provider of electronic warfare, cyber security and commercial test tools systems 21.5

2015-05-05 Cybereason CRV, Lockheed Martin, Spark Capital Automated Endpoint Detection and Response platform identifies in real all the elements of cyber attacks for effective response 25.0

2015-04-17 Flashpoint Global Cisco, Greycroft Partners, Bloomberg Beta, TechOperators Provides software and data services to enhance cyber and physical security of companies and governments 5.0

2015-04-16 Recorded Future Google Ventures, In-Q-Tel, Reed Elsevier Ventures, Balderton Capital Provides threat intelligence analytics platform 12.0

2015-04-15 Skyport Systems Index Ventures, Intel Capital, Sutter Hill Ventures Develops enterprise security and hyper-secured infrastructure solutions for critical IT and corporate assets. 30.0

2015-04-15 UniKey Samsung Ventures, ff Venture Capital, Broadway Angels, Acxit Capital Partners Develops passive access control products that include a Smartphone app that allows users to set-up touch-to-open locks 10.0

2015-04-14 Illumio Andreessen Horowitz, General Catalyst Partners, Accel Partners, BlackRock, Valor Capital, Formation 8 Offers cloud security internet services 100.5

2015-04-14 Rubicon Labs Akamai Technologies, Pelion Venture Partners, Third Point Ventures Develops secure communication technologies for cloud-based data centers and the emerging Internet of Things (IoT) market. 11.7

2015-04-14 Duo Security Benchmark, Google Ventures, True Ventures, Redpoint Ventures, Radar Partners Provides two-factor authentication as a service to prevent account takeover and data theft. 30.0

2015-04-14 Adallom Hewlett Packard Ventures, Index Ventures, Sequoia Capital, Rembrandt Venture Develops security solutions for sensitive and regulated data 30.0

2015-04-08 Palerra August Capital, Norwest Venture Partners, Wing Venture Partners provides security coverage for cloud platforms in North America and internationally 17.0

2015-04-08 Niara, Inc. Index Ventures, New Enterprise Associates, Venrock Develops and offers cyber and enterprise security software 20.0

2015-04-07 CliQr Google Ventures, Translink Capital, Polaris Partners, Foundation Capital Its cloud app management platform enabling companies to manage and secure apps onto clouds 20.0

2015-04-06 RedSeal Venrock, Sutter Hill Ventures, Math Venture Partners, Pallasite, Tyco Develops security risk management (SRM) software and solutions and helps companies eliminate cyber threats. 17.0


($ in millions)


Recent Cybersecurity M&A Transactions ($ in millions)

26

Announced Acquirer Target Target AbstractVal./Rev. Total Deal Amt. Target TTM Rev.


Announced Acquirer Target Target Abstract Val./Rev. Total Deal Amt. Target TTM Rev.

2017-08-28 Forcepoint RedOwl Analytics Enables risk management teams to proactively monitor and mitigate suspicious human activity inside the enterprise NA NA NA

2017-08-02 DigiCert Symantec Website Security Symantec Website Security is a division of the cyber security company Symantec NA 950.0 NA

2017-05-24 Microsoft Hexadite Solves the cybersecurity capacity problem with the first agentless intelligent security automation and orchestration platform NA NA NA

2017-04-18 ECS Federal InfoReliance Provider of cybersecurity, cloud computing, software engineering solutions and managed services NA NA NA

2017-04-18 Mastercard NuData Security An online and mobile fraud-prevention company NA NA NA

2017-03-07 CA Technologies Veracode Makes cloud-based software that allows developers to test and monitor the security of their applications during the building and deployment process NA 614.0 NA

2017-01-23 IBM Agile 3 Solutions Provides software that clues business executives on cyber security threats and risks to sensitive information NA NA NA

2017-01-19 Accenture Arismore Provides enterprise architecture and information systems security solutions to companies and government in France NA NA NA

2017-01-09 Amazon Harvest.ai Enables organizations to identify and stop data breaches, insider threats, and stolen credentials. NA 20.0 NA

2016-12-23 RUAG Clearswift Provides cyber-security solutions to protect business's data from internal and external threats. NA NA NA

2016-12-21 Coalfire Veris Group Provides cyber risk advisory, compliance assessment, technical testing, and engineering services NA NA NA

2016-10-05 Accenture Defense Point Security Provides cybersecurity services and solutions for government and commercial customers. NA NA NA

2016-07-22 Core Security Technologies Dambella Inc. Provides threat protection solutions to enterprises via passive sensors and initiates a response to stop data theft NA NA NA

2016-06-07 Fortinet AccelOps Provides deeps analytics for a combined purpose of network performance and security management NA 32.0 NA

2016-04-18 Alert Logic Click Security Provides real-time security analytics that enable businsses to detect subtle changes in behavior that are often the signs of an advanced attack NA NA NA

2016-04-08 Lookout Bluebox Security Offers software that secures company data as it interacts with employee mobile devices, apps and services NA NA NA

2016-04-05 ServiceNow ITApp Offers hybrid cloud management software that allows customers to consume public cloud while keeping data private and secure NA NA NA

2016-04-05 Barracuda Networks Sookasa Provides encryption and compliance for sensitive files across cloud storage services and mobile devices NA NA NA

2016-02-29 MNP Nci.ca Provides cyber security products, services, and solutions NA NA NA2016-02-29 IBM Resilient Systems Automates and orchestrates the many processes needed when dealing with cyber incidents NA NA NA2016-02-24 BlackBerry Encription Is a cyber security consultancy that provides IT training courses for enterprises NA NA NA


Recent Cybersecurity M&A Transactions (Cont.) ($ in millions)

27

Announced Acquirer Target Target AbstractVal./Rev. Total Deal Amt. Target TTM Rev.


2016-02-15 Strategic IP Information Pte. Ltd/VeriSite Global VeriSite Global Provides risk-relevant intelligence online solutions NA NA NA

2016-02-11 Mountain Acquisition Company Eagle Security Systems Provides professional, commercial, and residential intrusion and fire alarm systems NA NA NA

2016-02-08 Bessemer Venture Partners Digital Footprints International Provides security solutions for detecting, diagnosing, and mitigating Internet threats that include

phising, malware attacks, and domain name system (DNS) hijacking for enterprises NA NA NA

2016-01-20 FireEye iSight Partners Provides cyber threat intelligence solutions NA 268 NA

2015-10-08 LogMeIn LastPass Is a free password manager and form filler optimized for Firefox, Internet Explorer, Opera and Safari. NA 125 NA

2015-10-07 VASCO Data Security Silanis E-signature solutions to help businesses of all sizes prepare & sign documents quickly and securely 8.9 85 9.6

2015-10-07 CyberArk Viewfinity Security solutions to cyber threats, preventing attack escalation NA 30.5 NA2015-10-06 Raytheon Foreground Security Is a dedicated cyber security company. NA NA NA2015-10-06 Digital Guardian Code Green Networks Provides data loss prevention and content security solutions for enterprises. NA NA NA

2015-09-16 The Carlyle Group Coalfire Provides risk assessments, testing and implementation security solutions for technology-related businesses. NA NA NA

2015-09-04 BlackBerry Good Technology Products for managing and securing mobile data and devices in a business environment. 2.0 425 211.9

2015-08-04 CA Technologies Xceedium Offers zero trust privileged access management solutions meeting the security and compliance needs NA NA NA

2015-07-09 Avast Software Remotium Provider of enterprise security services to protect mobile devices. NA NA NA2015-06-30 Cisco OpenDNS Provides Internet security and domain name system services to secure the networks NA NA NA

2015-06-03 Cisco Piston Cloud Computing Provides Piston OpenStack that automates the orchestration of a private cloud environment NA NA NA

2015-05-28 ARM Sansa Security Internet of Things (IoT) security platform securing everything from chipsets to the cloud. NA 75 NA

2015-05-26 Mitek Systems Idchecker Combining easy document capturing and strong consumer authentication in one solution NA 10.6 NA

2015-05-21 Elbit Systems NICE Systems' Cyber and Intelligence Division Provides law enforcement organizations with software for creating communication intelligence NA 158 NA

2015-05-06 Rohde & Schwarz Sirrix AG Solutions for endpoint security and trusted infrastructure. 13.1 114 8.72015-05-06 AVG Technologies Privax Its virtual private network that provides its users with secure browsing services NA 60

2015-05-05 Information Innovators Creative Computing Solutions Provides solutions in cyber security, health services, and program management support - - -

2015-04-18 Raytheon Websense Develops software to protect organizations from cyber attacks and data theft with security systems. 5.3 1900 359.4

2015-04-07 SingTel Trustwave Provides data security and payment card industry compliance management solutions 6.7 810 121.2

2015-04-06 Akamai Technologies Octoshape Content delivery service that provides global infrastructure, which deliver video via the Internet. NA NA NA



Recent Cybersecurity M&A Transactions (Cont.) ($ in millions)

28


2015-04-02 Check Point Software Lacoon Offers a solution that assesses mobile risks NA NA NA

2015-04-01 Salesforce.com Toopher Provides a location-based multifactor authentication solution that prevents online fraud and identity theft NA NA NA

2015-03-19 Rakuten Yieldex Provides a cross-channel revenue and inventory management platform NA NA NA

2015-03-19 Opera Software SurfEasy Portable password-protected web browser that encrypts Internet traffic NA NA NA

2015-03-19 Bain Capital Blue Coat Provider of security and networking solutions 5.1 2400 467.2

2015-03-05 PayPal CyActive Predictive cyber security company NA NA NA

2015-03-04 IBM AlchemyAPI Specializes in artificial intelligence-based text analysis cloud services. NA NA NA

2015-03-02 Proofpoint Emerging Threats Pro Designs and develops security software. NA NA NA

2015-03-02 Akamai Technologies Xerocole Operates as an intelligent broadband domain name system (DNS) company. NA NA NA

2015-03-02 Hewlett-Packard Aruba Networks Provides enterprise mobility solutions worldwide 3.3 2651 812

2015-02-20 Box Airpost.io Provides a cloud security dashboard and activity monitor NA NA NA

2015-02-18 Check Point Software Hyperwise Providing solutions to combat APT attacks NA 80 NA

2015-02-09 Hewlett-Packard Voltage Security Provides solutions for combating security threats NA NA 9.7

2015-02-06 Harris Exelis Maker of military radios and air-traffic control equipment 1.5 5019.8 3314

2015-01-13 Bottomline Technologies Intellinx Develops behavior tracking solutions. NA 84.84 NA

2015-01-12 Symantec Narus Provides cybersecurity data analytics solutions for enterprises, carriers, and governments worldwide. NA NA 11.5

2014-12-19 Accumli Security RandomStorm Solutions for vulnerability management and network security along with security services NA 13.5 NA

2014-12-11 Datto Backupify Is a backup technology provider for cloud-based data, offering archiving, search and restore solutions NA NA NA

2014-12-09 Belden Tripwire Provider of advanced threat, security and compliance solutions 8.2 710 86.2

2014-12-02 SS&C Technologies DST Global Solutions Offers fraud detection and management 1.3 95 70.4



Recent Technology IPOs(US$ in millions, except per share values)

29

Source: CapIQ 8/30/17 Note: Offerings that raised/expected to raise less than $40M and OTC–traded companies have been excludedIT Security companies highlighted in gold

Highlighted companies indicates IT Security IPOs

Mean 18.10 31.9 1,110.9 111% 11,228.5 8.1x 6.3x 2,618.6 940.0 29% 66%

Median 15.00 9.2 119.3 102% 955.0 6.0x 4.5x 123.6 170.4 33% 66%

`Shares Offered

(millions)% Return since IPO

As of IPO

MRQ Gross Margin %

Current Price

IPO Range

IPO PriceAmount Raised Ent. Value

EV/LTM EV/FTM

LTM Rev FTM Rev.% Rev. GrowthTicker Company Industry IPO Date Low High Rev. Rev.

TNTR Tintri, Inc. IT Infrastructure 6/29/2017 6.20 10.50 12.50 7.00 8.6 60.0 -14% 19.2 0.1x 0.1x 132.6 169.0 27% 61%

CVNA Carvana Co. Software 4/27/2017 18.76 14.00 16.00 15.00 15.0 225.0 17% 274.5 0.6x 0.2x 451.3 1,187.9 163% 6%

CLDR Cloudera, Inc. Software 4/27/2017 17.15 12.00 14.00 15.00 15.0 225.0 24% 414.4 1.6x 1.1x 261.0 367.6 41% 24%

OKTA Okta, Inc. IT Security 4/6/2017 21.86 13.00 15.00 17.00 11.0 187.0 55% 201.6 1.3x 0.9x 160.3 227.0 42% 67%

AYX Alteryx, Inc. Software 3/23/2017 19.31 12.00 14.00 14.00 9.0 126.0 67% 323.9 3.8x 2.7x 85.8 118.9 39% 83%

MULE MuleSoft, Inc. Software 3/16/2017 19.98 12.00 14.00 17.00 13.0 221.0 27% 199.6 1.1x 0.8x 187.7 266.0 42% 73%

COUP Coupa Software Incorporated Software 10/5/2016 30.16 14.00 16.00 18.00 7.4 133.2 69% -71.6 -0.7x -0.5x 109.5 136.6 25% 67%

NTNX Nutanix, Inc. Software 9/29/2016 21.10 11.00 13.00 16.00 14.9 237.9 37% 526.6 1.2x 0.7x 444.9 703.6 58% 57%

TLND Talend S.A. Software 7/28/2016 37.52 15.00 17.00 18.00 5.3 94.5 117% -4.8 -0.1x 0.0x 88.7 117.8 33% 76%

LN LINE Corporation Internet 7/11/2016 35.97 25.84 28.94 31.91 22.0 1,125.2 11% -59,469.5 -0.5x -35.1x 131,540.8 1,693.2 -99% 37%

TWLO Twilio Inc. Software 6/22/2016 28.15 12.00 14.00 15.00 10.0 150.0 95% 150.6 0.8x 0.6x 192.9 253.1 31% 57%

SCWX SecureWorks Corp. IT Security 4/21/2016 10.27 15.50 17.50 14.00 8.0 112.0 -27% 887.2 2.6x 2.0x 339.5 444.2 31% 53%

TEAM Atlassian Corporation Plc Software 12/9/2015 34.61 16.50 18.50 21.00 22.0 462.0 65% 2,393.3 6.8x 5.3x 353.4 448.8 27% 79%

SQ Square, Inc. Payments 11/18/2015 25.76 11.00 13.00 9.00 27.0 243.0 186% 1,172.5 1.0x 2.0x 1,143.7 588.5 -49% 38%

MIME Mimecast Limited IT Infrastructure 11/18/2015 26.62 10.00 12.00 10.00 7.8 77.5 166% 343.5 2.7x 2.3x 128.4 150.4 17% 74%

INST Instructure, Inc. SaaS 11/12/2015 29.95 16.00 18.00 16.00 4.4 70.4 87% 132.5 2.0x 1.4x 65.1 95.1 46% 71%

IOTS Adesto Technologies Corporation IT Infrastructure 10/26/2015 6.65 10.00 12.00 5.00 5.0 25.0 33% 86.9 2.1x 1.7x 41.8 52.2 25% 49%

PSTG Pure Storage, Inc. IT Storage 10/6/2015 14.99 16.00 18.00 17.00 25.0 425.0 -12% 234.8 0.9x 0.5x 273.8 477.2 74% 65%

RPD Rapid7, Inc. IT Security 7/16/2015 16.90 13.00 15.00 16.00 6.5 103.2 6% 541.8 5.9x 4.7x 91.6 116.0 27% 73%

SOPH Sophos Group plc IT Security 6/30/2015 4.98 0.00 0.00 3.54 156.2 553.8 41% 1,800.5 3.9x 3.7x 456.3 483.5 6% -

APPF AppFolio, Inc. IT Infrastructure 6/25/2015 42.20 12.00 14.00 12.00 6.2 74.4 252% 323.6 6.0x 3.7x 53.7 87.9 64% 60%

ALRM Alarm.Com Holdings, Inc. IT Security 6/25/2015 45.78 13.00 15.00 14.00 7.0 98.0 227% 566.3 3.2x 2.7x 176.5 208.7 18% 64%

SHOP Shopify Inc. Cloud Infrastructure 5/20/2015 108.44 12.00 14.00 17.00 7.7 130.9 538% 1,261.4 10.2x 7.4x 123.6 170.2 38% 57%

ETSY Etsy, Inc. Internet 4/15/2015 16.17 14.00 16.00 16.00 16.7 266.7 1% 1,664.7 7.8x 5.6x 213.6 298.5 40% 64%

GDDY GoDaddy Inc. IT Infrastructure 3/31/2015 43.88 17.00 19.00 20.00 20.5 460.0 119% 2,332.7 1.6x 1.4x 1,443.4 1,656.0 15% 64%

BOX Box, Inc. IT Storage 1/22/2015 19.64 11.00 13.00 14.00 12.5 175.0 40% 1,729.5 9.0x 6.7x 192.6 258.8 34% 72%


Recent Technology Follow–on Offerings (US$ in millions, except per share values)

Source: CapIQ 8/28/17Note: Offerings that raised/expected to raise less than $40M and OTC–traded companies have been excludedIT Security companies highlighted in gold

30

Shares Offered (millions)

% Return since Follow-On

As of Follow-On

MRQ Gross Margin %Current Price Follow-On Price

Amount Raised Ent. Value

EV/LTMRev.

EV/FTMRev. LTM Rev. FTM Rev.

% Rev. GrowthTicker Company Industry Follow-On Date

SHOP Shopify Inc. Internet 5/18/2017 $104.03 91.00 5.5 500.50 14% 7,612.97 17.1x 11.1x 443.99 683.74 54% 57%

GDDY GoDaddy Inc. Internet 5/4/2017 $42.58 38.50 24.1 927.85 11% 4,423.67 2.3x 1.9x 1,903.90 2,327.49 22% 65%

KEYS Keysight Technologies, Inc. Electronics 3/22/2017 $39.86 35.00 11.4 400.00 14% 6,529.07 2.2x 2.1x 2,923.00 3,112.91 6% 55%

OTEX Open Text Corporation Software 12/13/2016 $31.86 61.00 9.3 564.25 -48% 16,262.83 8.6x 7.3x 1,881.36 2,237.39 19% 73%

TTMI TTM Technologies, Inc. Internet 11/16/2016 $13.88 11.50 12.0 138.00 21% 2,062.79 0.8x 0.8x 2,495.70 2,579.73 3% 15%

VSAT ViaSat, Inc. Digital Communication 11/17/2016 $61.34 69.74 6.5 453.31 -12% 5,245.31 3.5x 3.3x 1,482.01 1,597.43 8% 31%

TWLO Twilio Inc. Software 10/20/2016 $28.69 40.00 7.0 280.00 -28% 3,332.73 13.5x 10.2x 246.72 325.58 32% 56%

AMD Advanced Micro Devices, Inc. Semiconductors 9/6/2016 $12.23 6.00 100.0 600.00 104% 9,475.42 2.4x 2.2x 3,878.00 4,383.62 13% 33%

DMRC Digimarc Corporation Software 8/5/2016 $29.75 30.00 1.2 37.00 -1% 200.13 9.3x 8.3x 21.44 24.11 12% 56%

GDDY GoDaddy Inc. Internet 5/4/2017 $42.58 38.50 24.1 927.85 11% 4,423.67 2.3x 1.9x 1,903.90 2,327.49 22% 65%

HDP Hortonworks, Inc. Software 2/1/2016 $16.03 9.50 8.4 80.04 69% 288.47 2.4x 1.5x 121.94 188.24 54% 67%

VNTV Vantiv, Inc. Payments 12/2/2015 $71.74 51.67 13.4 691.07 39% 11,681.94 3.8x 6.6x 3,041.39 1,771.54 -42% 53%

FIT Fitbit, Inc. Electronics 11/12/2015 $5.94 29.00 17.0 493.00 -80% 5,664.96 3.7x 2.6x 1,516.61 2,211.86 46% 42%

PAYC Paycom Software, Inc. Software 11/12/2015 $72.74 42.15 4.5 189.68 73% 2,417.83 11.9x 8.8x 203.58 273.50 34% 84%

SABR Sabre Corporation Software 11/4/2015 $18.43 29.27 26.6 877.35 -37% 12,999.77 4.6x 3.9x 2,848.58 3,293.30 16% 30%

PCTY Paylocity Holding Corporation Software 9/24/2015 $46.93 29.75 3.7 111.27 58% 1,552.79 10.2x 6.8x 152.70 227.01 49% 56%

QTWO Q2 Holdings, Inc. Marketing 9/24/2015 $41.15 25.50 3.8 96.87 61% 903.67 9.7x 6.8x 93.58 132.86 42% 49%

BNFT Benefitfocus, Inc. Marketing 8/6/2015 $29.25 36.75 2.0 73.50 -20% 1,100.56 6.9x 5.7x 159.76 194.52 22% 54%

SSNC SS&C Technologies Holdings, Inc. Semiconductors 6/18/2015 $38.03 61.50 10.5 645.75 -38% 13,266.85 16.8x 10.4x 787.79 1,269.59 61% 46%

ZEN Zendesk, Inc. Software 3/19/2015 $27.26 22.75 8.5 194.06 20% 1,663.10 13.1x 8.8x 127.05 188.59 48% 70%

HUBS HubSpot, Inc. Marketing 3/17/2015 $68.60 37.00 4.1 152.24 85% 1,268.25 10.9x 7.9x 115.88 161.16 39% 79%

EIGI Endurance International Group Holdings, Inc. Internet 3/6/2015 $7.35 19.00 12.0 228.00 -61% 5,379.77 8.5x 7.2x 629.85 746.03 18% 50%

Mean: 34.94 9.7 341.16 9% 5,263.59 9.1x 6.9x 879.71 951.81 30% 56%

Median: 29.75 8.5 194.06 20% 2,417.83 9.7x 6.8x 203.58 273.50 39% 53%

Documents

Centaur Partners Cybersecurity Market Update · 2017-09-14 · •Through Q3 technology deal value in 2016 was $227.5B •Q3’s volume of $102.5B was a 24% increase from Q2 2016,