Electronics Software and Engineering Services Industry Update · 2016-04-26 · Electronics Software and Engineering Services Industry Update November 2013 ... Curtiss-Wright acquired

Electronics Software and Engineering Services

Industry Update

November 2013

Mergers & Acquisitions

Business Valuation

Strategic Consulting

2

November 2013

Notable M&A Activity

Apple buys PrimeSense

Mitel acquires Aastra

M/A Com acquires Mindspeed

Tellabs acquired by Marlin Equity

Microsoft acquires Nokia’s devices

business and license key patents

Cisco Systems acquires Sourcefire, Inc.

from Sequoia Capital, Blackrock and T.

Rowe price.

McAfee,Inc. acquires 97.93% stake in

Stonesoft Oyj

Industry News and Recent M&A Transactions

Industry News

According to Ernst and Young, total tech deal volume worldwide for 3Q13 was $72 billion, relative to a normal volume of

$30 billion. Q3 represents the best quarter in the industry since the dot-com crash.

Intel has created a new “Internet of Things” group to include the Wind River software business as well as the Atom and

Quark processor platforms.

The Semiconductor Industry Association (SIA) reports September industry sales reaching $26.97 billion, the highest

monthly total ever. This represents an increase of 8.7 percent compared to September 2012.

Snapchat, a photo messaging application used primarily by teens, has rejected a $3 billion offer by Facebook. The Los

Angeles, CA-based company has reportedly received higher offers from companies such as China’s Tencent.

Sony sold 1 million of the new PlayStation 4 in 24 hours. The PS4 is the first platform update in seven years.

“Finding the Right Financier for Your Company” – The Institute of Electrical and Electronics Engineers (IEEE) recently

published McLean Group banker Brent Lorenz’s article about the advantages of hiring advisors with engineering

backgrounds for the sales of highly technical companies. Read it here.

Source: Public Filings; Capital IQ as of 11/8/13

52 Weeks YTD 4 Weeks 1 Week

Semiconductors Index 15.03% 8.77% 1.39% -1.85%

Defense Electronics Index 66.75% 59.21% 11.77% 1.19%

EDS and Contract Manufacturers Index 25.54% 14.50% -10.26% -1.95%

Large Cap Software Index 13.01% -0.32% 2.42% 1.63%

Mid/Small Cap Software Index -18.10% -22.52% -3.21% 1.83%

Electronics Equipment Index 12.98% 9.33% 6.27% 1.27%

S&P 500 28.32% 21.07% 3.96% 0.51%

% Change

http://theinstitute.ieee.org/ieee-roundup/opinions/ieee-roundup/finding-the-right-financer-for-your-company

3

November 2013 Announced M&A Transactions

Announced Announced Announced

November 18, 2013 November 11, 2013 November 5, 2013

Notes Notes Notes

Apple has reportedly acquired Israeli

3-D sensor company PrimeSense, in

a deal valued at $345 million.

PrimeSense is the technology behind

Microsoft’s Kinect 3D motion sensor

for the Xbox gaming system. The

technology is rumored to be planned

for use in Apple’s TV platforms.

PrimeSense raised $85 million from

Israeli and U.S. venture-capital

funds, including Canaan Partners

Global, Gemini Israel and Genesis

Partners.

Ottawa, Canada based Mitel

Networks, a provider of VoIP-based

unified communications solutions

such as IP Phones for business, has

acquired rival Aastra Technologies in

a deal valued at $376 million. The

combined company will have a global

customer base of 60 million end

users and $1.1 billion in revenue.

Mitel is now expected to be the #5

worldwide player in terms of market

share, still a long distance behind #1

Cisco.

Lowell, MA based semiconductor

company M/A Com will acquire

network infrastructure semiconductor

firm Mindspeed for $272 million. M/A

Com plans to use the acquisition

solidify itself as a global leader in

100G optical networking, with

combined revenue of $450 million.

Mindspeed plans to either sell off or

wind down its communications

processor business, which does not

fit with the long term strategy.

has acquired has acquired has acquired

4

November 2013 Announced M&A Transactions

Announced Announced Announced

October 21, 2013 September 3, 2013 July 23, 2013

Notes Notes Notes

Tellabs agreed to be acquired by

Marlin Equity Partners for $891

million, enabling the telecom

infrastructure equipment supplier to

go private. Tellabs posted 11

straight quarters losing money as the

company shifts from older

technologies to equipment for

wireless networks.

Microsoft has purchased

substantially all of Nokia’s Devices

and Services businesses and license

its patents and mapping services.

Microsoft will pay a total of EUR 5.44

billion in cash. Microsoft aims to

build on the partnership announced

in 2011, of leveraging the Nokia

Lumina smartphone platform to

provide a market-leading solution

and represents a market shift to key

suppliers providing both hardware

and software. (This acquisition was

completed on November 5, 2013.)

Cisco has acquired network security

equipment maker Sourcefire for $2.7

billion. Maryland-based Sourcefire

was founded in 2001 and offers

products to help secure enterprises

from threats with products such as

firewalls and malware protection.

Sourcefire recorded $223 million of

revenue in 2012. This follows other

Cisco security acquisitions including

Cognitive Security and Virtuata.

(This acquisition was completed on

October 7, 2013.)

has acquired has acquired certain assets of has acquired

5

November 2013

Company

11/8/13

Close

% of 52

Week High

4 Week

Change

52 Week

Change Comments

$24.09 92.73% 3.59% 15.82%

Intel announced the purchase of Kno on 11/8/13. Kno is a startup that

helps educational publishers make their books interactive. It

previously had raised $73 MM from such investors as Advance

Publications, Andreessen Horowitz, Floodgate, SV Angel and others.

$67.45 95.85% -0.15% 9.46%

Qualcomm subsidiary Qualcomm Technologies will power Google’s

new Android smartphone, the Nexus 5, with its Qualcomm

Snapdragon 800 processor. The Nexus 5 also uses the Qualcomm

QFE1100 feature, an important part of a system-level solution

enabling OEMs to develop a single, global 4G LTE design.

$41.98 99.08% 3.96% 42.26%

Texas Instruments projects $Q 2013 revenues of $2.86 B to $3.10 B

and quarterly EPS of $0.42 to $0.50. Analysts were expecting the

Company to report $3.12 B in revenue and $0.51 EPS for 4Q 2013.

$26.50 70.01% -0.04% -13.43%

Renesas Mobile sold a 100% stake in Subsidiary A, specializing in

communication modem R&D for mobile phones in Finland, and a

100% stake in a Subsidiary A subsidiary (doing the same business in

India), to Broadcom on 10/1/13. It also sold a Long Term Evolution-

related (LTE) modem technology to Broadcom.

$7.50 72.73% -17.90% 27.82%

STM, a global semiconductor leader serving customers across the

spectrum of electronics applications, was named Company of the

Year by MEMS Industry Group and affiliated voters for its continuing

success growing its MEMS business and product line while

demonstrating industry leadership and vision.

$1,770.61 99.92% 3.96% 28.32% The S&P 500 and other major US stock indices continued to set new

market highs through November 2013.

Electronics Software and Engineering Services: 4 Week and 52 Week Stock Performances

Source: Capital IQ 11/8/2013

6

November 2013

Company

11/8/13

Close

% of 52

Week High

4 Week

Change

52 Week

Change Comments

$133.49 99.19% 13.15% 82.24%

Boeing projects FY 13 revenue of $83 B to $86 B, core earnings per

share of $6.50 - $6.65 and EPS of $5.40 - $5.55. Analysts FY 13

consensus was for $84 B in revenues and $6.52 EPS.

$138.11 99.97% 9.46% 53.49%

Lockheed Martin projects FY 13 net sales of $45.0 B, consolidated

operating profit of $4.625 B to $4.775 B and diluted EPS of $9.40-

$9.70. For FY 14, it projects a slight decline in net sales v. FY 13 while

its business segment operating margin remains above 11.5%.

$85.36 99.57% 11.98% 52.27%

Raytheon projects FY 13 net sales of $23.6 B to $23.8 B, EPS from

continuing operations of $5.67 to $5.77 and adjusted EPS of $6.10 to

$6.20. Analyst consensus was for $23.7 B in revenue and $5.66 EPS.

$101.50 98.80% 8.05% 36.30%

L-3 declared a $0.55 P/S quarterly cash dividend payable 12/16/13 to

S/H of record 11/18/13. Its Warrior Systems-ALST business recently

was awarded a contract to deliver Ground Laser Target Designators

(GLTD) to the Republic of Korea (ROK).

$51.90 100.00% 9.96% 73.64%

Curtiss-Wright acquired Arens Controls, LLC, Ovalpath, Inc., and

Parvus Corporation for a total $139 million in early October. The

acquisitions will operate within its Controls, Nuclear Group and

Controls segments, respectively.





7

November 2013

Company

11/8/13

Close

% of 52

Week High

4 Week

Change

52 Week

Change Comments

$7.70 79.34% -14.40% 28.55%

Flextronics projects $6.9 B in 3Q 14 revenue and $0.25 in EPS.

Analysts consensus was for $6.8 B in revenue and $0.26 EPS.

$20.51 84.33% -6.73% 16.40%

Jabil Circuit projects 1Q 14 revenue of $4.35 B to $4.65 B, core

operating income $165 MM to $195 MM and core EPS of $0.50 to

$0.60, GAAP operating income should range from $110 MM to $140

MM with GAAP EPS ranging from $0.25 to $0.35.

$10.67 93.87% -3.12% 54.42%

Celestica projects 4Q 13 revenue of $1.4 B to $1.5 B, and adjusted

net EPS of $0.20 to $0.26. It expects a negative $0.06 to $0.13 P/S

pre-tax aggregate impact on net earnings on an IFRS basis for stock-

based compensation, amortization of intangible assets & restructuring.

$0.53 72.86% -11.50% 12.40%

A Finnish newspaper reported that Nokia Siemens Networks, the

Nokia Oyj/Siemens AG joint venture, plans to sell its manufacturing

assets to contract manufacturers in a tender to raise cash and release

working capital. Firms participating in the tender include: Flextronics,

Jabil Circuit, Foxconn Technology, Sanmina-SCI, among others.

$15.36 83.30% -10.23% 71.81%

Sanmina projected 4Q 13 revenue of $1.48 Billion to $1.525 B and

Non-GAAP diluted EPS of $0.37 to $0.43. Analyst consensus was for

4Q 13 revenue of $1.52 B and $0.40 in EPS.





8

November 2013

Company

11/8/13

Close

% of 52

Week High

4 Week

Change

52 Week

Change Comments

$31.93 96.90% 8.16% 43.76%

CA Technologies increased its FY 14 guidance for revenue and GAAP

and non-GAAP earnings per share. For FY 2014, it expects GAAP

diluted EPS to decrease by -7% to -4% in constant currency. It

reported FY 13 revenue of $4.64 billion and EPS of $2.53.

$34.35 94.29% 3.28% 13.18%

Oracle acquired Cloud-based content marketing provider

Compendium, which helps companies plan, produce and deliver

engaging content across multiple channels throughout their

customers' lifecycles.

$42.76 99.05% 4.17% 38.20%

Autodesk agreed to acquire Graitec`s Advance Steel and Advance

Concrete product lines, and associated employees, to enhance its

structural engineering and expand its technology portfolio for Building

Information Modeling (BIM), structural fabrication and detailing.

$39.91 89.38% -3.99% 45.98%

NetApp projects 2Q 14 revenue of $1.56 B to $1.66 B, GAAP EPS of

$0.41 to $0.46 and Non-GAAP EPS of $0.60 to $0.65. Analyst

consensus expected $1.626 B revenues and $0.63 EPS for 2Q 14.

$79.28 79.64% -1.44% -9.49%

Juniper Networks expanded its partnership with VMware to deliver a

broad range of solutions unifying virtual and physical networks within

a virtualized data center environment, including VMware NSX(TM) L2

Gateway integration and VXLAN routing capabilities.





9

November 2013

Company

11/8/13

Close

% of 52

Week High

4 Week

Change

52 Week

Change Comments

$8.85 67.66% -2.75% -19.55%

Guidance Software projects FY 13 revenue of $112 MM to $115 MM,

non-GAAP pre-tax losses of $0.50 P/S to $0.42 P/S, while analyst

consensus expectations were for $134 MM and a $0.07 P/S loss.

$64.45 82.90% -3.08% N/A

Siemens Energy Sector recently selected Tableau for its visual

analytics. Siemens employees will use Tableau Desktop and Server

to connect to live data and perform visual, rapid-fire analysis,

achieving faster, better decisions and insights.

$34.06 55.36% -3.76% -34.27%

Solarwinds reported that through its SolarWinds Worldwide, LLC

subsidiary, it agreed to merge and reorganization with Confio Corp. on

10/1/13. SolarWinds acquired Confio for $103 MM.

$3.30 89.43% 25.95% 13.01%

BSQUARE’s Brian Crowley stepped down as its president, CEO and

member of the Board of Directors on 9/30/13. Jerry Chase, who

joined Bsquare’s Board of Directors on 7/1/13 is serving as interim

CEO.





10

November 2013

Company

11/8/13

Close

% of 52

Week High

4 Week

Change

52 Week

Change Comments

$520.56 87.55% 5.63% -4.84%

A Washington, DC federal appeals court handed Apple another patent

victory, reviving the iPhone maker's claims against Google's Motorola

Mobility unit over two smart phone touch screen patents. The ruling

could end up keeping Motorola from importing technology used in a

number of its Android smart phones.

$27.05 99.49% 10.86% 28.81%

GE's GE Money Bank, a Swiss consumer finance business, could be

valued at up to 1.53 billion Swiss francs or $1.67 B. GE Money Bank

expects to raise up to CHF1.05 billion from a share sale as GE

Capital sells up to 18 MM shares, or 60% of the Money Bank.

$23.51 88.76% 0.99% 39.77%

GE is partnering with Cisco Systems to expand an 'Industrial Internet'

service enabling customers to analyze data and predict outcomes.

The service helps customers analyze industrial data so large it is

difficult to process using traditional databases/software.

$93.79 98.82% 4.19% 37.18%

Schlumberger declared a $0.3125 P/S quarterly dividend on

outstanding common stock payable 1/10/14 to stockholders of record

at the close of business on 12/4/13.

$74.60 99.95% 7.43% 43.41%

Danaher projects 4Q 13 GAAP diluted net EPS of $0.91 to $0.96 and

reaffirms FY 13 adjusted diluted net EPS guidance of $3.37 to $3.42.

Analyst consensus expected 4Q 13 EPS of $0.96 and $3.40 EPS for

FY 13.





11

November 2013 Capital Markets: Last 52 Weeks’ Market Index Performances


-50.00%

-30.00%

-10.00%

10.00%

30.00%

50.00%

70.00%

90.00%

S&P 500 Index Semiconductors Index Defense Electronics Index

EDS and Contract Manufacturers Index Large Cap Software Index Mid/Small Cap Software Index

Electronics Equipment Index

52 Weeks YTD 4 Weeks 1 Week

Semiconductors Index 15.03% 8.77% 1.39% -1.85%

Defense Electronics Index 66.75% 59.21% 11.77% 1.19%

EDS and Contract Manufacturers Index 25.54% 14.50% -10.26% -1.95%

Large Cap Software Index 13.01% -0.32% 2.42% 1.63%

Mid/Small Cap Software Index -18.10% -22.52% -3.21% 1.83%

Electronics Equipment Index 12.98% 9.33% 6.27% 1.27%

S&P 500 28.32% 21.07% 3.96% 0.51%

% Change

12

November 2013 Electronics Software and Engineering Services Industry Snapshot ($MM Except EPS)

Semiconductor

Index

Quarter Ending Consensus

Revenue

Consensus

EPS

Actual

Revenue

Actual EPS

Difference vs.

Est. Revenue

Difference vs.

Estimated EPS

9/28/2013 $13,457.4 $0.53 $13,483.0 $0.59 0.19% 11.20%

9/29/2013 $6,352.0 $1.08 $6,481.0 $0.88 2.03% -18.64%

9/30/2013 $3,222.4 $0.57 $3,244.0 $0.56 0.67% -0.81%

9/30/2013 $2,127.7 $0.69 $2,146.0 $0.55 0.86% -19.25%

9/28/2013 $2,046.3 $0.01 $2,013.0 -$0.16 -1.63% -1177.36%

Defense

Electronics

Index


Revenue

Consensus

EPS

Actual

Revenue

Actual EPS Difference vs.

Est. Revenue

Difference vs.

Estimated EPS

9/30/2013 $21,684.7 $1.55 $22,130.0 $1.53 2.05% -1.17%

9/29/2013 $11,137.2 $2.27 $11,347.0 $2.62 1.88% 15.34%

9/29/2013 $5,812.6 $1.34 $5,842.0 $1.51 0.51% 12.76%

9/27/2013 $3,068.5 $1.95 $2,996.0 $2.28 -2.36% 16.60%

9/30/2013 $613.1 $0.77 $600.7 $0.77 -2.02% -0.30%


13

November 2013

EDS/Contract

Manufactures

Index


Revenue

Consensus

EPS

Actual

Revenue

Actual EPS

Difference vs.

Est. Revenue

Difference vs.

Estimated EPS

9/27/2013 $6,279.2 $0.21 $6,410.1 $0.19 2.08% -7.78%

8/31/2013 $4,542.8 $0.56 $4,814.9 $0.63 5.99% 11.89%

9/30/2013 $1,489.5 $0.21 $1,491.9 $0.31 0.16% 48.11%

6/30/2013 $0.0 $0.00 $1,238.1 $0.00 N/A N/A

9/28/2013 $1,505.6 $0.40 $1,505.3 $0.46 -0.02% 16.62%

Large Cap

Software Index


Revenue

Consensus

EPS

Actual

Revenue Actual EPS

Difference vs.

Est. Revenue

Difference vs.

Estimated EPS

9/30/2013 $1,118.1 $0.72 $1,140.0 $0.53 1.96% -26.60%

8/31/2013 $8,477.1 $0.56 $8,372.0 $0.48 -1.24% -15.28%

7/31/2013 $560.9 $0.42 $561.7 $0.28 0.14% -34.09%

7/26/2013 $1,536.3 $0.49 $1,516.2 $0.23 -1.31% -52.84%

9/30/2013 $1,287.9 $0.82 $1,289.0 $0.61 0.09% -26.16%


Electronics Software and Engineering Services Industry Snapshot ($MM Except EPS)

14

November 2013

Mid/Small Cap

Software Index


Revenue

Consensus

EPS

Actual

Revenue

Actual EPS

Difference vs.

Est. Revenue

Difference vs.

Estimated EPS

9/30/2013 $28.2 -$0.12 $28.3 -$0.19 0.23% 65.27%

9/30/2013 $50.9 -$0.09 $61.1 $0.05 19.93% -157.14%

9/30/2013 $85.8 $0.36 $87.9 $0.30 2.43% -15.46%

6/30/2013 $0.0 $0.00 $21.8 -$0.07 N/A N/A

Electronics

Equipment

Index


Revenue

Consensus

EPS

Actual

Revenue

Actual EPS Difference vs.

Est. Revenue

Difference vs.

Estimated EPS

9/28/2013 $36,937.7 $7.96 $37,472.0 $8.31 1.45% 4.39%

9/30/2013 $36,048.6 $0.36 $35,725.0 $0.32 -0.90% -9.70%

7/27/2013 $12,433.4 $0.51 $12,417.0 $0.42 -0.13% -17.55%

9/30/2013 $11,576.5 $1.24 $11,608.0 $1.30 0.27% 4.36%

9/27/2013 $4,616.5 $0.83 $4,669.1 $0.86 1.14% 3.27%


Electronics Software and Engineering Services Industry Snapshot ($MM Except EPS)

15

November 2013

($ Millions) EDS and Contract Manufacturers’ Index

3x LTM EBITDA $2,821.68 $3,174.32 $613.80 -$151.26 $774.21

Plus Cash $1,127.07 $1,011.37 $546.80 $2,265.83 $402.88

Less LT Debt -$2,013.71 -$1,690.43 $0.00 $0.00 -$562.51

Estimated Liquidity $1,935.04 $2,495.26 $1,160.60 $2,114.57 $614.57

Company Liquidity Estimates by Subsector


($ Millions) Semiconductors Index

3x LTM EBITDA $60,306.00 $25,734.00 $11,934.00 $3,924.00 $1,425.00

Plus Cash $4,881.00 $6,142.00 $1,435.00 $1,524.00 $1,434.00

Less LT Debt -$13,181.00 $0.00 -$4,161.00 -$1,394.00 -$619.00

Estimated Liquidity $52,006.00 $31,876.00 $9,208.00 $4,054.00 $2,240.00

($ Millions) Defense Electronics Index

3x LTM EBITDA $24,843.00 $15,807.00 $9,990.00 $4,683.00 $1,024.66

Plus Cash $10,041.00 $2,661.00 $2,942.00 $377.00 $171.36

Less LT Debt -$8,677.00 -$6,156.00 -$4,733.00 -$3,647.00 -$958.46

Estimated Liquidity $26,207.00 $12,312.00 $8,199.00 $1,413.00 $237.56

16

November 2013

($ Millions) Electronics Equipment Index

3x LTM EBITDA $167,268.00 $86,679.00 $41,595.00 $35,832.00 $12,704.40

Plus Cash $14,259.00 $10,202.00 $7,925.00 $3,149.00 $1,995.60

Less LT Debt -$16,960.00 -$226,872.00 -$12,928.00 -$9,916.00 -$3,445.50

Estimated Liquidity $164,567.00 -$129,991.00 $36,592.00 $29,065.00 $11,254.50


($ Millions) Large Cap Software Index

3x LTM EBITDA $4,779.00 $48,777.00 $1,394.40 $2,669.10 $3,969.03

Plus Cash $2,790.00 $19,664.00 $1,401.00 $1,796.80 $2,263.00

Less LT Debt -$1,768.00 -$22,590.00 -$746.00 -$994.80 -$450.00

Estimated Liquidity $5,801.00 $45,851.00 $2,049.40 $3,471.10 $5,782.03

($ Millions) Mid/Small Cap Software Index

3x LTM EBITDA -$28.01 -$6.16 $446.75 $2.72

Plus Cash $16.80 $226.34 $182.83 $10.77

Less LT Debt $0.00 $0.00 $0.00 $0.00

Estimated Liquidity -$11.21 $220.18 $629.58 $13.50

Company Liquidity Estimates by Subsector

17

November 2013 Notable M&A Transactions

Source: Capital IQ as of 11/8/13

Closed Target/Issuer (Seller(s)) Buyers/Investors

Implied

EV ($ MM)

Implied

EV/Rev.

(x)

Implied

EV/EBITD

A (x) Industry

11/5/13 Nokia Microsoft International Holdings BV - - - Communications Equipment

10/31/13

RadioMobile (RF Industries

(NasdaqGM:RFIL)) - - - - Communications Equipment

10/28/13 W&D Holdings Limited Ultra Electronics Holdings (LSE:ULE) $11.29 - - Communications Equipment

10/10/13 BroadWeb Corp. Trend Micro (TSE:4704) - - - Communications Equipment

11/4/13 Empirix (Matrix Partners; Tenaya Capital) Thoma Bravo, LLC - - - Application Software

10/1/13

Acoustic Technologies (TWJ Capital;

Northport Investments) Cirrus Logic (NasdaqGS:CRUS) - - - Application Software

10/1/13 Radant Technologies Communications & Power Industries LLC - - - Aerospace and Defense

10/1/13

Sensory Networks (JAFCO Investment

(Asia Pacific); Technology Venture

Partners Pty. Ltd.; Accede Capital Pty.

Ltd.; The Individuals' Venture Fund; Xilinx

Technology Ventures) Intel Corp. (NasdaqGS:INTC) $20.00 - - Systems Software

9/25/13

IdenTrust (Polaris Financial Technology

Limited (BSE:532254)) Parallax Capital Partners; StepStone Group - - - Systems Software

11/1/13

Enterasys Networks (Enterprise Networks

Holdings) Extreme Networks (NasdaqGS:EXTR) $180.00 0.545 - Communications Equipment

8/28/13 Amplifier Technology Vislink (LSE:VLK) $6.20 - - Communications Equipment

8/30/13 Teradek Vitec Videocom $27.52 2.65 - Communications Equipment

10/1/13

Volterra Semiconductor Corp. (Invesco

(NYSE:IVZ))

Maxim Integrated Products

(NasdaqGS:MXIM) $445.31 2.84 20.13 Semiconductors

7/29/13

The Portland Group (STMicroelectronics

(ENXTPA:STM)) NVIDIA Corp. (NasdaqGS:NVDA) - - - Systems Software

10/7/13

Sourcefire (Sequoia Capital; T. Rowe Price

Group (NasdaqGS:TROW); BlackRock

(NYSE:BLK)) Cisco Systems (NasdaqGS:CSCO) $2,193.57 8.87 118.76 Systems Software

18

November 2013 Notable M&A Transactions

Source: Capital IQ as of 11/8/13

Closed Target/Issuer (Seller(s)) Buyers/Investors

Implied

EV ($ MM)

Implied

EV/Rev.

(x)

Implied

EV/EBITD

A (x) Industry

7/12/13 Omek Interactive (Intel Capital) Intel Corp. (NasdaqGS:INTC) $40.00 - - Systems Software

7/9/13 American Arium ASSET InterTech - - - Systems Software

7/8/13

TrustedID (Draper Fisher Jurvetson; Draper

Richards; Western Technology

Investment; Opus Capital; University

Venture Fund) Equifax (NYSE:EFX) - - - Systems Software

7/16/13

iWatt (Sigma Partners; VantagePoint

Capital Partners; Horizon Ventures;

Samsung Venture Investment Corp.; PAC-

LINK Management Corp.) Dialog Semiconductor (XTRA:DLG) $345.00 4.66 - Semiconductors

7/26/13

Exacq Technologies (CID Capital; KB

Partners) Tyco International (NYSE:TYC) $150.00 2.73 - Systems Software

7/15/13

Veramark Technologies (Glacier Peak

Capital) Hubspoke Holdings $11.65 0.749 11.57 Application Software

7/1/13

IPtronics A/S (Creandum AB; Sunstone

Capital A/S; 10i10 ApS) (Evli Bank plc;

Ilmarinen Mutual Pension Insurance Mellanox Technologies (NasdaqGS:MLNX) $47.50 - - Semiconductors

7/10/13

Stonesoft Oyj (HLSE:SFT1V) (AB,

Investment Arm; Nordea Bank Finland Plc) McAfee $375.31 6.98 - Systems Software

7/31/13

Elpida Memory (Kingston Technology

Company; Development Bank of Japan;

Concord Venture Capital; Senshu Ikeda

Capital) Micron Technology (NasdaqGS:MU) $2,519.68 0.642 6.01 Semiconductors

19

November 2013 McLean Group Introduction

Mergers & Acquisitions

The McLean Group uses its considerable experience and

expertise in a wide range of industries to guide its clients

through each stage of the M&A process and ultimately

identify the most probable and suitable candidates to

complete transactions under the most favorable terms.

Market Intelligence

By leveraging superior competitive analysis, The McLean

Group provides business executives with comprehensive

market intelligence studies incorporating the requisite

market insights and analytical expertise to reduce risk and

uncertainty in M&A and strategic decision-making.

Capital Formation

The McLean Group arranges private equity, venture capital,

senior debt and subordinated debt to support clients’

expansions, mergers & acquisitions (M&A), refinancings,

recapitalizations, leveraged buyouts, and other shareholder

liquidity objectives.

Business Valuation & Litigation Support

As a core competency and complement to its M&A

business, The McLean Group provides business valuation

services, including intangible asset and financial security

valuations for a variety of transactions, financial reporting

and tax purposes. In addition, the McLean Group has the

experience and credentials necessary to support litigation

proceedings, including quantifying economic damages and

valuing a minority interest in a business.

McLean Securities, a wholly-owned affiliate of The McLean Group, is a registered broker/dealer with the Financial Industry Regulatory

Authority (FINRA) and a Member, Securities Investor Protection Corporation (SIPC).

Founded in 1997, The McLean Group is a national, middle market investment bank with deep expertise in a variety of industry

verticals. Headquartered in McLean, VA, The McLean Group is among the largest independent middle market investment

banks in the region. Our core advisory services include:

20

November 2013 Recent Technology Advisory Experience – M&A

21

November 2013 Recent Technology Advisory Experience – Valuation Services

22

November 2013

The McLean Group

7900 Westpark Drive, Suite A320

McLean, VA 22102

Main: 703.827.0200

Fax: 703.827.0175

Joe Golden

Principal

[email protected]

703.752.9018

Brent Lorenz

Vice President

[email protected]

301.455.1833

Vippy Bhambra

Director

[email protected]

410.440.3189

Greg Boucher

Managing Director

[email protected]

410.347.3818

Kathleen Crow

Managing Director

[email protected]

703.827.0200, ext. 128

Stephen Findlay

Managing Director

[email protected]

814.464.3749

Sue Keil

Vice President

[email protected]

703.752.9025

Tom Swanson

Managing Director

[email protected]

703.752.9014

Shari Overstreet

Managing Director

[email protected]

512.687.3485

Technology & Telecommunications Team

Team Members

mailto:[email protected]









Documents

Electronics Software and Engineering Services Industry Update · 2016-04-26 · Electronics Software and Engineering Services Industry Update November 2013 ... Curtiss-Wright acquired