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Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered withthe Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Christopher Williams, Mr. Ned Valentine, Mr. Paul Poggi and Mr. Thierry Monjauze,authorised and regulated by the Financial Conduct Authority.
Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main,Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative(Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.
EUROPEAN TECHNOLOGY
0
INDUSTRY UPDATE │ MARCH 2015
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www.harriswilliams.comwww.harriswilliams.de
RECENT DEVELOPMENTS
1
COMPANY SPECIFIC NEWS
Verisk Analytics has agreed to acquire Wood Mackenzie, the UK-based provider of data analytics and commercial intelligence to the energy, chemicals, metals and mining sectors, from Hellman & Friedman and Charterhouse Capital Partners, valuing the business at £1.9bn
Hewlett-Packard has agreed to acquire Aruba Networks, the US-based provider of secure mobile network access solutions, valuing the business at $2.4bn
Bain Capital has agreed to acquire Bluecoat, the US-based provider of security solutions to protect enterprises against advanced threats, from Thoma Bravo in a deal valuing the business at $2.7bn
Scripps Networks Interactive has agreed to acquire a majority stake in TVN, the Poland-based commercial television network, from Groupe Canal+ and International Trading and Investments, valuing the business at €1.6bn
NTT Data Corporation has agreed to acquire a majority stake in e-shelter, the Germany-based developer and operator of data centres, from Investa Holding and ABRY Partners, valuing the business at c.JPY 100bn (€860m)
Avago Technologies has agreed to acquire Emulex, the US-based provider of network connectivity, monitoring and management solutions, valuing the business at $609m
ITV has agreed to acquire Talpa, the Netherlands-based media production and distribution company, for an initial considerations £355m, potentially rising to c.£780
Temenos Group has agreed to acquire Multifonds, the Luxembourg-based provider of software to the investment funds industry, from Summit Partners, valuing the business at €235m
LDC has backed the management buyout of SSP, the UK-based global provider of technology systems and solutions, valuing the business at c.£207m
Recruit Holdings has agreed to acquire Quandoo, the Germany-based provider of online restaurant reservation services, valuing the business at €214m
AAC Capital Partners has invested in the management buyout of Corilus, the Belgium-based developer of software and hardware for the healthcare sector, from FagronGroup, valuing the business at €77m
Gruppo MutuiOnline has acquired a majority stake in 7Pixel, the Italy-based operator of the e-commerce price comparison website Trovaprezzi.it, from Naspers, valuing the business at €65m
Cheetah Mobile has agreed to acquire Mobpartner, the France-based operator of a mobile affiliate network that connects advertisers with their audience worldwide, from Alven Capital, valuing the business at $58m
Market Tech has agreed to acquire a majority stake in glispa, the Germany-based provider of mobile marketing solutions, valuing the business at €43m
Magyar Telekom has agreed to acquire GTS Hungary Telecommunication, the Hungary-based provider of voice, internet and data network services, from Deutsche Telekom, valuing the business at €42m
StrategaBiz has agreed to acquire CryptoCorum, the Malta-based provider of virtual wallet solutions, valuing the business at $40m
Raytheon is engaged in discussions to acquire Websense, the US-based provider of web, email and data security solutions, from Vista Equity Partners
Altran Technologies has agreed to acquire Nspyre, the Netherlands-based provider of technology services, from Gilde
Auto Trader Group, the UK-based provider of online classified advertising and services in the digital automotive marketplace, formerly majority owned by Apax Partners, has raised £1.4bn through an IPO
Evolution Gaming, the Sweden-based company which develops, produces, markets and licenses fully integrated B2B live casino solutions to gambling operators, has raised SEK 1.3bn through an IPO
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ MARCH 2015
CONTENTS
RECENT DEVELOPMENTS
PUBLIC MARKET TRADING
SOFTWARE
IT SERVICES
COMMUNICATIONS
INTERNET AND DIGITAL MEDIA
TMT GROUP OVERVIEW
Our Technology, Media & Telecom (TMT) Group is dedicated to providing superior merger & acquisition and capital markets advisory services to market leading companies. Our extensive industry knowledge and transaction leadership experience spans the software, digital media, IT services and communications sectors. Our professionals in London, Boston and San Francisco have global relationships with leading technology companies and financial investors. Thoughtful advice, deep experience and technology expertise, creativity and attention to detail from our senior technology bankers have resulted in a track record of consistently exceeding our clients' expectations.
CONTACTS
EUROPE
Thierry MonjauzeManaging [email protected]+44 (0) 20 7518 8901
Jonathan OrganVice [email protected]+44 (0) 20 7518 8900
UNITED STATES
Jeff BistrongManaging [email protected]+1 (617) 482-7501
Michael WilkinsManaging [email protected]+1 (415) 288-4260
Sam HendlerManaging [email protected]+1 (617) 654-2117
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(10%)
(8%)
(6%)
(4%)
(2%)
0%
2%
4%
6%
8%
10%
19 Feb 26 Feb 05 Mar 12 Mar 19 Mar
Communications DJ Stoxx 600 Technology
Internet and Digital Media IT Services
Software Nasdaq Composite
(15%)
(10%)
(5%)
0%
5%
10%
15%
20%
25%
Mar 2014 Jun 2014 Sep 2014 Dec 2014 Mar 2015
Communications DJ Stoxx 600 Technology
Internet and Digital Media IT Services
Nasdaq Composite Software
According to Gartner’s latest forecasts, the Cloud Services market will reach $58bn in 2015, representing 25% annual growth, and is forecast to reach $110bn in 2018, representing a CAGR of 24%
The global wearables market will grow to c.$80bn annually by 2020, according to Juniper Research
According to Gartner, revenue from mobile services will reach $1.2 trillion in 2019. The number of mobile connections will reach 8.7 billion in the same year, supported by the uptake of mobile data cards and connected devices in developed markets and growth in emerging markets
According to Forrester Research, 45% of offline retail sales will be Web-influenced by 2020 which represents more than three times online sales
eMarketer predicts that mobile advertising will be a key global growth driver through to 2018. According to the firm’s forecasts, advertisers will spend $64.3bn in 2015, up 60% from 2014. By 2018, it estimates mobile ad spend will reach $159bn, representing 63% of global digital ad spend
Investment in venture capital-supported European technology companies reached a four-year high in 2014, with $5.7 billion going to 855 deals, a 78% rise in funding on the previous year, according to CB Insight
INDUSTRY TRENDS
RECENT DEVELOPMENTS (CONT.)
2
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ MARCH 2015
LAST TWELVE MONTHS
Stock Performance
LAST 30 DAYS
PUBLIC MARKET TRADING STATISTICS
Source: Various industry news outlets
6.5%
2.4%
0.5%
(0.1%)
(0.6%)
(1.0%)
18.9%
18.8%
15.7%
15.6%
7.3%
(3.3%)
PAGE |
PUBLIC MARKET TRADING STATISTICS (CONT.)
3
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ MARCH 2015
COMPARABLE TRADING SUMMARY
Rev. Growth EBITDA Margin CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E
Software
European Large Cap. Software 18.6% 34.1% 4.3x 4.1x 12.9x 11.7x 20.7x 18.7x
Application Software 7.7% 25.1% 3.9x 3.7x 13.5x 14.5x 19.8x 20.5x
Infrastructure Software 8.9% 28.7% 3.4x 3.1x 11.7x 10.5x 19.7x 17.3x
Large Cap. SaaS 24.8% 19.1% 7.3x 5.9x NM NM 30.6x 30.9x
Small Cap. SaaS 22.0% 6.1% 4.7x 3.9x NM NM 30.6x 36.9x
HCM/WFM 22.8% 6.4% 6.3x 5.1x 28.8x 21.3x 27.2x 29.7x
FinTech 11.5% 26.8% 5.1x 4.5x 15.8x 16.1x 23.7x 23.2x
Healthcare IT 13.6% 13.3% 3.5x 3.0x 13.3x 11.9x 22.2x 20.9x
Data and Data Analytics 12.2% 24.8% 4.5x 3.9x 12.3x 11.1x 19.6x 20.9x
Security Software 19.5% 21.2% 5.7x 5.1x 16.2x 16.1x 18.4x 17.6x
CAx/PLM 7.6% 27.7% 4.4x 4.1x 16.1x 14.3x 24.7x 23.8x
IT Services
IT Services 7.6% 12.7% 1.0x 1.0x 8.0x 7.4x 15.4x 13.7x
Offshore IT Services 14.0% 24.8% 3.5x 3.2x 14.2x 13.1x 19.5x 17.9x
Managed Services, Colocation and Hosting 12.0% 30.6% 2.9x 2.7x 10.2x 9.0x 18.1x 20.5x
Data Centres 8.7% 52.4% 7.3x 6.6x 13.7x 12.3x 27.2x 33.1x
PaaS/IaaS 15.5% 20.3% 3.8x 3.2x 11.1x 9.8x 21.4x 18.4x
Communications
Digital Broadband 2.7% 11.1% 0.8x 0.8x 7.9x 6.7x 18.6x 14.5x
Diversified Communication Equipment 6.0% 13.0% 1.3x 1.2x 9.6x 8.4x 20.2x 16.5x
Mobile Content/Solutions Providers 26.6% 15.6% 1.5x 1.3x 10.0x 7.3x 20.6x 19.0x
Mobile Infrastructure Software 8.9% 25.5% 2.6x 2.4x 10.7x 11.2x 19.1x 16.1x
Internet and Digital Media
Global Internet Leaders 17.7% 35.3% 6.1x 5.1x 17.4x 14.4x 22.0x 23.0x
Chinese Internet Leaders 25.9% 3.2% 3.2x 2.6x 16.0x 11.1x 20.7x 17.5x
Online Classifieds 15.0% 36.8% 5.8x 5.1x 14.8x 11.8x 20.4x 18.6x
Content Providers/Communities 23.7% 22.0% 5.9x 4.7x 23.3x 17.8x 30.0x 38.6x
Ecommerce 15.9% 15.7% 3.6x 3.2x 19.8x 16.7x 28.8x 25.8x
Interactive Entertainment 4.1% 23.8% 2.3x 2.1x 8.5x 10.0x 19.0x 15.0x
Intermediation and Comparison 20.4% 18.2% 2.8x 2.4x 14.1x 10.6x 20.0x 26.2x
Online Gambling 3.2% 24.4% 3.1x 2.9x 12.6x 11.4x 21.8x 18.8x
Digital Marketing 14.7% 10.8% 2.1x 1.8x 11.8x 9.0x 20.3x 23.4x
Online Travel 10.4% 23.5% 3.8x 3.2x 13.7x 13.4x 26.4x 25.8x
P / EEV / Revenue EV / EBITDACY2015E
PAGE |
(15%)
(10%)
(5%)
0%
5%
10%
15%
19 Feb 26 Feb 05 Mar 12 Mar 19 Mar
Application Software CAx/PLM Data and Data Analytics European Large Cap. Software
Fintech HCM/WFM Healthcare IT Infrastructure Software
Large Cap. SaaS Security Software Small Cap. SaaS
SOFTWARE
4
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ MARCH 2015
LAST 30 DAYS PERFORMANCE
LAST TWELVE MONTHS PERFORMANCE
(40%)
(30%)
(20%)
(10%)
0%
10%
20%
30%
40%
Mar 2014 Jun 2014 Sep 2014 Dec 2014 Mar 2015
Application Software CAx/PLM Data and Data Analytics European Large Cap. Software
Fintech HCM/WFM Healthcare IT Infrastructure Software
Large Cap. SaaS Security Software Small Cap. SaaS
Fintech 28.7%
Healthcare IT 27.1%
Security Software 17.6%
Application Software 8.1%
Data and Data Analytics 4.8%
Large Cap. SaaS 2.7%
Small Cap. SaaS (0.8%)
Infrastructure Software (1.8%)
European Large Cap. Software (2.2%)
HCM/WFM (7.9%)
CAx/PLM (8.4%)
HCM/WFM 6.4%
Fintech 5.0%
European Large Cap. Software 4.1%
Healthcare IT 3.9%
Security Software 1.3%
Application Software 0.7%
Small Cap. SaaS 0.3%
CAx/PLM (0.3%)
Data and Data Analytics (3.0%)
Large Cap. SaaS (3.3%)
Infrastructure Software (7.2%)
PAGE |
Market Enterprise CY2015E
Cap ($m) Value ($m) EBITDA Margin Rev. Growth CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E
European Large Cap. Software
SAP 87,057 95,497 34.6% 11.3% 4.5x 4.3x 13.1x 12.5x 18.8x 17.6x
Dassault Systemes 17,280 16,416 33.3% 16.8% 5.6x 5.1x 16.7x 14.9x 30.4x 27.2x
Sage 7,683 8,275 30.0% 7.6% 3.9x 3.7x 12.9x 12.1x 18.7x 17.3x
Micro Focus 3,827 4,069 40.1% 63.2% 3.4x 3.1x 8.6x 7.5x 13.5x 12.4x
Temenos 2,397 2,499 35.3% 12.6% 4.6x 4.4x 13.0x 11.5x 22.4x 19.5x
Aveva 1,477 1,303 31.2% 0.3% 4.0x 3.8x 12.9x 11.9x 20.2x 18.5x
Mean 34.1% 18.6% 4.3x 4.1x 12.9x 11.7x 20.7x 18.7x
Median 33.9% 11.9% 4.3x 4.1x 13.0x 12.0x 19.5x 18.0x
Application Software
Microsoft 351,778 290,947 35.0% 1.5% 3.1x 2.9x 8.8x 7.7x 16.2x 14.1x
Oracle 193,942 182,859 47.4% (0.2%) 4.7x 4.6x 10.0x 9.3x 15.3x 14.0x
SAP 87,057 95,497 34.6% 11.3% 4.5x 4.3x 13.1x 12.5x 18.8x 17.6x
Intuit 27,792 26,924 32.4% (0.3%) 5.9x 5.2x 18.3x 14.1x 36.0x 24.8x
Sage 7,683 8,275 30.0% 7.6% 3.9x 3.7x 12.9x 12.1x 18.7x 17.3x
Constellation Software 7,415 7,621 22.7% 14.6% 4.0x 3.4x 17.6x 14.9x 21.7x 18.2x
Tyler Technologies 4,207 4,001 26.9% 15.7% 7.0x 6.1x 26.1x 21.7x NM 42.7x
Guidewire Software 3,764 3,219 15.5% 6.4% 8.3x 7.6x NM 39.6x NM NM
IFS 804 762 18.1% 8.1% 2.0x 1.9x 11.3x 10.4x 26.9x 23.2x
Kofax 668 611 16.2% 9.9% 1.8x 1.8x 11.4x 9.9x 21.1x 16.2x
SDL 526 507 9.8% 5.7% 1.2x 1.2x 12.6x 10.4x 22.1x 17.4x
Cegid 346 403 27.3% 2.1% 1.4x 1.3x 5.0x 4.8x 14.3x 13.5x
American Software 280 223 19.8% 11.5% 2.0x NA 9.9x NA 23.0x NA
Mean 25.1% 7.7% 3.9x 3.7x 13.5x 14.5x 19.8x 20.5x
Median 26.9% 7.6% 3.9x 3.5x 12.0x 11.3x 20.0x 17.4x
Infrastructure Software
Hewlett-Packard 60,488 67,023 12.0% (4.8%) 0.6x 0.6x 5.3x 5.2x 9.1x 8.7x
VMware 35,415 29,845 36.6% 11.2% 4.5x 4.0x 12.2x 11.6x 20.5x 18.0x
CA Technologies 14,568 13,283 38.0% (3.7%) 3.2x 3.1x 8.3x 7.5x 13.5x 12.9x
Red Hat 12,747 12,343 27.0% 13.2% 6.3x 5.5x 23.5x 19.1x 39.7x 33.5x
Citrix Systems 10,195 10,699 26.9% 5.8% 3.2x 3.0x 12.0x 11.4x 17.4x 15.6x
F5 Networks 7,470 6,816 38.4% 11.3% 3.4x 3.1x 8.9x NA 17.9x 15.6x
Brocade 5,217 4,942 26.0% 3.1% 2.2x 2.1x 8.3x 8.2x 13.3x 12.4x
Solarwinds 3,847 3,597 45.7% 22.2% 6.9x 5.8x 15.1x 13.0x 25.1x 21.2x
Riverbed Technology 3,298 3,298 26.2% 2.6% 2.9x 2.8x 11.2x 9.8x 16.9x 15.5x
Software AG 2,240 2,351 27.8% 0.6% 2.5x 2.4x 9.0x 8.5x 13.2x 12.8x
Netscout Systems 1,813 1,618 31.3% 12.6% 3.2x 2.8x 10.3x 8.6x 22.1x 18.5x
Pegasystems 1,653 1,442 14.2% 9.4% 2.2x 2.0x 15.6x 12.5x 27.3x 23.0x
Progress Software 1,387 1,103 29.5% 29.5% 2.6x 2.4x 8.7x 7.6x 19.0x 17.1x
Radware 961 856 22.4% 12.2% 3.5x 3.1x 15.4x 13.3x 20.6x 17.8x
Mean 28.7% 8.9% 3.4x 3.1x 11.7x 10.5x 19.7x 17.3x
Median 27.4% 10.3% 3.2x 2.9x 10.8x 9.8x 18.4x 16.4x
Large Cap. SaaS
Salesforce 42,712 43,915 16.9% 21.3% 6.7x 5.6x 39.9x 30.5x NM NM
Workday 15,878 14,514 3.1% 45.7% 12.7x 9.1x NM NM NM NM
NetSuite 7,416 7,241 8.5% 30.3% 10.0x 7.8x NM NM NM NM
The Ultimate Software Group 4,935 4,827 24.8% 22.0% 7.8x 6.4x 31.6x 24.7x NM NM
Athenahealth 4,779 4,873 17.4% 23.1% 5.3x 4.4x 30.5x 24.6x NM NM
Guidewire Software 3,764 3,219 15.5% 6.4% 8.3x 7.6x NM 39.6x NM NM
Veeva Systems 3,563 3,165 28.9% 26.7% 8.0x 6.5x 27.7x 22.1x NM NM
Medidata Solutions 2,695 2,663 23.4% 19.1% 6.6x 5.5x 28.4x 22.2x NM 44.6x
Dealertrack Technologies 2,111 2,668 20.4% 29.0% 2.4x 2.1x 12.0x 9.9x 26.8x 21.2x
Fleetmatics 1,676 1,525 31.9% 24.8% 5.3x 4.4x 16.6x 13.2x 34.4x 27.0x
Paylocity 1,647 1,558 3.4% 31.5% 9.4x 7.6x NM NM NM NM
Cornerstone OnDemand 1,567 1,510 1.6% 29.7% 4.5x 3.5x NM NM NM NM
Mean 19.1% 24.8% 7.3x 5.9x NM NM 30.6x 30.9x
Median 18.9% 23.9% 7.3x 6.0x NM NM 30.6x 27.0x
EV / Revenue EV / EBITDA P / E
SOFTWARE (CONT.)
5
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ MARCH 2015
PAGE |
SOFTWARE (CONT.)
6
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ MARCH 2015
Market Enterprise CY2015E
Cap ($m) Value ($m) EBITDA Margin Rev. Growth CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E
Small Cap. SaaS
LogMeIn 1,400 1,198 21.6% 18.7% 4.6x 3.9x 21.2x 18.0x NM 37.7x
Cvent 1,170 1,002 10.2% 25.7% 5.6x 4.6x NM 38.1x NM NM
SPS Commerce 1,125 995 13.8% 23.1% 6.4x 5.3x 45.9x 35.8x NM NM
Benefitfocus 1,116 1,114 (22.9%) 27.9% 6.4x 5.2x NM NM NM NM
Callidus 764 742 13.2% 22.4% 4.5x 3.8x 34.1x 23.6x NM 35.7x
Textura 685 618 9.5% 43.6% 6.9x 4.9x NM 28.1x NM 45.6x
SciQuest 485 355 20.6% 5.0% 3.3x 2.9x 15.9x 13.6x NM 44.3x
JIVE 381 273 0.4% 10.7% 1.4x 1.2x NM 38.5x NM NM
Channel Advisors 284 219 (17.1%) 13.1% 2.3x 2.0x NM NM NM NM
Marin Software 220 155 (9.8%) 16.9% 1.4x 1.2x NM NM NM NM
Mean 6.1% 22.0% 4.7x 3.9x NM NM 30.6x 36.9x
Median 10.2% 23.1% 4.6x 3.9x NM NM 30.6x 36.7x
HCM/WFM
Workday 15,878 14,514 3.1% 45.7% 12.7x 9.1x NM NM NM NM
The Ultimate Software Group 4,935 4,827 24.8% 22.0% 7.8x 6.4x 31.6x 24.7x NM NM
Paylocity 1,647 1,558 3.4% 31.5% 9.4x 7.6x NM NM NM NM
Cornerstone OnDemand 1,567 1,510 1.6% 29.7% 4.5x 3.5x NM NM NM NM
Benefitfocus 1,116 1,114 (22.9%) 27.9% 6.4x 5.2x NM NM NM NM
ClickSoftware 301 257 4.5% 10.5% 1.8x 1.6x 40.5x 29.7x NM 45.7x
ATOSS Software 192 170 26.4% 15.9% 3.5x 3.2x 13.5x 12.3x 23.0x 21.0x
Halogen 150 110 (13.6%) 19.4% 1.6x 1.4x NM NM NM NM
Invision Software 139 134 30.6% 2.7% 9.0x 7.7x 29.6x 18.6x 31.4x 22.5x
Mean 6.4% 22.8% 6.3x 5.1x 28.8x 21.3x 27.2x 29.7x
Median 3.4% 22.0% 6.4x 5.2x 30.6x 21.6x 27.2x 22.5x
Healthcare IT
McKesson 53,540 60,880 2.7% 8.6% 0.3x 0.3x 12.1x 11.4x 19.1x 16.9x
Cerner 25,259 23,968 30.7% 44.3% 4.9x 4.4x 16.0x 13.6x 35.0x 29.1x
Sysmex 11,382 11,033 25.9% 14.1% 5.6x 5.0x 21.6x 19.1x NM 37.2x
Allscripts Healthcare Solutions 2,175 2,698 16.8% 2.8% 1.9x 1.8x 11.2x 9.6x 26.9x 20.7x
CompuGroup 1,450 1,820 22.4% 5.3% 3.1x 2.9x 13.7x 12.0x 18.1x 15.7x
Emis 816 841 30.9% 12.7% 3.7x 3.4x 11.8x 11.6x 19.7x 18.0x
Castlight Health 810 618 (88.5%) 72.4% 8.1x 5.1x NM NM NM NM
Computer Programs & Systems 596 562 24.7% (5.2%) 2.8x 2.6x 11.4x 9.9x 19.5x 17.2x
Sectra Aktiebolag 527 504 22.4% 13.5% 4.0x 3.7x 17.7x 15.4x 25.9x 26.6x
Cegedim 483 1,028 19.8% (31.4%) 1.5x 1.5x 7.8x 7.6x 14.6x 10.8x
Merge Healthcare 438 622 21.7% 15.2% 2.5x 2.3x 11.6x 9.6x 22.0x 18.2x
Craneware 216 181 30.7% 10.9% 3.6x 3.4x 11.9x 11.1x 20.7x 19.2x
Mean 13.3% 13.6% 3.5x 3.0x 13.3x 11.9x 22.2x 20.9x
Median 22.4% 11.8% 3.4x 3.1x 11.9x 11.4x 20.2x 18.2x
Security Software
Symantec 16,636 14,991 34.2% (3.8%) 2.3x 2.3x 6.8x 6.9x 12.9x 11.9x
Check Point 15,644 14,332 56.1% 8.8% 8.8x 8.2x 15.7x 14.5x 21.4x 19.2x
Palo Alto Networks 11,854 11,656 17.8% 40.9% 11.4x 8.7x NM 38.1x NM NM
Verisign 7,568 7,525 67.2% 4.4% 7.1x 6.8x 10.6x 10.0x 20.5x 18.6x
Gemalto 7,240 6,712 19.7% 23.3% 2.0x 1.9x 10.2x 9.0x 18.2x 16.0x
FireEye 6,491 6,088 (34.9%) 46.2% 9.8x 7.1x NM NM NM NM
Fortinet 5,963 5,243 16.4% 22.4% 5.7x 4.8x 34.5x 26.9x NM NM
Trend Micro 4,835 3,692 34.7% 7.9% 3.6x 3.5x 10.4x 10.2x 25.2x 24.3x
Proofpoint 2,307 2,255 0.5% 29.6% 9.1x 7.2x NM NM NM NM
Barracuda Networks 2,013 1,846 25.1% 16.5% 6.0x 5.1x 23.8x 21.1x NM NM
Qualys 1,574 1,446 25.6% 26.7% 8.6x 6.9x 33.5x 25.8x NM NM
Imperva 1,334 1,224 (9.2%) 22.5% 6.2x 5.1x NM NM NM NM
AVG Technologies 1,149 1,275 36.2% 14.3% 3.0x 2.8x 8.3x 8.0x 11.9x 10.5x
Vasco Data Security 912 774 22.6% 18.7% 3.4x 3.0x 15.0x 12.4x 22.0x 18.4x
F-Secure 461 395 26.7% (2.8%) 2.4x 2.3x 9.1x 10.4x 14.9x 21.7x
Intercede 70 61 0.6% 36.1% 2.5x NA NM NA NM NA
Mean 21.2% 19.5% 5.7x 5.1x 16.2x 16.1x 18.4x 17.6x
Median 23.9% 20.6% 5.8x 5.1x 10.6x 11.4x 19.4x 18.5x
EV / Revenue EV / EBITDA P / E
PAGE |
Market Enterprise CY2015E
Cap ($m) Value ($m) EBITDA Margin Rev. Growth CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E
Fintech
Intuit 27,792 26,924 32.4% (0.3%) 5.9x 5.2x 18.3x 14.1x 36.0x 24.8x
Fidelity Information Services 19,479 24,189 30.2% 5.6% 3.6x 3.4x 11.8x 10.9x 19.9x 17.7x
Fiserv 19,165 22,674 33.3% 5.1% 4.3x 4.1x 12.8x 12.0x 21.2x 18.9x
Paychex 18,746 18,217 42.4% 8.2% 6.4x 6.0x 15.2x 13.9x 26.8x 24.7x
MSCI 6,708 6,999 40.8% 6.6% 6.6x 6.0x 16.0x 14.4x 27.4x 23.1x
Jack Henry 5,722 5,693 34.8% 7.5% 4.2x 3.9x 12.1x 11.1x 25.2x 22.1x
SS&C Technologies 5,293 5,822 41.7% 12.8% 6.7x 6.3x 16.1x 14.8x 24.1x 21.4x
Guidewire 3,764 3,219 15.5% 6.4% 8.3x 7.6x NM 39.6x NM NM
Fair Isaac 2,767 3,279 27.9% 6.0% 3.9x 3.6x 13.9x 13.6x 17.6x 14.3x
Temenos 2,397 2,499 35.3% 12.6% 4.6x 4.4x 13.0x 11.5x 22.4x 19.5x
Advent Software 2,323 2,507 34.2% 5.7% 6.0x 5.6x 17.4x 15.6x 28.4x 26.0x
Envestnet 1,966 1,902 18.4% 20.3% 4.5x 3.7x 24.6x 17.9x NM 39.2x
Paycom 1,818 1,820 17.3% 33.8% 9.2x 7.2x NM 39.2x NM NM
Ellie Mae 1,628 1,553 19.2% 31.3% 7.5x 6.1x 39.2x 25.2x NM 42.4x
SimCorp 1,355 1,316 26.5% 10.5% 4.6x 4.2x 17.4x 15.0x 25.3x 21.3x
Iress 1,307 1,398 31.3% 5.4% 5.2x 4.8x 16.5x 14.5x 25.6x 22.0x
Fidessa 1,286 1,171 22.7% 5.5% 2.7x 2.5x 11.8x 11.1x 27.5x 25.4x
Bottomline Technologies 1,114 1,081 20.4% 7.8% 3.1x 2.8x 15.2x 13.1x 20.9x NM
Ebix 1,065 1,134 36.0% 19.5% 4.6x NA 12.8x NA 18.8x NA
Q2 Holdings 789 701 (9.6%) 33.2% 6.7x 5.2x NM NM NM NM
Linedata 203 247 24.8% 5.4% 1.4x 1.3x 5.5x 5.4x 10.8x 10.2x
StatPro 79 75 14.1% 3.2% 1.6x 1.5x 11.0x 9.7x 24.9x 22.1x
Mean 26.8% 11.5% 5.1x 4.5x 15.8x 16.1x 23.7x 23.2x
Median 29.0% 7.1% 4.6x 4.4x 15.2x 14.0x 24.9x 22.1x
Data and Data Analytics
Experian 16,640 20,172 34.9% 1.5% 4.1x 3.9x 11.7x 11.2x 17.8x 16.7x
Nielsen 16,291 22,963 29.9% 0.8% 3.6x 3.4x 12.1x 11.3x 16.2x 14.5x
Verisk 11,305 12,699 47.1% 9.2% 6.7x 6.1x 14.2x 12.8x 25.8x 23.0x
Equifax 11,122 12,554 35.3% 6.6% 4.8x 4.5x 13.7x 12.7x 21.8x 19.5x
Splunk 7,533 6,683 6.0% 36.9% 11.1x 8.5x NM NM NM NM
Tableau Software 6,653 5,973 7.2% 49.6% 10.2x 7.5x NM NM NM NM
Informatica 4,877 4,156 23.9% 8.8% 3.7x 3.3x 15.4x 14.0x 27.1x 23.6x
Convergys 2,253 2,417 12.9% 6.0% 0.8x 0.8x 6.2x 5.9x 13.3x 12.3x
Microstrategy 1,979 1,634 22.6% (2.1%) 2.8x 2.7x 12.3x 10.7x 27.7x 22.8x
Neustar 1,220 1,686 48.0% 1.0% 1.7x 2.3x 3.6x 5.3x 5.4x 8.1x
PROS 741 691 13.5% 18.3% 3.1x 2.6x 22.8x 17.8x NM 47.7x
Kofax 668 611 16.2% 9.9% 1.8x 1.7x 11.4x 9.0x 21.1x NA
Mean 24.8% 12.2% 4.5x 3.9x 12.3x 11.1x 19.6x 20.9x
Median 23.3% 7.7% 3.6x 3.4x 12.2x 11.3x 21.1x 19.5x
CAx/PLM
Dassault Systems 17,280 16,416 33.3% 16.8% 5.6x 5.1x 16.7x 14.9x 30.4x 27.2x
Autodesk 13,855 12,576 17.0% 5.2% 4.8x 4.6x 28.1x 19.9x NM 41.9x
Ansys 7,973 7,185 50.8% 3.5% 7.4x 6.9x 14.6x 13.4x 25.4x 23.2x
PTC 4,253 4,598 27.7% (1.2%) 3.5x 3.2x 12.4x 10.2x 16.2x 14.7x
Aveva 1,477 1,303 31.2% 0.3% 4.0x 3.8x 12.9x 11.9x 20.2x 18.5x
Nemetschek 1,294 1,227 25.2% 19.8% 4.4x 4.0x 17.3x 15.5x 31.4x 27.8x
Mensch und Maschine 112 152 8.8% 8.4% 0.9x 0.8x 10.6x NA 24.8x 13.6x
Mean 27.7% 7.6% 4.4x 4.1x 16.1x 14.3x 24.7x 23.8x
Median 27.7% 5.2% 4.4x 4.0x 14.6x 14.1x 25.1x 23.2x
P / EEV / Revenue EV / EBITDA
SOFTWARE (CONT.)
7
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ MARCH 2015
(1) Advent Software has entered into an agreement to be acquired by SS&C Technologies
(1)
(1)
PAGE |
(20%)
(10%)
0%
10%
20%
30%
40%
50%
Mar 2014 Jun 2014 Sep 2014 Dec 2014 Mar 2015
Data Centers IT Services Managed Services, Colocation and Hosting Offshore IT Services PaaS/IaaS
(8%)
(6%)
(4%)
(2%)
0%
2%
4%
19 Feb 26 Feb 05 Mar 12 Mar 19 Mar
Data Centers IT Services Managed Services, Colocation and Hosting Offshore IT Services PaaS/IaaS
IT SERVICES
8
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ MARCH 2015
LAST 30 DAYS PERFORMANCE
LAST TWELVE MONTHS PERFORMANCE
Data Centres 2.8%
Managed Services, Colocation and Hosting 2.5%
IT Services 1.7%
Offshore IT Services (2.5%)
PaaS/IaaS (3.9%)
Data Centres 35.8%
Managed Services, Colocation and Hosting 27.3%
Offshore IT Services 25.2%
IT Services 11.4%
PaaS/IaaS 2.1%
PAGE |
Market Enterprise CY2015E
Cap ($m) Value ($m) EBITDA Margin Rev. Growth CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E
IT Services
NTT Group 65,764 118,708 27.6% 0.9% 1.3x 1.3x 4.6x 4.5x 13.7x 12.2x
KDDI 57,477 66,570 27.9% 4.8% 1.7x 1.7x 6.1x 5.7x 14.6x 13.4x
Accenture 57,461 53,548 16.5% 1.9% 1.7x 1.6x 10.5x 9.7x 19.0x 17.2x
Fujitsu 14,509 18,395 8.0% 0.9% 0.5x 0.5x 5.7x 5.8x 12.7x 11.7x
CGI 13,620 15,183 18.0% 0.7% 1.8x 1.7x 10.0x 9.5x 16.7x 15.7x
Capgemini 13,042 11,854 11.3% 6.3% 1.0x 0.9x 8.7x 8.1x 18.4x 16.8x
Capita 11,759 14,449 15.2% 10.6% 2.0x 1.9x 13.3x 12.5x 16.9x 15.8x
Computer Sciences 9,412 9,768 17.9% (5.0%) 0.8x 0.8x 4.5x 4.3x 14.1x 12.9x
Atos Origin 8,291 8,253 11.6% 16.4% 0.7x 0.7x 6.3x 6.0x 12.7x 11.3x
NEC 7,648 11,887 7.1% 1.6% 0.5x 0.5x 6.6x 6.3x 14.0x 12.1x
Indra Sistemas 1,830 2,538 8.8% 4.0% 0.8x 0.7x 8.8x 8.2x 16.3x 13.2x
Tieto 1,783 1,732 13.9% (2.2%) 1.1x 1.1x 7.7x 7.4x 19.0x 14.6x
Bechtle 1,656 1,582 5.3% 4.9% 0.5x 0.5x 10.3x 9.2x 17.9x 16.3x
Sopra 1,566 2,044 8.0% 53.0% 0.5x 0.5x 6.8x 5.7x 12.3x 9.4x
GFI Informatique 356 429 7.5% 7.8% 0.5x 0.4x 6.1x 5.8x 11.8x 11.2x
Mean 12.7% 7.6% 1.0x 1.0x 8.0x 7.4x 15.4x 13.7x
Median 11.4% 4.4% 0.8x 0.8x 7.2x 6.8x 15.5x 13.3x
Offshore IT Services
Tata 82,114 79,831 28.6% 15.2% 4.7x 4.1x 16.4x 14.8x 22.0x 19.3x
Infosys 41,471 36,069 27.7% 10.3% 3.9x 3.6x 13.9x 13.3x 19.4x 18.5x
Cognizant 39,052 36,915 20.2% 20.7% 3.0x 2.6x 14.9x 12.9x 21.8x 18.9x
Wipro 25,699 23,109 23.0% 9.8% 2.8x 2.6x 12.2x 12.1x 17.0x 16.6x
HCL 22,131 20,699 24.5% NA 3.3x 3.1x 13.4x 12.5x 17.5x 16.4x
Mean 24.8% 14.0% 3.5x 3.2x 14.2x 13.1x 19.5x 17.9x
Median 24.5% 12.7% 3.3x 3.1x 13.9x 12.9x 19.4x 18.5x
Managed Services, Colocation and Hosting
Level 3 19,143 29,896 31.1% 23.5% 3.6x 3.4x 11.5x 10.3x 33.9x 23.4x
United Internet 9,387 9,551 20.8% 19.8% 2.4x 2.3x 11.6x 10.4x 22.5x 19.3x
Rackspace 7,588 7,534 34.2% 14.4% 3.7x 3.2x 10.7x 9.2x NM 45.4x
Windstream 4,833 13,534 34.3% (2.8%) 2.4x 2.4x 6.9x 7.0x NM NM
Endurance 2,528 3,621 37.4% 19.0% 4.9x 4.3x 13.0x 10.9x 14.5x 11.4x
Interxion 2,080 2,637 43.8% 10.5% 6.4x 5.8x 14.6x 12.9x NM 38.4x
Internap 538 878 26.3% 3.8% 2.5x 2.4x 9.6x 8.6x NM NM
iomart 323 351 43.9% 12.9% 3.3x 3.1x 7.5x 7.1x 14.4x 13.3x
Redcentric 312 328 23.5% 16.7% 2.2x 2.1x 9.6x 8.7x 15.5x 13.8x
Melbourne IT 99 85 10.6% 12.1% 0.8x 0.7x 7.2x 5.2x 16.4x 11.0x
Proact 89 93 NA 1.9% 0.3x 0.3x NA NA 9.8x 8.8x
Mean 30.6% 12.0% 2.9x 2.7x 10.2x 9.0x 18.1x 20.5x
Median 32.6% 12.9% 2.5x 2.4x 10.2x 8.9x 15.5x 13.8x
Data Centres
Equinix 13,494 17,033 46.4% 8.9% 6.4x 5.8x 13.9x 12.3x NM 28.3x
Digital Realty Trust 9,264 14,980 57.4% 3.8% 8.9x 8.3x 15.5x 14.4x NM 48.1x
Telecity 2,767 3,244 47.4% 10.2% 5.7x 5.0x 11.9x 10.2x 22.8x 19.7x
DuPont Fabros 2,294 4,154 62.0% 4.4% 9.6x 8.8x 15.4x 13.9x 31.7x 25.6x
Coresite 1,079 1,838 48.8% 16.2% 5.8x 5.2x 12.0x 10.5x NM 43.9x
Mean 52.4% 8.7% 7.3x 6.6x 13.7x 12.3x 27.2x 33.1x
Median 48.8% 8.9% 6.4x 5.8x 13.9x 12.3x 27.2x 28.3x
PaaS/IaaS
EMC 53,082 51,885 27.5% 6.4% 2.0x 1.9x 7.2x 6.9x 13.5x 12.2x
Akamai 13,032 12,878 41.6% 15.8% 5.7x 4.9x 13.7x 11.5x 27.3x 22.9x
ServiceNow 11,772 11,547 13.1% 45.9% 11.7x 8.6x NM NM NM NM
Netapp 11,635 7,877 22.6% (2.3%) 1.3x 1.2x 5.7x 5.2x 13.4x 12.2x
Commvault Systems 2,057 1,692 18.4% 3.8% 2.7x 2.4x 14.4x 11.1x 32.6x 26.5x
Synchronoss 2,018 1,970 33.1% 25.1% 3.5x 3.0x 10.4x 8.7x 22.5x 19.7x
Progress Software 1,387 1,103 29.5% 29.5% 2.6x 2.4x 8.7x 7.6x 19.0x 17.1x
Carbonite 391 330 13.5% 11.9% 2.4x 2.2x 17.8x 17.2x NM NM
E2open 248 230 (17.1%) 3.9% 2.8x 2.5x NM NM NM NM
Mean 20.3% 15.5% 3.8x 3.2x 11.1x 9.8x 21.4x 18.4x
Median 22.6% 11.9% 2.7x 2.4x 10.4x 8.7x 20.8x 18.4x
EV / Revenue EV / EBITDA P / E
IT SERVICES (CONT.)
9
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ MARCH 2015
(1) Telecity has entered into an agreement to acquire Interxion
(2) E2open has entered into an agreement to be acquired by Insight Venture Partners
(2)
(1)
(1)
PAGE |
(60%)
(50%)
(40%)
(30%)
(20%)
(10%)
0%
10%
20%
30%
Mar 2014 Jun 2014 Sep 2014 Dec 2014 Mar 2015
Digital Broadband Diversified Communication Equipment Mobile Content / Solutions Providers Mobile Infrastructure Software
COMMUNICATIONS (CONTD.)
10
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ MARCH 2015
LAST 30 DAYS PERFORMANCE
LAST TWELVE MONTHS PERFORMANCE
Diversified Communication Equipment 3.4%
Digital Broadband (0.5%)
Mobile Infrastructure Software (6.6%)
Mobile Content / Solutions Providers (40.8%)
(10%)
(8%)
(6%)
(4%)
(2%)
0%
2%
4%
6%
8%
10%
19 Feb 26 Feb 05 Mar 12 Mar 19 Mar
Digital Broadband Diversified Communication Equipment Mobile Content / Solutions Providers Mobile Infrastructure Software
Mobile Content / Solutions Providers 2.4%
Mobile Infrastructure Software (0.6%)
Diversified Communication Equipment (1.4%)
Digital Broadband (3.2%)
PAGE |
COMMUNICATIONS (CONT.)
11
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ MARCH 2015
Market Enterprise CY2015E
Cap ($m) Value ($m) EBITDA Margin Rev. Growth CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E
Digital Broadband
Technicolor 2,163 2,789 17.5% 1.6% 0.8x 0.8x 4.4x 5.2x 8.8x 11.8x
Logitech 2,119 1,594 8.3% (0.7%) 0.8x 0.7x 9.1x 8.0x 19.5x 16.2x
TomTom 1,769 1,659 13.6% 4.9% 1.5x 1.5x 11.4x 9.6x 32.9x 22.9x
Pace 1,670 1,759 10.7% 7.7% 0.6x 0.6x 6.0x 6.0x 9.0x 8.7x
Kudelski 665 932 12.9% (3.5%) 1.0x 1.0x 8.1x 7.7x 15.3x 14.1x
Extreme Networks 331 311 5.6% 1.9% 0.5x 0.5x 9.4x 5.0x 19.3x 10.8x
Parrot 262 178 8.7% 7.3% 0.6x 0.6x 7.2x 5.4x 25.4x 17.3x
Mean 11.1% 2.7% 0.8x 0.8x 7.9x 6.7x 18.6x 14.5x
Median 10.7% 1.9% 0.8x 0.7x 8.1x 6.0x 19.3x 14.1x
Diversified Communication Equipment
LM Ericsson Telephone 42,124 36,910 14.1% 5.7% 1.3x 1.3x 9.3x 8.2x 18.3x 15.5x
Nokia 28,618 23,054 14.8% 5.3% 1.6x 1.5x 10.7x 10.1x 22.9x 20.6x
Alcatel-Lucent 10,711 11,317 11.8% 5.2% 0.8x 0.7x 6.4x 5.9x 23.9x 16.8x
CIENA 2,417 3,153 11.8% 7.7% 1.3x 1.2x 10.7x 9.2x 16.8x 13.9x
ADTRAN 1,004 913 12.4% 6.3% 1.4x 1.3x 11.1x 8.9x 19.0x 15.5x
Mean 13.0% 6.0% 1.3x 1.2x 9.6x 8.4x 20.2x 16.5x
Median 12.4% 5.7% 1.3x 1.3x 10.7x 8.9x 19.0x 15.5x
Mobile Infrastructure Software
QUALCOMM 115,535 97,743 37.2% 2.1% 3.6x 3.3x 9.6x 8.7x 14.0x 12.5x
Amdocs 8,388 7,119 20.5% 3.1% 1.9x 1.8x 9.3x 8.8x 15.9x 14.8x
VeriSign 7,568 7,525 67.2% 4.4% 7.1x 6.8x 10.6x 10.0x 20.5x 18.6x
Synchronoss Technologies 2,018 1,970 33.1% 25.1% 3.5x 3.0x 10.4x 8.7x 22.5x 19.7x
Sonus Networks 714 608 12.1% 10.2% 1.9x 1.7x 15.3x 10.7x 26.0x 17.1x
Redknee Solutions 377 327 16.5% (6.1%) 1.3x 1.2x 8.0x 6.2x 21.3x 14.0x
TeleCommunication Systems 214 303 10.1% 7.8% 0.8x 0.7x 7.6x 6.5x 13.7x 11.0x
Smith Micro Software 59 46 7.0% 24.8% 1.0x 0.9x 14.3x 30.1x NM 20.8x
Mean 25.5% 8.9% 2.6x 2.4x 10.7x 11.2x 19.1x 16.1x
Median 18.5% 6.1% 1.9x 1.8x 10.0x 8.8x 20.5x 16.0x
Mobile Content / Solutions Providers
Opera Software 1,183 1,113 20.4% 32.3% 1.8x 1.4x 8.8x 6.3x 20.6x 12.5x
GameLoft 419 359 10.8% 20.9% 1.2x 1.1x 11.1x 8.3x NM 25.4x
Mean 15.6% 26.6% 1.5x 1.3x 10.0x 7.3x 20.6x 19.0x
Median 15.6% 26.6% 1.5x 1.3x 10.0x 7.3x 20.6x 19.0x
EV / Revenue EV / EBITDA P / E
PAGE |
(40%)
(20%)
0%
20%
40%
60%
Mar 2014 Jun 2014 Sep 2014 Dec 2014 Mar 2015
Chinese Internet Leaders Content Providers / Communities Digital Marketing Ecommerce
Global Internet Leaders Interactive Entertainment Intermediation and Comparison Online Classifieds
Online Travel Online Gambling
INTERNET AND DIGITAL MEDIA
12
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ MARCH 2015
LAST 30 DAYS PERFORMANCE
LAST TWELVE MONTHS PERFORMANCE
Interactive Entertainment 44.5%
Global Internet Leaders 22.7%
Chinese Internet Leaders 20.0%
Online Gambling 13.0%
Content Providers / Communities 10.9%
Online Travel 1.5%
Ecommerce (1.1%)
Digital Marketing (7.1%)
Intermediation and Comparison (9.7%)
Online Classifieds (31.9%)
Interactive Entertainment 6.2%
Online Gambling 3.6%
Chinese Internet Leaders 0.7%
Online Travel 0.2%
Content Providers / Communities (0.0%)
Global Internet Leaders (0.1%)
Ecommerce (0.7%)
Online Classifieds (2.1%)
Digital Marketing (2.2%)
Intermediation and Comparison (4.7%)
(10%)
(8%)
(6%)
(4%)
(2%)
0%
2%
4%
6%
8%
10%
19 Feb 26 Feb 05 Mar 12 Mar 19 Mar
Chinese Internet Leaders Content Providers / Communities Digital Marketing Ecommerce
Global Internet Leaders Interactive Entertainment Intermediation and Comparison Online Travel
Online Classifieds Online Gambling
PAGE |
Market Enterprise CY2015E
Cap ($m) Value ($m) EBITDA Margin Rev. Growth CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E
Global Internet Leaders
Apple 733,336 737,075 34.2% 18.1% 3.2x 3.0x 9.5x 8.9x 14.4x 13.2x
Google 382,954 328,336 38.9% 13.9% 4.3x 3.8x 11.2x 9.6x 19.8x 17.1x
Microsoft 351,778 290,947 35.0% 1.5% 3.1x 2.9x 8.8x 7.7x 16.2x 14.1x
Facebook 234,557 223,591 60.7% 38.2% 13.1x 9.9x 21.5x 16.4x NM 32.7x
Alibaba 211,919 203,578 53.8% 32.4% 13.1x 10.1x 24.4x 19.0x 32.6x 25.0x
Amazon 175,765 172,918 8.1% 15.0% 1.7x 1.4x 20.8x 16.1x NM NM
Baidu 74,667 70,021 29.8% 38.2% 6.4x 4.8x 21.5x 15.3x 27.7x 20.7x
eBay 70,098 67,627 31.2% 6.1% 3.6x 3.2x 11.4x 10.3x 18.4x 17.1x
Yahoo! 42,158 35,424 25.7% (0.9%) 8.1x 8.1x 31.5x 30.4x NM 47.4x
Yandex 4,647 4,642 35.7% 14.7% 4.7x 4.0x 13.2x 10.6x 24.7x 19.6x
Mean 35.3% 17.7% 6.1x 5.1x 17.4x 14.4x 22.0x 23.0x
Median 34.6% 14.8% 4.5x 3.9x 17.0x 13.0x 19.8x 19.6x
Ecommerce
Alibaba 211,919 203,578 53.8% 32.4% 13.1x 10.1x 24.4x 19.0x 32.6x 25.0x
Amazon 175,765 172,918 8.1% 15.0% 1.7x 1.4x 20.8x 16.1x NM NM
eBay 70,098 67,627 31.2% 6.1% 3.6x 3.2x 11.4x 10.3x 18.4x 17.1x
Naspers 58,430 61,203 10.9% 18.9% 8.5x 7.2x NM NM NM 33.1x
Netflix 25,911 25,232 8.9% 22.8% 3.7x 3.1x 41.8x 32.0x NM NM
IAC 5,747 5,717 15.9% 7.3% 1.7x 1.6x 10.9x 8.6x 22.6x 17.1x
Mercadolibre 5,501 5,413 32.9% 24.6% 8.0x 6.7x 24.2x 20.4x 39.8x 32.2x
Groupon 5,133 4,101 8.9% 11.5% 1.2x 1.0x 13.0x 10.4x NM 33.6x
Asos 4,502 4,391 5.8% 18.9% 2.4x 2.0x 41.7x 32.4x NM NM
Mail.ru 4,138 3,472 47.8% 15.7% 5.4x 4.7x 11.4x 9.5x 23.2x 17.5x
Ocado 3,267 3,416 7.4% 16.0% 2.1x 1.8x 27.8x 23.4x NM NM
Shutterfly 1,830 1,720 18.2% 15.2% 1.6x 1.4x 9.0x 7.6x NM NM
YOOX 1,465 1,432 10.3% 19.8% 2.1x 1.8x 20.5x 16.3x NM NM
Overstock 567 387 2.9% 13.7% 0.2x NA 8.1x NA 29.2x NA
Blue Nile 369 278 4.6% 3.8% 0.6x 0.5x 12.0x 11.1x 35.9x 30.7x
Channel Advisor 284 219 (17.1%) 13.1% 2.3x 2.0x NM NM NM NM
Mean 15.7% 15.9% 3.6x 3.2x 19.8x 16.7x 28.8x 25.8x
Median 9.6% 15.4% 2.2x 2.0x 16.7x 16.1x 29.2x 27.9x
Online Travel
Priceline 61,245 60,841 40.1% 11.1% 6.5x 5.6x 16.2x 13.7x 20.5x 17.3x
Amadeus 18,619 20,205 38.5% 8.3% 5.1x 4.8x 13.2x 12.4x 23.3x 21.7x
Tripadvisor 12,342 12,117 33.8% 27.7% 7.6x 6.2x 22.6x 17.8x 38.1x 29.8x
Expedia 12,154 12,812 17.2% 12.0% 2.0x 1.7x 11.5x 9.8x 24.5x 20.3x
Ctrip 8,195 8,314 5.4% 37.5% 5.1x 3.9x NM 28.8x NM 31.0x
Sabre Corporation 6,161 9,090 32.4% (0.4%) 3.3x 3.0x 10.1x 9.0x 21.8x 17.7x
Travelport 1,866 4,180 23.6% 2.4% 1.9x 1.8x 8.0x 7.5x NM NM
Orbitz 1,312 1,573 17.1% 5.3% 1.6x 1.5x 9.4x 8.5x 30.2x 24.6x
Travelzoo 145 91 3.8% (10.1%) 0.7x 0.7x 18.3x 12.7x NM 44.0x
Mean 23.5% 10.4% 3.8x 3.2x 13.7x 13.4x 26.4x 25.8x
Median 23.6% 8.3% 3.3x 3.0x 12.4x 12.4x 23.9x 23.2x
Digital Marketing
HomeAway 2,958 2,471 24.6% 15.6% 4.8x 4.1x 19.5x 16.1x NM NM
Constant Contact 1,252 1,090 19.5% 17.2% 2.8x 2.4x 14.4x 11.4x 28.5x 22.4x
Marketo 1,105 998 (16.8%) 38.4% 4.9x 3.7x NM NM NM NM
Callidus Software 764 742 13.2% 22.4% 4.5x 3.8x 34.1x 23.6x NM 35.7x
Harte-Hanks 486 512 12.2% 1.1% 0.9x 0.9x 7.4x 7.0x 16.5x 15.0x
Matomy Media 271 277 10.9% 28.7% 0.9x 0.8x 8.3x 6.3x 11.7x 9.1x
Marin Software 220 155 (9.8%) 16.9% 1.4x 1.2x NM NM NM NM
InternetQ 211 208 17.6% 28.2% 1.1x 1.0x 6.4x 5.6x 13.9x 9.8x
Marchex 188 108 8.3% (23.1%) 0.8x 0.7x 9.5x 8.7x 35.6x 30.6x
Dotdigital 140 126 27.5% 30.6% 3.5x 2.9x 12.5x 8.1x 21.6x 14.3x
1000mercis 133 88 28.4% 11.6% 1.7x 1.4x 5.8x 5.0x 14.3x 12.6x
Hi-Media 107 29 3.1% 3.3% 0.2x 0.1x 5.0x 2.8x NM 43.8x
TradeDoubler 38 23 1.6% 0.3% 0.1x 0.1x 7.0x 4.9x NA 40.5x
Mean 10.8% 14.7% 2.1x 1.8x 11.8x 9.0x 20.3x 23.4x
Median 12.2% 16.9% 1.4x 1.2x 8.3x 7.0x 16.5x 18.7x
EV / Revenue EV / EBITDA P / E
INTERNET AND DIGITAL MEDIA (CONT.)
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EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ MARCH 2015
(1) Orbitz has entered into an agreement to be acquired by Expedia
(1)
(1)
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INTERNET AND DIGITAL MEDIA (CONT.)
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EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ MARCH 2015
Market Enterprise CY2015E
Cap ($m) Value ($m) EBITDA Margin Rev. Growth CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E
Content Providers / Communities
LinkedIn 33,062 30,706 27.4% 36.0% 10.3x 7.9x 37.6x 26.8x NM NM
Twitter 31,381 29,367 24.6% 72.7% 12.3x 8.2x NM 28.6x NM NM
Pandora Media 3,417 3,062 6.6% 26.5% 2.6x 2.1x 40.3x 20.5x NM 33.8x
JustEat 2,998 2,754 25.5% 33.1% 9.1x 7.7x 35.7x 25.8x NM 43.9x
WebMD Health 1,600 1,845 29.4% 8.4% 2.9x 2.7x 10.0x 8.8x 30.0x 27.4x
XING 965 896 30.5% 18.7% 7.1x 6.1x 23.1x 18.3x NM 38.1x
XO Group 454 364 18.3% 1.6% 2.5x 2.3x 13.9x 11.2x NM 49.7x
Demand Media 104 56 13.7% (7.2%) 0.4x 0.3x 2.7x 2.3x NM NM
Mean 22.0% 23.7% 5.9x 4.7x 23.3x 17.8x 30.0x 38.6x
Median 25.1% 22.6% 5.0x 4.4x 23.1x 19.4x 30.0x 38.1x
Intermediation and Comparison
Zillow 4,362 3,989 18.7% 117.3% 5.7x 4.3x 30.3x 14.4x NM 47.3x
Moneysupermarket 2,355 2,335 39.1% 8.6% 5.8x 5.5x 14.9x 14.2x 22.2x 20.5x
Bankrate 1,225 1,346 26.7% 12.0% 2.2x 2.0x 8.2x 7.5x 14.4x 12.7x
Angie's List 383 377 8.0% 14.5% 1.0x 0.9x 13.1x 8.3x NM 20.0x
Liquidity Services 288 214 7.8% (14.5%) 0.5x 0.5x 6.7x 8.5x 20.8x 22.0x
Gruppo MutuiOnline 267 253 27.8% 13.1% 3.2x 2.9x 11.5x 9.8x 22.6x 19.3x
eHealth 183 131 (0.6%) (8.1%) 0.8x 0.7x NM 11.9x NM 41.3x
Mean 18.2% 20.4% 2.8x 2.4x 14.1x 10.6x 20.0x 26.2x
Median 18.7% 12.0% 2.2x 2.0x 12.3x 9.8x 21.5x 20.5x
Online Classifieds
SEEK 4,748 5,643 43.7% 15.5% 7.8x 6.8x 17.8x 15.2x 27.2x 22.5x
Rightmove 4,328 4,311 74.7% 15.0% 15.4x 14.2x 20.7x 19.0x 26.4x 23.8x
Yelp 3,347 2,981 18.0% 54.0% 5.1x 3.9x 28.6x 17.8x NM 34.7x
SouFun 2,349 2,120 30.8% 18.6% 2.6x 2.1x 8.4x 6.3x 11.1x 8.6x
51job 1,941 1,396 33.5% 12.5% 4.1x 3.5x 12.1x 9.8x 17.7x 14.9x
Zoopla 1,064 1,018 48.3% 3.1% 8.2x 7.4x 17.0x 14.3x 25.7x 19.8x
Monster 591 763 15.2% (2.3%) 1.0x 1.0x 6.6x 5.1x 17.2x 10.7x
Dice 500 584 30.1% 3.4% 2.1x 2.0x 7.1x 6.5x 17.3x 14.2x
Mean 36.8% 15.0% 5.8x 5.1x 14.8x 11.8x 20.4x 18.6x
Median 32.1% 13.7% 4.6x 3.7x 14.6x 12.1x 17.7x 17.3x
Chinese Internet Leaders
Tencent 170,523 167,975 41.5% 27.2% 10.5x 8.3x 25.2x 19.9x 33.6x 25.2x
Baidu 74,667 70,021 29.8% 38.2% 6.4x 4.8x 21.5x 15.3x 27.7x 20.7x
Netease 13,088 9,779 40.7% 26.2% 4.2x 3.5x 10.2x 8.5x 14.8x 12.9x
Youku Tudou 2,610 1,426 (16.1%) 45.6% 1.5x 1.1x NM 20.6x NM NM
SouFun 2,349 2,120 30.8% 18.6% 2.6x 2.1x 8.4x 6.3x 11.1x 8.6x
Sina 2,176 1,085 6.6% 13.1% 1.3x 1.0x 19.2x 7.3x NM 20.9x
Sohu 2,046 1,835 4.6% 23.0% 0.9x 0.8x 19.5x 6.7x NM 25.2x
Renren 862 155 (111.9%) 17.2% 1.5x 1.6x NM NM NM NM
Dangdang 647 374 2.9% 23.8% 0.2x 0.2x 7.8x 4.3x 16.5x 9.1x
Mean 3.2% 25.9% 3.2x 2.6x 16.0x 11.1x 20.7x 17.5x
Median 6.6% 23.8% 1.5x 1.6x 19.2x 7.9x 16.5x 20.7x
Online Gambling
Playtech 3,454 2,938 44.3% 10.5% 5.5x 5.1x 12.3x 11.8x 17.5x 16.4x
Betfair 3,420 3,015 22.1% 6.6% 4.1x 3.8x 18.7x 17.1x 32.0x 27.5x
bwin.party digital entertainment 1,076 945 16.1% (6.9%) 1.5x 1.3x 9.1x 7.8x 19.8x 16.0x
888 820 716 15.1% 2.6% 1.5x 1.5x 10.1x 9.1x 17.8x 15.3x
Mean 24.4% 3.2% 3.1x 2.9x 12.6x 11.4x 21.8x 18.8x
Median 19.1% 4.6% 2.8x 2.6x 11.2x 10.4x 18.8x 16.2x
Interactive Entertainment
Electronic Arts 17,810 15,503 27.8% 5.9% 3.5x 3.3x 12.5x 11.2x 22.7x 19.9x
Activision 16,931 16,397 33.2% (8.4%) 3.7x 3.4x 11.1x 9.3x 19.8x 16.0x
Zynga 2,461 1,545 0.7% 1.3% 2.2x 2.0x NM 22.5x NM NM
Take-Two Interactive Software 2,167 1,660 14.3% 22.0% 1.0x 0.9x 7.2x 4.3x 19.2x 11.5x
Ubisoft Entertainment 2,002 2,050 42.8% (0.1%) 1.3x 1.1x 3.0x 2.6x 14.5x 12.7x
Mean 23.8% 4.1% 2.3x 2.1x 8.5x 10.0x 19.0x 15.0x
Median 27.8% 1.3% 2.2x 2.0x 9.2x 9.3x 19.5x 14.4x
EV / Revenue EV / EBITDA P / E
Energy & Power
IndustrialsHealthcare & Life Sciences
Transportation & Logistics
Aerospace, Defense & Government
Services
Business Services
Building Products & Materials
Technology, Media & Telecom
Specialty Distribution
Consumer
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HARRIS WILLIAMS & CO.
Capital IQ as of 23rd March 2015, broker reports and various industry news outlets
16
SOURCES
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ MARCH 2015
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