Software Industry Update Q2 2013

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Software Industry Update

Q2 2013

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http://www.victorypharma.com/index.shtml

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Q2 2013 Software Industry Overview

• Cash-rich global software companies remain cautious buyers despite improvements in the broader economy

and public markets, suggesting that pent-up demand for acquisitions is growing

- Software M&A in Q2 2013 totaled 284 reported transactions for a cumulative value of $23 billion,

roughly flat in number but up in value from Q1 2013 where 299 transactions resulted in $5 billion of

cumulative aggregate consideration

• High growth software companies, largely comprised of SaaS businesses, continue to significantly outpace the

general market and other software market indices

- High growth software is up 146% since 2010 as compared to the NASDAQ’s 47% return over the same

time period

• The window for initial public offerings (IPOs) widened in Q2 2013 with seven software IPOs raising $813 million

during the quarter, up significantly from the two software IPOs priced in Q1 2013 raising $225 million

- Software IPOs in Q2 2013 have performed well with an average return since pricing of 53%, leading to

increased investor appetite for new issuances in the back half of 2013

- Valuation for software IPOs in Q2 2013 increased to 6.6x enterprise value to last-twelve-month revenue

from 4.2x in Q1 2013

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Active Acquirers and Recent Transactions Most Active Acquirers (Since 2008)

Source: Capital IQ as of 6/28/13

Notable Recent Transactions

Deals <$1bn

Deals >$1bn

Acquirer

Target

Date 5/8/13 5/20/13 6/4/13 6/7/13 6/27/13

EV $315m $966m $2,250m $80m $600m

EV / LTM Rev 6.6x 2.7x 7.1x N/A 10.0x

EV / LTM EBITDA N/M 17.8x N/M N/A N/A

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243 228261

368344 334 327

452

337 340366

493

368349 363

441

299 286

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Software M&A Market Overview


Quarterly Software M&A Value and Deal Count (Since 2008)

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Enterprise Target LTM Enterprise Value / Date Target Acquirer Delivery Sector Value Revenue EBITDA LTM Revenue LTM EBITDA

06/27/2013 Neolane Adobe SaaS Advertising and Marketing $600.0 $60.0 N/A 10.0x N/A

06/24/2013 Keynote Systems Thoma Bravo SaaS Business Intell igence 340.8 123.9 $14.7 2.8 23.1x

06/20/2013 Spindle Labs Twitter SaaS Search Engine Software N/A N/A N/A N/A N/A

06/10/2013 TimeManagement Agilysys On Premise Business Software N/A N/A N/A N/A N/A

06/07/2013 EdgeSpring salesforce.com SaaS Business Intell igence 79.6 N/A N/A N/A N/A

06/04/2013 ExactTarget salesforce.com SaaS Advertising and Marketing 2,249.6 317.1 (0.6) 7.1 N/M

05/30/2013 RedCloud Avigilon Corporation On Premise Systems / Network 16.5 N/A N/A N/A N/A

05/29/2013 Apriso Dassault Systemes On Premise Supply Chain 205.0 N/A N/A N/A N/A

05/29/2013 JouleX Cisco SaaS Systems / Network 107.0 N/A N/A N/A N/A

05/22/2013 Aptito.com TOT Group SaaS Retail Software 41.1 N/A N/A N/A N/A

05/21/2013 Solera Networks Blue Coat Systems SaaS Internet Software N/A N/A N/A N/A N/A

05/20/2013 Websense Vista Equity Partners SaaS Security 966.2 359.4 54.4 2.7 17.8

05/15/2013 Cartavi DocuSign SaaS Systems / Network N/A N/A N/A N/A N/A

05/14/2013 OneOps @WalmartLabs SaaS Systems / Network N/A N/A N/A N/A N/A

05/08/2013 Market Leader Trulia SaaS Advertising and Marketing 314.3 47.7 (3.9) 6.6 N/M

05/08/2013 Civica OMERS Private Equity SaaS Internet Software 607.8 314.8 59.2 1.9 10.3

05/08/2013 OrderMotion NetSuite SaaS Business Intell igence N/A N/A N/A N/A N/M

05/06/2013 MOVL Samsung On Premise Content & Services N/A N/A N/A N/A N/M

04/25/2013 Parse Facebook SaaS Development N/A N/A N/A N/A N/M

04/12/2013 Behavio Google On Premise Knowledge / Content N/A N/A N/A N/A N/M

03/18/2013 MetroFax j2 Global SaaS Content & Services N/A N/A N/A N/A N/M

03/12/2013 Appature IMS Healthorporated SaaS Advertising and Marketing N/A N/A N/A N/A N/M

02/28/2013 Atlas DMT Facebook SaaS Advertising and Marketing N/A N/A N/A N/A N/A

02/22/2013 SmartOps Corporation SAP SaaS Supply Chain N/A N/A N/A N/A N/M

02/06/2013 Channel Intell igence Google SaaS Retail Software 125.0 20.0 N/A 6.3 N/M

01/31/2013 mFoundry Fidelity National Financial SaaS Retail Software 153.9 N/A N/A N/A N/A

12/20/2012 Eloqua Oracle SaaS Advertising and Marketing 871.0 90.1 0.1 9.7 N/M

10/11/2012 Pardot ExactTarget SaaS Advertising and Marketing 95.2 11.1 (1.2) 8.5 N/M

08/27/2012 Kenexa IBM SaaS Human Capital 1,307.1 318.0 26.7 4.1 49.0

08/27/2012 Deltek Thoma Bravo On Premise Accounting / ERP 1,028.8 341.3 56.5 3.0 18.2

08/16/2012 Venmo Braintree Payment Solutions On Premise Retail Software 26.2 N/A N/A N/A N/A

07/26/2012 Zencoder Brightcove SaaS Content & Services 32.5 1.4 (1.9) 23.0 N/M

06/25/2012 Quest Software Dell SaaS Accounting / ERP 2,432.0 894.2 177.5 2.7 13.7

06/15/2012 Yammer Microsoft SaaS Internet Software 1,200.0 N/A N/A N/A N/A

06/04/2012 Buddy Media salesforce.com SaaS Advertising and Marketing 745.0 28.7 (22.7) 26.0 N/M

05/22/2012 Ariba SAP SaaS Retail Software 4,411.4 501.8 40.9 8.8 N/M

05/02/2012 RentJuice Corporation Zillow SaaS Internet Software 37.4 0.4 (3.1) 102.5 N/M

03/19/2012 ISYS Search Software Lexmark On Premise Systems / Network N/A N/A N/A N/A N/A

02/09/2012 Taleo Oracle SaaS Human Capital 1,805.5 315.4 29.6 5.7 N/M

02/28/2012 iContact Corporation Vocus SaaS Business Application 218.5 47.9 (4.8) 4.6 N/M

02/07/2012 Aptean Vista Equity Partners On Premise Business Intell igence 264.8 219.0 21.8 1.2 12.1

01/09/2012 LiveOffice Symantec SaaS Internet Software 115.0 N/A N/A N/A N/A

Software Median 6.3x 17.8x

Software Mean 12.5 20.6

Select M&A Transactions

Note: $ in Millions. EV/EBITDA multiples in excess of 50x or less than 0x are considered not meaningful. Source: Capital IQ as of 6/28/13

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94%

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5.3x4.4x

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Software Public Market Performance

EV / Revenue EV / EBITDA

All Software: ACTV, ADBE, AKAM, AMSW.A, AVG, AZPN, BAS1V.HE, BIRT, BMC, CA, CALD, CHKP, CKSW, CNQR, CPWR, CRM, CSOD, CTXS, CYNI, DATA, DSY, DWRE, ECOM, EMC, EOPN, ET, EXA, FIRE, FLTX, FTNT, GIMO, GKNT, GWRE, HPQ, IBM, IMPV, INFA, ININ, INTU, KEYN, LPSN, LSE:SDL, MANH, MCRS, MKTO, MODN, MRIN, MSFT, MSTR, N, NCR, NOW, NQ, NTCT, ORCL, OTEX, PANW, PEGA, PFPT, PMTC, PRGS, QADA, QIHU, QLYS, RALY, RHT, SAP, SGE, SPLK, SQI, SWI, SYMC, TIBX, TSX:DSG, TXTR, ULTI, VDSI, VRNT, VRSN, WDAY, ZIXI High Margin Software: AKAM, AVG, BMC, CA, CHKP, CTXS, DSY, INTU, MSFT, NQ, ORCL, OTEX, PRGS, SAP, SWI, SYMC, VRSN High Growth Software: CRM, CSOD, CYNI, DATA, DWRE, ET, FIRE, FLTX, GIMO, IMPV, ININ, MKTO, MRIN, N, NOW, NQ, PANW, QIHU, RALY, SPLK, SQI, SWI, WDAY Source: Capital IQ as of 6/28/13

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Public Market Performance

% of 52 Week High

Q2

‘13

2012

2013E

2012

2013E

Index Performance Since 2010High Growth Software +146%NASDAQ Composite Index +47%All Software +44%S&P 500 Index +42%High Margin Software +36%

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Public Company Trading Comparables Price 52-Wk EV / Revenue EV / EBITDA P / E 52 Week

Company 06/28/13 High Mkt Cap EV 2012 2013E 2014E 2012 2013E 2014E 2012 2013E 2014E

CRMSalesforce.com, Inc $38.18 81% $22,826 $22,592 10.0x 5.7x 4.5x NM 35.0x 26.3x NM 94.3x 64.6xInteractive Intelligence Group Inc. 51.60 99% 1,104 1,063 5.1 3.6 3.1 37.3 40.9 38.0 69.7 117.3 84.8LivePerson Inc. 8.96 46% 493 398 3.0 2.3 2.0 14.6 18.8 13.4 40.7 46.5 32.3Median 81% $1,104 $1,063 5.1x 3.6x 3.1x 25.9x 35.0x 26.3x 55.2x 94.3x 64.6xMean 75% $8,141 $8,018 6.0x 3.9x 3.2x 25.9x 31.6x 25.9x 55.2x 86.0x 60.6x

Accounting / ERPOracle Corporation $30.71 85% $142,212 $146,093 4.0x 3.8x 3.6x 8.9x 7.8x 7.1x 16.9x 11.0x 10.1xSAP AG 73.04 87% 88,755 89,320 6.3 5.0 4.6 16.8 14.7 13.0 25.3 21.5 18.8Intuit Inc. 61.04 90% 18,400 17,487 4.4 3.7 3.4 12.2 9.6 9.0 26.4 17.3 16.3NetSuite Inc. 91.74 97% 6,954 6,777 28.7 16.6 13.0 NM NM NM NM NM NM Sage Group plc 5.17 88% 5,738 5,969 4.5 4.3 4.2 15.3 14.6 13.9 25.3 23.6 21.2American Software, Inc. 8.69 97% 237 177 1.8 1.7 1.5 10.4 9.7 7.1 24.5 21.7 16.6QAD Inc. 11.48 80% 179 121 0.5 0.5 0.4 5.4 9.0 4.0 17.7 26.7 12.8Median 88% $6,954 $6,777 4.4x 3.8x 3.6x 11.3x 9.7x 8.1x 24.9x 21.6x 16.4xMean 89% $37,496 $37,992 7.2x 5.1x 4.4x 11.5x 10.9x 9.0x 22.7x 20.3x 16.0x

RetailNCR Corp. $32.99 97% $5,499 $7,122 1.3x 1.1x 1.1x 21.8x 8.3x 7.4x 36.3x 12.0x 11.0xMICROS Systems, Inc. 43.15 81% 3,455 2,893 2.7 2.3 2.1 12.0 10.3 9.0 23.0 17.8 16.1The Active Network, Inc. 7.57 49% 482 380 1.1 0.8 0.7 19.2 7.6 5.6 NM NM 77.2ChannelAdvisor Corporation 15.73 84% 350 352 8.1 5.4 4.3 NM NM NM NM NM NM Median 83% $1,968 $1,636 2.0x 1.7x 1.6x 19.2x 8.3x 7.4x 29.6x 14.9x 16.1xMean 78% $2,447 $2,687 3.3x 2.4x 2.1x 17.7x 8.7x 7.4x 29.6x 14.9x 34.8x

Supply Chain ManagementDassault Systemes SA $122.17 95% $15,584 $13,874 6.0x 5.0x 4.6x 19.4x 14.8x 13.2x 40.4x 25.5x 23.1xPTC Inc. 24.53 94% 2,935 3,002 2.5 2.3 2.2 14.2 9.0 8.1 31.4 13.3 11.9Aspen Technology, Inc. 28.79 89% 2,733 2,594 11.6 7.8 6.5 NM 31.9 21.8 96.3 56.6 37.5Manhattan Associates, Inc. 77.16 97% 1,515 1,414 4.3 3.4 3.1 21.4 13.4 11.7 36.9 23.7 21.3Fleetmatics Group PLC 33.23 98% 1,234 1,156 12.5 6.9 5.6 69.8 24.6 18.6 NM 46.4 35.5The Descartes Systems Group Inc 11.49 100% 736 691 6.1 4.6 4.1 21.7 15.8 13.4 60.5 16.5 14.2Textura Corporation 26.01 97% 600 614 NM NM NM NM NM NM NM NM NM SciQuest, Inc. 25.05 97% 591 581 10.9 6.4 5.2 80.6 31.0 23.5 NM 66.7 48.8E2open, Inc. 17.50 81% 486 467 7.7 6.4 5.3 73.8 NM NM NM NM NM BasWare Oyj 22.88 75% 294 278 2.0 1.7 1.5 13.9 15.5 9.4 23.2 41.0 20.3ClickSoftware Technologies Ltd. 8.34 92% 273 255 2.9 2.1 1.8 14.2 21.2 15.9 21.9 34.8 22.3Median 95% $736 $691 6.0x 4.8x 4.3x 21.4x 15.8x 13.4x 36.9x 34.8x 22.3xMean 92% $2,453 $2,266 6.6x 4.7x 4.0x 36.6x 19.7x 15.1x 44.4x 36.1x 26.1x

Human Capital ManagementWorkday, Inc. $64.09 93% $11,088 $10,890 81.0x 24.8x 16.4x NM NM NM NM NM NM Concur Technologies, Inc. 81.38 97% 4,578 4,611 12.5 8.0 6.5 NM 36.9 29.1 NM 75.9 62.9The Ultimate Software Group, Inc. 117.29 100% 3,366 3,304 12.3 8.1 6.6 NM 57.4 31.0 NM 84.5 64.0Cornerstone OnDemand, Inc. 43.30 95% 2,406 2,336 32.0 12.8 9.2 NM NM NM NM NM NM Callidus Software Inc. 6.59 100% 255 303 3.6 2.9 2.5 NM 40.1 21.6 NM 136.4 39.1Median 97% $3,366 $3,304 12.5x 8.1x 6.6x NM 40.1x 29.1x NM 84.5x 62.9xMean 97% $4,338 $4,289 28.3x 11.3x 8.2x NM 44.8x 27.2x NM 98.9x 55.4x


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Public Company Trading Comparables (cont.) Price 52-Wk EV / Revenue EV / EBITDA P / E 52 Week


Knowledge / Content ManagementAdobe Systems Inc. $45.56 97% $23,058 $23,338 5.5x 5.7x 5.3x 15.9x 19.4x 16.5x 27.6x 31.4x 26.5xAkamai Technologies, Inc. 42.55 89% 7,662 7,497 6.5 4.8 4.3 17.3 11.3 9.8 39.8 21.8 19.3Open Text Corporation 68.47 93% 4,068 4,194 3.6 3.0 2.8 13.2 9.5 9.1 27.3 12.4 11.3SDL plc 4.38 40% 351 341 1.0 0.8 0.8 5.2 9.4 6.6 8.9 17.7 11.5Median 91% $5,865 $5,846 4.6x 3.9x 3.5x 14.5x 10.4x 9.4x 27.4x 19.7x 15.4xMean 80% $8,785 $8,843 4.1x 3.6x 3.3x 12.9x 12.4x 10.5x 25.9x 20.8x 17.1x

Business IntelligenceInformatica Corporation $34.98 81% $3,890 $3,671 4.7x 4.0x 3.6x 18.5x 15.2x 12.9x 33.3x 24.8x 21.3xTableau Software, Inc. 55.42 95% 3,187 3,147 50.5 16.3 11.6 NM NM NM NM NM NM Verint Systems Inc. 35.47 97% 1,873 2,266 2.9 2.5 2.4 16.3 10.4 9.1 63.3 13.0 11.8Pegasystems Inc. 33.12 99% 1,310 1,186 2.8 2.4 2.1 41.8 14.1 12.5 127.4 26.2 22.6MicroStrategy Inc. 86.96 64% 983 653 1.2 1.1 1.0 25.5 13.7 9.4 53.7 53.3 28.2Actuate Corporation 6.64 93% 332 297 2.2 2.1 1.9 10.7 10.2 8.7 28.9 17.2 14.3Median 94% $1,591 $1,726 2.9x 2.4x 2.2x 18.5x 13.7x 9.4x 53.7x 24.8x 21.3xMean 88% $1,929 $1,870 10.7x 4.7x 3.8x 22.5x 12.7x 10.6x 61.3x 26.9x 19.7x

SecuritySymantec Corporation $22.48 90% $15,708 $14,114 2.1x 2.0x 2.0x 7.7x 6.3x 5.3x 21.6x 12.6x 10.7xCheck Point Software Technologies Ltd. 49.68 94% 9,953 9,700 7.8 6.9 6.5 14.0 11.9 11.2 19.6 14.6 13.4VeriSign, Inc. 44.66 90% 6,739 7,366 9.5 7.7 7.2 18.4 12.1 11.3 53.8 19.8 17.7Qihoo 360 Technology Co. Ltd. 46.17 95% 5,668 5,367 32.0 9.1 6.3 NM 33.8 19.5 NM 46.2 27.6Palo Alto Networks, Inc. 42.16 59% 3,325 3,111 16.8 6.8 5.0 NM 64.6 30.8 NM 144.0 77.4SolarWinds, Inc. 38.81 64% 2,984 2,762 13.9 8.2 6.6 29.2 15.6 12.8 46.2 25.1 20.8Fortinet Inc. 17.50 63% 2,917 2,820 6.5 4.7 4.1 29.6 21.1 17.1 46.1 36.1 29.4Sourcefire, Inc. 55.55 94% 1,767 1,642 9.9 5.9 4.9 NM 30.0 23.7 NM 58.1 46.7Imperva Inc. 45.04 100% 1,160 1,094 14.0 8.1 6.6 NM NM 76.5 NM NM 122.1AVG Technologies N.V. 19.45 99% 1,061 1,076 3.9 2.6 2.3 12.9 7.8 7.1 11.5 10.2 8.7Proofpoint, Inc. 24.25 100% 994 953 11.6 7.4 6.3 NM NM NM NM NM NM Qualys, Inc. 16.12 99% 585 540 7.1 5.0 4.3 65.2 32.2 24.1 NM 89.6 56.3NQ Mobile Inc. 8.08 81% 419 399 9.8 2.2 1.6 65.0 7.1 5.4 37.6 8.8 6.8VASCO Data Security International Inc. 8.31 81% 323 218 1.3 1.3 1.3 7.6 8.5 7.2 13.2 18.5 16.5Zix Corporation 4.23 100% 262 238 6.2 4.8 4.2 19.9 17.9 13.6 12.4 22.3 18.4Median 94% $1,767 $1,642 9.5x 5.9x 4.9x 19.1x 15.6x 13.2x 21.6x 22.3x 19.6xMean 87% $3,591 $3,427 10.2x 5.5x 4.6x 26.9x 20.7x 19.0x 29.1x 38.9x 33.8x

Systems / Network ManagementEMC Corporation $23.62 84% $50,337 $46,727 2.3x 2.0x 1.8x 10.1x 7.6x 6.7x 21.5x 12.7x 11.3xCA Technologies 28.62 98% 12,983 11,816 2.5 2.6 2.6 7.0 7.0 6.9 15.7 9.9 11.1BMC Software Inc. 45.13 97% 6,430 6,392 2.9 2.8 2.7 8.9 7.3 7.3 17.7 12.2 11.5Compuware Corporation 10.34 83% 2,243 2,171 2.2 2.2 2.1 12.5 12.7 9.2 23.5 35.3 19.7NetScout Systems, Inc. 23.34 86% 969 869 2.9 2.3 2.0 13.1 8.6 7.0 32.8 17.7 14.3Gigamon Inc. 27.56 97% 867 844 12.4 5.6 4.2 47.5 NM NM 47.5 NM NM Cyan, Inc. 10.45 75% 547 545 13.5 3.9 2.6 NM NM NM NM NM NM Keynote Systems, Inc. 19.76 100% 377 346 3.1 2.8 NM 14.9 20.2 NM 7.0 33.3 NM Median 91% $1,606 $1,520 2.9x 2.7x 2.6x 12.5x 8.1x 7.0x 21.5x 15.2x 11.5xMean 90% $9,344 $8,714 5.2x 3.0x 2.6x 16.3x 10.6x 7.4x 23.7x 20.2x 13.6x


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Public Company Trading Comparables (cont.) Price 52-Wk EV / Revenue EV / EBITDA P / E 52 Week


Integration / MiddlewareCitrix Systems, Inc. $60.36 70% $11,342 $11,090 5.0x 3.7x 3.3x 19.0x 11.8x 10.5x 32.3x 19.6x 17.2xTIBCO Software Inc. 21.41 66% 3,646 3,515 3.8 3.3 3.1 17.8 12.9 11.1 32.9 22.0 17.8Progress Software Corp. 23.01 95% 1,284 1,029 2.9 3.1 3.0 7.0 9.7 8.3 23.5 20.4 14.9Median 70% $3,646 $3,515 3.8x 3.3x 3.1x 17.8x 11.8x 10.5x 32.3x 20.4x 17.2xMean 77% $5,424 $5,211 3.9x 3.4x 3.1x 14.6x 11.5x 9.9x 29.6x 20.6x 16.7x

Platform / OSMicrosoft Corporation $34.55 97% $288,838 $298,363 4.1x 3.6x 3.4x 10.1x 8.6x 7.8x 12.5x 11.5x 10.8xInternational Business Machines Corporation 191.11 89% 213,008 235,820 2.2 2.3 2.2 8.9 8.4 8.0 14.6 11.4 10.4Hewlett-Packard Company 24.80 97% 47,828 61,389 0.5 0.6 0.6 4.1 4.3 4.3 8.7 6.9 6.8Red Hat, Inc. 47.82 80% 9,062 8,464 7.8 5.7 5.0 34.9 20.9 17.1 65.6 35.4 31.6Median 93% $130,418 $148,604 3.2x 2.9x 2.8x 9.5x 8.5x 7.9x 13.6x 11.5x 10.6xMean 91% $139,684 $151,009 3.7x 3.0x 2.8x 14.5x 10.6x 9.3x 25.3x 16.3x 14.9x


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Public Company Operating Metrics Price 52-Wk Revenue Growth EBITDA Margin Net Margin 52 Week


CRMSalesforce.com, Inc $38.18 81% $22,826 $22,592 35% 29% 26% 3% 16% 17% NM 40% 46%Interactive Intelligence Group Inc. 51.60 99% 1,104 1,063 13% 26% 16% 5% 9% 8% 8% 36% 49%LivePerson Inc. 8.96 46% 493 398 18% 12% 15% 12% 13% 15% 33% 51% 58%Median 81% $1,104 $1,063 18% 26% 16% 5% 13% 15% 21% 40% 49%Mean 75% $8,141 $8,018 22% 22% 19% 6% 13% 13% 21% 42% 51%

Accounting / ERPOracle Corporation $30.71 85% $144,550 $148,431 1% 2% 6% 46% 49% 50% 61% 71% 71%SAP AG 73.04 87% 88,755 89,479 16% 7% 10% 34% 34% 35% 52% 66% 66%Intuit Inc. 61.04 90% 18,400 17,487 7% 10% 7% 31% 39% 39% 60% 59% 58%NetSuite Inc. 91.74 97% 6,954 6,777 31% 32% 27% (5%) 10% 10% NM 49% 64%Sage Group plc 5.17 88% 5,725 6,075 6% (6%) 3% 30% 29% 30% 42% 63% 64%American Software, Inc. 8.69 97% 237 177 3% 1% 10% 16% 19% 21% 66% 59% 56%QAD Inc. 11.48 80% 179 121 2% 3% 7% 7% 5% 8% 40% 46% 52%Median 88% $6,954 $6,777 6% 3% 7% 30% 29% 30% 56% 59% 64%Mean 89% $37,828 $38,364 9% 7% 10% 23% 27% 28% 53% 59% 62%

RetailNCR Corp. $32.99 97% $5,499 $7,122 8% 11% 7% 8% 14% 14% 30% 52% 52%MICROS Systems, Inc. 43.15 81% 3,455 2,893 14% 6% 6% 22% 22% 24% 68% 68% 64%ChannelAdvisor Corporation 15.73 84% 350 352 23% 21% 26% (2%) (23%) (23%) NM NM NM The Active Network, Inc. 7.57 49% 482 380 24% 11% 13% 1% 11% 13% NM (22%) 9%Median 83% $1,968 $1,636 19% 11% 10% 5% 12% 14% 49% 52% 52%Mean 78% $2,447 $2,687 17% 12% 13% 7% 6% 7% 49% 33% 42%

Supply Chain ManagementDassault Systemes SA $122.17 95% $15,584 $13,874 15% 3% 9% 31% 34% 35% 53% 65% 65%PTC Inc. 24.53 94% 2,935 3,002 3% 5% 5% 18% 25% 27% (10%) 67% 68%Aspen Technology, Inc. 28.79 89% 2,733 2,594 23% 21% 21% 8% 25% 30% 40% 60% 62%Manhattan Associates, Inc. 77.16 97% 1,515 1,414 14% 10% 9% 23% 26% 27% 60% 61% 61%Fleetmatics Group PLC 33.23 98% 1,234 1,156 38% 31% 23% 19% 28% 30% 23% 56% 57%The Descartes Systems Group Inc 11.49 100% 736 691 11% 19% 12% 29% 29% 31% 44% NM NM Textura Corporation 26.01 97% 600 614 NM 68% 57% (63%) (31%) (4%) NM NM NM SciQuest, Inc. 25.05 97% 591 581 24% 37% 23% 6% 21% 22% (31%) 46% 49%E2open, Inc. 17.50 81% 486 467 22% (3%) 23% 6% (12%) (2%) 68% NM NM BasWare Oyj 22.88 75% 294 278 7% 9% 11% 11% 11% 16% 48% 42% 49%ClickSoftware Technologies Ltd. 8.34 92% 273 255 15% 16% 20% 10% 5% 6% 74% 97% 97%Median 95% $736 $691 15% 16% 20% 11% 25% 27% 46% 61% 62%Mean 92% $2,453 $2,266 17% 20% 19% 9% 15% 20% 37% 62% 64%

Human Capital ManagementWorkday, Inc. $64.09 93% $11,088 $10,890 104% 60% 51% (32%) (22%) (13%) NM NM NM Concur Technologies, Inc. 81.38 97% 4,578 4,611 25% 24% 23% 10% 22% 22% (41%) 50% 48%The Ultimate Software Group, Inc. 117.29 100% 3,366 3,304 23% 23% 22% 12% 14% 21% 35% 71% 52%Cornerstone OnDemand, Inc. 43.30 95% 2,406 2,336 61% 55% 40% (23%) (0%) 4% NM NM 7%Callidus Software Inc. 6.59 100% 255 303 13% 12% 14% (17%) 7% 12% NM 26% 51%Median 97% $3,366 $3,304 25% 24% 23% (17%) 7% 12% (3%) 50% 50%Mean 97% $4,338 $4,289 45% 35% 30% (10%) 4% 9% (3%) 49% 40%

EBITDA and Net Margins Greater than 100% or less than -100% are deemed non-material (“NM”) Source: Capital IQ as of 6/28/13

11

Public Company Operating Metrics (cont.)


Price 52-Wk Revenue Growth EBITDA Margin Net Margin 52 Week


Knowledge / Content ManagementAdobe Systems Inc. $45.56 97% $23,058 $23,338 4% (7%) 8% 34% 29% 32% 56% 61% 62%Akamai Technologies, Inc. 42.55 89% 7,662 7,497 19% 13% 13% 36% 43% 44% 41% 54% 52%Open Text Corporation 68.47 93% 4,068 4,194 10% 11% 6% 29% 31% 31% 33% 74% 78%SDL plc 4.38 40% 351 341 23% (8%) 5% 16% 9% 12% 50% 53% 58%Median 91% $5,865 $5,846 14% 2% 7% 31% 30% 31% 45% 58% 60%Mean 80% $8,785 $8,843 14% 2% 8% 29% 28% 30% 45% 61% 63%

Business IntelligenceInformatica Corporation $34.98 81% $3,890 $3,671 4% 13% 12% 22% 27% 28% 52% 65% 65%Tableau Software, Inc. 55.42 95% 3,187 3,147 105% 51% 40% 6% (6%) 1% 18% NM NM Verint Systems Inc. 35.47 97% 1,873 2,266 7% 8% 7% 19% 24% 26% 33% 67% 66%Pegasystems Inc. 33.12 99% 1,310 1,186 11% 9% 10% 11% 17% 17% 44% 60% 63%MicroStrategy Inc. 86.96 64% 983 653 6% (2%) 9% 8% 8% 11% 41% 36% 54%Actuate Corporation 6.64 93% 332 297 3% 3% 8% 17% 20% 22% 43% 67% 63%Median 94% $1,591 $1,726 7% 8% 10% 14% 18% 19% 42% 65% 63%Mean 88% $1,929 $1,870 23% 14% 15% 14% 15% 17% 38% 59% 62%

SecuritySymantec Corporation $22.48 90% $15,708 $14,114 2% 1% 3% 27% 32% 37% 62% 57% 56%Check Point Software Technologies Ltd. 49.68 94% 9,953 9,700 8% 4% 6% 57% 58% 58% 81% 83% 83%VeriSign, Inc. 44.66 90% 6,739 7,366 13% 9% 6% 59% 64% 64% 63% 59% 59%Qihoo 360 Technology Co. Ltd. 46.17 95% 5,668 5,367 96% 79% 45% 20% 27% 33% 70% 77% 78%Palo Alto Networks, Inc. 42.16 59% 3,325 3,111 75% 42% 36% (0%) 10% 16% NM 48% 44%SolarWinds, Inc. 38.81 64% 2,984 2,762 36% 25% 25% 49% 53% 51% 61% 68% 69%Fortinet Inc. 17.50 63% 2,917 2,820 23% 12% 14% 21% 22% 24% 60% 62% 64%Sourcefire, Inc. 55.55 94% 1,767 1,642 35% 25% 21% 8% 20% 21% 28% 56% 57%Imperva Inc. 45.04 100% 1,160 1,094 33% 30% 23% (5%) 3% 9% NM 36% 79%AVG Technologies N.V. 19.45 99% 1,061 1,076 31% 18% 13% 30% 33% 32% 43% 77% 82%Proofpoint, Inc. 24.25 100% 994 953 30% 21% 18% (11%) (3%) 4% NM NM (76%)Qualys, Inc. 16.12 99% 585 540 20% 18% 16% 11% 16% 18% 22% 37% 46%NQ Mobile Inc. 8.08 81% 419 399 126% 96% 36% 4% 31% 30% NM 93% 95%VASCO Data Security International Inc. 8.31 81% 323 218 (8%) 5% 7% 16% 16% 18% 63% 64% 60%Zix Corporation 4.23 100% 262 238 14% 13% 16% 28% 27% 31% 92% 88% 83%Median 94% $1,767 $1,642 30% 18% 16% 20% 27% 30% 62% 63% 64%Mean 87% $3,591 $3,427 35% 27% 19% 21% 27% 30% 59% 65% 59%

System / Network ManagementEMC Corporation $23.62 84% $50,337 $46,727 9% 8% 8% 24% 26% 27% 53% 65% 64%CA Technologies 28.62 98% 12,983 11,816 (2%) (4%) 0% 36% 37% 38% 55% 76% 67%BMC Software Inc. 45.13 97% 6,430 6,392 1% 3% 3% 28% 39% 38% 54% 62% 62%Compuware Corporation 10.34 83% 2,243 2,171 (2%) (0%) 7% 17% 18% 23% 45% 37% 42%NetScout Systems, Inc. 23.34 86% 969 869 15% 8% 15% 26% 27% 29% 44% 56% 57%Gigamon Inc. 27.56 97% 867 844 42% 40% 30% 9% 10% 13% 83% 56% 52%Cyan, Inc. 10.45 75% 547 545 137% 47% 47% (10%) (12%) 2% NM NM (99%)Keynote Systems, Inc. 19.76 100% 377 346 12% 0% NM 13% 14% NM 15% 64% NM Median 91% $1,606 $1,520 11% 5% 8% 20% 22% 27% 53% 62% 57%Mean 90% $9,344 $8,714 27% 13% 16% 18% 20% 24% 50% 59% 35%

12

Public Company Operating Metrics (cont.)


Price 52-Wk Revenue Growth EBITDA Margin Net Margin 52 Week


Integration / MiddlewareCitrix Systems, Inc. $60.36 70% $11,342 $11,090 17% 15% 13% 24% 32% 32% 58% 62% 63%TIBCO Software Inc. 21.41 66% 3,646 3,515 11% 3% 9% 21% 26% 27% 57% 60% 63%Progress Software Corp. 23.01 95% 1,284 1,029 (7%) (1%) 3% 27% 32% 36% 53% 57% 61%Median 70% $3,646 $3,515 11% 3% 9% 24% 32% 32% 57% 60% 63%Mean 77% $5,424 $5,211 7% 6% 8% 24% 30% 32% 56% 60% 62%

Platform / OSMicrosoft Corporation $34.55 97% $288,838 $298,363 1% 15% 4% 40% 41% 44% 54% 72% 69%International Business Machines Corporation 191.11 89% 213,008 235,820 (2%) (1%) 3% 26% 27% 28% 62% 66% 65%Hewlett-Packard Company 24.80 97% 47,828 61,389 (5%) (7%) (1%) 12% 13% 13% (90%) 49% 50%Red Hat, Inc. 47.82 80% 9,062 8,464 18% 15% 15% 21% 27% 29% 54% 65% 60%Median 93% $130,418 $148,604 (1%) 7% 3% 23% 27% 29% 54% 65% 62%Mean 91% $139,684 $151,009 3% 6% 5% 25% 27% 29% 20% 63% 61%

13

Software IPOs

LTM Multiples Metrics and Financings Share Information

IPO DateDays on

FileCompany EV

IPO Amt

Raised

Market

CapEV / Rev

EV /

EBITDA

Rev Grwth

at IPO

NTM Rev

Growth

Net Cash

at IPO

IPO Offer

Price

File to

Price Chg

Primary

Shares

Current

Price

Chg Since

IPOBusiness Description

Software

06/11/13 333 Gigamon $471 $128 $599 4.5x 53.6x 42% 30% $23 $19 -- 67% $31 62% Network traffic management software06/06/13 62 Textura 257 75 332 9.4 NM 160% 64% (20) 15 -- 100% 31 104% SaaS project management platform05/22/13 41 ChannelAdvisor 230 81 310 4.1 NM 29% 21% (0) 14 -- 100% 16 12% SaaS Ecommerce platform05/17/13 45 Marketo 448 91 538 6.8 NM 104% 33% 33 13 -- 95% 26 97% SaaS marketing 05/17/13 45 Tableau 1,920 254 2,174 13.4 NM 129% 43% 40 31 3% 61% 63 103% BI software05/08/13 34 Cyan 498 88 586 4.6 NM 167% 45% 1 11 -- 100% 11 (1%) Network virtualization software04/11/13 31 Rally Software 191 97 287 3.4 NM 38% 20% 18 14 8% 27% 25 78% SaaS agile development tools03/21/13 36 Marin Software 373 105 478 6.3 NM 65% 25% 21 14 8% 100% 12 (17%) SaaS online ad management03/20/13 35 Model N 186 120 306 2.1 NM 36% 18% 13 16 7% 0% 23 51% Revenue cycle management software10/11/12 42 Workday 4,688 733 5,420 23.5 NM 128% 57% 37 28 8% 100% 66 134% SaaS CRM10/04/12 45 Fleetmatics Group 624 133 757 5.3 32.1 82% 27% (24) 17 -- 100% 33 94% SaaS fleet management09/27/12 111 Qualys 324 105 429 3.9 46.7 27% 25% 28 12 -- 90% 16 36% SaaS security and compliance08/01/12 343 Eloqua 350 106 456 4.1 NM 42% 16% 3 12 -- 89% NM NM SaaS online ad management07/25/12 159 E2open 339 70 409 5.3 NM 15% 12% 10 15 -- 80% 18 21% SaaS supply chain management06/28/12 90 ServiceNow 2,560 241 2,801 17.0 NM 247% 96% 68 18 6% 12% 43 141% SaaS IT automation06/28/12 330 Exa Corporation 168 63 231 3.6 29.5 16% 17% 8 10 (9%) 67% 10 (0%) Auto manufacturer software04/19/12 127 Proofpoint 408 94 502 4.6 NM 35% 19% 8 13 8% 83% 25 92% SaaS security and compliance04/18/12 97 Splunk 1,709 264 1,973 14.1 NM 83% 56% 32 17 31% 94% 49 190% SaaS BI03/21/12 119 ExactTarget 1,198 162 1,360 5.8 NM 55% 26% 61 19 12% 87% 34 77% SaaS email marketing03/14/12 243 Demandware 417 101 518 7.4 NM 54% 24% 15 16 10% 100% 44 177% SaaS ecommerce solutions02/01/12 19 AVG Technologies N.V. 764 128 892 2.8 9.1 25% 18% (154) 16 -- 50% 20 25% Internet security software01/24/12 144 Guidewire Software 665 132 797 3.5 25.7 31% 9% 31 13 8% 100% 44 242% Insurance softwareMedian 76 $432 $105 $528 5.0x 30.8x 48% 25% $16 8% 90% 78%Mean 115 $854 $153 $1,007 7.1x 32.8x 73% 32% $11 8% 77% 82%

Note: $ in Millions. Data as of 6/30/13. Revenue and EBITDA multiples greater than 25x and 100x, respectively, are deemed non-material (“NM”). Source: Capital IQ as of 6/28/13

14

Vista Point Advisors Overview

Mike Lyon

415.659.9187

[email protected]

Jeff Bean

415.659.9190

[email protected]

Morgan Livermore

415.501.9029

[email protected]

Vivek Goyal

415.692.6163

[email protected]

David Cho

415.547.8440

[email protected]

Miles Lacey

415.659.9278

[email protected]

Eddie Le

415.659.9191

[email protected]

Scott Austin

415.547.8437

[email protected]

Jeffrey Koons

415.659.9189

[email protected] 90 New Montgomery, Suite 700

San Francisco, CA 94105

• SaaS

• On-premise

• Application Software

• Healthcare IT

• Financial Tech

• Advertising and Marketing

• Digital Media

• Gaming

• Content

• Ecommerce

• Consumer Applications

• Enterprise Applications

• Gaming

• Payments

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Vista Point Advisors is a boutique investment bank focused on capital raise and M&A advisory for growing technology companies

Documents

Software Industry Update Q2 2013