Technology, Media & Telecom Update January 2013 · check-in will revolutionize commerce. These four predictions coincide with the value propositions of many ... • Epocrates provides

Highlighted M&A Transactions…………… 3

Technology, Media & Telecom Update January 2013

Note: All market data in the following materials is as of

December 31, 2012.

U.S. TMT M&A Overview………………………………………………………………………………………. 4

U.S. TMT Initial Public Offerings……………………………………………………………………………….. 5

TMT Public Market Overview…………………………………………………………………………………… 6

Public Market Trading Statistics by Vertical

Bellwethers………………………………………………………………………………………………. 7

Data and Information Services…………………………………………………………………………... 7

Internet and Digital Media……………………………………………………………………………….. 8

IT and Tech-Enabled Services…………………………………………………………………………… 9

Software – Application…………………………………………………………………………………. 10

Software – Infrastructure……………………………………………………………………………….. 11

Software as a Service (“SaaS”) ………………………………………………………………………… 12

Selected HW&Co. TMT Transactions………………………………………………………………………….. 13

Contents

For more information, please visit http://www.harriswilliams.com/industries/tmt

Harris Williams & Co.’s Technology, Media & Telecom (TMT) Group is dedicated to providing superior merger & acquisition and capital markets advisory services to market leading companies through dedicated TMT professionals. Below is a list of our senior TMT contacts.

+1 (617) 482-7501 +1 (415) 217-3411 +44 20 7518 8901

Boston San Francisco London

Monthly Spotlight

• PayPal Blog: Looking Ahead to 2013 • SaaS And “Smart” Apps Fueling Software Growth • Big Data & Utility Analytics for Smart Grid • 2012: Apps, Mobile, and Social Media • Where’s the Money for Telcos?

• athenahealth acquires Epocrates • McKesson’s RelayHealth acquires AHI Software • Oracle acquires Eloqua • Red Hat acquires ManageIQ • Dell acquires CREDANT Technologies

Group Overview

Jeff Bistrong Garin Arevian Sam Hendler Derek Swaim Tyler Dewing

Mike Wilkins Eric Reimers Laura Boyd

Thierry Monjauze Red Norrie

Francois Morin

What We’ve Been Reading………………… 2

UPDATE

• HW&Co. represented Sierra Trading Post (“STP”) in its sale to The TJX Companies (“TJX”).

• STP is one of the five largest entrepreneur-owned internet retailers in North America.

• STP is among the top 20 e-commerce retailers of apparel and accessories, offering over 2,000 high quality brands in the outdoor gear, shoes, clothing, accessories, and home furnishings categories.

• The acquisition provides TJX with immediate scale, capabilities, and infrastructure in e-commerce.

• TMT Deal Contacts: Jeff Bistrong and Derek Swaim.

$200,000,000

has been acquired by

MobileSite “G4” Website LiveMail

http://www.harriswilliams.com/industries/tmt

mailto:[email protected]













http://www.sierratradingpost.com/

http://www.tjx.com/

What We’ve Been Reading

According to Forrester Research, SaaS and data-driven smart apps are the major drivers of growth for the global software market. The SaaS market is predicted to increase 25% in 2013 to $59 billion and reach $75 billion by 2014 while “smart computing,” defined as apps that provide direct access to decision making, data analytics, and business intelligence, is expected to climb to $41 billion in 2013 and total $48 billion in 2014. Read the full article here.

Forrester: SaaS And Data-Driven “Smart” Apps Fueling Worldwide Software Growth TechCrunch 1/3/13

The introduction of big data and analytics to the utility industry has dramatically expanded the capabilities of the smart grid, as data analytics software is beginning to offer the ability to track, visualize, and predict – the core elements of what GTM Research calls the Soft Grid. GTM Research forecasts cumulative global spending on smart-grid-related analytics to exceed $20.6 billion from 2012 – 2020, and the achieved ROI from this investment to exceed $121.8 billion over the same period. Technologies such as open-source data management platforms, massively parallel processing appliances, predictive analytics, and improvements of underlying network infrastructure will support this growth. Read the full article here.

The Soft Grid 2013 – 2020: Big Data & Utility Analytics for Smart Grid GTM Research 12/13/12

According to Ovum, the revenue outlook for telcos is expected to remain relatively flat over the next five years. However, certain sectors, such as mobile broadband and cloud services, are likely to see significant growth with the potential to lift the sector to higher growth. Analysts forecast that between 2013 and 2016, mobile broadband services revenues will grow at a compound annual growth rate of over 19%, adding $122.9 billion in incremental revenue. Public cloud services is estimated to add $42.4 billion in incremental revenue with an estimated CAGR of over 29% over the same period. Read the full article here.

Where’s the Money for Telcos? Mobile Broadband and Cloud, says Ovum Gigaom 1/3/13

2

According to recent research from Nielsen and McKinsey, time spent on social media in the U.S. grew from 88 billion minutes in July 2011 to 121 billion minutes in July 2012, representing a growth rate of 37%. Overall, 63% of this growth is accounted for by increasing usage of mobile devices as a means of accessing social media websites. The research cautioned that consumer behavior is still rapidly evolving, and new methods of content consumption, such as the “second screen,” are introducing new challenges for companies in the sector. Read the full article here.

Mobile Drives Adoption of Social Media in 2012 TechCrunch 12/3/12

PayPal President David Marcus predicts a number of key changes in the payment industry in 2013. Building off strong momentum in 2012, Marcus claims that Near Field Communications (“NFC”) will fail to gain mass adoption; payments, loyalty, and coupon businesses will merge; the cash register will go mobile; and experiences beyond check-in will revolutionize commerce. These four predictions coincide with the value propositions of many fledgling technology companies in the payments ecosystem, and could spur significant change in the industry if they come to fruition in 2013. Read the full article here.

Looking Ahead to 2013 PayPal Blog 12/17/12

http://techcrunch.com/2013/01/03/forrester-saas-and-data-driven-smart-apps-fueling-worldwide-software-growth/

http://www.greentechmedia.com/research/report/the-soft-grid-2013

http://gigaom.com/2013/01/03/wheres-the-money-for-telcos-mobile-broadband-and-cloud-says-ovum/

http://techcrunch.com/2012/12/03/mobile-drives-adoption-of-social-media-in-2012-apps-mobile-web-account-for-majority-of-growth-nearly-half-of-social-media-users-access-sites-on-smartphones/

https://www.thepaypalblog.com/2012/12/looking-ahead-to-2013/

Highlighted Recent TMT M&A Transactions

3

• CREDANT Technologies is a provider of data protection and management technologies designed to encrypt information between mobile devices, servers, and the cloud.

• The acquisition augments Dell’s growing portfolio of enterprise infrastructure solutions and highlights the momentum of the bring-your-own-device (BYOD) trend in the enterprise.

Dell acquires CREDANT Technologies

Ent. Value: Undisclosed Revenue Multiple: NA EBITDA Multiple: NA

12/18/12

• Eloqua provides on-demand marketing automation software solutions and will become the centerpiece of Oracle’s new ERP offering targeting marketing companies.

• The acquisition reinforces Oracle’s momentum in SaaS, a focal point of the company’s recent acquisition strategy.

Oracle acquires Eloqua

Ent. Value: $871mm Revenue Multiple: 9.7x EBITDA Multiple: NM

12/20/12

• ManageIQ provides enterprise cloud management and automation solutions that enable organizations to deploy, manage, and optimize private clouds, virtualized infrastructures, and virtual desktops.

• The acquisition will strengthen Red Hat’s existing virtualization management console.

Red Hat acquires ManageIQ

Ent. Value: $105 mm Revenue Multiple: NA EBITDA Multiple: NA

12/20/12

• Epocrates provides subscriptions for mobile drug reference tools, electronic health records to healthcare professionals, and interactive services to the healthcare industry.

• The acquisition expands athenahealth’s stronghold in the physician market and will accelerate the Company’s vision to build the nation’s health information backbone.

athenahealth acquires Epocrates

Ent. Value: $215 mm Revenue Multiple: 2.0x EBITDA Multiple: NM

1/7/13

• AHI Software is a provider of on-demand patient access management solutions. • The company’s AHI QA solution is ranked number one by KLAS in the patient

access category. • The acquisition complements RelayHealth’s existing patient access software, helping

healthcare providers streamline processes for more effective reimbursement and better patient engagement.

McKesson’s RelayHealth acquires AHI Software

Ent. Value: Undisclosed Revenue Multiple: NA EBITDA Multiple: NA

12/26/12

Summary M&A

Statistics

LTM M&A Volume and Revenue Multiples LTM M&A Volume by Segment

U.S. TMT M&A Overview

Note: Includes announced or closed transactions over the last three calendar years.

Last Three Years M&A Transaction Volume

Private Equity Activity by Segment

4

Note: Includes announced or closed transactions over the last twelve months.

Note: Includes all announced or closed transactions over the last four quarters.

2.8 x

3.4 x

1.8 x

2.4 x

2.8 x

3.5 x

0.0 x

0.5 x

1.0 x

1.5 x

2.0 x

2.5 x

3.0 x

3.5 x

4.0 x

0

100

200

300

400

500

600

700

800

900

Data and Information

Services

Internet and Digital Media

IT and Tech-Enabled Services

Software –Application

Software –Infrastructure

Software –SaaS

LTM

Revenue M

ultipleTran

sact

ion

Volu

me

M&A Transaction Volume Median LTM Revenue Multiple


Services5%


37%


16%


30%


9%

Software –SaaS6%

All Acquisitions Private Equity Acquisitions

Segment Q1'12 Q2'12 Q3'12 Q4'12 Total Q1'12 Q2'12 Q3'12 Q4'12 Total

Data and Information Services 29 35 27 24 115 3% 17% -- 8% 8%

Internet and Digital Media 203 218 218 194 833 2% 7% 6% 6% 5%

IT and Tech-Enabled Services 95 71 88 97 351 5% 1% 5% 7% 5%

Software - Application 166 174 171 140 651 7% 8% 7% 4% 7%

Software - Infrastructure 33 35 34 37 139 3% -- -- 5% 2%

Software - SaaS 37 32 35 36 140 5% 13% 9% 6% 8%

Total 563 565 573 528 2,229 4% 7% 5% 6% 6%

133

755

360

581

174108111

826

350

638

159102113

827

348

657

139 140

0

100

200

300

400

500

600

700

800

900

Data and Information Services





Software –SaaS

Tra

nsac

tion

Vol

ume

2010 M&A Transaction Volume 2011 M&A Transaction Volume 2012 M&A Transaction Volume

0

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010 2011 2012

Recent IPO Statistics

Note: Includes major U.S. exchanges and transactions for companies located in the U.S. over the last twelve months.

Number of Transactions by Tier Percentage of Transactions by Tier

Tier by Market Capitalization on IPO Pricing Date

$0 - $250M $250M - $500M $500M - $1,000M $1,000M - $2,000M $2,000M +

U.S. TMT Initial Public Offerings

Note: Includes major U.S. exchanges and transactions for companies located in the U.S.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 2012

5

($ in millions) IPO Details Financials at IPO (LTM) Trading MultiplesGross Offering % Post-IPO EBITDA 1YR Rev. TEV/LTM TEV/LTM

Date Company Amount Secondary Perf. Revenue Margin Growth Revenue EBITDA11/15/12 Ruckus Wireless, Inc. 126.0$ 16.7% 50.2% 193.5$ 12.0% 156.4% 8.8x 73.2x10/11/12 Workday, Inc. 637.0 0.0% 94.6% 199.1 NM 127.9% 44.9x NM 10/10/12 Shutterstock, Inc. 76.5 0.0% 52.9% 155.2 17.6% 87.0% 5.7x 32.2x10/09/12 Ambarella, Inc. 36.0 18.3% 85.8% 107.2 16.5% 13.2% 2.1x 12.7x10/04/12 Fleetmatics Group Limited 132.8 20.0% 48.0% 117.5 16.9% 81.6% 8.7x 51.5x10/02/12 LifeLock, Inc. 141.3 1.3% (9.7%) 250.6 8.0% 54.4% 3.9x 48.8x09/27/12 Qualys, Inc. 90.9 11.6% 23.3% 83.4 8.3% 27.5% 5.3x 63.2x09/19/12 Trulia, Inc. 102.0 16.7% (4.5%) 51.3 NM 159.1% 8.7x NM 08/01/12 Eloqua 92.0 12.5% 105.1% 84.7 1.1% 42.3% 9.6x NM 07/25/12 E2open, Inc. 70.3 20.0% (5.6%) 63.9 1.6% 15.1% 5.6x NM 07/19/12 Kayak Software Corporation 91.0 0.0% 52.8% 265.4 19.4% 32.9% 6.5x 33.4x07/19/12 Palo Alto Networks, Inc. 260.4 24.4% 27.4% 219.7 3.6% 350.4% 16.3x NM 06/28/12 ServiceNow, Inc. 209.7 22.7% 66.8% 169.0 NM 290.0% 22.1x NM 06/28/12 Exa Corporation 62.5 33.3% (2.7%) 46.9 11.8% 16.3% 2.7x 22.5x05/17/12 Facebook, Inc. 16,006.9 57.3% (29.9%) 4,038.0 52.8% 104.6% 13.5x 25.6x05/09/12 Audience, Inc. 89.6 5.1% (38.9%) 100.2 3.4% 109.2% 1.9x 57.1x04/24/12 Envivio, Inc. 69.8 16.2% (81.1%) 50.6 4.4% 68.8% 0.4x 8.8x04/19/12 Proofpoint, Inc. 82.3 18.9% (5.3%) 87.7 NM 35.3% 5.6x NM 04/19/12 Infoblox Inc. 120.0 23.4% 12.3% 151.9 NM 48.7% 5.3x NM 04/18/12 Splunk, Inc. 229.5 7.4% 70.7% 121.0 NM 82.6% 23.8x NM 03/28/12 Millennial Media Inc. 132.6 9.8% (3.6%) 103.7 0.1% 116.8% 10.0x NM 03/27/12 Vocera Communications, Inc. 93.6 14.5% 56.9% 79.5 1.5% 40.0% 8.2x NM 03/21/12 ExactTarget, Inc. 161.5 0.0% 5.3% 207.5 NM 54.5% 7.4x NM 03/21/12 Vantiv, Inc. 500.0 0.0% 20.1% 1,622.4 27.9% 39.6% 3.0x 10.9x03/14/12 M/A-Com Technology Solutions Holdings 114.0 7.4% (21.2%) 308.4 18.6% 18.5% 2.7x 14.5x03/14/12 Demandware, Inc. 88.0 0.0% 70.8% 56.5 3.8% 54.1% 15.7x NM 03/01/12 Yelp, Inc. 107.3 0.7% 25.7% 83.3 NM 74.5% 14.1x NM 02/23/12 Bazaarvoice, Inc. 113.8 5.1% (22.1%) 94.0 NM 143.2% 7.2x NM 02/17/12 Brightcove, Inc. 55.0 0.0% (17.8%) 63.6 NM 45.4% 3.8x NM 02/09/12 Synacor, Inc. 34.1 20.0% 9.4% 91.1 7.4% 37.5% 1.9x 25.3x02/01/12 Greenway Medical Technologies, Inc. 66.7 19.2% 53.6% 105.8 5.1% 63.6% 5.4x NM 02/01/12 AVG Technologies N.V. 128.0 50.0% (1.1%) 272.4 30.7% 25.4% 4.4x 14.4x01/24/12 Guidewire Software, Inc. 115.1 0.0% 128.6% 190.2 13.6% 31.4% 8.7x 63.8x

Median 107.3$ 12.5% 20.1% 107.2$ 8.3% 54.4% 6.5x 28.9x

Comparable Trading

Summary

Valuation Summary

Current Valuation Versus Historical Five-Year Average

Five-Year Average

Note: Based on current TEV/LTM EBITDA versus five-year historical average.

Note: Public comparables exclude companies with market capitalization below $500 million.

TMT Public Market Overview

6

LTM Revenue LTM EBITDAIndustry Segment 1 Month 12 Month Growth Margin LTM 2012P 2013P LTM 2012P 2013P

Bellwethers 5.7% 18.5% 16.2% 31.4% 2.9x 3.2x 2.8x 9.8x 10.3x 8.7x

Data and Information Services 1.1% 28.2% 9.4% 28.4% 2.8x 2.6x 2.4x 10.5x 9.8x 8.6xDiversified Information Services 1.7% 25.8% 9.2% 28.6% 3.1x 2.8x 2.8x 10.3x 9.9x 8.6xFinancial Data and Media 1.4% 9.6% 9.4% 38.0% 4.5x 4.4x 4.1x 10.5x 9.8x 9.4xLender/Mortgage/Real Estate Data and Processing 0.8% 60.6% 10.4% 19.7% 2.3x 2.3x 2.2x 10.7x 7.7x 7.3xMarket Data and Research (1.1%) 26.8% 15.6% 16.8% 1.9x 1.8x 1.7x 12.7x 10.7x 9.7x

Internet & Digital Media 2.5% 15.6% 21.4% 20.6% 2.3x 2.3x 2.1x 10.1x 8.7x 7.9xAdvertising & Marketing (1.1%) 2.5% 40.8% 28.1% 3.5x 3.3x 2.8x 11.2x 8.7x 9.3xContent Delivery & Management 9.8% 9.7% 17.9% 20.8% 2.1x 2.0x 2.0x 10.3x 8.1x 7.1xContent & Services 0.8% 6.1% 25.1% 14.1% 2.8x 2.8x 2.5x 10.8x 7.9x 9.0xDiversified Media 2.6% 29.6% 1.7% 23.4% 2.0x 2.0x 1.9x 8.2x 8.2x 7.6xe-Commerce 4.1% 23.6% 23.3% 19.4% 2.6x 2.4x 2.0x 15.1x 11.8x 10.8x

IT and Tech-Enabled Services (0.2% ) 20.8% 13.0% 15.5% 1.3x 1.3x 1.2x 8.8x 8.3x 7.0xGovernment IT & BPO 1.1% 16.3% 3.1% 9.8% 0.5x 0.5x 0.5x 7.3x 5.5x 5.7xIT Services (2.5%) 20.3% 5.5% 10.6% 0.6x 0.6x 0.6x 6.0x 5.6x 5.1xOffshore BPOs (1.2%) 17.1% 20.2% 19.4% 2.1x 2.1x 1.9x 9.4x 9.1x 8.9xOnshore BPOs 3.7% 33.2% 14.1% 14.2% 0.8x 1.1x 1.0x 5.7x 4.9x 4.6x

Software – Application 3.4% 17.4% 14.9% 19.8% 3.6x 3.5x 3.2x 13.3x 11.0x 9.4xCustomer Engagement/Call Center Management 1.9% (6.1%) 10.1% 16.6% 2.1x 2.1x 1.9x 12.9x 8.0x 7.8xEnterprise Software 4.6% 23.5% 9.5% 28.6% 3.8x 3.8x 3.7x 12.3x 11.7x 10.9xHuman Capital Management 3.0% 45.7% 47.0% 11.5% 10.9x 9.9x 7.2x 68.3x 34.9x 27.6xProduct Lifecycle Management/Technical Design 4.9% 30.1% 14.4% 20.6% 2.7x 2.8x 2.6x 12.9x 9.7x 8.8xVertically Focused - Financial Technology 0.9% 15.4% 14.4% 19.5% 3.7x 3.4x 3.1x 14.8x 11.0x 9.4xVertically Focused - Healthcare IT 0.5% 5.5% 19.8% 25.4% 3.0x 3.0x 2.8x 12.6x 11.1x 9.1xVertically Focused - Public Sector 8.4% 7.9% 16.6% 19.4% 3.2x 3.1x 2.8x 19.6x 15.0x 12.2x

Software – Infrastructure 2.9% 7.5% 10.1% 22.3% 2.9x 2.5x 2.4x 11.1x 9.5x 8.8xEnterprise IT Management 2.9% 3.6% 6.7% 23.7% 2.7x 2.4x 2.4x 15.0x 11.2x 9.6xEnterprise Storage 0.6% 15.3% 13.1% 18.3% 3.0x 2.9x 2.4x 9.4x 10.5x 9.4xSecurity 5.0% 6.8% 10.1% 26.9% 4.9x 4.8x 4.3x 8.6x 8.0x 7.6x

Software – SaaS 3.9% 23.4% 27.1% 14.1% 6.6x 6.2x 5.0x 29.6x 21.8x 17.1x

NASDAQ 0.2% 15.9%

Stock Price % Change TEV / Revenue Multiple TEV / EBITDA Multiple

0%

20%

40%

60%

80%

100%

120%

Data and Information Services

Internet & Digital Media




Software –SaaS

7

($ in millions) Stock Price CY 2012P Multiples SummaryMarket As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA

Company Capitalization Current Week High Revenue EBITDA LTM CY 2012P LTM CY 2012P

Diversified Information Services

Thomson Reuters Corporation 23,863.6$ 28.87$ 95.1% (6.1%) 5.8% 2.2x 2.3x 10.0x 8.3xExperian plc 15,721.8 15.93 89.4% NA NA 3.8x 3.8x 11.6x 10.9xReed Elsevier plc 12,371.3 10.43 95.6% NA NA NA 1.1x NA 3.4xVerisk Analytics, Inc. 8,501.7 50.97 97.8% 14.7% 19.6% 6.8x 6.5x 15.2x 14.4xAlliance Data Systems Corporation 7,217.2 144.76 97.5% 13.8% 26.1% 4.1x 3.9x 13.4x 12.1xEquifax Inc. 6,472.7 54.12 97.5% 10.1% 10.2% 3.4x 3.3x 10.4x 10.2xIHS Inc. 6,330.0 96.00 80.7% 15.1% 79.5% 4.7x 4.6x 22.8x 14.5xWolters Kluwer NV 6,040.1 20.40 98.2% 6.2% 5.8% 2.0x 1.9x 8.0x 7.6xInforma plc 4,386.9 7.30 97.6% (1.3%) 1.4% 2.9x 2.8x 10.2x 9.9xUBM plc 2,855.8 11.70 94.9% 3.7% 5.3% 2.3x 2.3x 10.5x 10.2xNeuStar, Inc. 2,779.6 41.93 95.6% 34.0% 50.5% 3.9x 3.7x 9.2x 7.9xFair Isaac Corporation 1,467.5 42.03 87.8% 8.7% 3.2% 2.8x 2.7x 9.5x 9.8xAcxiom Corporation 1,301.9 17.46 91.9% (1.6%) 2.0% 1.2x 1.2x 6.0x 5.8x

Median 6,330.0$ 95.6% 8.7% 5.8% 3.1x 2.8x 10.3x 9.9x

Financial Data and Media

Moody's Corporation 11,216.3$ 50.32$ 97.5% 16.4% 18.5% 4.5x 4.3x 10.5x 9.9xFactSet Research Systems Inc. 3,901.1 88.06 80.6% 9.6% 13.3% 4.5x 4.5x 11.8x 11.5xMSCI Inc. 3,783.7 30.99 81.2% 5.1% 5.2% 4.5x 4.5x 10.1x 9.8xDun & Bradstreet Corporation 3,505.0 78.65 90.9% (5.0%) 7.9% 2.6x 2.6x 8.3x 7.7xMorningstar Inc. 2,961.2 62.83 95.7% NA NA 4.1x NA 13.9x NA

Median 3,783.7$ 90.9% 7.3% 10.6% 4.5x 4.4x 10.5x 9.8x

Lender/Mortgage/Real Estate Data and Processing

Fidelity National Information Services, Inc. 10,206.2$ 34.81$ 93.7% 1.2% 5.6% 2.4x 2.5x 8.3x 8.2xCoreLogic, Inc. 2,623.9 26.92 91.3% 14.8% 143.1% 2.1x 2.0x 10.6x 7.1xCoStar Group Inc. 2,525.6 89.37 99.0% 38.3% 61.0% 8.1x 7.3x 40.6x 31.5xLender Processing Services, Inc. 2,089.1 24.62 79.7% (2.2%) 29.7% 1.4x 1.4x 10.7x 5.6x

Median 2,574.8$ 92.5% 8.0% 45.4% 2.3x 2.3x 10.7x 7.7x

Market Data and Research

Aegis Group plc 4,387.9$ 3.82$ 98.5% 12.3% 21.8% 2.5x 2.3x 14.5x 11.9xGartner Inc. 4,310.0 46.02 89.4% 10.3% 28.9% 2.7x 2.6x 16.5x 13.9xIpsos SA 1,681.5 37.12 97.6% 34.7% 13.8% 1.2x 1.1x 11.0x 9.4xForrester Research Inc. 597.5 26.80 74.1% 3.0% (3.0%) 1.2x 1.2x 7.0x 7.9x

Median 2,995.8$ 93.5% 11.3% 17.8% 1.9x 1.8x 12.7x 10.7x

Total Data and Information Median 4,105.5$ 95.0% 9.6% 13.3% 2.8x 2.6x 10.5x 9.8x

Bellwethers


Services




Bellwethers

Apple Inc. 499,614.0$ 532.17$ 75.5% 28.9% 29.6% 2.4x 2.3x 6.5x 6.4xGoogle Inc. 232,441.0 707.38 91.3% 38.5% 32.6% 4.1x 3.7x 12.3x 10.4xMicrosoft Corporation 224,801.2 26.71 81.1% 1.5% 0.1% 2.2x 2.2x 5.6x 5.4xInternational Business Machines Corporation 216,438.5 191.55 90.4% (2.3%) 0.3% 2.2x 2.2x 8.8x 8.7xSamsung Electronics Co. Ltd. 187,158.0 1,431.02 99.1% 22.0% 59.7% 1.0x 0.9x 4.6x 3.8xOracle Corporation 157,746.8 33.32 97.0% 1.6% 24.8% 3.9x 3.9x 8.3x 7.1xAmazon.com Inc. 113,633.8 250.87 95.0% 29.0% 104.6% 1.9x 1.7x 51.9x 31.0xQUALCOMM Inc. 105,410.6 61.86 89.8% 24.8% 26.1% 4.1x 3.9x 11.8x 9.4xCisco Systems, Inc. 104,323.5 19.65 92.3% 5.3% 27.7% 1.6x 1.6x 5.7x 4.8xIntel Corporation 102,337.1 20.62 70.4% (1.1%) (6.6%) 1.7x 1.7x 4.0x 4.2xSAP AG 95,584.3 80.15 98.3% 14.8% 3.2% 4.7x 4.5x 13.6x 13.2xeBay Inc. 65,990.3 51.00 96.0% 20.6% 41.7% 4.4x 4.2x 15.0x 12.5xEMC Corporation 53,298.4 25.30 84.3% 8.3% 18.9% 2.1x 2.1x 9.0x 8.3xHewlett-Packard & Company 27,761.1 14.25 47.5% (5.5%) (3.3%) 0.4x 0.4x 3.1x 3.0x

Total Comp Set Median 109,522.2$ 90.9% 11.5% 25.5% 2.2x 2.2x 8.6x 7.7x



8



Advertising & Marketing 2,478.3$ -$ 0.7$ 0.4$ 0.3$ 3.9$ 3.5$ 11.2$ 8.7$

Google Inc. 232,441.0$ 707.38$ 91.3% 38.5% 32.6% 4.1x 3.7x 12.3x 10.4xBaidu, Inc. 35,060.3 100.29 65.1% 52.1% 49.4% 9.9x 9.1x 17.1x 15.8xYahoo! Inc. 23,535.5 19.90 99.6% (10.6%) 19.3% 2.2x 2.4x 8.2x 6.6xYandex N.V. 7,049.2 21.54 51.3% 40.4% 42.2% 7.4x 6.7x 16.8x 15.0xGroupon, Inc. 3,186.8 4.86 18.8% 45.0% NM 0.9x 0.8x 12.7x 6.7xAOL Inc. 2,478.3 29.61 67.4% (1.6%) 19.5% 0.8x 0.8x 3.9x 4.1xValueClick, Inc. 1,460.4 19.41 88.8% 18.1% 33.2% 2.3x 2.3x 7.9x 7.1xExactTarget, Inc. 1,361.6 20.00 66.9% 38.5% NM 4.3x 4.0x NM NMBankrate, Inc. 1,245.6 12.45 48.0% 10.6% 0.7% 2.9x 2.9x 10.2x 10.5xMillennial Media Inc. 981.6 12.53 44.9% 76.1% NM 5.6x 4.7x NM NMBazaarvoice, Inc. 668.1 9.35 44.3% 59.3% NM 3.9x 3.5x NM NM

Median 2,478.3$ 65.1% 38.5% 32.6% 3.9x 3.5x 11.2x 8.7x

Content Delivery & Management 1,914.3$ -$ 0.8$ 0.1$ 0.3$ 2.1$ 2.0$ 10.3$ 8.1$

Akamai Technologies, Inc. 7,260.2$ 40.91$ 97.7% 18.9% 23.3% 4.7x 4.5x 11.7x 10.2xLevel 3 Communications, Inc. 5,035.7 23.11 82.6% 46.9% 67.0% 2.1x 2.0x 10.3x 9.0xMentor Graphics Corporation 1,914.3 17.02 98.0% 8.5% 41.5% 1.8x 1.8x 9.4x 8.1xRovi Corporation 1,655.3 15.43 40.9% (3.7%) 30.0% 3.3x 3.3x 10.5x 7.2xEarthLink Inc. 673.0 6.46 75.2% 2.4% (11.9%) 0.7x 0.8x 3.6x 3.6x

Median 1,914.3$ 82.6% 8.5% 30.0% 2.1x 2.0x 10.3x 8.1x

Content & Services

Facebook, Inc. 57,669.6$ 26.62$ 59.2% 35.1% 33.8% 10.4x 9.6x 44.1x 17.3xLinkedIn Corporation 12,337.2 114.82 91.5% 81.6% 224.7% 13.9x 12.3x NM 56.5xVeriSign, Inc. 6,027.1 38.82 77.4% 13.1% 30.4% 6.2x 6.0x 11.1x 10.0xNetflix, Inc. 5,143.0 92.59 69.4% 12.3% (67.1%) 1.3x 1.3x 32.4x 33.6xIAC/InterActiveCorporation 4,178.8 47.24 85.0% 35.7% 66.3% 1.4x 1.3x 9.6x 7.5xAOL Inc. 2,478.3 29.61 67.4% (1.6%) 19.5% 0.8x 0.8x 3.9x 4.1xZynga, Inc. 1,850.2 2.36 14.8% 6.3% NM 0.2x 0.2x NM 1.9xPandora Media, Inc. 1,561.3 9.18 35.3% 54.7% NM 3.9x 3.5x NM NMYelp, Inc. 1,193.2 18.85 59.0% 64.2% NM 8.8x 7.8x NM NMZillow, Inc. 927.8 27.75 59.2% 72.3% 240.0% 6.8x 6.1x 58.5x 33.6xDemand Media, Inc. 791.3 9.29 74.3% 14.6% 72.4% 1.9x 1.8x 10.4x 6.7xWebMD Health Corp. 703.0 14.34 35.6% (17.4%) (51.2%) 1.1x 1.1x 13.3x 8.3xAngie's List, Inc. 693.2 11.99 60.5% 72.7% NM 4.7x 4.1x NM NMMonster Worldwide, Inc. 658.1 5.62 54.0% (13.6%) 10.8% 0.7x 0.8x 5.5x 4.4xDice Holdings, Inc. 547.4 9.18 83.5% 8.3% 5.6% 2.8x 2.8x 7.3x 7.0x

Median 1,561.3$ 60.5% 14.6% 30.4% 2.8x 2.8x 10.8x 7.9x

Diversified Media

Comcast Corporation 99,275.3$ 37.36$ 97.7% 12.0% 7.4% 2.3x 2.2x 7.0x 7.0xWalt Disney Company 88,234.0 49.79 93.2% 4.3% 14.4% 2.3x 2.3x 9.0x 8.7xNews Corporation 59,495.0 25.51 99.8% 0.0% 4.0% 1.8x 1.8x 8.9x 8.8xTime Warner Inc. 45,288.2 47.83 98.5% (0.3%) (1.0%) 2.1x 2.1x 8.6x 8.7xViacom, Inc. 26,484.8 52.74 92.7% (10.2%) (2.2%) 2.4x 2.5x 8.2x 8.4xCBS Corporation 24,176.5 38.05 99.3% 4.2% 13.7% 2.0x 2.0x 8.5x 8.2xLiberty Interactive Corporation 10,722.2 19.68 93.9% 4.7% 6.6% 1.4x 1.4x 7.6x 7.3xScripps Networks Interactive, Inc. 8,679.5 57.92 87.3% 11.9% 7.4% 4.2x 4.1x 9.2x 9.0xGannett Co., Inc. 4,138.5 18.01 90.1% 1.7% 9.7% 1.0x 1.0x 5.5x 4.7xMeredith Corporation 1,533.4 34.45 91.0% 7.4% 12.1% 1.4x 1.3x 7.5x 7.1xThe New York Times Company 1,266.7 8.53 77.1% (13.3%) (23.4%) 0.6x 0.7x 3.8x 5.0x

Median 24,176.5$ 93.2% 4.2% 7.4% 2.0x 2.0x 8.2x 8.2x




9

e-Commerce

Amazon.com Inc. 113,633.8$ 250.87$ 95.0% 29.0% 104.6% 1.9x 1.7x 51.9x 31.0xeBay Inc. 65,990.3 51.00 96.0% 20.6% 41.7% 4.4x 4.2x 15.0x 12.5xpriceline.com Inc. 30,935.7 620.39 80.1% 20.5% 34.7% 5.5x 5.3x 15.2x 14.2xRakuten, Inc. 10,242.6 7.79 73.9% 14.9% 19.6% 1.1x 1.1x 4.7x 4.7xExpedia Inc. 8,286.3 61.44 97.8% 15.6% 19.4% 1.8x 1.8x 10.1x 9.1xMercadolibre, Inc. 3,468.1 78.55 75.2% 25.8% 26.7% 9.1x 8.6x 25.3x 23.9xCtrip.com International Ltd. 3,145.8 22.66 80.6% 19.6% (18.2%) 4.1x 3.9x 18.9x 17.2xHomeAway, Inc. 1,828.1 22.00 78.6% 21.5% 97.0% 5.9x 5.6x 32.5x 19.7xLive Nation Entertainment, Inc. 1,743.2 9.31 84.7% 5.4% 5.1% 0.5x 0.5x 7.1x 6.9xLiquidity Services, Inc. 1,285.2 40.86 61.4% 40.0% 83.5% 2.6x 2.4x 12.5x 11.1xVistaprint N.V. 1,125.9 32.86 75.7% 19.1% 1.3% 1.2x 1.2x 12.7x 9.8xOpenTable, Inc. 1,108.9 48.80 92.7% 15.5% 65.6% 6.6x 6.3x 22.0x 14.7xShutterfly, Inc. 1,080.8 29.87 85.3% 26.4% 117.9% 1.8x 1.7x 19.1x 9.7xDemandware, Inc. 811.9 27.32 79.7% 35.5% NM 9.9x 9.3x NM NM

Median 1,828.1$ 80.1% 20.5% 30.7% 2.6x 2.4x 15.1x 11.8x

Total Internet and Digital Media Median 2,812.1$ 79.1% 15.2% 19.5% 2.3x 2.3x 10.1x 8.7x




(Continued)



Government IT & BPO

SAIC, Inc. 3,870.0$ 11.32$ 79.7% 5.9% 90.6% 0.4x 0.4x 7.3x 5.5xMAXIMUS, Inc. 2,155.1 63.22 97.0% 14.7% 16.3% 1.9x 1.8x 12.9x 12.1xTyler Technologies, Inc. 1,480.3 48.44 97.7% 17.1% 24.1% 4.3x 4.2x 22.2x 21.3xCACI International Inc. 1,256.2 55.03 87.2% (0.2%) 1.2% 0.5x 0.5x 5.5x 5.5xManTech International Corporation 959.9 25.94 69.8% (8.0%) (18.3%) 0.4x 0.4x 3.7x 4.1x

Median 1,480.3$ 87.2% 5.9% 16.3% 0.5x 0.5x 7.3x 5.5x

IT Services

Accenture plc 42,848.2$ 66.50$ 92.6% 5.8% 15.0% 1.3x 1.3x 8.8x 8.3xCap Gemini S.A. 6,657.4 43.33 95.1% 6.0% 12.3% 0.5x 0.5x 5.8x 5.4xAtos S.A. 5,866.0 69.69 94.3% 29.8% 30.7% 0.5x 0.5x 5.2x 4.8xSapient Corporation 1,456.7 10.56 76.1% 10.9% 15.5% 1.1x 1.1x 8.9x 8.2xTieto Oyj 1,410.0 19.63 94.4% 0.4% 1.7% 0.6x 0.6x 6.0x 5.6xEPAM Systems, Inc. 787.8 18.10 76.6% 27.1% 26.1% 1.7x 1.6x 9.3x 8.4xUnisys Corporation 760.8 17.30 75.6% (5.3%) 20.0% 0.2x 0.2x 1.8x 1.5x

Median 1,456.7$ 92.6% 6.0% 15.5% 0.6x 0.6x 6.0x 5.6x

Offshore BPOs

Tata Consultancy Services Ltd. 44,888.6$ 22.93$ 87.5% 30.0% 26.2% 4.0x 4.0x 13.7x 14.0xInfosys Technologies Ltd. 24,142.1 42.25 77.5% 2.3% (1.9%) 2.8x 2.8x 8.9x 9.4xCognizant Technology Solutions 22,178.9 73.88 94.7% 20.0% 20.0% 2.8x 2.7x 13.4x 12.9xWipro Ltd. 17,587.7 7.19 87.1% 17.5% 22.8% 2.1x 2.1x 10.7x 10.4xHCL Technologies Ltd. 7,837.9 11.28 94.0% 29.5% 70.6% 1.8x 1.8x 9.7x 8.6xGenpact Ltd. 3,481.1 15.50 79.4% 18.5% 15.7% 2.1x 2.0x 11.8x 11.2xSatyam Computer Services Limited 2,292.8 1.95 91.8% 21.6% 64.7% 1.3x 1.3x 6.4x 6.0xSyntel, Inc. 2,248.3 53.63 82.3% 12.2% 22.2% 2.6x 2.5x 7.8x 8.3xExlservice Holdings, Inc. 851.9 26.50 88.0% 22.3% 26.3% 1.7x 1.7x 9.0x 8.8xWNS Holdings Ltd. 525.0 10.43 85.6% (19.6%) 9.7% 1.2x 1.3x 7.0x 7.3x

Median 5,659.5$ 87.3% 19.3% 22.5% 2.1x 2.1x 9.4x 9.1x

Onshore BPOs

Alliance Data Systems Corporation 7,217.2$ 144.76$ 97.5% 13.8% 26.1% 4.1x 3.9x 13.4x 12.1xCGI Group, Inc. 7,059.4 23.01 85.0% 45.9% 18.2% 2.1x 1.6x 13.6x 11.2xComputer Sciences Corporation 6,222.5 40.05 98.6% (1.4%) 4.5% 0.5x 0.5x 4.9x 4.6xDST Systems Inc. 2,733.1 60.60 96.1% (21.4%) 11.8% 0.8x 1.1x 5.7x 4.9xConvergys Corporation 1,791.1 16.41 94.2% (11.3%) (9.8%) 0.5x 0.6x 3.8x 4.8x

Median 6,222.5$ 96.1% (1.4% ) 11.8% 0.8x 1.1x 5.7x 4.9x

Total IT Services Median 2,733.1$ 88.0% 12.2% 18.2% 1.3x 1.3x 8.8x 8.3x

IT and Tech-Enabled

Services


Software – Application


10



Customer Engagement/Call Center Management

Nuance Communications, Inc. 6,999.0$ 22.32$ 71.7% 34.3% 165.5% 4.8x 4.3x 21.0x 10.5xAmdocs Limited 5,524.8 33.99 97.1% 1.7% 12.4% 1.4x 1.4x 7.7x 6.8xNICE Systems Ltd. 2,143.9 32.97 82.1% 13.3% 68.4% 2.0x 1.9x 13.1x 8.1xVerint Systems Inc. 1,177.2 29.36 89.6% 7.7% 76.9% 2.3x 2.2x 12.7x 7.9xComverse Technology Inc. 842.3 3.84 54.9% (1.4%) 122.9% 0.8x 0.8x 7.9x 4.3xLivePerson Inc. 734.1 13.14 67.0% 17.7% 6.2% 4.2x 4.0x 29.6x 21.8x

Median 1,660.6$ 76.9% 10.5% 72.6% 2.1x 2.1x 12.9x 8.0x

Enterprise Software

Oracle Corporation 157,746.8$ 33.32$ 97.0% 1.6% 24.8% 3.9x 3.9x 8.3x 7.1xSAP AG 95,584.3 80.15 98.3% 14.8% 3.2% 4.7x 4.5x 13.6x 13.2xsalesforce.com, inc 23,870.2 168.10 97.3% 34.4% 376.4% 8.1x 7.5x NM 45.3xAdobe Systems Inc. 18,653.7 37.68 98.5% 3.2% 24.4% 3.8x 3.8x 11.3x 9.1xSage Group plc 5,753.6 4.78 90.2% 1.5% (2.3%) 2.8x 2.8x 9.4x 9.8xNetSuite Inc. 4,822.2 67.30 99.2% 29.8% NM 16.1x 15.1x NM NMInformatica Corporation 3,271.7 30.32 55.6% 1.3% 21.5% 3.3x 3.4x 17.2x 12.4xOpen Text Corporation 3,268.5 55.89 89.1% 10.3% 24.8% 2.9x 2.8x 10.0x 9.0xManhattan Associates, Inc. 1,199.0 60.34 92.8% 13.3% 41.4% 3.0x 2.9x 13.2x 11.7xMicroStrategy Inc. 1,048.2 93.38 58.4% 5.0% 110.2% 1.4x 1.4x 19.2x 15.4xJive Software, Inc. 934.5 14.53 51.6% 45.3% NM 7.4x 6.8x NM NM

Median 4,822.2$ 92.8% 10.3% 24.8% 3.8x 3.8x 12.3x 11.7x

Human Capital Management

Workday, Inc. 9,047.0$ 54.50$ 95.3% 100.8% NM 35.2x 30.7x NM NMConcur Technologies, Inc. 3,718.5 67.52 88.7% 24.7% 170.4% 7.7x 7.4x 67.1x 29.9xThe Ultimate Software Group, Inc. 2,577.5 94.41 88.7% 23.0% 135.2% 8.0x 7.6x 69.5x 39.9xCornerstone OnDemand, Inc. 1,490.7 29.53 90.9% 61.5% NM 13.8x 12.1x NM NM

Median 3,148.0$ 89.8% 43.1% 152.8% 10.9x 9.9x 68.3x 34.9x

Product Lifecycle Management/Engineering

Dassault Systemes SA 13,736.5$ 111.06$ 96.0% 14.2% 21.5% 4.8x 4.6x 15.5x 14.1xAutodesk, Inc. 7,943.1 35.35 82.8% 3.3% 38.2% 2.7x 2.8x 13.3x 9.7xAnsys, Inc. 6,238.2 67.34 90.5% 16.0% 27.5% 7.4x 7.2x 15.6x 13.6xSynopsys Inc. 4,813.5 31.84 93.1% 13.0% 44.5% 2.4x 2.4x 12.5x 8.2xCadence Design Systems Inc. 3,782.9 13.51 98.0% 15.0% 77.4% 2.7x 2.6x 11.9x 9.2xParametric Technology Corporation 2,689.5 22.51 77.8% 3.2% 43.1% 2.0x 2.0x 11.5x 8.6xAspen Technology, Inc. 2,579.8 27.64 99.1% 18.4% NM 9.2x 9.2x NM 96.8xAveva Group plc 2,411.1 35.47 98.6% 14.6% 24.9% 6.4x 6.2x 21.5x 19.0xMentor Graphics Corporation 1,914.3 17.02 98.0% 8.5% 41.5% 1.8x 1.8x 9.4x 8.1x

Median 3,782.9$ 96.0% 14.2% 39.9% 2.7x 2.8x 12.9x 9.7x

Vertically Focused - Financial Technology

Intuit Inc. 17,607.9$ 59.48$ 94.6% 8.0% 9.3% 4.1x 4.1x 12.3x 11.2xJack Henry & Associates Inc. 3,379.2 39.26 96.4% 7.5% 8.8% 3.1x 3.1x 9.6x 9.4xBroadridge Financial Solutions, Inc. 2,796.5 22.88 91.7% 3.4% 8.5% 1.3x 1.3x 9.0x 7.4xSS&C Technologies Holdings, Inc. 1,820.7 23.09 85.4% 49.1% 55.1% 5.9x 5.1x 15.7x 13.3xACI Worldwide, Inc. 1,720.7 43.69 93.2% 47.8% 84.6% 3.5x 3.0x 18.4x 10.9xFinancial Engines, Inc. 1,312.9 27.74 98.6% 29.3% 109.2% 6.5x 6.2x 37.4x 21.7xAdvent Software, Inc. 1,073.2 21.38 75.5% 9.9% 53.1% 2.8x 2.7x 13.9x 10.1xBottomline Technologies (de), Inc. 991.4 26.39 88.3% 14.6% 26.0% 3.8x 3.7x 29.5x 20.1x

Median 1,770.7$ 92.4% 12.2% 39.5% 3.7x 3.4x 14.8x 11.0x

Vertically Focused - Healthcare IT

Cerner Corporation 13,297.9$ 77.51$ 87.8% 22.6% 38.4% 4.8x 4.5x 17.4x 14.6xathenahealth, Inc. 2,658.4 73.29 75.3% 30.5% 81.9% 6.2x 5.9x 49.5x 28.0xHMS Holdings Corp. 2,252.9 25.92 69.7% 30.5% 41.5% 5.6x 5.2x 18.4x 16.0xAllscripts Healthcare Solutions, Inc. 1,615.2 9.42 43.5% 1.4% 17.5% 1.3x 1.3x 8.7x 6.6xQuality Systems Inc. 1,030.7 17.36 38.6% 10.7% (9.2%) 2.0x 2.0x 7.8x 7.7xMedAssets, Inc. 990.4 16.77 89.8% 10.0% 20.0% 3.0x 3.0x 9.8x 9.3xComputer Programs & Systems Inc. 557.7 50.34 78.7% 8.0% 10.1% 3.0x 2.9x 12.6x 11.1x

Median 1,615.2$ 75.3% 10.7% 20.0% 3.0x 3.0x 12.6x 11.1x




Enterprise IT Management

Microsoft Corporation 224,801.2$ 26.71$ 81.1% 1.5% 0.1% 2.2x 2.2x 5.6x 5.4xVMware, Inc. 40,269.6 94.14 79.2% 21.8% 85.8% 8.3x 7.9x 33.0x 20.2xHewlett-Packard Company 27,761.1 14.25 47.5% (5.5%) (3.3%) 0.4x 0.4x 3.1x 3.0xCitrix Systems, Inc. 12,252.3 65.62 74.6% 15.7% 38.9% 4.4x 4.2x 18.5x 13.4xCA Technologies 10,095.2 21.98 78.5% (2.0%) 8.0% 2.0x 2.0x 5.5x 5.0xRed Hat, Inc. 10,238.5 52.96 84.4% 17.7% 47.1% 7.0x 7.0x 34.1x 24.9xBMC Software Inc. 6,138.7 39.62 86.7% 1.6% 32.5% 2.5x 2.5x 9.0x 5.7xTIBCO Software Inc. 3,579.3 21.98 63.4% 11.0% 52.6% 3.3x 3.3x 15.8x 11.2xSplunk, Inc. 2,861.8 29.02 73.0% 60.1% NM 14.6x 13.4x NM NMCompuware Corporation 2,318.0 10.87 97.4% (2.6%) (1.2%) 2.4x 2.4x 15.0x 13.5xProgress Software Corporation 1,341.4 20.99 84.8% (13.8%) (19.7%) 2.9x 2.1x 11.1x 9.1xPegasystems Inc. 859.3 22.68 56.7% 5.8% 138.5% 1.7x 1.7x 30.1x 11.6x

Median 8,116.9$ 78.9% 3.7% 32.5% 2.7x 2.4x 15.0x 11.2x

Enterprise Storage

EMC Corporation 53,298.4$ 25.30$ 84.3% 8.3% 18.9% 2.1x 2.1x 9.0x 8.3xNetApp, Inc. 12,020.4 33.55 71.7% 5.9% 33.1% 1.2x 1.2x 9.4x 6.2xTeradata Corporation 10,465.6 61.89 76.4% 12.3% 48.4% 3.8x 3.7x 15.2x 12.7xCommVault Systems, Inc. 3,168.2 69.66 95.5% 21.9% 94.1% 6.3x 6.0x 40.4x 27.8xBrocade Communications Systems, Inc. 2,431.4 5.33 82.8% 4.2% 33.2% 1.0x 1.0x 4.9x 4.1xFusion-io, Inc. 2,195.9 22.93 67.7% 47.5% 111.7% 4.6x 4.2x NM 36.6x

Median 6,816.9$ 79.6% 10.3% 40.8% 3.0x 2.9x 9.4x 10.5x

Security

Symantec Corporation 13,059.2$ 18.82$ 96.3% 0.9% 8.3% 1.8x 1.8x 6.7x 6.1xCheck Point Software Technologies Ltd. 9,756.7 47.64 73.3% 8.1% 17.0% 4.9x 4.8x 8.6x 8.0xVeriSign, Inc. 6,027.1 38.82 77.4% 13.1% 30.4% 6.2x 6.0x 11.1x 10.0xTrend Micro Inc. 3,944.0 29.98 98.8% (3.0%) (16.2%) 1.8x 2.0x 5.5x 6.7xFortinet Inc. 3,361.9 21.02 72.9% 21.5% 43.2% 5.3x 5.1x 25.9x 19.4xSourcefire, Inc. 1,420.8 47.22 79.2% 32.5% 252.0% 5.9x 5.6x 63.0x 28.1xWebsense, Inc. 546.8 15.04 67.9% (0.9%) 10.1% 1.5x 1.6x 7.9x 7.2x

Median 3,944.0$ 77.4% 8.1% 17.0% 4.9x 4.8x 8.6x 8.0x

Total Infrastructure Software Median 6,027.1$ 78.5% 8.1% 32.8% 2.9x 2.5x 11.1x 9.5x


11

Software – Application (Continued) Vertically Focused - Public Sector

Tyler Technologies, Inc. 1,480.3$ 48.44$ 97.7% 17.1% 24.1% 4.3x 4.2x 22.2x 21.3xNIC Inc. 1,056.0 16.34 97.1% 14.3% 4.6% 4.9x 4.8x 19.6x 20.0xBlackbaud Inc. 1,031.3 22.83 67.1% 20.9% 17.0% 3.0x 2.8x 20.5x 15.0xK12, Inc. 734.9 20.44 77.4% 25.8% 121.8% 0.9x 0.9x 11.0x 6.9xHigher One Holdings, Inc. 596.5 10.54 56.3% 11.7% 2.1% 3.2x 3.1x 8.6x 9.3xMedian 1,031.3$ 77.4% 17.1% 17.0% 3.2x 3.1x 19.6x 15.0x

Total Application Software Median 2,494.3$ 89.7% 14.3% 27.5% 3.6x 3.5x 13.3x 11.0x



Software - Infrastructure


12 Note: Public comparables exclude companies with market capitalization below $500 million.

( $ in millions) Stock Price CY 2012P Multiples SummaryMarket As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA


SaaS

salesforce.com, inc 23,870.2$ 168.10$ 97.3% 34.4% 376.4% 8.1x 7.5x NM 45.3xWorkday, Inc. 9,047.0 54.50 95.3% 100.8% NM 35.2x 30.7x NM NMNetSuite Inc. 4,822.2 67.30 99.2% 29.8% NM 16.1x 15.1x NM NMConcur Technologies, Inc. 3,718.5 67.52 88.7% 24.7% 170.4% 7.7x 7.4x 67.1x 29.9xathenahealth, Inc. 2,658.4 73.29 75.3% 30.5% 81.9% 6.2x 5.9x 49.5x 28.0xThe Ultimate Software Group, Inc. 2,577.5 94.41 88.7% 23.0% 135.2% 8.0x 7.6x 69.5x 39.9xQlik Technologies, Inc. 1,865.7 21.72 64.7% 17.8% 60.4% 4.7x 4.4x 95.7x 45.5xCornerstone OnDemand, Inc. 1,490.7 29.53 90.9% 61.5% NM 13.8x 12.1x NM NMExactTarget, Inc. 1,361.6 20.00 66.9% 38.5% NM 4.3x 4.0x NM NMFinancial Engines, Inc. 1,312.9 27.74 98.6% 29.3% 109.2% 6.5x 6.2x 37.4x 21.7xDealertrack Technologies, Inc. 1,226.7 28.72 89.8% 9.9% 79.7% 2.8x 2.7x 19.5x 10.8xOpenTable, Inc. 1,108.9 48.80 92.7% 15.5% 65.6% 6.6x 6.3x 22.0x 14.7xBlackbaud Inc. 1,031.3 22.83 67.1% 20.9% 17.0% 3.0x 2.8x 20.5x 15.0xMedAssets, Inc. 990.4 16.77 89.8% 10.0% 20.0% 3.0x 3.0x 9.8x 9.3xJive Software, Inc. 934.5 14.53 51.6% 45.3% NM 7.4x 6.8x NM NMDemandware, Inc. 811.9 27.32 79.7% 35.5% NM 9.9x 9.3x NM NMLivePerson Inc. 734.1 13.14 67.0% 17.7% 6.2% 4.2x 4.0x 29.6x 21.8xEbix Inc. 613.6 16.12 59.9% 18.2% 16.3% 3.5x 3.3x 8.5x 7.5xSPS Commerce, Inc. 547.2 37.27 90.2% 32.0% 116.0% 6.8x 6.2x 79.9x 55.1xWebsense, Inc. 546.8 15.04 67.9% (0.9%) 10.1% 1.5x 1.6x 7.9x 7.2x

Total SaaS Median 1,269.8$ 88.7% 27.0% 72.6% 6.6x 6.2x 29.6x 21.8x

Software as a Service

(“SaaS”)


has received a strategic investment from

a portfolio company of


has received a minority investment from

The Mill a portfolio company of



has been recapitalized by



a subsidiary of












Selected HW&Co. TMT Transactions

13






has acquired

http://www.helpsystems.com/

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