Financial Technology Market Analysis - March 2012

Technology Services Investment Banking Group

Financial Technology Market Analysis March 2012

2

FinTech Coverage Universe

Business Model Expertise

Investment Banking Services

Senior Banking Team

Raymond James Financial Technology Investment Banking

Raymond James — A Full-Service Investment Bank

M&A Advisory

Public Offerings

Board Advisory

Private Placements

Debt

Origination

Valuation / Fairness Opinions

Recapitalizations and

Restructurings

Corporate and Executive

Services

Transaction Processing

Tech-Enabled Services

Outsourcing Services

SaaS & Enterprise Software

Internet & Mobile

Solutions

Payments Insurance

Technology Marketing

Services Bank

Technology Benefits /

Payroll

Trading Technology

Liquidity Venues

Information Services

Investment Technology

Outsourced Solutions

Jim Bunn Group Head

(617) 624-7011 [email protected]

Pat Curran Managing Director


Steve Hufford Managing Director


Jon Steele Managing Director


Brendan Ryan Senior Vice President


Kate Crespo Vice President


3

More FinTech Transactions Completed Since 2010 Than Any Other Firm

January 2012

Sale to

June 2011 Terminated

~$700 Million Merger of Equals

with

July 2011

Sale to

July 2011

Sale to

September 2011

$115 Million Sale to

October 2011


September 2011

$77 Million Acquisition of

October 2011

~$600 Million Sale to

Tech-enabled BPO provider Banking / payments software

e-Commerce platform for digital goods

Benefits administration and debit card processing

Active trading technology Financial services consulting

Banking / payments software

Investment management technology

Tech-Enabled BPO Provider to Mortgage / Auto Lenders

Undisclosed Buyer

$30 Million Investment

by

June 2010 November 2010


October 2010

Sale of Retail FX Business to

$80 Million Sale to

August 2010

$352 Million Initial Public

Offering

December 2010

Sale to

July 2010


Offering

June 2010

Sale to

July 2010

December 2010


Offering

February 2011

$213 Million Follow-On Offering

March 2011

$40 Million Sale to

May 2011


Subsidiary of

June 2011

Sale to

June 2010


Offering

Retail FX trading services Fuel / fleet cards

Asset / wealth management technology

Financial data and information services

Card processing for credit unions

Benefits administration payments and software

Technology and payment solutions to higher education

Active trading technology

Liquidity venue

June 2010


June 2010

Acquisition of

Assent Professional Trading Business


Offering

March 2010

$40 Million Sale to

May 2010


March 2010


Prepaid card services Payments / banking software

Billing and payments technology

Community bank management solutions

Banking technology and payment processing

Asset / wealth management software

March 2011

M&A Advisory in Connection with Unsolicited Offer


High-frequency trading technology

Asset / wealth management software

Retail FX trading services

February 2012


Offering

Institutional FX trading technology

http://www.broadridge.com/



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4

Trading Technology Payments Liquidity Venues Investment Technology

Raymond James Selected Financial Technology Equity Research Coverage

Bank Technology

Marketing Services Outsourced Solutions Benefits / Payroll Insurance Technology Information Services

https://us.etrade.com/e/t/home

5

RJ Underwriting Case Study: FXall’s $72M Initial Public Offering

Raymond James acted as an underwriter on FXall’s initial public offering.

FXall Overview:

FXall provides leading foreign exchange liquidity and trading solutions to over 1,000 of the world’s largest hedge funds, CTAs, banks, broker-dealers, corporate treasurers and asset managers

FXall provides a full range of FX trading capabilities from execution to post-trade

FXall operates as an agency-based model; does not risk own capital in facilitating customer trades

Founded in 2000 and headquartered in New York City, with additional locations in Boston, Hong Kong, London, Mumbai, Tokyo, Singapore and Sydney

Owned by Technology Crossover Ventures, 16 financial institutions and management

FXall Highlights:

Trusted, independent leader in the FX market - processes more than $85 billion notional volume in FX transactions daily

Comprehensive suite of execution and workflow solutions

Diversified institutional client base

— 65% revenues generated outside of the U.S.

— Minimal customer concentration

Agency only model with no exposure to market or counterparty risk

Transaction based revenue model with strong recurring revenue base due to:

— Recurring nature of FX transactions

— Tight integration with clients / FX operations

— Strong customer retention

Led by industry veterans with substantial FX expertise

Offering Overview:

FXall filed an S-1 on September 19, 2011 and completed a $72 million IPO on February 8, 2012

Trades under the ticker “FX” on the New York Stock Exchange

Raymond James served as the only non-shareholder, non-customer in FXall’s underwriting group

First FinTech IPO in over a year

February 2012


Offering

6

RJ Advisory Case Study: S1’s ~$600M Sale to ACI Worldwide

Raymond James acted as the exclusive financial advisor to S1 in this transaction.

October 2011

~$600 Million Sale to

S1 Overview:

S1 provides payments and financial services software solutions in the United States and internationally

S1 operates in three segments: Payments, Large Financial Institutions and Community Financial Institutions

― The Payments segment provides ATM and retail point-of-sale driving, card management and merchant acquiring solutions

― The Large FI segment offers consumer banking, small business and corporate online banking and mobile banking solutions

― The Community FI segment provides consumer and small business online and mobile banking and branch solutions

Over 3,000 organizations worldwide depend on S1 for payments, online banking and branch banking solutions

The Company was founded in 1994 and is headquartered in Norcross, GA

Transaction Overview and Rationale:

Raymond James served as the sole financial advisor to S1 Corporation (the “Company” or “S1”) in its ~$600 million sale to ACI announced on October 3, 2011

― Represents the culmination of a long-term advisory relationship

― Raymond James had previously served as S1’s advisor in its planned merger with Fundtech and for the Company’s acquisition of PM Systems in March 2010

Raymond James initially advised S1 in connection with its proposed $700 million merger with Fundtech, announced June 2011. Following the announcement of that transaction, ACI made an unsolicited offer to acquire S1. Raymond James advised S1 with respect to the offer from ACI, successfully negotiating a transaction; S1 also received an $11.9 million termination fee from Fundtech upon Fundtech’s acquisition by GTCR

The combined company will enhance scale and provide additional breadth and product capabilities to serve the entire spectrum of financial institutions, processors and retailers

ACI anticipates that with S1 it will achieve annual cost synergies of approximately $30 million

ACI also expects the increased global scale to generate further margin expansion and for the transaction to be accretive in 2012

For the last twelve months ending June 30, 2011, the companies generated a pro forma combined revenue of $683 million and adjusted EBITDA of $123 million

― The Company is expected to have a strong financial profile, including a solid balance sheet with substantial liquidity to support long-term growth

Successful Outcome:

ACI announced the acquisition of S1 on October 3, 2011, for approximately $9.55 per share based on ACI’s closing price on September 30, 2011

$9.55 represented a 34% premium over S1’s closing price the day prior to ACI’s initial announcement on July 26, 2011

S1’s Board of Directors unanimously approved the transaction; Raymond James provided a fairness opinion

Transaction multiples and other terms were very strong and represented a premium outcome for the Company and its shareholders

― 24.5x LTM EBITDA

― 15.1x CY EBITDA

The transaction was completed on February 13, 2012

7

RJ Advisory Case Study: PayFlex’s $202M Sale to Aetna

Company Background:

PayFlex Holdings Inc. (“PayFlex”) is a leading benefits administrator within the account based health plan sector

PayFlex provides proprietary web-based benefit administration services and specialized debit cards for plan sponsors who offer consumer-based

products such as Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs) and Flexible Spending Accounts (FSAs) and also provides COBRA direct-billing services

PayFlex pioneered the first platform that combines benefit financial accounts, wellness and eligibility management all in one, branded as

“HealthHub”

― The HealthHub platform, which houses nearly one million participants and several million eligible lives, combines over two decades of tax-

advantaged account administration experience with a suite of wellness and engagement services that is integrated together to form a

powerful solution

PayFlex provides its solutions to over 3,330 employers, including numerous Fortune 1000 companies

PayFlex was founded in 1987, is headquartered in Omaha, Nebraska and was owned by its founders, Oak Investment Partners, and management

and employees

Investment Banking Role:

Raymond James served as the sole financial advisor to PayFlex

The transaction represented the culmination of a long-term strategic advisory relationship

Raymond James managed a competitive sale process targeting a limited number of strategic and financial buyers

Raymond James led the marketing process, due diligence and negotiations with Aetna and other potential buyers

Successful Outcome:

Transaction value of approximately $202 million represents a premium outcome for the Company and its investors

Aetna Inc. (“Aetna”), headquartered in Hartford, CT, acquired PayFlex on October 4, 2011

Aetna Inc. operates as a diversified health care benefits company in the United States

Aetna is publicly-traded (NYSE: AET) with a market cap of approximately $14.4 billion

PayFlex will allow Aetna to extend its ability to provide members with flexible, customized, easy-to-use tools and solutions to better manage their

health care expenses

Raymond James acted as the exclusive financial advisor to PayFlex in this transaction.

October 2011


8

September 2011


RJ Advisory Case Study: Broadridge’s $77M Acquisition of Paladyne

Broadridge Overview: Headquarters: Lake Success, NY

Employees: 5,900+

Ticker: BR (NYSE)

Market Capitalization: $3.0 billion

Formed through public spin-off from ADP in 2007

Provides mission critical securities processing / outsourcing and investor communications solutions

Paladyne Overview:

Paladyne is a leading provider of integrated front-, middle- and back-office solutions for the global hedge fund industry, delivered either on a fully hosted / ASP basis or as a local client installation

Clients include start-up funds, global fund complexes, hedge fund administrators and prime brokers:

Revenues derived from annual fees for Paladyne’s order and portfolio management systems, delivered primarily via an ASP model with in excess of 85% recurring revenues

Headquartered in New York City with offices in St. Petersburg, Hong Kong and London

Founded in 2005; Approximately 150 FTEs


Broadridge Financial Solutions, Inc. (“Broadridge”) announced its acquisition of Paladyne Systems, Inc. (“Paladyne”) on September 8, 2011 for $77 million

Raymond James served as the exclusive financial advisor to Broadridge on the acquisition of Paladyne

― Provided the initial introduction between the two companies and advised Broadridge on deal structuring and execution

― Prepared extensive financial and synergy analyses and valuation materials to assist in development of optimal transaction structure

― Leveraged deep industry relationships to provide Broadridge with market intelligence and perspective on Paladyne's solutions

The acquisition of Paladyne significantly enhances Broadridge’s buy-side solutions and market presence

― Buy-side firms include mutual or pension funds and insurance groups that buy securities for money-management purposes

― Buy-side firms purchase nearly 40% of capital markets technology and services and represent a segment of virtually untapped opportunity for Broadridge

Provides Broadridge a comprehensive technology and outsourcing services solution to the hedge fund, asset management, fund administration, prime brokerage and custodial industry segments

Creates substantial cross-selling opportunities leveraging Broadridge’s existing salesforce and brokerage firm relationships

Raymond James acted as the exclusive financial advisor to Broadridge in this transaction.


9

September 2011


RJ Advisory Case Study: Plimus’ $115M Sale to Great Hill Partners

Plimus Overview:

Plimus, Inc. (“Plimus” or the “Company”) offers a global e-commerce, marketing and payment platform for digital goods, online services and SaaS business models

Plimus serves a rapidly expanding client base of more than 6,500 small-to-medium sized businesses and larger enterprises:

In 2010, Plimus facilitated more than four million digital goods and content-related transactions, with total volume of approximately $200 million

Prior to the sale, Plimus was owned by Susquehanna Growth Equity (“SGE”), Plimus founders, key management team members and employees

Plimus is based in Fremont, California, with an additional office in Israel

Great Hill Partners Overview:

Great Hill Partners (“GHP”) is a Boston-based private equity firm that manages more than $2.5 billion in capital

GHP provides capital to finance the expansion, recapitalization or acquisition of growth companies in a wide range of sectors within the business and consumer services, media, communications and software industries

In addition to its recent investment in Plimus, GHP has extensive experience investing in the FinTech sector:


Plimus was sold to GHP for $115 million on September 29, 2011

Raymond James served as the exclusive advisor to Plimus in the transaction and provided several key services:

— Prepared creative marketing materials highlighting the Company’s unique positioning and rapid growth

— Managed the due diligence process efficiently and effectively

— Drove the negotiation of the transaction alongside Company counsel

This transaction had a number of benefits for each party:

— SGE, the Company’s private equity owner, and the Company founders gained liquidity for their ownership stakes

— Plimus will now have access to a greater amount of capital and resources, thus benefiting the Company as it continues to grow its business

— GHP has a new payments / e-commerce platform to grow organically and also use to make additional acquisitions

Raymond James acted as the exclusive financial advisor to Plimus in this transaction.

10

Trading Analysis by Sector

(1) Denotes sector median value.

(2) Market Capitalization used in place of Enterprise Value.

Source: Capital IQ.

Note: Sectors sorted by Enterprise Value.

(USD in mill ions) Long- Price/

Enterprise Value / Enterprise Value / Revenue EBITDA Term Earnings

Equity Enterprise Trading Performance Growth Margin EPS to Growth

Sector (1) Value Value YTD 1 Year 3 Year 5 Year LTM 2012E 2013E LTM 2012E 2013E 2012E 2013E 2012E 2013E 2012E 2013E Growth Ratio

Liquidity Venues $6,168.5 $9,737.7 8.0% (4.8)% 67.6% (10.5)% 5.6x 5.1x 4.5x 8.9x 8.5x 7.8x 14.7x 13.3x 5.2% 7.3% 58.1% 58.8% 10.1% 1.6

Benefits / Payroll 6,252.3 6,232.6 0.7% 7.5% 82.0% 20.2% 4.3x 4.0x 3.5x 11.7x 10.7x 9.7x 19.1x 17.1x 6.7% 8.0% 28.9% 29.4% 15.1% 1.9

Information Services 3,943.0 3,735.4 3.6% 5.8% 125.6% 5.9% 3.0x 2.8x 2.6x 11.3x 9.0x 8.5x 15.4x 14.2x 7.0% 7.3% 28.8% 28.9% 13.0% 1.4

Outsourced Solutions 3,563.5 3,516.5 6.3% (4.2)% 133.5% 3.7% 1.4x 1.5x 1.3x 9.2x 7.1x 6.3x 12.4x 10.9x 9.0% 9.6% 18.1% 18.1% 14.1% 1.0

Insurance Technology 2,112.3 2,491.7 (3.1)% 0.9% 130.9% 83.9% 3.5x 3.1x 1.4x 10.4x 9.8x 9.0x 15.6x 15.5x 5.5% 6.3% 31.4% 32.2% 14.1% 0.9

Investment Technology 1,938.6 2,373.0 8.1% (6.3)% 66.8% (24.0)% 2.8x 2.5x 2.2x 11.9x 10.4x 8.8x 15.4x 13.1x 5.8% 8.6% 24.2% 26.1% 12.6% 1.3

Marketing Services 1,641.6 2,044.3 5.1% (10.8)% 126.9% 50.2% 1.2x 1.1x 1.1x 8.3x 6.1x 5.7x 15.7x 14.1x 5.5% 6.9% 21.7% 20.8% 13.3% 1.5

Bank Technology 1,732.8 1,970.4 4.5% (0.7)% 92.3% 8.0% 2.4x 2.0x 2.0x 9.3x 7.8x 7.3x 15.1x 11.6x 4.6% 4.8% 25.1% 26.1% 12.3% 1.2

Payments 1,101.7 1,144.5 7.0% 10.7% 97.0% (7.4)% 2.3x 2.3x 2.2x 10.0x 8.7x 7.8x 17.2x 13.7x 10.4% 9.4% 25.9% 27.3% 15.0% 1.0

Trading Technology (2) 712.3 712.3 (0.1)% (24.4)% 20.4% (24.0)% 1.1x 1.0x 1.1x 8.2x 6.6x 4.9x 10.4x 8.8x (0.3%) 8.7% 20.7% 22.7% 11.5% 1.3

Overall Median $2,025.5 $2,432.4 4.8% (2.5%) 94.7% 4.8% 2.6x 2.4x 2.1x 9.7x 8.6x 7.8x 15.4x 13.5x 5.7% 7.7% 25.5% 26.7% 13.1% 1.3

Capitalization Revenue EBITDA P /E

11

133.5% 130.9%126.9% 125.6%

97.0%92.3%

82.0%

67.6% 66.8%

20.4%

(60.0%)

(10.0%)

40.0%

90.0%

140.0%


Insurance Technology

Marketing Services


Payments Bank Technology

Benefits / Payroll

Liquidity Venues


Trading Technology

83.9%

50.2%

20.2%

8.0% 5.9% 3.7%

(7.4%) (10.5%)

(24.0%)(24.0%)

(60.0%)

(10.0%)

40.0%

90.0%

140.0%


Marketing Services

Benefits / Payroll

Bank Technology



Payments Liquidity Venues


Trading Technology

8.1% 8.0%7.0%

6.3%5.1% 4.5%

3.6%

0.7%

(0.1%)

(3.1%)

(30.0%)

(25.0%)

(20.0%)

(15.0%)

(10.0%)

(5.0%)

0.0%

5.0%

10.0%

15.0%


Liquidity Venues

Payments Outsourced Solutions

Marketing Services

Bank Technology


Benefits / Payroll

Trading Technology


10.7%

7.5%5.8%

0.9%

(0.7%)

(4.2%) (4.8%)(6.3%)

(10.8%)

(24.4%)

(30.0%)

(25.0%)

(20.0%)

(15.0%)

(10.0%)

(5.0%)

0.0%

5.0%

10.0%

15.0%

Payments Benefits / Payroll



Bank Technology


Liquidity Venues


Marketing Services

Trading Technology

Relative Stock Price Performance by Sector

Year-to-Date Performance

Three-Year Performance

One-Year Performance

Five-Year Performance

Source: Capital IQ.

Data represent median performance for each sector.

12

10.7x10.4x

9.8x

9.0x8.7x 8.5x

7.8x

7.1x

6.6x

6.1x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

Benefits / Payroll





Bank Technology


Trading Technology

Marketing Services

9.7x

9.0x8.8x

8.5x

7.8x 7.8x7.3x

6.3x

5.7x

4.9x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

Benefits / Payroll




Liquidity Venues



Marketing Services

Trading Technology

5.1x

4.0x

3.1x

2.8x

2.5x

2.3x

2.0x

1.5x

1.1x1.0x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

4.5x

5.0x

5.5x

Liquidity Venues

Benefits / Payroll






Marketing Services

Trading Technology

4.5x

3.5x

2.6x

2.2x 2.2x2.0x

1.4x 1.3x1.1x 1.1x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

4.5x

5.0x

5.5x

Liquidity Venues

Benefits / Payroll






Trading Technology

Marketing Services

Valuation Multiple Analysis by Sector

Enterprise Value / 2012E Revenue

Enterprise Value / 2012E EBITDA

Enterprise Value / 2013E Revenue

Enterprise Value / 2013E EBITDA

Source: Capital IQ.

Data represent median multiples for each sector.

13

19.1x

17.2x

15.7x 15.6x 15.4x 15.4x15.1x

14.7x

12.4x

10.4x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

20.0x

Benefits / Payroll

Payments Marketing Services




Bank Technology

Liquidity Venues


Trading Technology

17.1x

15.5x

14.2x 14.1x13.7x

13.3x 13.1x

11.6x10.9x

8.8x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

20.0x

Benefits / Payroll



Marketing Services



Bank Technology


Trading Technology

Valuation Multiple Analysis by Sector (cont’d)

2012E P / E 2013E P / E

Price / Earnings to Growth Ratio

Source: Capital IQ.

Data represent median multiples for each sector.

1.9

1.6

1.5

1.4

1.3 1.3

1.2

1.0 1.0

0.9

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Benefits / Payroll

Liquidity Venues

Marketing Services



Trading Technology

Bank Technology



14

58.1%

31.4%28.9% 28.8%

25.9% 25.1% 24.2%21.7% 20.7%

18.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Liquidity Venues


Benefits / Payroll




Marketing Services

Trading Technology


58.8%

32.2%

29.4% 28.9%27.3%

26.1% 26.1%

22.7%20.8%

18.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Liquidity Venues


Benefits / Payroll




Trading Technology

Marketing Services


10.4%

9.0%

7.0%6.7%

5.8%5.5% 5.5%

5.2%

4.6%

(0.3%)

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%



Benefits / Payroll


Marketing Services


Liquidity Venues

Bank Technology

Trading Technology

9.6% 9.4%

8.7% 8.6%

8.0%

7.3% 7.3%6.9%

6.3%

4.8%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%


Payments Trading Technology


Benefits / Payroll


Liquidity Venues

Marketing Services


Bank Technology

Growth and Margin Analysis by Sector

2012E Revenue Growth

2012E EBITDA Margin

2013E Revenue Growth

2013E EBITDA Margin

Source: Capital IQ.

Data represent median values for each sector.

15

Company Trading Analysis

Source: Capital IQ.

Note: Sorted by Enterprise Value.

PAYMENTS (USD in millions) Long- Price/



Company Value Value YTD 1 Year 3 Year 5 Year LTM 2012E 2013E LTM 2012E 2013E 2012E 2013E 2012E 2013E 2012E 2013E Growth Ratio

Visa, Inc. $78,227.1 $75,486.1 16.5% 60.1% 105.2% NA 7.9x 7.3x 6.5x 12.5x 11.5x 10.1x 18.7x 16.1x 10.4% 11.5% 63.3% 64.2% 19.3% 1.0

Mastercard Incorporated 53,134.7 48,194.7 19.3% 74.7% 165.8% 295.1% 7.2x 6.4x 5.7x 13.0x 11.4x 9.9x 19.2x 16.4x 12.4% 12.2% 56.3% 57.5% 17.9% 1.1

eBay Inc. 45,994.3 42,154.6 13.2% 10.7% 228.8% 11.9% 3.6x 3.1x 2.7x 12.7x 9.5x 8.2x 15.6x 13.4x 19.2% 14.2% 32.2% 32.5% 13.4% 1.2

Discover Financial Services 15,905.5 31,329.7 10.0% 42.1% 423.7% NA 5.2x 4.2x 4.0x NA NA NA 8.8x NA 5.8% 4.7% NA NA 9.4% 0.9

The Western Union Company 10,837.2 13,045.1 (8.4%) (18.7%) 56.5% (18.4%) 2.4x 2.3x 2.1x 8.0x 7.6x 7.2x 10.1x 9.0x 5.2% 5.0% 29.5% 30.0% 11.6% 0.9

Alliance Data Systems Corporation 6,073.2 12,692.6 10.4% 56.5% 310.0% 104.7% 4.0x 3.6x 3.3x 13.6x 11.3x 10.3x 14.3x 12.6x 10.3% 8.2% 32.0% 32.6% 15.4% 0.9

Sage Group plc 6,462.3 6,480.3 7.0% 11.1% 82.0% 20.2% 3.0x 2.9x 2.8x 10.3x 10.1x 9.6x 14.9x 13.7x 3.6% 3.3% 28.9% 29.4% 5.4% 2.8

VeriFone Systems, Inc 5,074.4 4,958.8 21.5% 7.4% 1003.5% 23.5% 3.8x 2.5x 2.2x 17.0x 11.8x 10.0x 17.3x 14.3x 39.2% 12.2% 21.1% 22.1% 25.4% 0.7

Total System Services, Inc. 4,132.7 4,095.3 2.3% 23.3% 73.9% (30.3%) 2.3x 2.3x 2.2x 9.1x 7.7x 7.3x 17.2x 15.5x 0.3% 4.9% 29.4% 29.7% 9.2% 1.9

Global Payments Inc. 4,044.9 4,078.3 3.2% 8.8% 68.3% 34.6% 2.0x 1.8x 1.6x 8.7x 7.9x 7.3x 14.9x 13.7x 12.1% 9.4% 22.7% 22.3% 12.2% 1.2

FleetCor Technologies, Inc. 3,031.3 3,444.9 9.5% 20.6% NA NA 6.6x 5.5x 5.0x 13.4x 10.3x 9.2x 14.2x 12.4x 22.9% 10.0% 53.5% 54.5% 16.4% 0.9

Wright Express Corp. 2,394.2 2,670.6 13.1% 24.3% 322.7% 114.4% 4.8x 4.5x 4.1x 9.9x 9.0x 8.2x 14.5x 12.9x 7.3% 9.6% 49.4% 49.5% 13.0% 1.1

Wirecard AG 2,014.0 1,806.6 7.3% 23.2% 216.6% 132.9% 4.3x 3.4x 2.9x 17.6x 12.4x 10.7x 19.0x 16.3x 23.4% 16.5% 27.1% 27.1% 17.8% 1.1

Moneygram International Inc. 1,027.6 1,793.6 (2.4%) (16.1%) 60.0% (92.5%) 1.4x 1.3x 1.2x 8.1x 6.7x 6.2x 17.7x 13.5x 7.3% 8.4% 20.0% 20.0% 15.0% 1.2

Cardtronics Inc. 1,171.3 1,536.7 4.9% 41.4% 1799.3% NA 2.5x 2.1x 1.9x 10.3x 8.4x 7.7x 17.5x 14.9x 20.0% 7.6% 24.5% 25.1% 15.1% 1.2

Heartland Payment Systems, Inc. 1,101.7 1,144.5 20.9% 44.3% 414.0% 14.2% 0.6x 0.5x 0.4x 10.8x 9.0x 8.0x 20.8x 17.6x 7.2% 19.0% 5.9% 5.6% 14.9% 1.4

Euronet Worldwide Inc. 970.7 1,138.8 6.5% 10.3% 97.0% (29.8%) 1.0x 0.9x 0.8x 8.2x 6.8x 6.2x 11.9x 10.7x 8.7% 6.6% 13.1% 13.5% 14.0% 0.8

Green Dot Corporation 1,131.7 927.7 12.2% (34.8%) NA NA 1.9x 1.6x 1.3x 9.7x 6.3x 5.2x 17.3x 13.8x 21.5% 21.7% 25.7% 25.7% 24.6% 0.7

Bottomline Technologies Inc. 1,018.1 886.7 3.6% 32.3% 380.3% 134.0% 4.2x 3.8x NA 25.4x 16.4x 13.5x 25.0x NA 10.9% NA 23.3% NA 17.4% 1.4

Higher One Holdings, Inc. 831.9 784.7 (12.7%) (20.4%) NA NA 4.5x 3.6x 3.0x 12.3x 8.9x 7.1x 17.8x 14.0x 17.9% 20.8% 40.3% 41.5% 25.0% 0.7

Netspend Holdings, Inc. 656.3 642.7 1.2% (30.0%) NA NA 2.1x 1.9x 1.7x 8.8x 7.2x 6.2x 19.4x 16.2x 11.1% 12.1% 26.2% 27.3% 19.1% 1.0

PayPoint plc 626.5 592.1 5.1% 70.6% 50.6% 3.6% 4.6x 4.3x 4.1x 9.1x 8.1x 7.8x 13.5x 13.0x 3.7% 4.3% 52.3% 52.1% NA NA

Global Cash Access Holdings, Inc. 360.4 501.1 2.6% 63.0% 97.9% (63.9%) 0.9x 0.9x 0.8x 10.0x 6.6x NA 8.8x 7.2x 7.6% 6.8% 13.2% NA 10.5% 0.8

Net 1 Ueps Technologies Inc. 443.2 471.1 (4.9%) (3.2%) (31.8%) (63.5%) 1.2x 1.1x NA 3.4x 9.1x NA 20.1x NA 11.9% NA 12.1% NA NA NA

Digital River Inc. 627.9 261.2 9.2% (45.9%) (26.2%) (67.8%) 0.7x 0.6x 0.6x 4.3x 3.0x 2.7x 14.3x 13.0x 3.9% 6.5% 21.5% 22.8% 16.7% 0.9

Online Resources Corp. 96.2 211.0 11.9% (54.0%) 1.4% (71.0%) 1.4x 1.3x 1.3x 10.4x 6.9x 5.8x 22.3x NA 3.4% 3.8% 19.1% 21.9% 13.3% 1.7

Newtek Business Services Inc. 46.4 86.1 6.6% (22.7%) 242.1% (48.0%) 0.7x NA NA 6.1x NA NA NA NA NA NA NA NA NA NA

Billing Services Group Limited 44.7 82.4 (2.5%) 12.4% (12.1%) (63.6%) 0.7x NA NA 4.2x NA NA NA NA NA NA NA NA NA NA

Cass Information Systems Inc. 398.7 63.9 (4.4%) 10.5% 64.0% 35.8% 0.6x NA NA 1.8x NA NA NA NA NA NA NA NA NA NA

Official Payments Holdings, Inc. 84.2 37.4 17.7% (18.9%) (8.3%) (34.3%) 0.3x 0.3x NA NA NA NA NA NA 7.5% NA NA NA 15.0% NA

TIO Networks Corp. 23.4 20.1 10.0% (2.9%) 41.4% (55.8%) 0.5x 0.4x 0.3x 11.5x 4.7x 2.8x 9.4x NA 31.1% 33.6% 7.9% 9.8% NA NA

Payments Median $1,101.7 $1,144.5 7.0% 10.7% 97.0% (7.4%) 2.3x 2.3x 2.2x 10.0x 8.7x 7.8x 17.2x 13.7x 10.4% 9.4% 25.9% 27.3% 15.0% 1.0

Capitalization

Revenue EBITDA P / E

16


Source: Capital IQ.


BANK TECHNOLOGY

INSURANCE TECHNOLOGY

(USD in millions) Long- Price/




Intuit Inc. $17,057.5 $17,097.5 2.3% 12.5% 153.8% 99.0% 4.2x 3.9x 3.5x 12.3x 10.5x 9.4x 19.2x 16.8x 8.5% 9.9% 37.2% 37.9% 15.1% 1.3

Fidelity National Information Services, Inc. 9,186.7 13,733.2 11.1% (2.0%) 81.3% (31.5%) 2.4x 2.3x 2.2x 8.3x 7.6x 7.2x 12.6x 11.1x 4.7% 5.0% 30.0% 30.4% 12.8% 1.0

Fiserv, Inc. 9,188.5 12,344.5 5.9% 6.9% 103.2% 26.0% 2.8x 2.7x 2.6x 9.4x 8.4x 7.9x 12.9x 11.6x 5.4% 4.7% 32.5% 32.9% 11.8% 1.1

Wolters Kluwer NV 5,535.1 8,513.0 1.5% (17.3%) 11.0% (37.9%) 1.9x 1.8x 1.8x 9.1x 7.3x 7.0x 9.0x 8.5x 4.4% 1.1% 24.8% 25.4% 4.0% 2.3

Fidelity National Financial, Inc. 3,824.3 4,208.5 (4.7%) 26.0% 4.2% (28.9%) 0.8x 0.8x NA 7.7x 7.8x NA 13.6x NA (2.5%) NA 10.8% NA NA NA

Jack Henry & Associates Inc. 2,927.7 2,978.5 (1.6%) 6.3% 111.8% 44.0% 3.0x 2.8x 2.7x 9.3x 8.6x 8.0x 18.5x NA 6.2% 6.3% 32.8% 33.1% 11.8% 1.6

Lender Processing Services, Inc. 1,859.8 2,931.6 31.9% (34.4%) (15.8%) NA 1.4x 1.5x 1.5x 6.0x 6.2x 6.2x 9.4x 8.7x (5.9%) 1.3% 23.6% 23.5% 10.0% 0.9

Misys plc 1,732.8 1,970.4 1.7% 0.3% 163.1% 22.9% 3.0x 2.8x 2.6x 15.5x 10.9x 10.1x 16.5x 14.1x 11.4% 5.2% 25.1% 26.0% 14.1% 1.2

Deluxe Corp. 1,256.5 1,967.5 (4.0%) (1.8%) 219.6% (20.7%) 1.4x 1.4x 1.3x 5.5x 5.6x 5.5x 7.7x 7.4x 1.8% 1.3% 24.5% 24.6% 6.6% 1.2

Davis + Henderson Corporation 1,101.0 1,476.1 3.1% (16.9%) 48.1% 14.3% 2.1x 2.0x 1.9x 8.6x 7.5x 7.2x 11.0x 12.4x 3.2% 3.9% 25.9% 26.2% NA NA

Temenos Group AG 1,354.7 1,453.5 11.3% (49.9%) 61.4% (19.9%) 3.0x 2.9x 2.6x 10.4x 8.6x 7.9x 18.6x 16.0x 4.1% 8.2% 33.1% 33.2% 10.5% 1.8

ACI Worldwide, Inc. 1,480.1 1,358.9 23.1% 21.5% 111.5% 8.0% 2.9x 1.9x 1.7x 13.4x 8.4x 7.4x 18.0x NA 54.0% 9.8% 22.7% 23.5% 15.0% 1.2

Computer Services Inc. 239.0 231.3 6.7% 21.5% 152.3% 120.2% 1.3x NA NA 4.2x NA NA NA NA NA NA NA NA NA NA

Online Resources Corp. 96.2 211.0 11.9% (54.0%) 1.4% (71.0%) 1.4x 1.3x 1.3x 10.4x 6.9x 5.8x 22.3x NA 3.4% 3.8% 19.1% 21.9% 13.3% 1.7

Ellie Mae, Inc. 175.5 149.9 NA NA NA NA 2.7x 2.1x NA 32.8x NA NA 26.5x NA 35.6% NA NA NA 22.5% 1.2

Bank Technology Median $1,732.8 $1,970.4 4.5% (0.7%) 92.3% 8.0% 2.4x 2.0x 2.0x 9.3x 7.8x 7.3x 15.1x 11.6x 4.6% 4.8% 25.1% 26.1% 12.3% 1.2

Capitalization






Verisk Analytics, Inc. $7,168.4 $8,077.6 8.0% 40.2% NA NA 6.1x 5.6x 5.1x 13.7x 12.4x 11.3x 23.8x 20.9x 10.1% 9.3% 44.8% 45.1% 13.4% 1.8

CGI Group, Inc. 5,533.7 6,439.8 7.8% 10.0% 127.7% 119.5% 1.5x 1.5x 1.4x 8.3x 7.8x 7.1x 12.3x 10.5x 4.9% 5.1% 18.7% 19.6% 14.1% 0.9

Solera Holdings Inc. 3,362.6 4,109.8 0.1% (3.2%) 130.9% NA 5.5x 5.2x 4.9x 12.8x 11.7x 10.8x 17.2x 15.6x 6.0% 6.3% 44.0% 44.9% 17.2% 1.0

Ebix Inc. 862.1 873.7 (6.3%) (14.8%) 234.4% 662.5% 5.5x 4.8x NA 12.4x NA NA 14.3x NA 9.2% NA NA NA 20.0% 0.7

CorVel Corporation 514.6 504.5 (13.6%) (8.4%) 140.4% 48.2% 1.2x 1.2x 1.1x 8.1x NA NA 16.9x 15.5x 4.5% 8.7% NA NA NA NA

Crawford & Company 236.6 378.0 (22.3%) 5.0% (44.7%) (26.7%) 0.3x 0.3x 0.3x 3.6x 4.2x 3.7x 7.4x 6.1x (6.3%) 2.8% 7.9% 8.7% 12.5% 0.6

Insurance Technology Median $2,112.3 $2,491.7 (3.1%) 0.9% 130.9% 83.9% 3.5x 3.1x 1.4x 10.4x 9.8x 9.0x 15.6x 15.5x 5.5% 6.3% 31.4% 32.2% 14.1% 0.9


Capitalization

17


Source: Capital IQ.


BENEFITS / PAYROLL

MARKETING SERVICES





Automatic Data Processing, Inc. $26,648.1 $25,328.9 (1.1%) 10.0% 59.1% 9.2% 2.4x 2.3x 2.1x 11.5x 10.7x 9.8x 19.0x 17.1x 6.6% 8.0% 21.4% 21.7% 10.2% 1.9

Intuit Inc. 17,057.5 17,097.5 2.3% 12.5% 153.8% 99.0% 4.2x 3.9x 3.5x 12.3x 10.5x 9.4x 19.2x 16.8x 8.5% 9.9% 37.2% 37.9% 15.1% 1.3

Paychex, Inc. 11,343.7 10,932.6 (0.9%) (4.7%) 41.9% (21.8%) 5.1x 4.7x 4.4x 11.8x 11.3x 10.0x 20.1x 18.3x 6.2% 7.3% 41.9% 44.1% 10.5% 1.9

Sage Group plc 6,462.3 6,480.3 7.0% 11.1% 82.0% 20.2% 3.0x 2.9x 2.8x 10.3x 10.1x 9.6x 14.9x 13.7x 3.6% 3.3% 28.9% 29.4% 5.4% 2.8

Edenred 6,042.2 5,984.8 7.7% 5.0% NA NA 4.3x 4.1x 3.7x 11.6x 10.9x 9.7x 21.1x 18.0x 6.0% 8.5% 37.2% 38.6% 15.1% 1.4

The Ultimate Software Group, Inc. 1,817.4 1,768.5 3.1% 33.1% 439.2% 165.9% 6.6x 5.4x 4.4x 40.2x 28.7x 21.1x 69.1x 49.8x 23.0% 21.0% 18.7% 20.9% 24.4% 2.8

Ebix Inc. 862.1 873.7 (6.3%) (14.8%) 234.4% 662.5% 5.5x 4.8x NA 12.4x NA NA 14.3x NA 9.2% NA NA NA 20.0% 0.7

Morneau Shepell Inc. 533.7 756.4 (1.0%) 3.7% 18.8% (7.3%) 2.1x 1.9x 1.9x 10.9x 9.6x 9.0x 17.2x 16.2x 6.9% 3.9% 20.1% 20.6% NA NA

Benefits / Payroll Median $6,252.3 $6,232.6 0.7% 7.5% 82.0% 20.2% 4.3x 4.0x 3.5x 11.7x 10.7x 9.7x 19.1x 17.1x 6.7% 8.0% 28.9% 29.4% 15.1% 1.9

Capitalization






Experian plc $15,143.5 $17,112.5 10.1% 21.7% 126.9% 59.4% 3.8x 3.4x 3.1x 11.9x 10.4x 9.6x 17.2x 15.5x 9.5% 8.2% 32.6% 32.9% 13.0% 1.3

Alliance Data Systems Corporation 6,073.2 12,692.6 10.4% 56.5% 310.0% 104.7% 4.0x 3.6x 3.3x 13.6x 11.3x 10.3x 14.3x 12.6x 10.3% 8.2% 32.0% 32.6% 15.4% 0.9

Aimia Inc. 2,185.4 2,672.1 0.1% (1.6%) 32.8% (37.5%) 1.2x 1.1x 1.1x 10.3x 7.0x 6.4x 10.3x 8.1x 5.4% 5.0% 16.1% 16.8% NA NA

Bankrate, Inc. 2,383.8 2,521.2 0.3% NA NA NA 5.9x 4.7x 3.9x 19.4x 14.8x 12.1x 41.1x 29.5x 30.6% 18.4% 31.5% 32.5% 25.5% 1.6

Valassis Communications Inc. 1,066.9 1,567.5 6.4% (10.8%) 1750.4% 50.2% 0.7x 0.7x 0.7x 5.5x 5.0x 4.8x 8.0x 7.1x (1.0%) 1.2% 14.1% 14.5% 11.9% 0.7

Acxiom Corporation 1,097.8 1,237.7 3.8% (15.3%) 69.6% (34.6%) 1.1x 1.1x 1.0x 4.6x 4.8x 4.9x 21.8x 17.4x (6.2%) 5.6% 22.9% 21.2% 11.8% 1.8

QuinStreet, Inc. 471.8 441.4 6.9% (51.8%) NA NA 1.1x 1.1x 1.0x 6.3x 5.2x 4.7x 21.8x 18.5x 5.1% 9.2% 20.5% 20.5% 13.5% 1.6

CPP Group Plc 281.4 292.9 (13.1%) (63.3%) NA NA 0.5x 0.5x 0.5x 3.2x 3.4x 3.2x 5.7x 5.7x 5.7% (2.4%) 15.0% 16.0% NA NA

Marketing Services Median $1,641.6 $2,044.3 5.1% (10.8%) 126.9% 50.2% 1.2x 1.1x 1.1x 8.3x 6.1x 5.7x 15.7x 14.1x 5.5% 6.9% 21.7% 20.8% 13.3% 1.5

Capitalization


18


Source: Capital IQ.


LIQUIDITY VENUES (USD in millions) Long- Price/




CME Group Inc. $19,219.6 $20,306.8 20.6% (5.5%) 58.7% (46.9%) 6.2x 6.1x 5.7x 8.9x 8.5x 7.8x 16.1x 14.2x 1.3% 7.3% 71.4% 72.5% 10.1% 1.6

Deutsche Boerse AG 12,364.8 13,201.7 11.7% (9.6%) 36.8% (34.9%) 4.2x 4.1x 4.0x 8.0x 7.2x 6.7x 10.5x 9.6x 4.1% 4.4% 57.4% 58.8% 11.4% 0.9

BM&F Bovespa SA 12,926.8 12,340.5 4.6% 3.8% 93.1% NA 11.1x 10.2x 9.0x 16.7x 14.9x 13.1x 14.7x 12.8x 6.7% 13.2% 68.5% 68.8% 15.2% 1.0

Hong Kong Exchanges & Clearing Limited 20,101.8 12,016.9 9.9% (14.8%) 131.2% 86.5% 11.4x 10.9x 10.4x 14.4x 14.6x 13.1x 27.3x 25.9x 6.9% 5.4% 74.7% 79.4% 7.5% 3.7

IntercontinentalExchange, Inc. 10,014.6 10,119.9 19.5% 8.5% 143.0% (8.4%) 7.6x 7.0x 6.5x 11.1x 9.8x 8.8x 17.2x 15.3x 8.2% 9.1% 71.8% 73.6% 12.5% 1.4

Nasdaq OMX Group Inc. 4,567.0 9,866.0 4.1% (4.8%) 26.0% (10.1%) 5.8x 5.7x 5.4x 11.2x 11.0x 10.3x 9.6x 8.5x 3.5% 5.5% 51.3% 51.9% 10.4% 0.9

NYSE Euronext, Inc. 7,799.7 9,737.7 10.1% (18.4%) 76.4% (63.6%) 3.6x 3.7x 3.5x 7.8x 7.6x 7.0x 11.6x 9.7x (2.3%) 6.7% 48.8% 50.2% 10.0% 1.2

Singapore Exchange Ltd. 6,168.5 5,658.5 11.1% (9.5%) 58.8% 6.8% 10.8x 10.2x 9.3x 18.9x 16.4x 14.6x 25.4x 22.5x 5.5% 10.0% 62.3% 63.8% 9.4% 2.7

London Stock Exchange Group plc 3,870.1 4,406.4 4.9% 0.7% 107.7% (28.5%) 3.7x 3.5x 3.3x 6.8x 6.2x 6.1x 10.3x 9.8x 11.1% 7.1% 57.1% 54.2% 5.9% 1.7

TMX Group Inc. 3,266.1 3,070.6 2.4% 6.5% 39.7% (10.5%) 4.5x 4.3x 4.0x 7.6x 7.3x 6.7x 11.6x 10.5x 5.2% 7.7% 58.1% 58.8% 6.0% 1.9

CBOE Holdings, Inc. 2,447.4 2,312.4 8.0% (1.1%) NA NA 4.6x 4.4x 4.1x 8.4x 7.9x 7.2x 16.6x 14.4x 4.1% 7.6% 55.5% 56.5% 10.6% 1.6

ASX Limited 5,838.8 1,974.4 1.8% (13.8%) 17.2% (26.8%) 2.3x 2.7x 2.6x 2.9x 3.5x 3.3x 14.2x 13.3x 4.1% 6.3% 77.2% 77.4% 7.9% 1.8

MarketAxess Holdings Inc. 1,217.9 1,016.8 7.2% 55.1% 319.8% 139.8% 5.6x 5.1x 4.5x 11.9x 10.5x 8.9x 24.4x 19.0x 10.3% 13.9% 48.7% 50.5% 22.5% 1.1

Liquidity Venues Median $6,168.5 $9,737.7 8.0% (4.8%) 67.6% (10.5%) 5.6x 5.1x 4.5x 8.9x 8.5x 7.8x 14.7x 13.3x 5.2% 7.3% 58.1% 58.8% 10.1% 1.6

Capitalization


19



Source: Capital IQ.


TRADING TECHNOLOGY (USD in millions) Long- Price/



Company Value Value (1) YTD 1 Year 3 Year 5 Year LTM 2012E 2013E LTM 2012E 2013E 2012E 2013E 2012E 2013E 2012E 2013E Growth Ratio

The Charles Schwab Corporation $17,646.2 $17,646.2 19.2% (25.6%) 9.2% (24.0%) 3.8x 3.7x 3.4x 12.6x 12.2x 10.3x 20.6x 16.8x 2.3% 9.5% 30.2% 32.7% 14.0% 1.5

TD Ameritrade Holding Corporation 10,242.2 10,242.2 16.3% (12.8%) 57.3% 16.8% 3.7x 3.7x 3.3x 9.9x 9.9x 8.0x 16.1x 12.5x (0.3%) 12.5% 37.5% 40.8% 12.1% 1.3

ICAP plc 3,962.1 3,962.1 14.5% (24.4%) 63.7% (17.4%) 1.5x 1.4x 1.4x 8.8x 6.5x 6.0x 9.9x 9.2x 2.8% 2.9% 21.6% 22.9% 8.0% 1.2

E*TRADE Financial Corporation 2,748.9 2,748.9 16.5% (38.4%) 20.4% (95.8%) 1.9x 1.5x 1.5x 7.6x 6.8x 4.9x 20.1x 14.1x (9.3%) 1.1% 21.7% 29.8% 15.5% 1.3

Knight Capital Group, Inc. 1,198.2 1,198.2 1.3% (2.8%) (24.7%) (17.5%) 0.9x 1.0x 0.9x 5.5x 5.2x 4.6x 9.4x 7.9x (8.8%) 9.7% 18.2% 19.0% 10.7% 0.9

FXCM Inc. 712.3 712.3 (10.8%) NA NA NA 1.8x 1.8x 1.5x 10.6x 6.7x 5.0x 10.5x 8.3x 8.1% 17.8% 26.5% 30.1% 1.0% 10.5

GFI Group Inc. 458.3 458.3 (15.2%) (20.3%) 71.4% (75.1%) 0.5x 0.4x 0.4x 7.2x 4.3x 4.0x 10.3x 7.6x 0.2% 8.5% 10.4% 10.3% 11.5% 0.9

Investment Technology Group Inc. 449.7 449.7 (0.1%) (39.3%) (40.9%) (71.8%) 0.8x 0.8x 0.8x 9.1x 9.7x 8.2x 16.3x 12.5x (4.8%) 3.9% 8.4% 9.7% 11.0% 1.5

INTL FCStone Inc. 429.9 429.9 (11.9%) (4.3%) 194.2% 31.7% 1.1x 0.9x NA 7.5x NA NA 9.3x 8.2x 11.7% NA NA NA NA NA

GAIN Capital Holdings, Inc. 179.3 179.3 (16.0%) NA NA NA 1.0x 0.9x 0.8x 4.7x 4.6x 3.7x 7.9x 6.6x (2.4%) 9.0% 19.9% 22.5% 15.0% 0.5

Penson Worldwide Inc 35.8 35.8 (11.7%) (80.3%) (73.3%) (95.3%) 0.1x 0.1x 0.1x NA 3.4x 1.4x NA NA (4.3%) 6.1% 4.1% 9.5% NA NA

Trading Technology Median $712.3 $712.3 (0.1%) (24.4%) 20.4% (24.0%) 1.1x 1.0x 1.1x 8.2x 6.6x 4.9x 10.4x 8.8x (0.3%) 8.7% 20.7% 22.7% 11.5% 1.3

Capitalization


20



Source: Capital IQ.


INVESTMENT TECHNOLOGY (USD in millions) Long- Price/




The Bank of New York Mellon Corporation(1) $26,638.0 $26,638.0 10.4% (26.7%) (0.3%) (45.4%) 1.8x 1.8x 1.7x 7.0x 6.7x 6.1x 9.7x 8.9x 0.4% 4.7% 26.8% 27.8% 11.1% 0.9

State Street Corp.(1) 20,601.9 20,601.9 8.8% (4.8%) 67.1% (35.8%) 2.1x 2.1x 2.0x 7.3x 7.3x 6.7x 10.8x 9.5x 0.7% 6.3% 29.2% 30.0% 12.6% 0.9

Charles Schwab Corp.(1) 17,646.2 17,646.2 19.2% (25.6%) 9.2% (24.0%) 3.8x 3.7x 3.4x 12.6x 12.2x 10.3x 20.6x 16.8x 2.3% 9.5% 30.2% 32.7% 14.0% 1.5

Northern Trust Corporation(1) 10,707.9 10,707.9 7.4% (13.1%) (20.1%) (26.1%) 2.9x 2.7x 2.5x 10.5x 9.4x 8.3x 15.0x 13.1x 5.1% 6.4% 28.4% 30.2% 14.8% 1.0

TD Ameritrade Holding Corporation(1) 10,242.2 10,242.2 16.3% (12.8%) 57.3% 16.8% 3.7x 3.7x 3.3x 9.9x 9.9x 8.0x 16.1x 12.5x (0.3%) 12.5% 37.5% 40.8% 12.1% 1.3

Computershare Ltd. 4,628.3 5,884.7 0.8% (20.5%) 9.8% (22.7%) 3.6x 3.1x 2.8x 18.0x 12.2x 10.2x 15.1x 12.3x 13.8% 10.2% 25.0% 27.2% 11.7% 1.3

Broadridge Financial Solutions Inc. 3,019.0 3,375.1 1.3% 6.6% 52.3% NA 1.5x 1.4x 1.3x 11.8x 9.9x 8.2x 14.8x 12.2x 5.3% 4.5% 14.2% 16.4% 13.8% 1.1

DST Systems Inc. 2,273.7 3,204.1 9.4% 5.9% 80.1% (25.3%) 1.3x 1.7x 1.6x 11.9x 11.7x 10.9x 13.0x 11.8x 13.1% 3.4% 14.2% 14.7% 10.0% 1.3

SEI Investments Co. 3,487.7 3,082.8 10.1% (12.2%) 66.8% (34.1%) 3.3x 3.1x 2.9x 9.8x 12.2x 10.6x 15.6x 13.7x 4.9% 7.5% 25.6% 27.5% 12.5% 1.2

SS&C Technologies Holdings, Inc. 1,603.5 1,663.2 10.0% 6.3% NA NA 4.5x 4.1x 3.8x 21.1x 10.4x 9.6x 17.1x 16.3x 8.7% 7.6% 39.8% 40.0% 13.3% 1.3

Advent Software, Inc. 1,312.6 1,227.1 (3.5%) (8.2%) 88.9% 44.2% 3.8x 3.4x 3.1x 15.0x 14.4x 12.3x 27.9x 24.1x 12.1% 9.7% 23.4% 24.9% 21.0% 1.3

Financial Engines, Inc. 1,060.4 915.4 (3.1%) (7.8%) NA NA 6.4x 5.1x 4.1x 39.7x 31.7x 24.2x 49.6x 35.5x 24.7% 25.6% 16.1% 16.8% 33.3% 1.5

Fidessa group plc 971.5 858.5 (0.5%) 1.2% 113.4% 47.4% 1.9x 1.8x 1.7x 12.7x 12.4x 11.6x 19.5x 18.6x 4.3% 5.2% 14.8% 15.0% 12.0% 1.6

GlobeOp Financial Services S.A 778.4 671.5 24.5% 14.6% 479.7% NA 3.0x 2.7x 2.3x 12.0x 9.3x 7.7x 17.8x 14.7x 13.7% 17.6% 28.4% 29.4% NA NA

SimCorp A/S 711.3 658.8 6.0% 0.9% 55.2% (23.7%) 2.6x 2.4x 2.2x 10.3x 10.4x 9.0x 15.2x 13.1x 5.0% 12.2% 23.5% 24.0% NA NA

Envestnet, Inc. 396.0 331.3 6.0% 0.9% NA NA 2.7x 2.1x 1.7x 30.1x 16.7x 8.5x 28.1x 16.6x 25.5% 27.9% 12.9% 19.7% 34.5% 0.8

First Derivatives plc 125.9 158.3 (4.7%) 13.0% 239.1% 67.2% 2.4x 1.9x 1.7x 14.8x 10.0x 8.4x 12.8x 10.7x 18.8% 14.0% 18.9% 19.7% NA NA

Linedata Services SA 158.9 159.4 25.3% (12.1%) 195.6% (41.4%) 0.9x 0.8x 0.8x 5.7x 5.3x 5.1x 8.8x 8.0x 6.4% 3.1% 15.3% 15.4% 1.3% 6.8

Investment Technology Median $1,938.6 $2,373.0 8.1% (6.3%) 66.8% (24.0%) 2.8x 2.5x 2.2x 11.9x 10.4x 8.8x 15.4x 13.1x 5.8% 8.6% 24.2% 26.1% 12.6% 1.3

Capitalization


21


Source: Capital IQ.


INFORMATION SERVICES (USD in millions) Long- Price/




Thomson Reuters Corporation $24,086.0 $31,503.0 3.3% (24.5%) (9.0%) (39.3%) 2.3x 2.4x 2.3x 9.4x 8.7x 8.4x 13.9x 12.6x 1.9% 3.3% 27.7% 27.8% 11.5% 1.2

Experian plc 15,143.5 17,112.5 10.1% 21.7% 126.9% 59.4% 3.8x 3.4x 3.1x 11.9x 10.4x 9.6x 17.2x 15.5x 9.5% 8.2% 32.6% 32.9% 13.0% 1.3

The McGraw-Hill Companies, Inc. 12,938.1 13,239.1 0.5% 23.6% 135.9% (28.1%) 2.1x 2.0x 1.9x 7.9x 7.5x 7.0x 14.1x 12.8x 3.4% 5.6% 27.0% 27.4% 10.5% 1.3

Reed Elsevier plc 10,675.7 10,675.7 5.3% 2.0% 5.0% (6.6%) 1.1x 1.1x 1.0x 3.7x 3.4x 3.4x 11.2x 10.7x 4.3% 2.2% 31.1% 31.2% 6.1% 1.8

Moody's Corp. 8,606.2 9,135.7 4.2% 23.2% 115.1% (41.6%) 4.0x 3.7x 3.5x 9.5x 8.6x 8.1x 14.5x 13.2x 8.6% 6.9% 42.9% 42.6% 12.5% 1.2

Wolters Kluwer NV 5,535.1 8,513.0 1.5% (17.3%) 11.0% (37.9%) 1.9x 1.8x 1.8x 9.1x 7.3x 7.0x 9.0x 8.5x 4.4% 1.1% 24.8% 25.4% 4.0% 2.3

Verisk Analytics, Inc. 7,168.4 8,077.6 8.0% 40.2% NA NA 6.1x 5.6x 5.1x 13.7x 12.4x 11.3x 23.8x 20.9x 10.1% 9.3% 44.8% 45.1% 13.4% 1.8

IHS Inc. 6,216.4 6,788.3 5.6% 14.7% 132.2% 152.1% 5.1x 4.4x 4.0x 16.9x 15.4x 12.9x 23.8x 19.6x 16.1% 10.0% 28.7% 31.2% 16.8% 1.4

Equifax Inc. 5,038.3 5,943.5 7.2% 18.2% 95.5% 8.9% 3.0x 2.8x 2.7x 9.3x 8.6x 8.0x 15.0x 13.5x 7.2% 7.3% 33.0% 33.2% 10.4% 1.4

Informa plc 4,152.4 5,399.2 12.8% 0.4% 103.7% (22.7%) 2.7x 2.6x 2.5x 9.9x 9.0x 8.5x 10.5x 9.7x 4.0% 4.2% 28.5% 28.9% 8.4% 1.2

MSCI Inc. 4,265.7 5,018.8 8.5% 1.7% 124.5% NA 5.6x 5.2x 4.8x 12.0x 11.3x 10.3x 18.0x 16.1x 6.4% 8.3% 46.4% 46.8% 13.0% 1.4

Dun & Bradstreet Corp. 3,944.2 4,743.7 (0.1%) 3.6% 11.7% (7.5%) 2.7x 2.7x 2.6x 9.0x 8.2x 7.5x 12.4x 11.4x (0.6%) 4.4% 33.1% 34.8% 9.1% 1.4

FactSet Research Systems Inc. 3,943.0 3,735.4 (1.9%) (14.6%) 126.8% 45.7% 5.0x 4.5x 4.1x 13.3x 11.7x 10.6x 20.8x NA 9.6% 11.1% 38.8% 38.6% 15.5% 1.3

Morningstar Inc. 3,001.5 2,534.6 0.6% 4.3% 114.6% 19.5% 4.0x NA NA 13.7x NA NA NA NA NA NA NA NA NA NA

Bankrate, Inc. 2,383.8 2,521.2 NA NA NA NA 5.9x 4.7x 3.9x 19.4x 14.8x 12.1x 41.1x 29.5x 30.6% 18.4% 31.5% 32.5% 25.5% 1.6

CoreLogic, Inc. 1,638.6 2,269.1 7.4% (16.1%) NA NA 1.7x 1.5x 1.5x 11.3x 6.8x 6.3x 16.3x 14.2x 5.0% 1.0% 22.6% 24.4% 9.5% 1.7

NICE Systems Ltd. 2,169.5 1,821.1 (4.3%) 4.1% 52.4% (9.2%) 2.3x 1.9x 1.7x 13.1x 8.0x 7.4x 14.1x 12.4x 17.8% 11.3% 24.2% 23.5% 20.0% 0.7

Fair Isaac Corp. 1,458.6 1,739.0 10.9% 48.3% 269.7% 3.2% 2.7x 2.7x 2.6x 9.4x 9.4x 9.4x 15.8x 14.3x 2.8% NA 28.8% 27.5% 16.5% 1.0

DealerTrack Holdings, Inc. 1,168.2 1,089.8 3.8% 43.5% 163.7% (14.6%) 3.1x 2.9x 2.6x 14.6x 13.7x 10.7x 26.9x 22.6x 6.8% 11.1% 21.4% 24.7% 14.5% 1.9

CoStar Group Inc. 1,526.3 977.5 (0.1%) 7.4% 135.2% 30.0% 3.9x 3.5x 3.2x 17.1x 14.9x 13.0x 44.1x 37.0x 10.0% 10.1% 23.7% 24.7% 22.7% 1.9

LoopNet, Inc. 785.4 674.3 12.6% 59.6% 214.0% 12.3% 7.8x 7.0x 6.4x 45.0x 24.2x 30.9x 61.8x 65.7x 12.7% 9.7% 28.9% 20.6% NA NA

The Dolan Company 270.9 473.1 (5.1%) (28.1%) 48.4% NA 1.6x 1.5x 1.4x 8.4x 6.6x 5.4x 14.0x 10.6x 7.4% 7.1% 22.9% 26.1% 14.3% 1.0

Intersections Inc. 201.3 195.8 (7.0%) 15.4% 147.2% 8.7% 0.5x 0.6x 0.6x 4.2x NA NA 12.8x 14.2x (7.9%) (5.9%) NA NA 8.0% 1.6

Reis, Inc. 107.6 92.4 (1.1%) 38.1% 154.1% 32.3% 3.1x NA NA 17.4x NA NA NA NA NA NA NA NA NA NA

Creditriskmonitor.com Inc. 19.8 11.5 (16.7%) (64.3%) 142.7% 31.6% 1.1x NA NA 8.3x NA NA NA NA NA NA NA NA NA NA

Information Services Median $3,943.0 $3,735.4 3.6% 5.8% 125.6% 5.9% 3.0x 2.8x 2.6x 11.3x 9.0x 8.5x 15.4x 14.2x 7.0% 7.3% 28.8% 28.9% 13.0% 1.4

Capitalization


22


Source: Capital IQ.


OUTSOURCED SOLUTIONS (USD in millions) Long- Price/




Tata Consultancy Services Limited $48,737.9 $47,530.5 10.0% 8.6% 408.1% 94.5% 5.0x 4.1x 3.6x 16.1x 14.2x 12.6x 19.1x 17.1x 24.9% 14.4% 28.8% 28.3% 18.5% 1.0

Infosys Ltd. 33,505.9 29,786.9 6.3% (6.9%) 133.5% 33.5% 4.4x 3.8x 3.4x 13.9x 12.1x 11.2x 17.2x 15.7x 20.0% 11.3% 31.2% 30.1% 16.5% 1.0

Dell Inc. 31,079.6 25,515.6 1.9% 12.3% 102.8% (24.8%) 0.4x 0.4x 0.4x 4.7x 4.6x 4.5x 8.2x 7.8x 0.9% 2.0% 9.0% 8.8% 5.1% 1.6

Wipro Ltd. 21,511.3 20,460.8 5.4% (2.6%) 247.0% 22.1% 2.8x 2.4x 2.1x 14.6x 11.7x 11.1x 16.8x 15.8x 18.2% 12.7% 20.5% 19.1% 14.5% 1.2

Xerox Corp. 10,961.4 19,190.4 6.5% (22.5%) 58.9% (52.1%) 0.8x 0.8x 0.8x 6.1x 5.7x 5.3x 7.3x 6.7x 0.6% 2.1% 14.7% 15.5% 7.5% 1.0

Cognizant Technology Solutions Corporation 21,524.5 19,092.3 (0.1%) (4.8%) 285.6% 58.8% 3.1x 2.5x 2.1x 15.1x 12.5x 10.4x 20.6x 17.4x 23.1% 19.3% 20.3% 20.4% 20.5% 1.0

HCL Technologies Ltd. 6,837.1 6,923.7 13.1% 3.5% 384.8% 53.4% 1.8x 1.5x 1.3x 11.5x 8.2x 8.2x 13.9x 12.2x 25.6% 12.3% 18.1% 16.2% 23.0% 0.6

Computer Sciences Corporation 4,925.2 6,806.2 22.5% (32.9%) (8.6%) (39.1%) 0.4x 0.4x 0.4x 20.9x 3.3x 2.9x 10.2x 7.9x (1.8%) 2.1% 12.9% 14.2% 9.0% 1.1

CGI Group, Inc. 5,533.7 6,439.8 7.8% 10.0% 127.7% 119.5% 1.5x 1.5x 1.4x 8.3x 7.8x 7.1x 12.3x 10.5x 4.9% 5.1% 18.7% 19.6% 14.1% 0.9

Amdocs Limited 5,249.1 4,324.1 3.6% 1.9% 83.1% (11.4%) 1.3x 1.3x 1.2x 7.2x 6.2x 6.2x 12.5x 10.9x 4.8% 4.9% 20.8% 19.9% 9.8% 1.3

Genpact Ltd. 3,563.5 3,516.5 8.9% 18.6% 102.3% NA 2.2x 1.9x 1.7x 11.9x 10.7x 9.4x 18.8x 16.0x 17.8% 13.5% 17.6% 17.5% 16.5% 1.1

Lender Processing Services, Inc. 1,859.8 2,931.6 31.9% (34.4%) (15.8%) NA 1.4x 1.5x 1.5x 6.0x 6.2x 6.2x 9.4x 8.7x (5.9%) 1.3% 23.6% 23.5% 10.0% 0.9

Deluxe Corp. 1,256.5 1,967.5 (4.0%) (1.8%) 219.6% (20.7%) 1.4x 1.4x 1.3x 5.5x 5.6x 5.5x 7.7x 7.4x 1.8% 1.3% 24.5% 24.6% 6.6% 1.2

iGATE Corporation 988.4 1,954.9 (1.9%) (4.2%) 481.0% 143.1% 2.5x 1.7x 1.5x 12.4x 6.4x 6.3x 12.4x 10.3x NA 11.2% 26.4% 24.3% 17.4% 0.7

Mphasis Limited 1,857.2 1,498.3 16.6% (4.4%) 157.6% 55.5% 1.4x 1.2x 1.2x 7.5x 7.1x 6.6x 12.0x 11.2x 13.0% 5.9% 17.3% 17.7% 10.1% 1.2

Convergys Corporation 1,492.7 1,175.4 (2.9%) (7.5%) 99.7% (49.3%) 0.5x 0.5x 0.5x 4.5x 4.3x 4.0x 12.8x 11.4x 2.6% 3.3% 11.8% 12.2% 9.5% 1.3

TeleTech Holdings Inc. 864.5 783.4 (10.0%) (29.6%) 76.3% (56.2%) 0.7x 0.6x 0.6x 5.5x 4.8x 4.4x 11.2x 9.3x 1.3% 9.6% 13.5% 13.5% 13.6% 0.8

Exlservice Holdings, Inc. 867.9 783.6 16.0% 33.0% 244.1% 18.8% 2.2x 1.7x 1.5x 12.4x 9.6x 8.3x 18.6x 15.5x 25.9% 18.0% 18.1% 17.9% 20.3% 0.9

CSG International, Inc. 516.8 667.7 (1.1%) (16.7%) 18.4% (35.3%) 0.9x 0.9x 0.9x 3.9x 4.1x 3.9x 9.4x 9.6x 0.0% 1.7% 22.2% 22.9% 8.3% 1.1

WNS (Holdings) Ltd. 551.3 622.9 14.1% 5.9% 159.1% (65.0%) 1.2x 1.5x 1.3x 9.2x 8.3x 7.3x 8.8x 9.9x 13.8% 12.2% 17.9% 18.1% 20.7% 0.4

Virtusa Corp. 400.9 327.1 (1.1%) (6.7%) 155.0% NA 1.2x 1.0x 0.9x 10.8x 8.1x 6.3x 16.1x 13.0x 20.2% 13.9% 12.8% 14.4% 23.5% 0.7

Outsourced Solutions Median $3,563.5 $3,516.5 6.3% (4.2%) 133.5% 3.7% 1.4x 1.5x 1.3x 9.2x 7.1x 6.3x 12.4x 10.9x 9.0% 9.6% 18.1% 18.1% 14.1% 1.0

Capitalization


23

Announced Date Buyer Target Sector Transaction Size Comments

Feb-12

PORTIA


$170mm

PORTIA provides a broad set of middle-to-back office capabilities that allow investment managers to track and manage the day-to-day activity in their investment portfolios

The solution supports a range of functions including corporate action processing, internal, client and regulatory reporting, performance measurement and attribution and post trade compliance

PORTIA’s offering will complement SS&C’s existing investment management solutions portfolio and build upon SS&C’s financial technology development capabilities

Feb-12 Bank Technology NA

Beacon Software provides web-based technology solutions to community financial institutions

Solutions offered include bill pay, treasury management, telephone banking, personal financial management and mobile banking

Beacon’s singular focus on community financial institutions enables Integrated Bank Technology to continue its expansion into the community banking segment

Feb-12 Information

Services $5mm

BANKS.com provides access to thousands of pages of current financial content, including: articles, stock quotes, audio, video, blogs and much more

The Company provides Internet search services through a combination of traffic aggregation and proprietary Websites

The merger of BANKS.com’s portfolio of assets and Remark Media’s technology platform will expand client product offerings while enhancing customer experience

Feb-12 Payments NA

MoreMagic Solutions offers mobile payment solutions to mobile operators, financial institutions, content providers and distributors, enabling consumers to purchase goods and services on demand using a web-enabled mobile device

Combined, the technological capabilities of Oberthur Technologies and MoreMagic will create a comprehensive mobile money services suite including secured end-to-end payment and money transfer services, helping mobile operators and financial institutions to offer financial services in mobility such as proximity, remote payment and mobile banking

Feb-12 Sub1 Payments NA

Sub1 is a Latin American payment service provider with 70% market share in Argentina

The acquisition of Sub1 facilitates GlobalCollect’s strategic intention to expand in Latin America and further contributes to the growth and ambition of GlobalCollect to be the leading electronic payment service provider in the region

Selected Recent Strategic Buyer M&A Activity

24


Feb-12 Payments NA

Kima Labs provides online shopping community solutions for mobile devices for in-store shopping requirements

Its solutions enable users to scan and recommend items, see recommendations from people in the community, get ideas for what to buy, and compare prices with other stores, as well as provide suggestions for similar products and buy products in physical stores

Feb-12 Information

Services NA

WHI Solutions provides web-based eBusiness solutions to automotive and heavy-duty parts sellers and service providers

With the acquisition of WHI, eBay plans to expand its catalog of auto replacement parts to specialty equipment to meet the needs of its customers

In addition to the catalog benefits for eBay Motors buyers, sellers will also enjoy a better experience with an easier way to list inventory, with automatically populating listing fields including description, image and vehicle application data using WHI’s catalog of millions of SKUs

Feb-12 Insurance

Technology NA

Insurers world provides strategic analytics and claims software to the property insurance industry

Together, Enservio and Insurers World will be able to offer property insurers a full range of solutions from strategic analytics to claims software and services nationally

As a combined entity, Enservio provides solutions to 12 of the largest property insurers in the nation, has over 300 insurer customers and over 450 employees nationally

Feb-12 Trading

Technology NA

NYSE acquired 25% of Fixnetix with an option to acquire the remaining portion of the business at any time in the next three years

Fixnetix is a service provider of ultra-low latency data provision, co-location, trading services and risk controls for more than 50 markets worldwide

The transaction positions NYSE Technologies’ global reach and technology solutions alongside Fixnetix’s low latency market data and trading infrastructure services to present customers a combined offering of core managed services delivered to markets and participants around the world

The strategic investment will allow both companies to offer their trading and market information services to global customers with greater integration and scale

Feb-12 Trading

Technology NA

SEI acquired the assets of NorthStar Systems International

The transaction expands SEI’s front-office capabilities across its Global Wealth Platform

The acquired technology will enable SEI to deliver more sophisticated levels of front-office automation and functionality to its wealth management clients in critical business areas such as client acquisition and client management

Selected Recent Strategic Buyer M&A Activity (cont’d)

25


Feb-12 Investment Technology

$54mm

Tamarac provides an integrated, web-based suite of portfolio and client management software for independent advisors and wealth managers

The company currently has relationships with approximately 500 Register Investment Advisor firms , collectively managing over $250 billion in assets

The combination of Envestnet and Tamarac will enhance the way advisors support investors through the Advisor Xi technology suite

Feb-12 Marketing Services

NA

Intuitive Group International implements multi-channel, multi-touch marketing programs in Europe

The acquisition will allow Parago to provide clients full-service programs designed to increase customer acquisition, enhance channel sales performance and reward and recognize employee performance

The combination of the two incentives providers will result in a greater reach and suite of total engagement offerings, plus a client roster that includes many of the world’s leading companies

Feb-12 Payments NA

Medagate powers OTCNetwork™, the only national closed loop over-the-counter (OTC) healthcare benefits payments platform

Medagate's technology platform supports several applications that enable retail and healthcare to intersect at the point of sale, enabling insured health plan members as well as Medicare and Medicaid members to access and spend their monthly healthcare benefits in a user-friendly manner

Feb-12 Payments $26mm

Integral Computers is a provider of secure payment services and products to the retail, hospitality and petroleum industries

Integral supports over 28,000 points of sale across Ireland and the U.K. and its hosted and offsite payment solutions currently process over 5 billion transactions annually

The acquisition of Integral accelerates Sage Pay’s existing strategy of offering connected payment services to the cardholder present market


$14mm

Prima Capital is a provider of investment manager due diligence, research applications, asset allocation modeling and multi-manager portfolios to the wealth management and retirement industries

The acquisition of Prima extends Envestnet’s ability to deliver an expanded set of premium research-based solutions to financial advisors

Envestnet plans to enhance its wealth management solutions with Prima’s objective advice, analytics and data on managed account strategies, mutual funds, ETFs and alternative investments, delivered through powerful web-based technology


26


Feb-12 Information

Services NA

R2 Financial Technologies is a provider of advanced risk and scenario-based analytics to traders, portfolio and risk managers for pricing, hedging and capital management across asset classes

The Company offers NxR², a front-office pricing, portfolio construction, and risk management software solution and R² Capital, a middle-office risk and capital management software solution

The acquisition will enable S&P Capital IQ to give clients an integrated view of market and credit risks across asset classes in a unique solution

Feb-12 Trading

Technology $27mm

Navita is a provider of software and services to the global energy and commodity trading industry

This acquisition will further extend Brady's footprint in the energy market as Navita's solutions support trading and risk management in a number of segments already familiar to Brady, including electric power, gas, emissions / carbon and related commodities

Brady will gain an extended functional footprint in the areas of physical power and gas, as well as data management, scheduling and nominations, which will enhance its current product offering to the energy markets

Feb-12 Information

Services NA

e-VERIFILE specializes in developing and delivering web-powered employee screening solutions and support systems

Products and services include background checks, credit history reports and criminal background investigations

Jan-12 Benefits /

Payroll NA

SBC Systems designs, supports and implements employee benefits management software

The Company’s products are designed to help outsourcers, plan sponsors and associations deal with complex benefit plan provisions, communicate those provisions and manage the data and processes associated with administering their plans

Morneau Shepell is headquartered in Canada and the acquisition expands its presence in the U.S. benefits management market

Jan-12

Processing Assets

Payments $3mm

Green Dot Corporation has acquired certain processing and hardware assets of eCommLink (ECL) for $2.5 million in cash

This asset purchase will allow Green Dot to continue its strategy of vertical integration by bringing key remaining elements of transaction processing in house, thereby reducing reliance on third parties

Green Dot recently renewed its outsourced processing agreement with TSYS for an additional two-year term

During this period, Green Dot expects to transition those services from TSYS to its in-house processing solution built on the assets acquired from ECL


27


Jan-12 Marketing Services

NA

Cardstar is a Boston-based developer of mobile applications that extend the use of loyalty cards and mobile coupons among consumers

The CardStar application consolidates membership and rewards cards on smartphones, letting consumers use a single application rather than a series of physical cards and enabling merchants to tailor mobile deals and information to their customers

Jan-12 Trading

Technology NA

Algorithmic Trading Management is a provider of global, multi-asset class algorithmic execution trading models

Following the closing of the transaction, ATM will continue to operate as a separate financial technology business offering broker neutral services to existing and future clients

Jan-12 Payments NA

Mark Altman & Associates (MA&A) is a provider of comprehensive billing solutions serving municipal, utility and private sector customers

The merger will allow customers to benefit from a broad range of operating synergies and enables Billtrust to accelerate its growth in key municipal and utility markets

Current print, eBilling and archiving platforms will be consolidated into a single, more powerful platform that will enable new capabilities to automate services, drive usage of online payment channels and monitor quality

Jan-12

Indian Payroll Business

Benefits / Payroll NA

ADP announced its acquisition of the Indian payroll business of Randstad Holding nv from its Indian subsidiary Ma Foi Randstad

Ma Foi Consulting Solutions Ltd., the Indian company acquired by ADP from Ma Foi Randstad, offers managed payroll services and social benefits administration to clients across India through a fully customized payroll engine

Ma Foi Consulting Solutions serves over 350 brand-name multinational and domestic clients

Jan-12 Information

Services NA

QUOSA is a content management and workflow productivity solutions provider for researchers and information managers

QUOSA ‘s technological capabilities will be developed into Elsevier-branded solutions and will allow researchers and information professionals to manage information more efficiently at the various stages of the research workflow including organizing, archiving and sharing


28


Jan-12 Information

Services NA

Crivo, through its service offerings, provides its Brazilian customers highly sophisticated and versatile decision-making capabilities

The combination of Crivo and TransUnion will create significant value for the Brazilian market, providing a unique source of actionable data that will enable clients to adapt and maximize relationships and business processes at every stage in a customer's lifecycle

Crivo's proprietary technologies are currently employed in growth industries such as credit, telecommunications, insurance and retail

Jan-12

Pilot Software

Trading Technology

NA

The Pilot solution, built and used by TOBAM as its decision support solution for the fund’s principals, is complementary to SunGard’s Asset Arena solution suite, which supports the core functions of the asset management industry including investment management, investment operations and investor servicing

SunGard’s asset management solutions help institutional investors, hedge funds, private equity firms, fund administrators and securities transfer agents improve both investment decision-making and operational efficiency, while managing risk and increasing transparency

Jan-12 Payments NA

Tender Retail is a Toronto-based payments company with a substantial North American distribution network

GFI Solutions intends to expand its product line, and it will be introducing a semi-integrated payment solution complementary to Tender Retail's offering

With this expansion, GFI Solutions will become the largest point-of-sale payment solutions provider in Canada

Jan-12 Benefits / Payroll NA

Icon Time Systems serves small businesses with PC-based and web-enabled time and attendance products

Paychex initially partnered with Icon Time Systems in February 2011 for the successful launch of the Paychex PST 1000 time clock, an easy-to-use system that delivers progressive time and attendance technology to small businesses

Customers include restaurants, medical offices and manufacturing and retail companies

Jan-12 Investment Technology

NA

Fortigent delivers a fully integrated and customizable business-to-business outsourced wealth management solution to banks, trust companies, and independent advisory firms

Services include an open architecture investment platform with particular expertise in alternative investments, a flexible unified managed account program and consolidated wealth reporting

Upon completion of this transaction, Fortigent will remain solely focused on supporting practices serving high-net-worth clients


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Jan-12 Outsourced

Solutions $288mm

TaxACT is a provider of tax preparation software

TaxACT’s offerings are available through a secure online delivery system, complemented by available desktop downloads and extensive tax and IRS expertise

The transaction is expected to be immediately accretive to InfoSpace earnings per share and year one return on shareholder capital is expected to exceed 16%

For the twelve months ending September 30, 2011, TaxACT had revenues of $78.1 million and adjusted EBITDA of $37.8 million

Jan-12 Payments NA

WikiPay is a low-cost, cash-based payment and marketing platform solution for Peer-to-Peer, Business-to-Consumer (B2C), Consumer-to-Business (C2B), and Business-to-Business (B2B) transactions

WikiPay's mobile marketing application, WikiBlast, enables merchants to reach their client base instantly with a variety of customizable SMS marketing programs

The merger between WikiLoan and WikiPay will allow the new Company to market both robust platforms to the same prospective clients and affiliate relationships

Jan-12 Insurance

Technology NA

Cover-All Technologies announced the acquisition of the assets of BlueWave Technology, including its insurance claims software

The Cover-All/BlueWave browser-based claims administration software solution will be marketed both as a standalone solution as well as a fully integrated component within Cover-All's existing Policy and Business Intelligence products

BlueWave’s flagship product, PipelineClaims™, was designed and developed with an in-depth knowledge of the claims process and utilizes the latest technologies to create a flexible, easy-to-use, functionally rich and efficient claims solution

Jan-12 Trading

Technology $20mm

Legent Clearing is a FINRA member firm providing securities clearing and other services to FINRA member firms

Legent’s current client correspondent roster includes more than 75 broker / dealers

The Company’s new relationship with COR Securities will enable it to improve and expand its product and service offerings and continue to build on its network of fully-disclosed broker-dealer correspondents

Dec-11

HSBC Bank Malta, Card Acquiring Business

Payments $14mm

Global Payments announced that HSBC Bank Malta PLC has agreed to sell its card acquiring business to HSBC Merchant Services Ltd, a Maltese subsidiary of Global Payments Inc

HSBC Bank Malta plc, together with its subsidiaries, provides banking and financial related services in Malta

HSBC Merchant Services provides card processing services to corporations, financial institutions, and government agencies primarily in the United Kingdom


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Dec-11 Payments NA

BillSafe is a German-based provider of purchase-on-invoice technology

The acquisition extends Ebay’s leadership in payments by combining BillSafe with PayPal

PayPal, which serves more than 15 million accounts in Germany, believes the addition of BILLSAFE will provide a comprehensive payment service for merchants and consumers

Dec-11 Outsourced

Solutions NA

VaultWare provides consumer-centric apartment marketing and leasing solutions focused on delivering an ideal online shopping experience that results in streamlined operations, highly qualified leads and more leases

The acquisition will provide MRI’s customers with a complete, fully automated lease management solution that will be tightly integrated into MRI’s property management and accounting systems

Dec-11 Trading

Technology NA

RapiData is a provider of machine-readable economic news to trading firms and financial institutions

With this acquisition, NASDAQ OMX will deliver U.S. government and other economic news directly from the source to customers interested in receiving information in an electronic feed

Dec-11 Information

Services $78mm

Barrie & Hibbert is a provider of risk management and modeling tools for insurance companies worldwide

With more than 150 customers around the world, Barrie & Hibbert's Economic Scenario Generator (ESG) is widely used for valuing and projecting assets and liabilities and assessing risk and capital positions

Barrie & Hibbert's offerings and expertise in understanding the risks in long-term asset and liability management will enhance Moody's data management, capital calculation and regulatory reporting platform to further meet the needs of institutions as they undertake risk management and regulatory compliance activities

Dec-11

PRINGLE Compliance Policies &

Procedures


NA

Wolters Kluwer Financial Services announced its acquisition of the regulatory compliance content of PRINGLE® Policy and Procedure Solutions (PRINGLE) from PRINGLE Publications Corporation

Wolters Kluwer will integrate PRINGLE’s compliance and safety and soundness policies and procedures, worksheets, forms, and regulatory checklists and tests into the Policies and Procedures module of the company’s ARC Logics for Financial Services enterprise risk management (ERM) solution

The integration of PRINGLE content within ARC Logics further strengthens the continuum of control that compliance professionals require to ensure their primary regulatory obligations are met within the operational units


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Dec-11 Banking

Technology NA

DocuTech announced its acquisition of the assets of Lender Support Systems’ (LSSI) Docs3D mortgage document software

The acquisition of LSSI’s Docs3D software and customer base enables DocuTech to continue growing its existing presence among regional banks and credit unions

Current LSSI customers will benefit from the expanded compliance services offered by DocuTech, including dedicated legal staff tracking all regulatory changes and monthly updates to ensure all systems are up-to-date

Dec-11 AllStar Business

Solutions Ltd. Payments $304mm

AllStar’s fuel cards permit fleet operators to provide their company drivers with a payment card to fuel their vehicles securely without having the need to pay with cash or personal credit cards

At present, AllStar has approximately 40,000 customers and about one million cardholders, a large portion of whom are small and medium sized enterprises in the U.K.

Dec-11 Outsourced

Solutions NA

DepotPoint operates as a default management workflow vendor

By incorporating the DepotPoint technology, MRN Cubed's outsourcing unit will have a centralized hub to process short sales and foreclosures

MRN Cubed will reconfigure DepotPoint to be used for origination, beginning with its due diligence outsourcing and expanding to include its underwriting technology

Dec-11 Payments $16mm

Bonneville Bancorp is the holding company of Bonneville Bank, a single-office, FDIC-insured commercial bank located in Provo, Utah with approximately $37 million in assets

The acquisition of Bonneville Bank will give Green Dot the ability to serve broader segments of consumers with innovative banking and payment solutions

Dec-11 Investment Technology

NA

ASAP Advisor Services provides investment marketing services and database management solutions for institutional money managers, hedge fund managers and other financial advisors

eVestment will phase in a new brand name, eVestment Omni, to cover its full suite of database population offerings, with three versions to match the spectrum of solutions available from the combined organization

Collectively, the eVestment Omni offerings will automate and manage data population for over 300 clients representing over $24.5 trillion in assets under management and over 4,600 unique investment strategies


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Announced Date Investor(s) Target Sector Transaction Size Comments

Feb-12 Information

Services $3.3bn

TransUnion provides information and risk management solutions, including credit and data reports, credit scores, analytical services and decisioning technologies

Its decision services are used to evaluate business risks and opportunities associated with new consumer credit and checking accounts, insurance applications, account collection, patient registrations and apartment rental requests


$727mm

GlobeOp Financial Services is an independent administrator of middle and back office services, integrated risk reporting and portfolio analytics for hedge funds, managed accounts and fund of funds

By outsourcing to GlobeOp, clients can reduce their technology investments and operational risks, while increasing their focus on asset generation and portfolio management

GlobeOp serves approximately 200 clients worldwide, representing $173 billion in assets under administration

Jan-12 Trading

Technology $293mm

Orc is a provider of technology and services to the global financial industry with a focus on advanced trading, market making and brokerage

It provides solutions for trading and market access for buy and sell-side professionals, such as investment banks, market making and trading firms, stock exchanges, brokers, institutional investors and hedge funds

Selected Recent Financial Buyer Activity

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Announced Date Investor(s) Target Sector Investment Size Comments


$5mm

Karma provides a mobile platform which gives users the option to give friends gifts via iOS and Android applications

Gift recipients receive a notification message and are able to customize their gift choices by color or style prior to shipping or exchange the gift for an entirely different product

Feb-12 Payments NA

ROAM Data is an mCommerce Platform-as-a-Service (PaaS) provider extending physical Point of Sales and eCommerce to the mobile environment to help merchants find and keep customers

ROAM’s solutions allow merchants to accept card payments on mobile devices, and allow consumers to easily make purchases in mobile shopping applications and advertisements

Feb-12 Payments NA

The GoPago service would allow consumers to use their mobile phones to order and pay for local goods or services and then show the merchant a receipt on the phone screen when picking up a purchase

In exchange for the investment of an undisclosed sum, JPMorgan Chase will be the first financial services company to partner with GoPago, which will also open its service to other bank partners


NA

FNZ is a provider of technology, transaction and custody services to the wealth management industry

FNZ’s technology, transaction and custody services enable these institutions to provide wealth management solutions to financial advisers, end-investors and the workplace that are efficient, flexible and scalable, supporting market, demographic and regulatory trends worldwide

Feb-12 Information

Services $3mm

Lumesis offers data, visualization and analytical tools and time-sensitive notifications for the fixed income marketplace

Its DIVER product brings its clients more than 130 data sets from over 30 distinct sources regarding data that impact the fiscal well-being of states, counties and other municipalities

Feb-12 Trading

Technology NA

Correlix offers RaceTeam™, a latency management service providing real-time latency visibility for buy-side, sell-side and liquidity venues

The company's global client base encompasses the world's largest high frequency trading sell-side, buy-side and market centers as well as low-latency service providers

Selected Recent Growth Equity / Venture Capital Activity

34


Feb-12 Trading

Technology NA

360T Group is a provider of web-based trading technology for OTC financial instruments, particularly currency exchange, short term money market loan/deposits and interest rate derivatives

The Company’s multi-bank platform provides the liquidity of more than 100 global and regional market makers used by over 1000 client organizations worldwide

360T Group also offers a professional white-label trading technology for electronic trading services to a closed group of users on a proprietary branded platform

Feb-12 Payments $2m

Flattr provides a social micro-payment system which facilitates small donations

Users establish a monthly donation amount that is divided equally over sites or causes they choose to like or “flattr” over the course of the month

The monthly fee remains constant without regard for how many times the donation is divided


GoCardless provides an interface which allows smaller merchants and companies to integrate ACH transfers into their sites for one-time and recurring payments

The Company offers transfer services for one-third to one-fourth the cost of most network-based payment options

GoCardless is currently integrated with over 300 merchants


Dwolla provides a free web-based software platform which allows users to send, receive and request funds from any other user

Dwolla allows users to send money at no charge and levies a 25 cent fee on users to receive funds in excess of $10

Feb-12 Outsourced

Solutions $30mm

Capital Access Network, Inc. (CAN) is a provider of daily remittance-powered financial products and services for small and mid-sized businesses

Daily remittance financial products combine behavioral risk scoring and data driven risk management to enable the delivery of more capital to the right small businesses while decreasing provider risk

The Company’s wholly-owned subsidiaries have provided over $2 billion in more than 80,000 transactions

Feb-12 Valar Ventures

Outsourced

Solutions $17mm

Xero provides SaaS-based accounting products to small and medium-sized business in New Zealand and internationally

Specific subscription services for clients include invoicing / billing, accounts payable, bank reconciliation and bookkeeping

Selected Recent Growth Equity / Venture Capital Activity (cont’d)

35


Feb-12 Outsourced

Solutions $12mm

PlanSource provides SaaS-based outsourced solutions including payroll, benefits administration, decision support and HRMS technology

PlanSource unites brokers, insurance providers, employers and employees by unifying HR data, managing HR transactions and educating employees


Veracity Payment Solutions is a provider of credit card, debit card and ACH processing solutions

The Company employs a channel-driven strategy targeting community banks, trade associations and affinity partners

Veracity annually processes over one billion dollars in transaction volume for more than 10,000 businesses

Feb-12 Payments / Marketing Services

$10mm

CardSpring provides an interface that lets developers add coupons, loyalty programs and digital receipts to payment cards

The interface eliminates the need for business specific mobile device applications


$10mm

MOGL offers customer loyalty rewards programs for restaurants

MOGL’s secure technology platform tracks credit and debit card transactions and activity so that consumers earn rewards without the need for presenting coupons or membership cards

The platform leverages game mechanics and human psychology to offer multiple incentives that motivate consumers to repeatedly return to member restaurant venues

Jan-12 Payments / Marketing Services

$40mm

TrialPay's transaction advertising platform for online merchants places targeted promotions around purchase transactions

TrialPay works with leading companies across many industries, including software, social apps, retail, online services and more

Over the past five years, the Company has provided more than 150 million users with compelling payment options at more than 10,000 sites including Facebook, Gap, Trend Micro and Fandango

Jan-12 Payments / Information

Services $11mm

Vodafone Ventures invested $11.3mm in Finsphere, a provider of identity analytics technology

Finsphere’s technology enables wireless carriers to protect their customers through identity authentication services

Finsphere also provides a platform for the development of non-intrusive, privacy enhancing services to protect individuals and data across all industry segments


http://www.undertheradarblog.com/wp-content/uploads/2011/09/1297909210_visa.jpeg

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Jan-12

Investment Technology/ Information

Services

$12mm

HelloWallet is a provider of personalized financial guidance

The company has sold more than 300,000 subscriptions since it launched its enterprise application in mid-2011, and is now working with some of the largest companies in the country

During this same period, HelloWallet’s personalized financial guidance has helped its average members increase their monthly savings contributions by more than 80%, creating about $350 in extra savings contributions every month per person

Jan-12 Payments $6mm

Recurly, Inc. provides enterprise-class recurring billing management for subscription-based SaaS, Web 2.0, Mobile, content and publishing businesses worldwide

Businesses like Fox News Radio, JibJab Media and Weather Underground depend on Recurly’s ability to deliver recurring billing automation that is set up in days, and offered as a month-to-month service, without setup fees or contractual commitments

Since it’s launch in January of 2010, Recurly has deployed subscription billing for over six hundred companies throughout North America and the European Union

Jan-12 Bank Technology $23mm

ZestCash is a provider of online payday loans

The company takes an entirely different approach to underwriting by combining machine learning techniques and data analysis, coupled with traditional credit scoring

As a result, the company can offer credit to many people who historically would have been turned away

The new funding will be used towards further innovations in underwriting, expansion into additional states and company growth

Jan-12 Insurance

Technology NA

iPipeline provides a suite of sales distribution software to the insurance and financial services markets through its on-demand service

iPipeline's channel solutions for carriers, distributors, and producers automate activities for CRM, forms distribution and processing, quotes and illustrations, in Good Order e-Applications, agency management, data services, policy delivery and related services, enabling the insurance industry to market, sell, and process faster

iPipeline’s on-demand platform is accessed by a customer network of 120 carriers, 1,200 distributors, and 400,000 financial professionals and advisors

Jan-12 Marketing Services

NA

Plastic Jungle operates as an online gift card marketplace

Plastic Jungle allows people to sell unredeemed gift cards for up to 92 percent of the gift card value, or purchase gift cards at a significant discount

The Company exchange hundred of thousands of gift cards for over 400 brands in 2011


37

Selected Recent Growth Equity / Venture Capital Activity (cont’d) Announced Date Investor(s) Target Sector Investment Size Comments

Dec-11 Information

Services $108mm

Mu Sigma is a pure-play provider of analytics and decision support services for global enterprise customers

The company provides clients with a competitive edge by helping them institutionalize decision support and analytics within their organizations in a sustainable manner using a global delivery model

This investment follows a $25mm financing round in April 2011

Dec-11 Information

Services $2mm

Space Curve is a Seattle-based developer of a real-time analytics platform for big data

The company’s platform provides for enhanced analysis and scrutiny of massive forms of data for consumer and business needs


Bill.com is an on-demand accounts payable and accounts receivable application for businesses of all sizes and has a tailored product for accountants and bookkeepers

The company will use the additional capital to scale operations in support of continued customer growth and for product development and marketing purposes


Klarna offers secure payment solutions to e-stores in Europe

At the core of Klarna’s services is the concept of after delivery payment, which lets buyers receive ordered goods before any payment is due

At the same time, Klarna assumes all credit and fraud risk for e-stores so that sellers can rest assured that they will always receive their money

Today, Klarna’s payment solutions are integrated by more than 14,000 online shops in Sweden, Norway, Denmark, Finland, Germany and the Netherlands

Financial Partners

38

Selected Recent Public Equity Activity

One-Day/ One-Week / Feb. 29, 2012 / Pricing Date

Company Sector Offer Type Offering Size Offer Price Offer Price

Feb-12 Trading Technology Follow-On $110 MM $30.50 9.7% 8.6% 8.6%

Feb-12 Liquidity Venues IPO $72 MM $12.00 14.5% 12.0% 12.8%

Jan-12 Insurance Technology IPO $115 MM $13.00 31.7% 38.7% 74.0%

Dec-11 Information Services Follow-On $219 MM $17.50 9.8% 7.7% 36.2%

Nov-11 Payments Follow-On $150 MM $16.25 0.0% 4.0% 10.3%

Sept-11 Outsourced Solutions Follow-On $92 MM $23.00 (0.9)% (1.1)% 21.0%

Jul-11 Information Services IPO $500 MM $15.00 2.3% 2.0% 58.9%

May-11 Information Services Follow-On $259 MM $60.00 4.6% 0.4% 0.0%

Apr-11 Information Services IPO $51 MM $6.00 12.8% 19.0% 39.2%

Feb-11 Investment Technology Follow-On $194 MM $17.60 8.0% 7.5% 17.7%

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Selected Recent Debt Financings

Source: SNL Financial.

A credit rating of a security is not a recommendation to buy, sell or hold securities and may be subject to review, revisions, suspension, reduction or withdrawal at any time by the assigning rating agency.

Ratings

Announced Date

Company Sector Purpose Moody’s S&P Size Coupon

Dec-11 Bank Technology Refinancing Ba1 BB $150 MM 7.625%

Dec-11 Information Services General Corporate Ba1 BBB- $250 MM Floating

Nov-11 Liquidity Venue Refinancing NA NA $200 MM 4.13%

Nov-11 Liquidity Venue Refinancing NA NA $200 MM 4.69%

Oct-11 Payments Acquisition B2 B $400 MM 10.25%

Aug-11 Payments General Corporate NA A- $400 MM 3.65%

Jul-11 Information Services LBO B2 B+ $205 MM L + 600

Jul-11 Information Services LBO NA B+ $150 MM L + 650

Jul-11 Information Services Refinancing Caa1 B- $700 MM 10.25%

Jul-11 Bank Technology Refinancing Baa3 BBB $1.3 BN

RC: L + 225

TLA: L + 350

TLB: L + 325-350

Jun-11 Payments Acquisition NA NA $900 MM L + 175

Jun-11 Bank Technology Refinancing Baa2 BBB- $600 MM L + 155

Jun-11 Bank Technology General Corporate Baa2 BBB- $400MM L + 180

Jun-11 Payments Dividend / Recapitalization B2 BB- $200 MM L + 475

Jun -11 Trading Technology Acquisition NA NA $320 MM L + 600

Jun-11 Bank Technology Acquisition NA NA $575 MM L + 500

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Economy & Finance

Financial Technology Market Analysis - March 2012