What happened in Tech M&A during the first quarter of 2019? How has the rapid market recovery impacted valuations? Are private equity deals still soaring? Who are the new buyers making waves? Listen in as Corum Group gives the most in-depth look available at Q1 of 2019 for mergers and across all six technology sectors and 30 subsectors. Plus, we’ll get a special report on succession planning for tech company owners and executives, and a report from a special series of M&A conferences across Europe.

1. Q1:2019
Global Tech M&A Report
Tech M&A Monthly
April 11, 2019
Thoughts? Questions? Let us know!
@CorumGroup

2. 2
WELCOME
BRUCE MILNE, CEO, CORUM GROUP LTD.
▪ Founded or owned four software companies, including AMI, an Inc.
500 firm rated by IDC as the fastest growing computer-related
company in the world
▪ Advisory boards for Microsoft, IBM, DEC, Comdex and Apple
▪ Board member/founding investor in some of the most innovative
firms in their field, including Blue Coat, Bright Star and Sabaki
▪ Past advisor to two governors and a senator, a board member of the
Washington Technology Center
▪ Founder of the WTIA, the nation’s most active regional technology
trade association
▪ Worked with the Canadian government to found SoftWorld
▪ One of the 200 most influential individuals in the IT community in
Europe
▪ American juror for the recent Tornado 100 Awards given to Europe’s
top technology firms
▪ Graduate with Distinction from Harvard Business School

3. 3
MODERATOR
TANYA FROEHLICH, DIRECTOR, EUROPEAN OPERATIONS,
CORUM GROUP Intl. S.á.r.l.
▪ 13 years Tech M&A experience
▪ Based in Zurich, Switzerland, works closely with the European team
▪ Oversees the European marketing efforts, corporate planning &
strategy, recruitment and team integration.
▪ Prior to joining Corum, was the Export Sales Manager for a leading
Asian food and beverage manufacturing & exporting company based in
Thailand
▪ Led the sales team whilst managing key client accounts globally,
coordinated international shipments and ensured that all orders
complied to international food standards.
▪ Spent five years in hospitality management with Marriott
International, US; was a member of their “Committee of Excellence”.
▪ Holds an MBA and speaks English, German and Thai.

4. 4
Welcome
Field Report: European M&A Events
Field Report: WFS Seattle
Q1 2019 Tech M&A Research Report
Special Report: Succession Planning
Q&A
AGENDA

5. 5
EUROPEAN M&A EVENTS
JON SCOTT, CHAIRMAN, CORUM GROUP LTD.
▪ Executive leader with 30+ years of expertise in serving high
technology companies
▪ President and CEO of The PowerTech Group
▪ President and CEO of Microserv Technology Services
▪ President and COO of Traveling Software
▪ Vice president roles in sales, marketing and business
development for technology companies
▪ Background includes strong ability to successfully integrate
strategies and tactics into well executed operating plans,
building strong teams and achieving excellent results
▪ Holds a BA in business from San Francisco State University

6. 6
EUROPEAN M&A EVENTS

7. 7
SPECIAL REPORT: WFS SEATTLE
STEVE JONES, CORPORATE VICE PRESIDENT, CORUM GROUP LTD
 25+ years of experience in high-tech industries
 Founder CEO of Solera Networks
 Co-Founder of Auction Trust Network sold to MediaForge
 Board Member of several software companies
 Expertise in infrastructure, security, mobile and wireless, media
and entertainment, supply chain and embedded
devices/systems (IoT)

8. 8
SPECIAL REPORT: WFS SEATTLE

9. 9
Matt Rung
Director
World Financial
Symposiums

10. 10
CORUM RESEARCH REPORT
Anna Lebedieva
Analyst
Julian Valencia
Marketing Research
Analyst
Artem Mamaiev
Senior Analyst
Nina Seghatoleslami
VP, Client Services
Barbara Momboeuf
Marketing Assistant, EMEA
Andrei Minets
Analyst
Andy Hill
Regional Director,
Australia

11. 11
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
Daily Percentage Change
S&P TECH Dow Jones NASDAQ All-time high
USA Q1
S&P Tech 21%
NASDAQ 16%
Dow Jones 11%
Europe Q1
CAC 40 13%
DAX 9%
FTSE 100 8%
PUBLIC MARKETS 2018 - 2019
Asia Q1
HANG SENG 12%
SSE Composite 24%
Nikkei 6%

12. 12
0%
100%
200%
300%
400%
500%
600%
700%
Daily Percentage Change
NASDAQ S&P TECH Dow Jones
2009 2011 2013 2015 2017 2019
PUBLIC MARKETS:
2009-PRESENT
2019

13. 13
Market
Transactions
Q1:2019Q1:2018
810 832
Mega Deals 17 15
Largest Deal $17B $35B
Pipeline
Private Equity
Platform Deals
99 105
VC-Backed Exits 175134
Attributes
39%
Cross Border
Transactions 39%
Start-Up
Acquisitions 11%13%
18 yrs18 yrs
Average Life
of Target
Q1:2018 Q1:2019
Q1:2018 Q1:2019
CORUM INDEX
TECH M&A
6%
31%
3%
112%
12%

14. 14
2019 MEGA DEALS – YTD
Thoughts? Questions? Let us know!
@CorumGroup
$2.0B $21B$6.4B $68B
$6.4B
$4.2B
$1.0BTelematics
business
$3.7B
$3.4B
$22B
$11BPE consortium
CONSUMER VERTICALINTERNET HORIZONTALIT SERVICES
$4.6B
$2.0B
$1.5B
INFRASTRUCTURE
$7.8B
$3.1B
$1.0B
$6.8B
$1.3B
$7.0B $35B

15. 15
2019 MEGA DEALS – YTD
Thoughts? Questions? Let us know!
@CorumGroup
$2.0B $21B$6.4B $68B
$6.4B
$4.2B
$1.0BTelematics
business
$3.7B
$3.4B
$22B
$11BPE consortium
CONSUMER VERTICALINTERNET HORIZONTALIT SERVICES
$4.6B
$2.0B
$1.5B
INFRASTRUCTURE
$7.8B
$3.1B
$1.0B
$6.8B
$1.3B
$7.0B $35B
SOLD TO
Seller: Luxoft Holding [Switzerland]
Acquirer: DXC Technology [USA]
Transaction Value: $2.0B (2.1x EV/Sales and 13.7x EV/EBITDA)
- Outsourced software development services

16. 16
2019 MEGA DEALS – YTD
Thoughts? Questions? Let us know!
@CorumGroup
$2.0B $21B$6.4B $68B
$6.4B
$4.2B
$1.0BTelematics
business
$3.7B
$3.4B
$22B
$11BPE consortium
CONSUMER VERTICALINTERNET HORIZONTALIT SERVICES
$4.6B
$2.0B
$1.5B
INFRASTRUCTURE
$7.8B
$3.1B
$1.0B
$6.8B
$1.3B
$7.0B $35B
SOLD TO
Seller: Careem [UAE]
Acquirer: Uber Technologies [USA]
Transaction Value: $3.1B
- Ride-sharing mobile app

17. 17
2019 MEGA DEALS – YTD
Thoughts? Questions? Let us know!
@CorumGroup
$2.0B $21B$6.4B $68B
$6.4B
$4.2B
$1.0BTelematics
business
$3.7B
$3.4B
$22B
$11BPE consortium
CONSUMER VERTICALINTERNET HORIZONTALIT SERVICES
$4.6B
$2.0B
$1.5B
INFRASTRUCTURE
$7.8B
$3.1B
$1.0B
$6.8B
$1.3B
$7.0B $35B
SOLD TO
Seller: Scout24 [Germany]
Acquirer: Hellman & Friedman/The Blackstone Group [USA]
Transaction Value: $6.4B
- Real estate, automobile, dating and employment classifieds

18. 18
2019 MEGA DEALS – YTD
Thoughts? Questions? Let us know!
@CorumGroup
$2.0B $21B$6.4B $68B
$6.4B
$4.2B
$1.0BTelematics
business
$3.7B
$3.4B
$22B
$11BPE consortium
CONSUMER VERTICALINTERNET HORIZONTALIT SERVICES
$4.6B
$2.0B
$1.5B
INFRASTRUCTURE
$7.8B
$3.1B
$1.0B
$6.8B
$1.3B
$7.0B $35B
SOLD TO
Seller: QuickBase [Welsh, Carson, Anderson & Stowe] [USA]
Acquirer: Vista Equity Partners Management [USA]
Transaction Value: $1.1B (8.8x EV/Sales and 20x EV/EBITDA)
- Business application development SaaS

19. 19
2019 MEGA DEALS – YTD
Thoughts? Questions? Let us know!
@CorumGroup
$2.0B $21B$6.4B $68B
$6.4B
$4.2B
$1.0BTelematics
business
$3.7B
$3.4B
$22B
$11BPE consortium
CONSUMER VERTICALINTERNET HORIZONTALIT SERVICES
$4.6B
$2.0B
$1.5B
INFRASTRUCTURE
$7.8B
$3.1B
$1.0B
$6.8B
$1.3B
$7.0B $35B
SOLD TO
Seller: eFront [Bridgepoint Capital] [France]
Acquirer: BlackRock [USA]
Transaction Value: $1.3B (9.3x EV/Sales)
- Investment portfolio management software

20. 20
2019 MEGA DEALS – YTD
Thoughts? Questions? Let us know!
@CorumGroup
$2.0B $21B$6.4B $68B
$6.4B
$4.2B
$1.0BTelematics
business
$3.7B
$3.4B
$22B
$11BPE consortium
CONSUMER VERTICALINTERNET HORIZONTALIT SERVICES
$4.6B
$2.0B
$1.5B
INFRASTRUCTURE
$7.8B
$3.1B
$1.0B
$6.8B
$1.3B
$7.0B $35B
SOLD TO
Seller: Worldpay [USA]
Acquirer: Fidelity National Information Services [dba FIS] [USA]
Transaction Value: $35B (10.9x EV/Sales and 16.9x EV/EBITDA)
- Payment processing services
Dynasty MarketplaceDynasty Marketplace

21. 21
2019 MEGA DEALS – YTD
Thoughts? Questions? Let us know!
@CorumGroup
$2.0B $21B$6.4B $68B
$6.4B
$4.2B
$1.0BTelematics
business
$3.7B
$3.4B
$22B
$11BPE consortium
CONSUMER VERTICALINTERNET HORIZONTALIT SERVICES
$4.6B
$2.0B
$1.5B
INFRASTRUCTURE
$7.8B
$3.1B
$1.0B
$6.8B
$1.3B
$7.0B $35B

22. 22
3-YEAR MARKET VALUATION TRENDS
Horizontal Vertical Infrastructure
Consumer Internet IT Services

23. 23
Horizontal Vertical
Consumer
Infrastructure
Internet IT Services
MARKET SECTORS

24. 24
Public Valuation Multiples
HORIZONTAL
SOFTWARE MARKET
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
6.00 x
6.50 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
24.00 x
26.00 x
EV/SEV/EBITDA
Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19
EV/EBITDA 19.25 x 19.18 x 19.65 x 19.73 x 21.01 x 22.35 x 22.46 x 22.16 x 21.72 x 19.26 x 21.54 x 23.03 x 24.28 x
EV/S 4.51 x 4.57 x 4.75 x 4.75 x 5.03 x 5.28 x 5.32 x 5.32 x 4.95 x 4.73 x 5.27 x 5.49 x 5.36 x

25. 25
Subsector Sales EBITDA Examples
Business
Intelligence
4.31x 24.61x
Marketing 4.32x 19.72x
ERP 5.03x 18.48x
Human
Resources
8.49x 39.77x
SCM 6.53x 31.15x
Payments 5.15x 25.78x
Other 3.86x 16.14x
HORIZONTAL
SOFTWARE VALUATIONS

26. 26
Seller Acquirer
Seller
Country
Deal
Value
Month Description
USA - January Electronic bill presentment and payment solutions
USA - January Online payment-processing network
Germany - January Debt management SaaS
Argentina - January Payment technology software
United
Kingdom
$280M February Cross-border payments processing software
USA $750M February Electronic bill presentment and payment solutions
USA - March Multi-currency cross-border payment application
France - March Mobile app for digitizing e-commerce processes
Germany - March
Cashless payment terminals and digital merchant
services
Payment Processing
HORIZONTAL
DEAL SPOTLIGHT
Assets

27. 27
HORIZONTAL
DEAL SPOTLIGHT
Big Data
SOLD TO
SOLD TO
SOLD TO
Target: Infruid Labs [USA]
Acquirer: Pegasystems [USA]
- Business analytics and data visualization solutions
Target: Attunity [USA]
Acquirer: Qlik [Thoma Bravo] [USA]
Transaction Value: $560M (6.4x EV/Sales)
-Big Data management software
Target: Centrifuge Systems [USA]
Acquirer: Culmen International [USA]
- Business intelligence software

28. 28
HORIZONTAL
DEAL SPOTLIGHT
HR - Jobvite
SOLD TO
SOLD TO
SOLD TO
SOLD TO
Seller: Jobvite [USA]
Acquirer: K1 Investment Management [USA]
Transaction Value: $200M (reportedly)
- Online recruitment platform
Seller: Canvas Talent [USA]
Acquirer: Jobvite [K1 Investment Management] [USA]
- Text-based intelligent interviewing platform
Seller: RolePoint [USA]
Acquirer: Jobvite [K1 Investment Management] [USA]
- Employee referral software
Seller: Talemetry [Canada]
Acquirer: Jobvite [K1 Investment Management] [USA]
- Recruitment marketing platform

29. 29
HORIZONTAL
DEAL SPOTLIGHT
HR
SOLD TO
SOLD TO
Seller: Abacus Labs [Italy]
Acquirer: Zucchetti [Italy]
- Diversified HR solutions
Seller: Scheduling+ [USA]
Acquirer: GetSwift [Australia]
- Cloud workforce scheduling and task management software

30. 30
HORIZONTAL
DEAL SPOTLIGHT
Corporate Performance Management
SOLD TO
SOLD TO
Seller: OneStream Software [USA]
Acquirer: KKR [USA]
Transaction Value: $500M (reportedly)
- Corporate performance management platform
Seller: BOARD International [Switzerland]
Acquirer: Nordic Capital [Sweden]
- Performance management and business intelligence application software

31. 31
HORIZONTAL
DEAL SPOTLIGHT
PR, Social Media
SOLD TO
SOLD TO
Seller: TrendKite [USA]
Acquirer: Cision [USA]
Transaction Value: $225M (8.9x EV/Sales)
- Public relations analytics software
Seller: Falcon.io [Denmark]
Acquirer: Cision [USA]
Transaction Value: $125.9M (4.7x EV/Sales)
- Social media and customer experience management platform

32. 32
HORIZONTAL
DEAL SPOTLIGHT
AI Retail – Composite Commerce
SOLD TO
SOLD TO
SOLD TO
SOLD TO
Seller: Aspectiva [Israel]
Acquirer: Walmart [USA]
- AI-powered content analysis platform
Seller: Dynamic Yield [Israel]
Acquirer: McDonalds [USA]
Transaction Value: $300M (reportedly)
- AI-powered personalization platform
Seller: Certona [USA]
Acquirer: Kibo Software [Vista Equity] [USA]
- Omnichannel personalization and revenue optimization platform
Seller: GrokStyle [USA]
Acquirer: Facebook [USA]
- AI and visual search software

33. 33
HORIZONTAL
DEAL SPOTLIGHT
AI-based Semantics
SOLD TO
SOLD TO
Seller: Figure Eight [USA]
Acquirer: Appen [Australia]
Transaction Value: $175M
- Training data AI-based platform
Seller: Leiki [Finland]
Acquirer: DoubleVerify [Providence Equity Partners] [USA]
- AI-enabled semantic segmentation and user profiling platform

34. 34
HORIZONTAL
DEAL SPOTLIGHT
Speech Recognition
SOLD TO
SOLD TO
Seller: Vocalize.ai [USA]
Acquirer: Sensory [USA]
- AI-based speech recognition software tools
Seller: PullString [USA]
Acquirer: Apple [USA]
- AI-based voice recognition platform

35. 35
HORIZONTAL
DEAL SPOTLIGHT
Chatbots
SOLD TO
SOLD TO
Seller: Assist Megacorp [USA]
Acquirer: Conversocial [USA]
- Messaging platform for businesses
Seller: CrunchBot [USA]
Acquirer: [Qlik] [Thoma Bravo] [USA]
- AI-powered data analyst chatbot

36. 36
HORIZONTAL
DEAL SPOTLIGHT
RegTech
SOLD TO
SOLD TO
Seller: Visual Compliance [Canada]
Acquirer: Descartes Systems Group [Canada]
Transaction Value: $250M
- Global trade compliance software
Seller: BWise [NASDAQ] [Netherlands]
Acquirer: SAI Global [Australia]
- Governance, risk and compliance (GRC) management software

37. 37
VERTICAL
SOFTWARE MARKET
Public Valuation Multiples
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/SEV/EBITDA
Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19
EV/EBITDA 18.31 x 19.29 x 20.25 x 20.62 x 20.46 x 20.48 x 19.93 x 18.05 x 18.95 x 18.79 x 19.76 x 20.44 x 21.45 x
EV/S 4.67 x 4.50 x 4.72 x 4.76 x 4.74 x 4.96 x 4.97 x 4.36 x 4.48 x 4.02 x 4.49 x 4.81 x 5.07 x

38. 38
Subsector Sales EBITDA Examples
A/E/C 9.09x 33.99x
Automotive 4.36x 22.75x
Energy &
Environment
2.31x 11.64x
Financial
Services
6.69x 21.85x
Government 1.95x 13.22x
Healthcare 2.72x 25.68x
Real Estate 4.77x 23.54x
Vertical Other 3.29x 15.62x
VERTICAL
SOFTWARE VALUATIONS

39. 39
VERTICAL
DEAL SPOTLIGHT
Financial Services
SOLD TO
SOLD TO
SOLD TO
SOLD TO
Target: PIEtech [USA]
Acquirer: Envestnet [USA]
Transaction Value: $500M
- Financial planning software
Target: Innovizant [USA]
Acquirer: R Systems Internation [India]
Transaction Value: $4M
- Business analytical software solutions
Target: List [Italy]
Acquirer: TA Associates [USA]
- Software solutions in mission critical sectors and risk management systems
Target: Abe AI [USA]
Acquirer: Yodlee [Envestnet] [USA]
- AI-enabled conversational platform for financial institutions

40. 40
VERTICAL
DEAL SPOTLIGHT
Healthcare
Seller Acquirer
Seller
Location
Deal
Value
Month Description
USA, TX - January
Inventory supply chain management applications and
solutions
USA, AL - January CRM software solutions for hospitals
USA, CA - January
Clinical laboratory operations and patient blood
management
USA, WI - January Decision-making software
USA, CT - January Document management control software
USA, PA - January Web-based enterprise analytics platform
USA, TX February
Electronic health records, virtual care and
business intelligence solutions
Netherlands - February Healthcare analytical tool and software
India $10M March
Patient-centric, digital health information management
software

41. 41
VERTICAL
DEAL SPOTLIGHT
Education
Seller Acquirer
Seller
Country
Acquirer
Country
Month Description
India Singapore January Cloud-based deep learning platform
USA USA February SaaS-based data analytics platform
Australia USA February
Student placement
management software
Australia USA March Web-based educational software solution
United
Kingdom
Singapore March Curriculum mapping, assessment platform
USA USA March Web-based writing assessment toolkit
USA USA March Web-based applications for education
DataSense data
integration assets

42. 42
VERTICAL
DEAL SPOTLIGHT
Real Estate
SOLD TO
SOLD TO
SOLD TO
Target: Dynasty Marketplace [USA]
Acquirer: AppFolio [USA]
Transaction Value: $60M
- AI based software for real estate
Target: BoldLeads.com [USA]
Acquirer: Propertybase [Boston Logic Technology Partners
[Providence Equity Partners]] [USA]
-Online platform, which connect real estate's buyer and seller
Target: in4mo [USA]
Acquirer: Solera Holdings [Vista Equity Partners] [USA]
- Mobile multimedia reporting platform

43. 43
CONSUMER
SOFTWARE MARKET
Public Valuation Multiples
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19
EV/EBITDA 19.04 x 17.90 x 16.90 x 17.76 x 17.72 x 17.35 x 19.07 x 16.25 x 15.86 x 15.92 x 16.76 x 14.42 x 16.27 x
EV/S 4.04 x 3.56 x 3.30 x 3.21 x 3.08 x 3.12 x 3.22 x 2.84 x 2.89 x 3.05 x 3.22 x 3.08 x 3.14 x

44. 44
Subsector Sales EBITDA Examples
Casual Gaming 3.01x 26.26x
Core Gaming 3.25x 14.28x
Other 3.89x N/A
CONSUMER
SOFTWARE VALUATIONS

45. 45
CONSUMER
DEAL SPOTLIGHT
Video Gaming
SOLD TO
Seller: Warhorse Studios [Czech Republic]
Acquirer: Koch Media [THQ Nordic] [Germany]
Transaction Value: $48.37M (1.2x EV/EBITDA)
- Action role-playing historic games
Seller: Flying Wild Hog [Poland]
Acquirer: Supernova Capital [United Kingdom]
- Video game developer & publisher
SOLD TO
Seller: 18POINT2 [Australia]
Acquirer: Koch Media [THQ Nordic] [Germany]
Transaction Value: $2.73M
- Entertainment game products
SOLD TO

46. 46
CONSUMER
DEAL SPOTLIGHT
Gaming and Betting
SOLD TO
Seller: Dedsert [dba BetBright] [Ireland]
Acquirer: 888 Holdings
Transaction Value: $19.8M
- Mobile gaming platform
Seller: JPJ Group (online bingo assets) [United Kingdom]
Acquirer: 888 Holdings
Transaction Value: $23.2M
- Bingo online gaming
Seller: Adjarabet [City Loft] [Georgia]
Acquirer: Paddy Power Betfair
Transaction Value: $132.3M (1.7x EV/Sales and 5.2x EV/EBITDA)
- Peer-to-peer betting platform
SOLD TO
SOLD TO
Online Bingo assets

47. 47
CONSUMER
DEAL SPOTLIGHT
Game Development
SOLD TO
SOLD TO
SOLD TO
SOLD TO
Seller: Audiokinetic [Canada]
Acquirer: Sony Corporation [Japan]
- Audio software toolset for gaming industry
Seller: Allegorithmic [France]
Acquirer: Adobe [USA]
Transaction Value: $105M
- AI-powered personalization platform
Seller: Graphine Software [Belgium]
Acquirer: Unity Technologies [USA]
- Texture streaming and compression middleware for gaming industry
Seller: Vivox [USA]
Acquirer: Unity Technologies [USA]
- Gaming voice-and-text chat technology

48. 48
CONSUMER
DEAL SPOTLIGHT
Spotify Acquisitions
SOLD TO
Seller: Gimlet Media [USA]
Acquirer: Spotify [Sweden]
Transaction Value: $230M
- Digital media network platform
Seller: Anchor FM [USA]
Acquirer: Spotify [Sweden]
- Radio-based application
Seller: Parcast [USA]
Acquirer: Spotify [Sweden]
- Online storytelling podcast network
SOLD TO
SOLD TO

49. 49
CONSUMER
DEAL SPOTLIGHT
Apple
SOLD TO
Seller: Laserlike [USA]
Acquirer: Apple [USA]
- Online content search engine platform
- Strengthens Apple’s position on artificial intelligence market

50. 50
Public Valuation Multiples
INTERNET
SOFTWARE MARKET
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
24.00 x
26.00 x
EV/SEV/EBITDA
Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19
EV/EBITDA 18.16 x 21.77 x 21.09 x 22.44 x 22.28 x 18.84 x 18.61 x 16.55 x 16.88 x 15.26 x 15.37 x 16.66 x 16.10 x
EV/S 4.84 x 4.37 x 4.26 x 4.11 x 4.09 x 4.58 x 4.47 x 3.85 x 3.71 x 3.36 x 3.69 x 3.51 x 3.57 x

51. 51
Subsector Sales EBITDA Examples
Diversified
Internet
3.89x 17.61x
eCommerce 0.63x 12.75x
Social Network 7.12x 14.89x
Travel & Leisure 5.57x 23.47x
INTERNET
SOFTWARE VALUATIONS

52. 52
INTERNET
DEAL SPOTLIGHT
Food Delivery
SOLD TO
SOLD TO
Seller: Zomato (UAE-based food delivery business) [India]
Acquirer: Delivery Hero [Germany]
Transaction Value: $172M
- Expands Middle East and North Africa business with 1.2m monthly orders
Seller: Veggie India [India]
Acquirer: Milkbasket [India]
- Grows customer base to over 100,000 households

53. 53
INTERNET
DEAL SPOTLIGHT
Travel & Leisure
SOLD TO
SOLD TO
SOLD TO
SOLD TO
Seller: HotelTonight [USA]
Acquirer: Airbnb [USA]
- Last-minute hotel booking app
Seller: Pocket Concierge [Japan]
Acquirer: American Express [USA]
- AI-powered personalization platform
Seller: Yatra.com [India]
Acquirer: Ebix [USA]
Transaction revenue: $336M (2x EV/Sales)
- Online travel portal
Seller: LoungeBuddy [USA]
Acquirer: American Express
- Airport Lounge Access platform

54. 54
INTERNET
DEAL SPOTLIGHT
Urban Route Planning
SOLD TO
Seller: UbiGo Innovation [Sweden]
Acquirer: Via ID [France]
- Swedish mobility-as-a-service provider
- Enables users to automate usage of public transport, taxi, car-
sharing, rental car, and bike-sharing

55. 55
INFRASTRUCTURE
SOFTWARE MARKET
Public Valuation Multiples
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19
EV/EBITDA 15.90 x 16.39 x 17.13 x 16.92 x 17.06 x 17.75 x 17.67 x 17.75 x 16.45 x 15.27 x 18.14 x 19.39 x 19.39 x
EV/S 4.84 x 5.02 x 4.98 x 4.87 x 4.80 x 4.78 x 4.88 x 5.01 x 4.43 x 4.57 x 4.23 x 4.20 x 4.63 x

56. 56
Subsector Sales EBITDA Examples
Application
Lifecycle
7.37x 14.77x
Endpoint 3.42x 17.96x
IT Services
Management
9.05x 35.80x
Network
Management
4.39x 13.37x
Security 7.66x 44.20x
Storage
& Hosting
3.52x 33.60x
Other 4.19x 11.90x
INFRASTRUCTURE
SOFTWARE VALUATIONS

57. 57
Security
INFRASTRUCTURE
DEAL SPOTLIGHT
SOLD TO
SOLD TO
SOLD TO
SOLD TO
Seller: WhiteHat Security [USA]
Acquirer: NTT Security [NTT Group] [Japan]
- Risk management platform
Seller: ForceNock Security [Israel]
Acquirer: Check Point Software Technologies [USA]
- Autonomous web application security solution
Seller: BluVector [LLR Partners] [USA]
Acquirer: Comcast [USA]
- Cyber-threat detection and hunting platform
Seller: ProtectWise [USA]
Acquirer: Verizon Communications [USA]
- Enterprise network security platform

58. 58
INFRASTRUCTURE
DEAL SPOTLIGHT
Identity and Access Management
SOLD TO
SOLD TO
Seller: Inventia [Italy]
Acquirer: CRIF [Italy]
- Web-collaboration and online identification
Seller: Janrain [USA]
Acquirer: Akamai Technologies [USA]
Transaction Value: $125M (5x EV/Sales)
- Customer identity and access management solutions

59. 59
Network Performance Management
INFRASTRUCTURE
DEAL SPOTLIGHT
SOLD TO
SOLD TO
SOLD TO
Seller: Mist Systems [USA]
Acquirer: Juniper Networks [USA]
Transaction Value: $405M
- AI-driven wireless platform
Seller: Outlyer [USA]
Acquirer: Bitrise [United Kingdom]
- Cloud-based infrastructure monitoring platform
Seller: Singularity Networks [USA]
Acquirer: Cisco Systems [USA]
- Real-time network analytics platform

60. 60
Cloud Integration
INFRASTRUCTURE
DEAL SPOTLIGHT
SOLD TO
Seller: Azuqua [USA]
Acquirer: Okta [USA]
Transaction Value: $52.5M
- Cloud application integration SaaS
- Okta’s largest acquisition to date

61. 61
Project and Portfolio Management
INFRASTRUCTURE
DEAL SPOTLIGHT
SOLD TO
Seller: AgileCraft [USA]
Acquirer: Atlassian [Australia]
Transaction Value: $166M
- AI-enabled project and portfolio management SaaS
- Adds more value to Atlassian’s enterprise agile planning

62. 62
IT SERVICES
DEVELOPED MARKETS
Public Valuation Multiples
0.40 x
0.60 x
0.80 x
1.00 x
1.20 x
1.40 x
1.60 x
5.00 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
EV/SEV/EBITDA
Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19
EV/EBITDA 12.15 x 12.31 x 12.16 x 11.94 x 12.90 x 12.87 x 12.88 x 11.02 x 11.26 x 10.04 x 11.00 x 11.16 x 11.42 x
EV/S 1.34 x 1.38 x 1.32 x 1.18 x 1.31 x 1.34 x 1.32 x 1.22 x 1.19 x 1.04 x 1.12 x 1.20 x 1.32 x

63. 63
IT SERVICES
EMERGING MARKETS
Public Valuation Multiples
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
5.00 x
7.00 x
9.00 x
11.00 x
13.00 x
15.00 x
17.00 x
19.00 x
21.00 x
23.00 x
EV/SEV/EBITDA
Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19
EV/EBITDA 22.02 x 21.30 x 20.22 x 22.01 x 20.61 x 22.04 x 21.93 x 19.64 x 18.51 x 16.72 x 17.87 x 18.62 x 19.09 x
EV/S 3.20 x 3.22 x 3.27 x 3.44 x 3.61 x 3.70 x 3.66 x 3.26 x 3.36 x 3.23 x 3.66 x 3.58 x 3.71 x

64. 64
IT SERVICES
DEAL SPOTLIGHT
Focused Systems Integrators
SOLD TO
Seller: Converging Data [Australia]
Acquirer: Deloitte Australia [Deloitte] [Australia]
- Risk and cybersecurity consulting services for Splunk users
SOLD TO
Seller: Enterprise System Partners [Ireland]
Acquirer: Accenture [Ireland]
- Life sciences solutions and services

65. 65
IT SERVICES
DEAL SPOTLIGHT
Focused Systems Integrators
SOLD TO
SOLD TO
SOLD TO
Target: Ruletronics [United Kingdom]
Acquirer: Larsen & Toubro Infotech [India]
Transaction Value: $7.5M
- Pega-based IT consulting services
Target: Zybertech [Canada]
Acquirer: Hyphen Solutions [USA]
- Sage value-added construction and real estate services
Target: NIELSEN + PARTNER [Germany]
Acquirer: Larsen & Toubro Infotech [India]
Transaction Value: $31.5M
- IT consulting for retail banking and wealth management

66. 66
IT SERVICES
DEAL SPOTLIGHT
Microsoft Systems Integrators
Seller Acquirer
Seller
Country
Acquirer
Country
Month Description
Australia Australia January Microsoft Dynamics-based SI
United
Kingdom
Ireland January
Microsoft Gold Partner; systems integration and
managed services
USA USA January Microsoft-based engineering services
Netherlands Netherlands January Microsoft Dynamics CRM-based solutions
USA USA January
Microsoft Azure-based cloud migration &
enablement

67. 67
IT SERVICES
DEAL SPOTLIGHT
AI Software Development
SOLD TO
SOLD TO
Seller: Peachtree AI [USA]
Acquirer: Search Discovery [USA]
- Consulting services in machine learning and artificial intelligence
Seller: Ividata Group [France]
Acquirer: Keensight Capital/ ISAI Gestion [France]
- Consulting services in data science, data privacy and artificial intelligence

68. 68
IT SERVICES
DEAL SPOTLIGHT
Government Services
SOLD TO
SOLD TO
SOLD TO
SOLD TO
Target: Applied Technology Group [USA]
Acquirer: Applied Insight [Acacia Group] [USA]
- Actionable intelligence to government customers
Target: Stratus Solutions [USA]
Acquirer: Applied Insight [Acacia Group] [USA]
- Cloud-at-scale solutions for governement
Target: LGS Innovations [Madison Dearborn Partners / CoVant] [USA]
Acquirer: CACI International [USA]
Transaction Value: $750M
- Network services for government organizations
Target: OGSystems [General Catalyst Partners] [USA]
Acquirer: Parsons Corp. [USA]
- Geospatial intelligence and big data analytics services

69. 69
CORUM RESEARCH REPORT
Anna Lebedieva
Analyst
Julian Valencia
Marketing Research
Analyst
Artem Mamaiev
Senior Analyst
Nina Seghatoleslami
VP, Client Services
Barbara Momboef
Marketing Assistant, EMEA
Andrei Minets
Analyst
Andy Hill
Regional Director,
Australia

70. 70
Special Report:
Succession Planning

71. 71
PRESENTED BY
BRUCE MILNE, CEO, CORUM GROUP LTD.
▪ Founded or owned four software companies, including AMI, an Inc.
500 firm rated by IDC as the fastest growing computer-related
company in the world
▪ Advisory boards for Microsoft, IBM, DEC, Comdex and Apple
▪ Board member/founding investor in some of the most innovative
firms in their field, including Blue Coat, Bright Star and Sabaki
▪ Past advisor to two governors and a senator, a board member of the
Washington Technology Center
▪ Founder of the WTIA, the nation’s most active regional technology
trade association
▪ Worked with the Canadian government to found SoftWorld
▪ One of the 200 most influential individuals in the IT community in
Europe
▪ American juror for the recent Tornado 100 Awards given to Europe’s
top technology firms
▪ Graduate with Distinction from Harvard Business School

72. 72
What do you do when
all of your wealth is
tied up in a technology
company?

73. 73
What is your
succession plan?

74. 74
SUCCESSION PLANNING
Traditional Succession Options
1. Family – Children take over
2. Employee Ownership – ESOP
3. Management Buyout – MBO
4. Merger Partner – M&A

75. 75
“The boss is retiring. The kids don't want to take over…”
(Source: Chicago Tribune January 17, 2019)
SUCCESSION PLANNING

76. 76

77. 77

78. 78
ESOPs & MBOs
Not used in tech:
- Valuations are too high
- Very complex to execute
- Bank financing unavailable
SUCCESSION PLANNING

79. 79
Merger Partner
SUCCESSION PLANNING
- Strategic Buyer
- Financial Recapitalization

80. 80
Record M&A Activity
- In Every Market
- Even Smaller Companies
- In All Geographies
SUCCESSION PLANNING

81. 81
1995 2000 2005 2010 2015
M&A FOLLOWS CYCLES

82. 82
(Source: CNN)
SUCCESSION PLANNING

83. 83
18 Months After Crash
- 40% Drop in Valuation
- 50% of Buyers Leave
SUCCESSION PLANNING

84. 84
SUCCESSION PLANNING

85. 85
Congress discussing new tax
proposals:
 70% top tax rate
 70% inheritance tax
 2% tax on holdings
SUCCESSION PLANNING

86. 86
What are you
waiting for?

87. 87
What is your
succession plan?

88. 88
 Use Q&A chat box on your screen
 Submit to queue at any time
Q&A
We welcome your questions!

89. 89
UPCOMING CONFERENCE SCHEDULE
www.corumgroup.com/events
SELLING UP, SELLING OUT
Apr. 17 Los Angeles
Apr. 24 Kelowna, BC
Apr. 30 Columbus
May 14 Boston
May 22 St. Louis
MERGE BRIEFING
Apr. 12 Budapest
Apr. 16 Amsterdam
Apr. 18 Fort Worth
Apr. 24 Helsinki
Apr. 25 Minneapolis
Apr. 25 Salt Lake City
May 3 Phoenix
May 8 Albany
90-minute industry update
and overview of the M&A
process
Half-day tech M&A
bootcamp – a deep dive on
selling your company

90. 90
After the Deal – Celebration

91. 91
www.corumgroup.com