TMT 4q 2015 Software Reader PDF

TECHNOLOGY, MEDIA, & TELECOM
QUARTERLY SOFTWARE SECTOR REVIEW 4Q 2015
www.harriswilliams.com
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is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

HARRIS WILLIAMS & CO. OVERVIEW

CONTENTS
DEAL SPOTLIGHT
M&A TRANSACTIONS 4Q 2015
SOFTWARE M&A ACTIVITY
SOFTWARE SECTOR OVERVIEWS
HARRIS WILLIAMS & CO. (HW&CO.) GLOBAL ADVISORY PLATFORM
KEY FACTS
25 year history with over 700

closed transactions since
inception
Approximately 250
professionals across seven
offices in the U.S. and
Europe
Strategic relationships in
India and China
10 industry groups
SOFTWARE PRIVATE PLACEMENTS

OVERVIEW
SOFTWARE PUBLIC COMPARABLES

OVERVIEW
TECHNOLOGY IPO OVERVIEW

DEBT MARKET OVERVIEW
APPENDIX: PUBLIC COMPARABLES DETAIL
TMT CONTACTS
HW&Co. Office
Network Office
HW&CO. TECHNOLOGY, MEDIA & TELECOM (TMT) GROUP FOCUS AREAS
UNITED STATES
Jeff Bistrong
Managing Director
jbistrong@harriswilliams.com
SOFTWARE / SAAS
Sam Hendler
Managing Director
shendler@harriswilliams.com
Application Software
Data and Analytics
Infrastructure Software
INTERNET & DIGITAL MEDIA
IT and Tech-Enabled
Services
AdTech and Marketing

Solutions
Telecom and Data Center

Solutions
Consumer Internet
Digital Media, Content, and

Gaming
eCommerce
Public Sector
Mobile
EUROPE
Thierry Monjauze
Managing Director
tmonjauze@harriswilliams.com
TMT VERTICAL FOCUS AREAS
Education Technology
Energy Technology
Financial Technology
Healthcare IT
Mike Wilkins
Managing Director
mwilkins@harriswilliams.com
Supply Chain / Logistics
TO SUBSCRIBE PLEASE EMAIL:

*tmt_reader@harriswilliams.com
SELECT 2016 AND 2015 HW&CO. TMT TRANSACTIONS

Baarsma B2C trades as:
has been acquired by
has been
recapitalized by
has acquired a
majority interest in
PAGE | 1

DEAL SPOTLIGHT INVENTUS

HW&Co.s TMT Group continues its strong momentum in the legal technology sector, advising
Clearlake Capital and management on the announced sale of Inventus to RPX Corporation
(NasdaqGS: RPXC).
RPX Corporation views Inventus as a natural extension of the firms expertise in

mitigating patent risk and lowering legal costs for clients.
This transformative acquisition expands RPXs total addressable market and will
enable RPX to increase its footprint within client legal departments.
Post acquisition, RPX will support Inventus on organic and inorganic growth
initiatives, including expanding further internationally, where eDiscovery services
continue to grow at a rapid pace.
Select Recent Legal Technology & Services Transactions
has been
recapitalized by
ABOUT INVENTUS
Inventus is one of the leading providers of technology-based services to locate,

secure, organize, and search electronic data for corporations and law firms.
The Companys LuminosityTM technology provides an overlay to industrystandard

software offering unique analysis and insights to more than 1,000 clients globally.
Headquartered in Chicago, Inventus will operate as an independent subsidiary of

RPX.
PAGE | 2

SELECT SOFTWARE M&A TRANSACTIONS 4Q 2015

Announced in 4Q-15
Ent. Value: $190.0m

Revenue: NA
EV / Revenue: NA
EV / EBITDA: NA
November 25,2015
Ent. Value: $91.0m

Revenue: NA
EV / Revenue: NA
EV / EBITDA: NA
November 16, 2015
Ent. Value: $122.0m

Revenue: $50.8m
EV / Revenue: 2.4x
EV / EBITDA: 10.2x
November 16, 2015
Ent. Value: $675.0m

Revenue: $134.0m
EV / Revenue: 5.0x
EV / EBITDA: 13.8x
October 21, 2015
Ent. Value: $675.0m

Revenue: NA
EV / Revenue: NA
EV / EBITDA: NA
Quality Systems pending acquisition of HealthFusion
HealthFusion provides SaaS EHR and practice management software for physicians, hospitals, and medical billing services.
The acquisition further supports Quality Systems strategy to expand its client base and solution capabilities in the ambulatory
market, especially among smaller sized physician practices.
The Companys MediTouch platform is currently used by over 3,000 physician practices, hospital ambulatory centers and
medical billing services (totaling more than 6,000 subscribers).
iModules acquisition of Campus Labs
Campus Labs provides a cloud-based software platform for colleges and universities enabling them to make data-driven,
strategic decisions ranging from accreditation to student retention to effective operations.
After acquiring Campus Labs in 2012, Higher One strategically divested the business to refocus on its core payment processing
operations and provide greater financial flexibility while strengthening its balance sheet.
Post acquisition, Campus Labs will be combined with Leeds Equity-backed iModules, a provider of SaaS-based constituent
engagement management software for educational institutions and membership-based associations worldwide.
SS&C Technologies acquisition of Primatics Financial
Primatics provides loan accounting, forecasting, regulatory reporting, and stress testing software to financial institutions globally.
SS&C will integrate EVOLV with its portfolio of accounting software solutions, creating a comprehensive solution for any financial
institution, insurance company or institutional asset manager that requires integrated accounting, statutory and entity reporting.
Primatics EVOLV platform is widely used by North American banks, including 9 of the 25 largest financial institutions and some of
the fastest-growing community banks in the U.S.
Tyler Technologies acquisition of New World Systems
New World Systems provides software solutions for public safety and public administration organizations.
This transaction positions Tyler as a leader in public safety solutions, further strengthening its ability to provide a complete
enterprise criminal justice system to state and local governments.
Tyler plans to integrate its Odyssey courts and justice solution with New Worlds Aegis public safety platform to create a unique
end-to-end enterprise criminal justice solution.
Roper Technologies acquisition of Aderant Holdings
Aderant is the worlds largest independent provider of ERP and business management software to the legal sector.
As part of Ropers RF Technology segment, Aderant will operate autonomously with the same company name, brand, office
locations, and most importantly staff.
Aderant supports nearly 3,200 clients in more than 30 countries, representing 77 of the top 100 Global Law Firms and more than
88 percent of the Am Law 200.
PAGE | 4
3

SOFTWARE ACQUISITION ACTIVITY STRATEGIC ACQUIRERS

MOST ACTIVE STRATEGIC ACQUIRERS OF SOFTWARE ASSETS BY VOLUME
The 10 most active strategic

software consolidators combined for
65 acquisitions in 2015, with Microsoft
being the most active with 17
completed transactions.
11
2015
2014
12
Microsofts 2015 acquisitions were

intended to enable future growth in
key strategic areas analytics,
security, enterprise, mobile, and
gaming. Analytics was the most
prevalent theme among Microsoft's
acquisitions as evidenced by the
investments in Equivio, Revolution
Analytics, Datazen, Volometrix, and
Metanautix.
28
10
10
12
2012
17
2013
3
5
5
1
2011
3
4
6
1
5
1
4
2
5
1
3
GLOBAL STRATEGIC ACQUIRER SOFTWARE M&A ACTIVITY BY VOLUME
Global strategic software M&A

registered 435 transactions in 4Q
2015, which was inline with the prior
quarter, and among the most
active quarters in the last four years.
Technology executives, who are

under pressure to keep up with the
pace of innovation and drive
growth, are increasingly seeking
acquisitions to achieve their
strategic objectives.
352
1Q '12
379
2Q '12
362
3Q '12
412
4Q '12
352
352
333
327
324
1Q '13
2Q '13
3Q '13
4Q '13
1Q '14
370
2Q '14
401
340
3Q '14
455
443
435
2Q '15
3Q '15
4Q '15
309
4Q '14
1Q '15
PAGE | 4

SOFTWARE ACQUISITION ACTIVITY PRIVATE EQUITY

MOST ACTIVE PRIVATE EQUITY BUYERS OF NEW SOFTWARE PLATFORMS BY VOLUME
Vista Equity, Thoma Bravo, and

Marlin Equity were the most active
software investors in 2015, with a
combined 21 new platform
investments of which 2 were takeprivate transactions and 5 were
cross-border deals.
2015
7
2014
2013
Private equity interest in the

software sector remains strong as
firms look to invest record levels of
dry powder and lending conditions
remain favorable, especially for high
quality, middle market software
credits.
2012
7
2011
5
3
3
2
4
1
4
2
2
3
1
2
2
2
0
1
1
2
3
GLOBAL NEW PLATFORM PRIVATE EQUITY SOFTWARE M&A ACTIVITY BY VOLUME
Global private equity investment

activity in the software sector
remained strong in 4Q 2015 with 47
new platform acquisitions, of which
the median reported transaction
size was $980 million compared to
$545 million in 3Q 2015.
The current surge in technology

deals comes at a time when
vertical specific software solutions
are in high demand, enabling users
to cut costs and increase
productivity, notably in the
manufacturing, healthcare,
financial services, and education
sectors.
45
1Q '12
49
42
2Q '12
3Q '12
46
4Q '12
41
1Q '13
47
45
38
2Q '13
43
54
48
46
45
3Q '14
4Q '14
1Q '15
53
47
32
3Q '13
4Q '13
1Q '14
2Q '14
2Q '15
3Q '15
4Q '15
PAGE | 5

APPLICATION SOFTWARE M&A MARKET SUMMARY

APPLICATION SOFTWARE M&A VOLUME (GLOBAL)
Application Software M&A

continued at a strong place
with 309 registered
transactions making 4Q 2015
one of the most active
quarters over the past four
years.
321
320
298
288
282
269
266
255
244
252
246
287
270
MEDIAN M&A REVENUE MULTIPLES (REPORTED)
309
2.5x
2.4x
275
251
2.5x
2.3x
2.1x
227
2.4x
2.3x
2.2x
1.9x
1.6x
Median reported Application

Software M&A revenue
multiples increased slightly in
4Q 2015, and remain above
historical averages.
1.5x
1.4x
1
'1
1Q
2
'1
2Q
2
'1
3Q
2
'1
4Q
2
'1
1Q
3
'1
2Q
3
'1
3Q
3
'1
4Q
3
'1
1Q
4
'1
2Q
4
'1
3Q
4
'1
4Q
4
'1
1Q
5
'1
2Q
5
'1
3Q
5
'1
4Q
5
'1
4Q
1
'1
1Q
2
'1
1.4x
1.3x
1.2x
4Q
2Q
2
'1
3Q
2
'1
4Q
2
'1
1Q
3
'1
2Q
3
'1
3Q
3
'1
4Q
3
'1
1Q
4
'1
2Q
4
'1
3Q
4
'1
4Q
4
'1
1Q
5
'1
2Q
5
'1
3Q
5
'1
NOTABLE APPLICATION SOFTWARE M&A TRANSACTIONS
During 4Q 2015, there was

strong M&A activity involving
vertically-focused ERP
software companies, which
were primarily led by private
equity.
Recent and notable vertically
focused, ERP software
transactions include LGP and
TPGs pending acquisition of
Ellucian (education),
Pamplonas pending
acquisition of MedAssets
(healthcare), EQTs takeprivate of IFS (manufacturing),
and Ropers acquisition of
Aderant (legal).
2.3x
2.1x
DATE
CLOSED
ACQUIRER
TARGET
DESCRIPTION
Pending
Leonard Green & Partners, TPG
Ellucian, Inc.
Software, serv ices, and analytics for higher education institutions globally.
Pending
Computer Programs & Systems Inc.
Healthland, Inc.
Integrated healthcare information technology solutions to rural health centers.
Pending
Hellman & Friedman LLC; HgCapital
TeamSystem Holding S.p.A.
Document management, electronic storage, and electronic inv oicing.
Pending
CoreLogic, Inc.
FNC, Inc.
Real estate collateral information technology.
Pending
Pamplona Capital Management LLP
MedAssets, Inc.
Rev enue performance software for healthcare organizations.
ENTERPRISE
VALUE (MM)
REVENUE
MULTIPLE
$3,500
NA
$242
NA
NA
NA
$475
NA
$2,775
3.6x
2.6x
Pending
Endurance International Group
Constant Contact, Inc.
Marketing software and tools designed for small businesses.
$932
12/18/15
Ingram Micro Inc.
Docdata
Order fulfilment, returns logistics, online payment, and commerce software.
$175
NA
12/11/15
Intercontinental Exchange, Inc.
Trayport Limited
Electronic trading systems and matching engine solutions for financial markets.
$860
11.0x
11/30/15
EQT Partners
Industrial & Financial Systems IFS AB
ERP and business management software for asset and serv ice management.
11/30/15
FIS Global
SunGard Data Systems Inc.
Business management software, analytics, and serv ices for the financial serv ices sector.
11/16/15
EPAM Systems, Inc.
Alliance Global Serv ices LLC
11/16/15
Tyler Technologies, Inc.
11/16/15
$992
2.6x
$9,100
3.2x
Software design, dev elopment, and quality management solutions.
$50
NA
New W orld Systems Corporation
Software solutions for public safety and public administration organizations.
$675
NA
SS&C Technologies Holdings, Inc.
Primatics Financial LLC
Integrated enterprise software for the financial serv ices sector.
$122
2.4x
10/21/15
Roper Technologies, Inc.
Aderant Holdings, Inc.
Business management software for legal and other professional serv ices firms.
$675
NA
10/16/15
FactSet Research Systems Inc.
Portware LLC
Broker-neutral and automated trading software for global equities, futures, options, and FX.
$265
NA
10/13/15
IBM
Merge Healthcare Incorporated
Electronic healthcare reporting software.
$975
4.3x
09/10/15
Xerox Corporation
RSA Medical, LLC
Technology-based, medical risk management software & serv ices.
$147 HW&CO. CONFIDENTIAL

3.1x
09/03/15
ParkerGale
ATP
Software and information serv ices for the av iation industry.
MEDIAN

1.8x
$675
3.1x
PAGE | 6
4Q
5
'1

SAAS M&A MARKET SUMMARY

SAAS M&A VOLUME (GLOBAL)
SaaS M&A volume decreased

to 52 transactions in 4Q 2015,
while continuing to exhibit a
broader upward trend since
2011.
70
69
5.8x
65
5.6x
5.5x
5.3x
60
55
Median reported transaction

multiples increased to 4.5x
revenue in 4Q 2015, in line with
historical averages.
54
49
43
1
'1
38
1Q
2
'1
4.6x
52
4.4x
45
2Q
2
'1
2
'1
4Q
2
'1
1Q
3
'1
3
'1
3Q
3
'1
4Q
3
'1
1Q
4
'1
4.1x
3.9x
3.5x
3.4x
2Q
4.3x
46
38
3Q
4.6x
4.4x
42
39
4Q
4.9x
52
4.3x
47
5.7x
5.3x
2Q
4
'1
3Q
4
'1
4Q
4
'1
1Q
5
'1
2Q
5
'1
3Q
5
'1
4Q
5
'1
4Q
1
'1
1Q
2
'1
2Q
2
'1
3Q
2
'1
4Q
2
'1
1Q
3
'1
2Q
3
'1
3Q
3
'1
4Q
3
'1
1Q
4
'1
2Q
4
'1
3Q
4
'1
4Q
4
'1
1Q
5
'1
2Q
5
'1
3Q
5
'1
NOTABLE SAAS M&A TRANSACTIONS
In 4Q 2015, strategic and

private equity buyers
completed transactions across
a broad set of verticals
including healthcare, financial
services, insurance,
transportation, non-profit, and
education.
In particular, Roper was
among the most active SaaS
buyers in the healthcare IT
vertical with the acquisitions of
CliniSys Solutions and Atlas
Medical.
DATE
CLOSED
ACQUIRER
TARGET
DESCRIPTION
ENTERPRISE
VALUE (MM)
REVENUE
MULTIPLE
Pending
Quality Systems Inc.
HealthFusion, Inc.
SaaS-platform for physicians, hospitals, and medical billing serv ices.
$190
NA
Pending
3D Medical Limited
Mach7 Technologies, Inc.
Cloud-based enterprise clinical image management solutions to the healthcare industry.
$43
NA
Pending
CliniSys Solutions Limited
W eb-based clinical laboratory information management solutions.
$261
NA
Pending
Vista Equity Partners
Solera Holdings Inc.
Risk and asset management software to the P&C insurance sector.
$6,272
5.5x
12/09/15
Transunion
Trustev Limited
Digital fingerprinting technology for real time online customer identity v erification.
$44
NA
11/25/15
The Descartes Systems Group Inc
Oz DEVELOPMENT, Inc.
Cloud applications that streamline e-commerce, warehouse, and shipping processes.
$30
NA
11/25/15
iModules Software, Inc.
Campus Labs, LLC
Cloud-based software for assessment and analytics in higher education.
$91
NA
11/20/15
Genstar Capital
Ministry Brands
SaaS-based technology platform for faith-based organizations.

6.2x
11/18/15
Ev olution1, Inc.
Benaissance LLC
SaaS-based financial management solutions for health benefits administration.
$80
6.0x
11/04/15
ACI W orldwide, Inc.
PAY.ON AG
Online payment and risk management technologies.
$196
NA
11/02/15
W est Corporation
ClientTell, Inc.
Cloud-based notification platform for the healthcare serv ices industry.
$49
NA
10/29/15
HCL Technologies Ltd.
PowerTeam, Inc.
Customer relationship management software solutions.
$46
1.2x
10/26/15
Atlas Medical Software
Cloud-based clinical connectiv ity and process integration solutions.
$48
NA
10/15/15
LogMeIn, Inc.
Marv asol, Inc.
SaaS-based password and data management serv ices for indiv iduals and enterprises.
$116
10.3x
10/07/15
Rev Spring, Inc.
Healthcare Rev enue Strategies, LLC
W eb-based healthcare rev enue cycle management software.
NA
NA
10/01/15
Aflac, Inc.
Empowered Benefits
SaaS-based employee benefits technology prov ider.
10/01/15
Premier Healthcare Solutions, Inc.
InflowHealth LLC
Software to improv es operational and financial performance of physician practices.
$35
09/15/15
CIP Capital
Community Inv estors, Inc.
Community management software for the real estate sector.

4.8x
MEDIAN

6.5x
$80
NA
6.0x
PAGE | 7
4Q
5
'1

DATA AND ANALYTICS M&A MARKET SUMMARY

DATA AND ANALYTICS M&A VOLUME (GLOBAL)
Data and Analytics M&A

registered yet another strong
quarter in 4Q 2015 with 102
reported transactions.

112
105
102
100
3.3x
3.3x
89
Median reported Data and

Analytics sector transaction
revenue multiples continued
on an upward trajectory as
buyers continue to seek
vertical specific solutions,
notably within the
transportation, energy, retail,
insurance, and education
sectors.
82
76
74
73
71
74
72
64
63
64
2.8x
2.7x
76
2.6x
67
2.0x
1.9x
1.8x
1.9x
1.6x
1.4x
1.4x
1.3x
1.1x
0.9x
0.9x
4Q
1
'1
1Q
2
'1
2Q
2
'1
3Q
2
'1
4Q
2
'1
1Q
3
'1
2Q
3
'1
3Q
3
'1
4Q
3
'1
1Q
4
'1
2Q
4
'1
3Q
4
'1
4Q
4
'1
1Q
5
'1
2Q
5
'1
3Q
5
'1
4Q
5
'1
4Q
1
'1
1Q
2
'1
2Q
2
'1
3Q
2
'1
4Q
2
'1
1Q
3
'1
2Q
3
'1
3Q
3
'1
4Q
3
'1
1Q
4
'1
2Q
4
'1
3Q
4
'1
4Q
4
'1
1Q
5
'1
2Q
5
'1
3Q
5
'1
NOTABLE DATA AND ANALYTICS M&A TRANSACTIONS
Data and Analytics

companies are increasingly
being targeted by large
strategics that are focused on
delivering greater insights and
intelligence to clients.
In one of the largest sector
deals in 2015, Intercontinental
Exchange acquired
Interactive Data for $7.5 billion,
driven by the significant
expected growth opportunity
in bond-price data as the
buying and selling of
corporate debt shifts to
electronic marketplaces.
2.7x
DATE
CLOSED
ACQUIRER
TARGET
DESCRIPTION
ENTERPRISE
VALUE (MM)
REVENUE
MULTIPLE
Pending
Delphi Automotiv e PLC
Control-Tec LLC
Telematics and cloud based analytics solutions for the transportation industry.
$145
NA
Pending
Adobe Systems Software
Digital Analytix Business
SaaS platform to analyze customer data and report v isitor behav ior.
$45
NA
Pending
Genscape, Inc.
Locus Energy, LLC
Prov ider of data monitoring and analytics software for the energy sector.
NA
NA
Pending
Microsoft Corporation
VoloMetrix, Inc.
Enterprise data analytics software for div erse set of industries.
NA
NA
Pending
Tyco International plc
ShopperTrak RCT Corporation
Business analytics software for the retail industry.
$175
2.3x
12/14/15
Intercontinental Exchange, Inc.
Interactiv e Data Holdings Corporation
Prov ides financial market data, analytics, and related solutions.
$7,450
7.9x
12/09/15
NeuStar, Inc.
MarketShare Partners LLC
Marketing analytics solutions for businesses, media companies, marketers, and agencies.
$450
7.9x
12/01/15
CommVault Systems, Inc.
LAITEK Inc.
Data migration solutions for presenting scientific and medical image information.
NA
NA
12/01/15
Blackboard Inc.
BlueCanary Data & Analytics LLC
Data and analytics solutions for higher education.
NA
NA
11/18/15
The Carlyle Group LP
Innov ation Group plc
Business process serv ices, analytics and software solutions for the P&C insurance industry.
$677
2.0x
10/27/15
Raycom Media, Inc.
Pure Auto LLC
Online platform that prov ides v alue and data reports on used cars and trucks.
$125
NA
10/13/15
Zendesk, Inc.
W e Are Cloud SAS
W eb-based business intelligence application BIME.
$45
NA
10/07/15
Atigeo, LLC
YaData Solutions, Inc.
Big data v isualization software and analytics.
NA
NA
10/01/15
Markit Ltd.
CoreOne Technologies LLC
Tech-enabled data analytics solutions for the financial serv ices sector.
$200
NA
09/30/15
Thoma Brav o, LLC
MedeAnalytics, Inc.
Cloud-based analytics software for the healthcare industry.
08/06/15
Permira Adv isers Ltd.
Informatica Corporation
Prov ides enterprise data integration software and serv ices worldwide.
MEDIAN
NA
NA
$4,844
4.6x
$188
4.6x
PAGE | 8
4Q
5
'1

INFRASTRUCTURE SOFTWARE M&A MARKET SUMMARY

INFRASTRUCTURE SOFTWARE M&A VOLUME (GLOBAL)
In 4Q 2015, Infrastructure
Software M&A activity
increased 33% over the prior
quarter with 34 registered
transactions.

4.2x
69
3.8x
67
3.4x
61
58
56
55
As enterprises accelerate their

shift to the cloud, large
consolidators are bolstering
their solution suites via M&A to
capitalize on key customer
concerns such as security and
data integration that are more
pronounced during these
transitions.
55
56
49
50
48
3.1x
3.0x
53
47
2.9x
2.4x
2.3x
38
36
1.9x
2.5x
2.4x
1.7x
1.2x
4Q
1
'1
1Q
2
'1
2Q
2
'1
3Q
2
'1
4Q
2
'1
1Q
3
'1
2Q
3
'1
3Q
3
'1
4Q
3
'1
1Q
4
'1
2Q
4
'1
3Q
4
'1
4Q
4
'1
1Q
5
'1
2Q
5
'1
3Q
5
'1
4Q
5
'1
4Q
1
'1
1Q
2
'1
2Q
2
'1
3Q
2
'1
4Q
2
'1
1Q
3
'1
2Q
3
'1
3Q
3
'1
4Q
3
'1
1Q
4
'1
2Q
4
'1
3Q
4
'1
4Q
4
'1
1Q
5
'1
2Q
5
'1
3Q
5
'1
NOTABLE INFRASTRUCTURE SOFTWARE M&A TRANSACTIONS
Cybersecurity continues to be
the most prevalent theme in
Infrastructure Software M&A,
with both strategic and
financial buyers actively
pursuing deals.
Some of the more notable
cybersecurity transactions
include The Carlyle Groups
pending acquisition of Veritas,
Blue Coats pending
acquisition of Elastica, Thales
e-Securitys acquisition of
Vormetric, Ciscos acquisition
of Lancope, and NCCs
acquisition of Fox-IT.
3.1x
2.7x
48
45
3.3x
3.2x
DATE
CLOSED
ACQUIRER
TARGET
DESCRIPTION
ENTERPRISE
VALUE (MM)
REVENUE
MULTIPLE
Pending
The Carlyle Group
Veritas Technologies LLC
Data backup, recov ery, archiv ing, eDiscov ery, storage management solutions.
$8,000
NA
Pending
Cisco Systems Holdings
Acano Limited
Audio conferencing and IVR communications platform.
$700
NA
Pending
Blue Coat Systems Inc.
Elastica, Inc.
Transaction lev el security software for cloud applications and serv ices.
$280
NA
Pending
Silv er Lake; Thoma Brav o, LLC
SolarW inds, Inc.
Enterprise-class information technology and infrastructure management software.
$4,446
9.2x
Pending
Thales e-Security, Inc.
Vormetric, Inc.
Data security software for physical, v irtual, and big data cloud env ironments.
$400
7.5x
Pending
Carbonite, Inc.
EVault, Inc.
Cloud-connected backup and recov ery software solutions.
$14
NA
12/22/15
Cisco Systems, Inc.
Lancope, Inc.
Network v isibility and security intelligence solutions.
$453
NA
12/11/15
Lookingglass Cyber Solutions, LLC
Cyv eillance, Inc.
Online threat intelligence solutions to protect network information.
$35
1.9x
11/27/15
NCC Group
Fox-IT Group B.V.
Software security solutions to prev ent cyber threats, data breaches and fraud.
$141
4.9x
11/25/15
VASCO Data Security International
Silanis Technology Inc.
Electronic signature solutions and process management.
$85
NA
11/03/15
Proofpoint, Inc.
Socialware, Inc.
Social media business management software platform for financial serv ices sector.
$9
NA
10/30/15
Akamai Technologies, Inc.
Bloxx, Ltd.
Email and W eb filtering technologies to protect against Internet threats.
$19
NA
10/22/15
Thoma Brav o, LLC
DigiCert, Inc.
SSL certificate and management tools for small and large companies in v arious industries.
NA
NA
10/15/15
CyberArk Software, Ltd.
Viewfinity, Inc.
Generation application control and priv ilege management solutions.
$31
NA
10/13/15
Rapid7 LLC
Rev elOps, Inc.
Real-time elastic log management and analytics serv ice.
$71
NA
10/12/15
Barracuda Networks, Inc.
Intronis, Inc.
Prov ides cloud, physical, and v irtual data protection serv ices.
$65
3.2x
10/08/15
H.I.G. Capital, LLC
HelpSystems, LLC
IT infrastructure software for network management, business intelligence, and security.
MEDIAN

5.4x
$113
5.1x
PAGE | 9
4Q
5
'1

PRIVATE PLACEMENT ACTIVITY BY SOFTWARE SECTOR

PRIVATE PLACEMENTS BY SOFTWARE SUB-SECTOR AND NEW CAPITAL RAISED
With well-publicized
portfolio write-downs in
private holdings by highprofile investors like
Fidelity, some private
capital investors are
taking a more cautious
approach.
1,200
$16 ,000
1,100
1014
1,000
913
899
900
820
800
719
700
829
1038
1003
952
941
$14 ,000
961
829
754
743
700
$12 ,000
$10 ,000
638
600
$8,000
500
$6,000
400
300
$ in Thousands
In 4Q 2015, private
placement deal activity
decreased 22% quarter
over quarter and total
reported capital raised
decreased to $9.3 billion.
Volume
$4,000
200
$2,000
100
0
$0
1Q-1 2
2Q-1 2
3Q-1 2
4Q-1 2
Application Software
1Q-1 3
2Q-1 3
SaaS
3Q-1 3
4Q-1 3
1Q-1 4
Data & Analytics
2Q-1 4
3Q-1 4
4Q-1 4
1Q-1 5
2Q-1 5
3Q-1 5
4Q-1 5
Total New Capital (Reported)
PRIVATE PLACEMENT CAPITAL RAISED BY ROUND (AS PERCENTAGE OF TOTAL REPORTED PRIVATE PLACEMENT CAPITAL)
In 4Q 2015, 59% of private

capital raised was
deployed in early stage
rounds (Seed - Series B),
up from 46% in the prior
quarter.
With 13 reported Series D
of later financings in 4Q
2015 compared to 17 in
3Q, earlier stage deals
increased to 95% of total
financings in terms of total
deal volume.
21%
26%
20%
27%
19%
15%
20%
28%
32%
20%
18%
26%
31%
13%
14%
20%
28%
21%
21%
16%
20%
37%
55%
26%
22%
16%
26%
17%
26%
19%
26%
33%
12%
33%
23%
26%
21%
35%
31%
22%
29%
17%
7%
4%
5%
6%
3%
6%
6%
6%
4%
1Q-12
2Q-12
3Q-12
4Q-12
1Q-13
2Q-13
3Q-13
4Q-13
1Q-14
Seed
37%
26%
29%
12%
Series A
Series B
Series C
24%
24%
32%
22%
27%
31%
17%
20%
30%
31%
18%
30%
22%
28%
13%
2%
4%
7%
2%
4%
4%
2Q-14
3Q-14
4Q-14
1Q-15
2Q-15
21%
23%
3%
3Q-15
4Q-15
4%
Series D / or later
PAGE | 10

SELECT RECENT SOFTWARE PRIVATE PLACEMENTS

DATE
12/17/15
12/08/15
COMPANY
SECTOR
Data &
Analytics
Data &
Analytics
TOTAL
RAISED
($M)
ROUND
ROUND
SIZE ($M)
$10
$17
$30
$73
INVESTORS (CURRENT ROUND)
Summit Partners
DESCRIPTION
IP analytics and management software.
Battery Ventures; Cisco Systems, Inc.; Allegis Capital; Sutter Hill

Ventures; Tenaya Capital; Harmony Partners; Andreessen
Big data discov ery solutions and analytics.
Horowitz LLC; Citi Ventures, Inc.; HSBC Holdings
11/16/15
SaaS
$8
$9
11/10/15
SaaS
$12
$15
Version One Ventures; Point Nine Capital; OMERS Ventures
Founder Collectiv e; Lerer Hippeau Ventures; Bowery Capital;

Canv as Venture Fund, L.P.; Morgenthaler Technology
Inv estment Company
11/10/15
Infrastructure
$250
$300
11/09/15
SaaS
$42
$70
11/02/15
SaaS
$52
$107
Business management software for on-site serv ice

companies.
Mobile and software-enabled truckload shipping

marketplace.
Accel Partners; Insight Venture Partners
Network monitoring solutions.
Goldman Sachs Group, Merchant Banking Div ision; Lightspeed
Cloud-based CRM platform that driv es patient
Venture Partners; Health Enterprise Partners
engagement for healthcare prov iders.
Battery Ventures; Bessemer Venture Partners; Insight Venture

Partners; Summit Partners LLP; Lightspeed Venture Partners; Bain
Customer acquisition software solutions and serv ices.
Capital Ventures; Salesforce Ventures
11/02/15
SaaS
$50
$70
10/20/15
SaaS
$81
$119
Sequoia Capital; Northgate Capital Group, L.L.C.; The Founders
Cloud-based construction document collaboration
Fund; Tenaya Capital; Y Combinator
platform for project managers.
New Enterprise Associates; Redpoint Ventures; RRE Ventures LLC;

Mav erick Capital, Ltd.; The Founders Fund; GV; Google
Ventures, L.P.
10/16/15
10/16/15
10/15/15
Infrastructure
Infrastructure
Data &
Analytics
Late
Stage
General Atlantic LLC; Goldman Sachs Group; Institutional

$156
$335
Venture Partners; Industry Ventures, LLC; Lightspeed Venture

Partners; Adage Capital; Cross Creek Adv isors; Altimeter Capital
$17
$25
$10
$21
Cloud-based employer-sponsored health insurance

platform for small to midsize employers.
IT operations and application management software

and serv ices.
Foundation Capital; Matrix Partners; North Bridge Venture
Threat prev ention and cybersecurity software and
Partners
serv ices.
Sapphire Ventures LLC; Zetta Venture Partners I, L.P.; Zetta

Venture Partners; Aspect Ventures; Salesforce Ventures;
Salesforce1 Fund; Aspect Ventures, L.P.
Mobile marketing analytics and automation for

enterprise applications.
Note: Financial information presented above represents reported capital raised only.
PAGE | 11

PUBLIC SOFTWARE VALUATION MULTIPLES BY SECTOR

STOCK PERFORMANCE (1- & 3-YEAR)
10.5%
Large-Cap SaaS
104.8%
14.6%
HCM
8.4x
8.0x 7.9x
7.1x
6.4x
88.4%
6.6x
5.8x
5.4x
5.7x
5.3x
6.8x
5.3x
4.9x
4.8x
4.8x
4.2x
4.2x
3.5x
40.9%
Public Sector / Non-Profit
4Q 2015
9.6x
117.9%
8.5%
Small-Cap SaaS
4Q 2014
10.4x
58.1%
21.5%
M arketing
REVENUE MULTIPLE ANALYSIS 4Q 2015 VS. 4Q 2014
4.1x
4.6x
3.8x
4.1x
3.6x
3.4x
3.0x 3.0x
3.2x
2.9x
2.9x
2.1x
188.5%
17.9%
SCM & Logistics
1.6x
1.4x
101.9%
3.4%
HCIT
59.3%
1.7%
IT Security
59.6%
8.8%
PLM & Engineering
43.8%
14.2%
Financial
51.8%
(11.2%)
Enterprise
82.8x
4Q 2014
45.8%
59.2x
59.2x
61.5x
50.4x
IT Operations M gmt
(0.8%)
46.2x
48.5x
45.3x
14.8%
(8.0%)
Bellwethers
31.9x
5.6%
25.5x
20.6x
Communication
Data Storage
Energy
4Q 2015
14.3%
1.1%
Data & Analytics
EBITDA MULTIPLE ANALYSIS 4Q 2015 VS. 4Q 2014
(13.8%)
(6.8%)
23.1x
19.5x
17.7x
16.0x
14.9x
14.5x
15.1x 14.5x
14.1x
11.1x
11.3x
23.6x
19.4x16.9x
14.3x
10.3x
24.9x
7.4x
13.2x
13.6x
12.0x
12.4x
8.7x
(30.7%)
(5.8%)
(2.8%)
(36.9%)
1-Year Performance
3-Year Performance
PAGE | 12

KEY METRICS BY SECTOR COMPARABLE PUBLIC SOFTWARE COMPANIES

COMPARABLE COMPANY SET MEDIANS
EV / LTM REVENUE MULTIPLE
Large-Cap SaaS
NTM REVENUE GROWTH
9.6x
HCM
8.0x
Marketing
7.1x
Small-Cap SaaS
5.8x
Public Sector / Non-Profit
5.4x
SCM & Logistics
5.3x
HCIT
5.3x
CORRELATION WITH EV / REVENUE MULTIPLE
NTM EBITDA GROWTH
LTM EBITDA MARGIN
NTM REVENUE GROWTH
NTM EBITDA GROWTH
LTM EBITDA MARGIN
31.2%
111.6%
10.5%
60.4%
40.2%
29.5%
40.9%
20.1%
81.1%
37.3%
25.1%
70.4%
16.1%
69.5%
23.4%
64.5%
11.8%
58.8%
30.4%
11.3%
64.1%
17.8%
58.0%
67.7%
12.7%
23.0%
21.3%
24.2%
58.4%
19.0%
44.7%
11.5%
70.0%
5.9%
15.6%
28.2%
48.7%
29.5%
70.6%
21.9%
47.0%
0.6%
54.1%
IT Security
4.9x
23.1%
15.2%
PLM & Engineering
4.8x
5.9%
38.4%
Financial
4.8x
6.6%
37.7%
30.8%
47.7%
85.6%
7.8%
30.1%
27.1%
52.6%
33.8%
9.5%
Enterprise
3.8x
Data & Analytics
3.6x
10.6%
29.2%
15.7%
92.3%
17.4%
IT Operations Mgmt
3.4x
18.2%
32.7%
24.7%
41.3%
49.0%
Bellwethers
3.0x
(0.4%)
6.8%
29.9%
77.6%
72.9%
76.7%
Communication
2.9x
11.7%
40.2%
16.8%
31.7%
47.6%
1.9%
19.3%
16.2%
22.5%
38.5%
1.6%
41.4%
7.8%
46.3%
18.0%
99.6%
Data Storage
Energy
2.1x
1.6x
PAGE | 13

SUMMARY OF TECHNOLOGY IPOS

RECENT U.S. IPO ACTIVITY (BY OFFERING SIZE)
$0 - 50M
$50 - 100M
$100 - 250M
$250M +
Overall, 2015 was a down year for

technology IPOs, and technology
companies share of U.S. IPOs fell to a
seven-year low.
Over the past year, the majority of

technology IPOs consisted of larger
companies as evidenced by nearly 50% of
technology IPOs receiving $1 billion+
valuations at offering.
Revenue growth remains a core focus for

IPO investors and 39% of technology
companies generated 75%+ LTM revenue
growth leading up to their IPOs.
18
16
15
13
13
12
11
9
11
9
8
7
7
6
5
3
1Q-12
2Q-12
3Q-12
4Q-12
1Q-13
2012 Total: 37
2Q-13
3Q-13
2013 Total: 48
OFFERING SIZE AT IPO (LTM)

$50 - 100M
1Q-14
2Q-14
3Q-14
4Q-14
1Q-15
2014 Total: 47
2Q-15
3Q-15
REVENUE GROWTH (1YR PRIOR TO IPO)
All tech IPOs over the last 12 months
$100 - 250M
$250M +
$0-50M
$50-500M
4Q-15
2015 Total: 31
MARKET CAP AT IPO (LTM)
$0 - 50M
4Q-13
$500M-$1B
$1B+
< 25%
25 - 75%
> 75%
10%
13%
26%
29%
23%
45%
39%
26%
32%
23%
35%
PAGE | 14

KEY PERFORMANCE METRICS FOR RECENT SOFTWARE IPOS

750.0%
540.7%
650.0%
% Revenue Growth1
550.0%
450.0%
350.0%
172.5%
250.0%
150.0%
57.4%
11.8%
43.4%
107.0%
194.4%
150.5%
102.3%
52.6%
26.9%
34.8%
150.0%
45.4%
64.3%
50.0%
(50.0%)
(150.0%)
125.0%
100.0%
98.3%
75.0%
56.5%
53.0%
45.4%
50.0%
33.1%
Stock Performance2
32.0%
26.2%
25.0%
21.7%
8.1%
0.0%
6.6%
19.1%
(23.2%)
14.7%
17.5%
14.7%
7.4%
3.3%
(1.2%)
(25.0%)
43.2%
30.1%
(5.5%)
(5.4%)
(1.2%)
9.9%
(4.0%)
(8.4%)
(29.7%)
(28.8%)
(50.0%)
(41.6%)
(52.8%)
(75.0%)
(100.0%)
(125.0%)
IPO DATE
Circle Size Denotes Revenue ($)

3/26/15
4/23/15
$18.0
$17.0
$25.0
$17.0
OFFERING SIZE ($M) $126.0
$87.0
$222.5
$195.5
(52.8%)
26.2%
(28.8%)
8.1%
OFFER PRICE
OFFER TO CURRENT
56.5%
5/20/15
6/4/15
6/18/15
6/25/15
6/25/15
6/25/15
6/30/15
7/16/15
10/6/15
11/12/15
$14.0
$8.0
$12.0
$14.0
$19.0
$100.1
$56.3
$74.4
$98.0
$156.8
6.6%
21.7%
19.1%
(5.5%)
(5.4%)
11/18/15
11/18/15
$16.0
$17.0
$103.2
$425.0
(8.4%)
12/9/15
$16.0
$9.0
$10.0
$21.0
$70.4
$243.0
$77.5
$462.0
30.1%
45.4%
(4.0%)
43.2%
PAGE | 15

DEBT MARKET OVERVIEW

MIDDLE MARKET LBO LOAN MULTIPLES
In 2015, middle market

LBO loan multiples
remained strong and
near all time highs.
After a robust 2Q and
3Q 2015, middle
market LBO loan
volumes and values in
4Q decreased to $410
million, the lowest level
since 2010.
MIDDLE MARKET LBO VOLUME BY QUARTER
Defined as Issuers with EBITDA of $50 Million or Less

FLD/EBITDA
SLD/EBITDA
Defined as Issuers with EBITDA of $50 Million or Less
Other Sr Debt/EBITDA
Sub Debt/EBITDA
Institutional
Pro Rata
5.6x
5.3x 5.3x
4.9x 4.8x
4.5x
4.3x
4.1x 4.0x
4.2x 4.3x
$2.0B
$2.0B
4.8x
4.7x 4.7x
4.5x
$1.6B
3.8x 3.8x
3.4x
$1.9B
$1.8B
$1.5B
3.3x
$1.2B
$1.2B
$1.0B
$1.0B
$0.9B
$0.6B
$0.6B
$0.7B
$0.4B
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
LBO LOAN VOLUME BY INDUSTRY
Technology
companies were the
largest recipients of
LBO loans in 2015,
indicating the
continued credit
interest in the software
sector.
Lenders, however,
demanded slightly
higher equity
contributions to
finance LBOs as
evidenced by the
median debt as a
percentage of total
purchase price
declining to 58.0% in
2015.
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
4Q15
MEDIAN LBO DEBT PERCENTAGES

Percentage of Total Purchase Price
2015 New-Issue LBO Loan Volume: $5.5 billion
Technology
66.3%
29.3%
Services & Leasing
23.1%
62.6%
63.4%
60.3%
Healthcare
60.0%
13.2%
58.0%
60.0%
Manufacturing &
Machinery
3Q15
56.6%
7.6%
Retail
4.8%
Textile & Apparel
4.7%
54.5%
50.0%
Other
17.4%
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
PAGE | 16

SELECT HW&CO. TMT TRANSACTIONS
has received an
investment from
has been
recapitalized by
APPLICATION
SOFTWARE
ERP / BUSINESS
MANAGEMENT
SUPPLY CHAIN
SOFTWARE
DATA
ANALYTICS
INFRASTRUCTURE
SOFTWARE
DIGITAL
MEDIA
HEALTHCARE
TECHNOLOGY
ENERGY
TECHNOLOGY
HEALTHCARE
TECHNOLOGY
EDUCATION
TECHNOLOGY
has merged with
has received a
significant equity
investment from
has received a minority

equity investment from
GFI Energy Group

a division of
HEALTHCARE
TECHNOLOGY
REAL ESTATE
SOFTWARE
LEGAL
TECHNOLOGY
MARKETING
ANALYTICS
DIGITAL
MEDIA
ERP / BUSINESS
MANAGEMENT
ERP / BUSINESS
MANAGEMENT
HEALTHCARE
TECHNOLOGY
ENERGY
TECHNOLOGY
IT
SERVICES
has acquired

equity investment from
has merged with
has been
recapitalized by
FINANCIAL
TECHNOLOGY
HEALTHCARE
TECHNOLOGY
HEALTHCARE
TECHNOLOGY
ENERGY
TECHNOLOGY
INFRASTRUCTURE
SOFTWARE
INFRASTRUCTURE
SOFTWARE
SUPPLY CHAIN
SOFTWARE
HEALTHCARE
TECHNOLOGY
SUPPLY CHAIN
SOFTWARE
HEALTHCARE
TECHNOLOGY
has been
recapitalized by
MANAGED
SERVICES
HEALTHCARE
TECHNOLOGY
HEALTHCARE
TECHNOLOGY
FINANCIAL
TECHNOLOGY
HEALTHCARE
TECHNOLOGY
NON-PROFIT
SOFTWARE
NON-PROFIT
SOFTWARE
INFRASTRUCTURE
SOFTWARE
APPLICATION
SOFTWARE
HEALTHCARE
TECHNOLOGY
has become a whollyowned subsidiary of
has received a
majority investment
from

investment from
ECOMMERCE
EDUCATION
TECHNOLOGY
ENERGY
TECHNOLOGY
HEALTHCARE
TECHNOLOGY
MARKETING
ANALYTICS
HCM
SOFTWARE
ENERGY
TECHNOLOGY
TECH-ENABLED
SERVICES
RETAIL
has received a
majority equity
investment from
PUBLIC SECTOR
SOFTWARE
has received a
significant investment
from
MARKETING
ANALYTICS
PAGE | 17

HORIZONTAL
Software Bellwethers
Google
Microsoft
Oracle
Cisco
IBM
SAP
EMC
Communication Software
Nuance
NICE
Synchronoss
NeuStar
BroadSoft
Tangoe
MobileIron
Oracle
IBM
SAP
Adobe
Intuit
Sage
Open Text
Nuance
NICE
Synchronoss
NeuStar
BroadSoft
Tangoe
MobileIron
Salesforce
Adobe
HubSpot
Marketo
Callidus
Bazaarvoice
Dassault
Autodesk
Ansys
Synopsys
Cadence
PTC
Manhattan
Fleetmatics
Descartes
SPS
RIB
AVEVA
Silver Spring
OPOWER
PSI
EnerNOC
Financial Software
Fiserv
Jack Henry
Markit
FIS
Healthcare IT (HCIT)
Cerner
athenahealth
Veeva
Public Sector / Non-Profit Software
Constellation
Tyler Tech
Large-Cap SaaS ( $2Bn Mkt Cap)
Salesforce
Enterprise Software
Progress
Aspen
Mentor
Nemetschek
AVEVA
SciQuest
American
Park City
MiX Telematics
Amber Road
DH
Black Knight
Bottomline
Envestnet
Q2 Holdings
BasWare
Allscripts
Medidata
Inovalon
Press Ganey
HMS
Quality Systems
Blackbaud
NIC
2U
Instructure
K12
Workday
ServiceNow
NetSuite
athenahealth
Ultimate
Guidewire
Veeva
Medidata
Proofpoint
ZenDesk
Paycom
Demandware
Fleetmatics
HubSpot
Cornerstone
Xero Limited.
RealPage
LogMeIn
RingCentral
Cvent
CyberArk
Marketo
Small-Cap SaaS (cont'd)
SPS
Qualys
Benefitfocus
Callidus
Q2 Holdings
Alarm.Com
MINDBODY
inContact
Textura
Instructure
Small-Cap SaaS (cont'd)
OPOWER
AppFolio
Five9
Castlight Health
SciQuest
Bazaarvoice
Xactly
Amber Road
Splunk
Tableau
Teradata
Qlik
Inovalon
Verint
Pegasystems
MicroStrategy
PROS Holdings
IT Operations Management
VMware
Red Hat
ServiceNow
CA
Citrix
F5 Networks
Arista
Micro Focus
NetScout
IT Operations Mgmt (cont'd)
New Relic
Progress
Infoblox
Radware
EMC
NetApp
Iron Mountain
Brocade
CommVault
Box
Barracuda
Nimble Storage
Carbonite
Cisco
Palo Alto
Check Point
Symantec
VeriSign
Trend Micro
Fortinet
Gemalto
FireEye
Imperva
Qualys
AVG Tech
Human Capital Management (HCM)

Marketing Software
PLM & Engineering Software
Energy Software
SAAS
Large-Cap SaaS (cont'd)

Small-Cap SaaS ( $2Bn Mkt Cap)
Data & Analytics
INFRASTRUCTURE
SOFTWARE
HP
TOTVS
Supply Chain & Logistics Software
VERTICAL
APPLICATION SOFTWARE
APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY UNIVERSE
Data Storage
IT Security
IT Security (cont'd)
Software AG
Proofpoint
PAGE | 18

APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS

Enterprise
Market
% of 52
1-Year Stock
3-Year Stock
Company
Ticker
Value
Capitalization
Week High
Performance
Performance
Alphabet Inc.
GOOGL
$466,033
$528,448
97.4%
Revenue Growth
LTM EBITDA
Enterprise Value /
LTM
NTM
Margin
LTM Rev.
Price /
2016E Rev. 2017E Rev. LTM EBITDA Earnings
SOFTWARE BELLWETHERS
Microsoft Corporation
46.6%
120.0%
12.8%
11.6%
32.5%
6.5x
5.5x
4.8x
17.8x
32.2x
MSFT
382,664
443,169
97.6%
19.4%
107.7%
(0.8%)
(1.0%)
35.7%
4.2x
4.0x
3.8x
11.8x
36.1x
Oracle Corporation
ORCL
143,484
153,471
80.6%
(18.8%)
9.6%
(3.5%)
(2.6%)
40.6%
3.8x
3.8x
3.7x
7.6x
16.7x
Cisco Systems, Inc.
CSCO
103,363
137,841
89.6%
(2.4%)
38.2%
4.9%
0.4%
27.6%
2.1x
2.1x
2.0x
7.2x
14.4x
IBM Corporation
IBM
163,756
133,507
78.1%
(14.2%)
(28.2%)
(12.8%)
(11.8%)
25.6%
2.0x
2.0x
2.0x
6.7x
9.4x
SAP SE
SAP
102,107
95,929
NA
13.6%
0.1%
15.7%
16.8%
32.2%
4.8x
4.4x
4.2x
14.8x
27.8x
EMC Corporation
EMC
51,102
49,789
85.5%
(13.7%)
1.5%
2.8%
1.9%
21.0%
2.1x
2.0x
1.9x
7.0x
21.1x
HP Inc.
HPQ
28,829
21,215
28.8%
(70.5%)
(16.9%)
(7.3%)
(53.7%)
11.8%
0.3x
0.6x
0.6x
2.2x
4.7x
$123,423
$135,674
83.0%
(8.0%)
5.6%
1.0%
(0.3%)
29.9%
3.0x
2.9x
2.9x
7.4x
18.9x
NUAN
$7,768
$6,181
91.1%
0.4%
1.4%
12.8%
4.0x
3.8x
3.7x
14.9x
NM
NICE Systems Ltd.
NICE
3,059
3,493
Synchronoss Technologies, Inc.
SNCR
1,588
1,555
NSR
1,710
Median
COMMUNICATION SOFTWARE
Nuance Communications, Inc.
NeuStar, Inc.
BroadSoft, Inc.
39.4%
(10.9%)
85.5%
13.9%
74.8%
6.5%
(8.6%)
20.8%
2.9x
3.1x
2.9x
13.3x
13.9x
67.2%
(15.8%)
67.0%
30.1%
26.3%
28.5%
2.9x
2.3x
2.0x
10.6x
31.7x
1,284
73.4%
(13.8%)
(42.8%)
7.7%
8.5%
39.9%
1.7x
1.4x
2.2x
3.8x
6.8x
BSFT
938
1,019
86.5%
21.8%
(2.7%)
25.7%
24.9%
6.9%
3.7x
2.9x
2.4x
19.1x
NM
Tangoe, Inc.
TNGO
299
331
56.2%
(35.6%)
(29.3%)
5.7%
3.8%
4.4%
1.4x
1.3x
1.2x
9.0x
NM
MobileIron, Inc.
MOBL
Median
192
290
27.9%
(63.8%)
NA
17.3%
14.8%
NM
1.3x
1.1x
1.0x
NM
NM
$1,588
$1,284
73.4%
(13.8%)
(6.8%)
7.7%
8.5%
16.8%
2.9x
2.3x
2.2x
12.0x
13.9x
IBM Corporation
SAP SE
Adobe Systems Incorporated
Intuit Inc.
Sage Group plc
ORCL
$143,484
$153,471
80.6%
(18.8%)
9.6%
(3.5%)
(2.6%)
40.6%
3.8x
3.8x
3.7x
7.6x
16.7x
IBM
163,756
133,507
78.1%
(14.2%)
(28.2%)
(12.8%)
(11.8%)
25.6%
2.0x
2.0x
2.0x
6.7x
9.4x
SAP
102,107
95,929
NA
13.6%
0.1%
15.7%
16.8%
32.2%
4.7x
4.4x
4.1x
14.7x
27.8x
ADBE
44,776
46,857
97.4%
29.2%
149.3%
15.6%
19.7%
25.9%
9.3x
7.8x
6.4x
41.5x
74.4x
INTU
25,852
25,476
88.4%
4.7%
62.3%
1.4%
9.0%
27.2%
6.0x
5.5x
4.9x
16.0x
60.9x
SGE
10,107
9,603
96.5%
22.6%
76.9%
6.1%
3.4%
27.1%
4.8x
4.6x
4.3x
17.9x
32.7x
Open Text Corporation
OTEX
6,694
5,816
77.6%
(17.7%)
71.5%
4.5%
(0.6%)
27.8%
3.7x
3.6x
3.5x
10.3x
27.6x
TOTVS S.A.
TOTS3
1,260
1,280
NA
(40.5%)
(60.3%)
4.7%
7.8%
20.8%
2.7x
2.3x
2.1x
11.3x
18.6x
Progress Software Corporation
PRGS
1,131
1,205
78.5%
(11.2%)
14.3%
11.4%
22.1%
20.1%
3.1x
2.6x
2.5x
9.0x
79.6x
$25,852
$25,476
78.5%
(11.2%)
14.3%
4.7%
7.8%
27.1%
3.8x
3.8x
3.7x
11.3x
27.8x
Median
Communication
Enterprise
HCM
Marketing
PLM &
Engineering
SCM & Logistics
Energy
Financial
HCIT
ENTERPRISE SOFTWARE
Oracle Corporation
Software
Bellwethers
Public Sector /
Non-Profit
Large-Cap
SaaS
Small-Cap
SaaS
Data &
Analytics
IT Operations
Data Storage
IT Security
PAGE | 19

APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS (CONTD)

Enterprise
Market
% of 52
1-Year Stock
3-Year Stock
Ticker
Value
Capitalization
Week High
Performance
Performance
Paychex, Inc.
PAYX
$18,614
$19,090
96.5%
Workday, Inc.
WDAY
14,070
15,458
83.7%
ULTI
5,482
5,602
90.4%
PAYC
2,202
2,224
81.2%
42.9%
Paylocity Holding Corporation
PCTY
1,983
2,061
86.5%
Cornerstone OnDemand, Inc.
CSOD
1,897
1,880
84.8%
Xactly Corporation
XTLY
213
249
Halogen Software Inc.
HGN
75
113
$2,202
Company
Revenue Growth
LTM
LTM EBITDA
Enterprise Value /
NTM
Margin
LTM Rev.
42.8%
6.7x
6.1x
5.7x
Price /
HUMAN CAPITAL MANAGEMENT SOFTWARE
The Ultimate Software Group, Inc.

Paycom Software, Inc.
Median
14.6%
70.1%
8.0%
7.6%
16.6x
26.2x
(2.4%)
46.2%
51.4%
47.0%
NM
13.2x
9.1x
6.9x
NM
NM
33.2%
107.1%
20.8%
21.9%
11.3%
9.4x
7.2x
5.9x
45.3x
219.7x
NA
48.4%
46.2%
20.1%
10.8x
7.6x
5.7x
89.3x
121.6x
55.3%
NA
42.0%
39.4%
NM
12.0x
8.2x
6.4x
NM
NM
(1.9%)
16.9%
32.3%
29.5%
NM
5.9x
4.3x
3.5x
NM
NM
79.9%
NA
NA
20.9%
NA
NM
3.0x
2.3x
1.9x
NM
NM
64.1%
(29.8%)
NA
17.4%
15.7%
NM
1.2x
1.0x
0.9x
NM
NM
$2,224
84.3%
14.6%
58.1%
32.3%
29.5%
20.1%
8.0x
6.7x
5.7x
45.3x
121.6x
8.4x
6.5x
5.4x
59.2x
NM
MARKETING SOFTWARE
salesforce.com, inc.
CRM
$52,763
$52,058
94.6%
32.2%
86.6%
24.2%
23.7%
6.3%
Adobe Systems Incorporated
ADBE
44,776
46,857
97.4%
29.2%
149.3%
15.6%
19.7%
25.9%
9.3x
7.8x
6.4x
41.5x
74.4x
HubSpot, Inc.
HUBS
1,816
1,920
93.7%
67.5%
NA
56.6%
54.6%
NM
11.1x
7.6x
5.8x
NM
NM
Marketo, Inc.
MKTO
1,137
1,243
80.6%
(12.3%)
NA
42.8%
39.9%
NM
5.9x
4.1x
3.2x
NM
NM
Callidus Software Inc.
CALD
947
1,042
85.8%
13.7%
309.0%
27.8%
26.6%
NM
5.8x
4.5x
3.8x
NM
NM
BV
300
353
46.6%
(45.5%)
(53.2%)
9.3%
4.0%
NM
1.5x
1.4x
1.3x
NM
NM
$1,477
$1,582
89.7%
21.5%
117.9%
26.0%
25.1%
16.1%
7.1x
5.5x
4.6x
50.4x
74.4x
DSY
$18,982
$20,297
95.8%
26.5%
6.4x
5.7x
5.2x
22.8x
48.5x
Autodesk, Inc.
ADSK
12,932
13,729
Ansys, Inc.
ANSS
7,455
8,232
Bazaarvoice, Inc.
Median
PLM & ENGINEERING SOFTWARE

Dassault Systemes SA
Synopsys Inc.
44.3%
24.2%
21.1%
92.6%
1.4%
72.4%
3.5%
(1.1%)
6.8%
5.1x
6.1x
5.3x
29.3x
NM
94.0%
12.8%
37.4%
3.0%
0.9%
45.6%
7.9x
7.2x
6.7x
15.9x
32.4x
SNPS
6,148
6,908
86.4%
4.9%
43.3%
9.0%
5.9%
18.4%
2.7x
2.5x
2.4x
9.0x
30.6x
5,828
6,191
89.3%
9.7%
54.0%
9.7%
7.6%
23.7%
3.5x
3.2x
3.0x
12.1x
26.1x
PTC
4,361
3,966
81.0%
(5.5%)
53.8%
(7.5%)
(3.7%)
20.2%
3.5x
3.6x
3.7x
12.1x
83.4x
Aspen Technology, Inc.
AZPN
2,963
3,145
80.8%
7.8%
36.6%
10.4%
6.7%
43.1%
6.5x
6.1x
5.6x
16.7x
24.9x
Mentor Graphics Corp.
MENT
2,145
2,164
65.6%
(16.0%)
8.2%
6.4%
(5.2%)
22.4%
1.7x
1.8x
1.6x
7.2x
14.4x
Nemetschek AG
XTRA:NEM
1,904
1,924
NA
97.6%
356.8%
31.8%
28.4%
19.0%
6.5x
5.6x
5.0x
31.4x
51.7x
AVEVA Group plc
LSE: AVV
1,369
1,525
68.9%
16.5%
(36.9%)
(4.7%)
(0.9%)
21.3%
4.5x
4.4x
4.2x
13.2x
35.6x
$6,148
$6,908
83.7%
8.8%
43.8%
9.0%
5.9%
21.9%
4.8x
5.0x
4.6x
14.5x
32.4x
PTC Inc.
Median
Communication
Enterprise
HCM
Marketing
PLM &
Engineering
SCM & Logistics
Energy
Financial
HCIT
31.0%
CDNS
Cadence Design Systems Inc.
Software
Bellwethers
Public Sector /
Non-Profit
Large-Cap
SaaS
Small-Cap
SaaS
Data &
Analytics
IT Operations
Data Storage
IT Security
PAGE | 20


Enterprise
Market
% of 52
1-Year Stock
3-Year Stock
Company
Ticker
Value
Capitalization
Week High
Performance
Performance
Manhattan Associates, Inc.
MANH
$4,716
$4,835
85.1%
62.5%
338.6%
Revenue Growth
LTM
LTM EBITDA
Enterprise Value /
Price /
NTM
Margin
LTM Rev.
16.2%
13.1%
29.0%
8.6x
7.7x
7.0x
33.0x
49.6x
SUPPLY CHAIN AND LOGISTICS SOFTWARE

Fleetmatics Group PLC
FLTX
1,797
1,960
80.8%
43.1%
101.9%
24.7%
22.9%
24.9%
6.6x
5.2x
4.4x
25.4x
51.1x
TSX: DSG
1,467
1,520
96.6%
34.7%
116.0%
8.6%
8.5%
31.3%
8.1x
7.1x
6.3x
28.6x
80.9x
SPSC
1,044
1,167
89.7%
24.0%
88.4%
25.8%
23.8%
10.1%
6.9x
5.5x
4.6x
60.2x
NM
DB:RSTA
367
560
NA
(7.9%)
109.1%
47.4%
16.5%
27.9%
4.0x
3.6x
3.1x
10.4x
37.0x
SQI
225
361
71.0%
(10.2%)
(18.2%)
2.0%
3.3%
6.8%
2.2x
2.0x
1.8x
11.6x
NM
AMSW.A
231
292
89.6%
11.7%
31.2%
11.6%
12.7%
13.7%
2.1x
1.9x
NM
13.5x
28.8x
PCYG
220
228
80.1%
32.0%
297.0%
7.4%
NA
NM
16.4x
NM
NM
NM
NM
JSE:MIX
87
144
70.0%
(31.4%)
(47.0%)
7.0%
4.5%
17.7%
0.9x
0.9x
0.8x
5.1x
10.2x
AMBR
135
134
47.6%
(50.2%)
NA
7.5%
5.8%
NM
2.0x
1.8x
1.5x
NM
NM
$367
$560
80.4%
17.9%
101.9%
11.6%
12.7%
21.3%
5.3x
3.6x
3.8x
19.5x
43.3x
LSE: AVV
$1,369
$1,525
68.9%
16.5%
(36.9%)
(4.7%)
(0.9%)
21.3%
4.5x
4.4x
4.2x
13.2x
35.6x
SSNI
604
725
89.1%
70.9%
NA
74.2%
1.6%
7.8%
1.6x
1.9x
1.7x
-31.9x
39.0x
OPOWER, Inc.
OPWR
478
547
68.0%
(25.8%)
NA
19.6%
15.3%
NM
3.3x
2.7x
2.3x
NM
NM
PSI Aktiengesellschaft
PSAN
193
219
NA
(2.8%)
(31.0%)
5.5%
6.0%
6.3%
1.0x
0.9x
0.8x
13.3x
33.1x
EnerNOC, Inc.
ENOC
The Descartes Systems Group Inc

SPS Commerce, Inc.
RIB Software AG
SciQuest, Inc.
American Software, Inc.
Park City Group Inc.
MiX Telematics Limited
Amber Road, Inc.
Median
ENERGY SOFTWARE
AVEVA Group plc
Silver Spring Networks, Inc.
Median
119
119
20.2%
(75.1%)
(67.2%)
(16.4%)
(16.1%)
NM
0.3x
0.3x
0.3x
NM
NM
$478
$547
68.0%
(2.8%)
(36.9%)
5.5%
1.6%
7.8%
1.6x
1.9x
1.7x
13.2x
35.6x
Fiserv, Inc.
FISV
$24,828
$20,902
93.6%
28.9%
131.5%
3.8%
3.8%
30.8%
4.8x
4.4x
4.2x
15.0x
29.7x
Jack Henry & Associates Inc.
JKHY
6,156
6,239
97.7%
25.6%
98.8%
6.6%
6.6%
35.1%
4.8x
4.5x
4.2x
14.2x
28.8x
MRKT
5,818
5,419
97.7%
14.2%
NA
5.4%
4.5%
35.9%
5.3x
4.7x
4.5x
12.3x
44.5x
532466
4,434
4,782
84.0%
6.4%
(6.2%)
1.4%
12.6%
41.0%
7.4x
6.2x
5.6x
19.2x
27.7x
DH
3,851
2,419
71.6%
(28.0%)
5.4%
25.4%
NA
25.4%
3.9x
3.1x
3.0x
15.1x
31.5x
Black Knight Financial Services, Inc.
BKFS
4,796
2,248
85.1%
NA
NA
NA
NA
35.0%
5.3x
4.8x
4.4x
NM
NM
Bottomline Technologies (de), Inc.
EPAY
1,143
1,109
94.1%
17.6%
12.7%
5.6%
8.0%
13.0%
3.5x
3.0x
2.7x
14.1x
NM
ENV
1,012
1,071
51.3%
(39.3%)
114.0%
22.4%
19.9%
12.2%
2.5x
1.7x
1.5x
18.3x
88.9x
QTWO
901
1,021
86.6%
40.0%
NA
38.5%
36.9%
NM
9.0x
6.3x
4.9x
NM
NM
Oracle Financial Services Software Ltd.

DH Corporation
Envestnet, Inc.
Q2 Holdings, Inc.
BasWare Oyj
Median
HLSE:BAS1V
Communication
Enterprise
HCM
Marketing
PLM &
Engineering
SCM & Logistics
Energy
Financial
HCIT
FINANCIAL SOFTWARE
Markit Ltd.
Software
Bellwethers
535
574
NA
(18.4%)
51.8%
10.2%
14.5%
6.2%
3.5x
2.9x
2.5x
40.6x
324.7x
$4,434
$2,419
85.9%
14.2%
51.8%
6.1%
6.6%
30.8%
4.8x
4.5x
4.2x
15.1x
31.5x
Public Sector /
Non-Profit
Large-Cap
SaaS
Small-Cap
SaaS
Data &
Analytics
IT Operations
Data Storage
IT Security
PAGE | 21


Enterprise
Market
% of 52
1-Year Stock
3-Year Stock
Company
Ticker
Value
Capitalization
Week High
Performance
Performance
Cerner Corporation
CERN
$20,751
$20,584
79.5%
(6.9%)
athenahealth, Inc.
ATHN
6,432
6,250
94.5%
Veeva Systems Inc.
VEEV
3,497
3,837
85.7%
Allscripts Healthcare Solutions, Inc.
MDRX
3,482
2,907
Medidata Solutions, Inc.
MDSO
2,692
Inovalon Holdings, Inc.
INOV
2,136
Press Ganey Holdings, Inc.
PGND
HMS Holdings Corp.
HMSY
Quality Systems Inc.
QSII
Revenue Growth
LTM EBITDA
Enterprise Value /
Price /
LTM
NTM
Margin
LTM Rev.
55.3%
29.0%
30.0%
27.6%
5.1x
4.1x
3.7x
18.2x
10.5%
119.6%
23.8%
22.9%
7.8%
7.3x
5.8x
4.8x
46.2x
NM
9.2%
NA
32.2%
29.4%
23.8%
9.2x
6.9x
5.6x
40.0x
76.4x
97.5%
20.4%
63.3%
(0.5%)
1.5%
7.1%
2.5x
2.4x
2.2x
17.2x
NM
2,729
80.4%
3.2%
151.6%
19.5%
19.0%
10.5%
7.0x
5.7x
4.8x
35.9x
NM
2,565
50.4%
NA
NA
21.0%
22.1%
33.6%
5.3x
4.0x
3.4x
16.0x
40.4x
1,832
1,663
87.3%
NA
NA
12.7%
NA
9.2%
5.9x
5.3x
4.9x
NM
NM
1,114
1,061
56.1%
(41.6%)
(52.4%)
1.2%
5.7%
18.5%
2.4x
2.2x
1.9x
10.0x
79.2x
HEALTHCARE IT
Median
39.5x
870
981
86.0%
3.4%
(7.1%)
8.0%
2.4%
11.5%
1.7x
1.7x
1.5x
12.3x
30.6x
$2,692
$2,729
85.7%
3.4%
59.3%
19.5%
19.0%
11.5%
5.3x
4.1x
3.7x
17.7x
40.4x
TSX: CSU
$9,024
$8,811
96.5%
39.4%
245.4%
12.5%
8.9%
17.8%
5.1x
4.2x
3.6x
25.5x
TYL
5,669
5,916
94.7%
59.3%
259.9%
17.5%
18.3%
22.6%
10.1x
7.4x
6.4x
45.3x
82.7x
BLKB
3,261
3,035
96.1%
52.2%
188.5%
12.5%
13.7%
15.9%
5.4x
4.4x
4.1x
27.2x
126.2x
NIC Inc.
EGOV
1,169
1,291
94.2%
9.4%
20.4%
7.6%
7.6%
25.8%
4.1x
3.7x
3.4x
15.2x
31.3x
2U, Inc.
TWOU
1,100
1,275
70.5%
42.3%
NA
32.0%
35.1%
NM
8.0x
5.6x
4.3x
NM
NM
Instructure, Inc.
INST
610
549
88.1%
NA
NA
NA
NA
NM
9.4x
5.8x
4.1x
NM
NM
K12, Inc.
LRN
229
343
49.7%
(25.9%)
(56.9%)
0.5%
(10.4%)
5.9%
0.2x
0.3x
NM
2.0x
68.9x
$2,215
$2,163
94.2%
40.9%
188.5%
12.5%
11.3%
17.8%
5.4x
4.4x
4.1x
25.5x
68.9x
Tyler Technologies, Inc.

Blackbaud Inc.
Median
58.5x
LARGE-CAP SAAS (Market Cap > $2Bn)

salesforce.com, inc.
CRM
$52,763
$52,058
94.6%
Workday, Inc.
WDAY
14,070
15,458
83.7%
ServiceNow, Inc.
NOW
13,501
13,763
94.8%
6,636
6,726
77.0%
ATHN
6,432
6,250
ULTI
5,482
5,602
NetSuite Inc.
athenahealth, Inc.
The Ultimate Software Group, Inc.
Guidewire Software, Inc.
32.2%
86.6%
24.2%
23.7%
6.3%
8.4x
6.5x
5.4x
59.2x
NM
(2.4%)
46.2%
51.4%
47.0%
NM
13.2x
9.1x
6.9x
NM
NM
27.6%
188.2%
50.5%
46.7%
NM
14.7x
9.9x
7.5x
NM
NM
(22.5%)
25.7%
34.9%
32.9%
NM
9.6x
6.9x
5.4x
NM
NM
94.5%
10.5%
119.6%
23.8%
22.9%
7.8%
7.3x
5.8x
4.8x
46.2x
NM
90.4%
33.2%
107.1%
20.8%
21.9%
11.3%
9.4x
7.2x
5.9x
45.3x
NM
GWRE
3,764
4,301
92.9%
18.8%
102.4%
5.4%
8.3%
4.5%
9.8x
8.7x
7.7x
49.7x
NM
Veeva Systems Inc.
VEEV
3,497
3,837
85.7%
9.2%
NA
32.2%
29.4%
23.8%
9.2x
6.9x
5.6x
40.0x
76.4x
Medidata Solutions, Inc.
MDSO
2,692
2,729
80.4%
3.2%
151.6%
19.5%
19.0%
10.5%
7.0x
5.7x
4.8x
35.9x
NM
Proofpoint, Inc.
PFPT
2,550
2,626
86.2%
34.8%
428.1%
36.8%
34.9%
NM
10.3x
7.4x
5.8x
NM
NM
Zendesk, Inc.
ZEN
2,065
2,345
93.8%
8.5%
NA
66.3%
62.5%
NM
11.2x
7.1x
5.3x
NM
NM
Paycom Software, Inc.
PAYC
2,202
2,224
81.2%
42.9%
NA
48.4%
46.2%
20.1%
10.8x
7.6x
5.7x
89.3x
121.6x
Demandware, Inc.
DWRE
1,851
2,034
71.1%
(6.2%)
97.5%
46.3%
45.9%
NM
8.6x
6.1x
4.8x
NM
NM
$4,623
$4,952
86.2%
10.5%
104.8%
33.5%
31.2%
10.5%
9.6x
7.1x
5.6x
46.2x
99.0x
Median
Communication
Enterprise
HCM
Marketing
PLM &
Engineering
PUBLIC SECTOR / NON-PROFIT SOFTWARE

Constellation Software Inc.
Software
Bellwethers
SCM & Logistics

Energy
Financial
HCIT
Public Sector /
Non-Profit
Large-Cap
SaaS
Small-Cap
SaaS
Data &
Analytics
IT Operations
Data Storage
IT Security
PAGE | 22


Company
Enterprise
Market
% of 52
1-Year Stock
3-Year Stock
Ticker
Value
Capitalization
Week High
Performance
Performance
FLTX
$1,797
$1,960
80.8%
43.1%
Revenue Growth
LTM
LTM EBITDA
Enterprise Value /
NTM
Margin
LTM Rev.
Price /
SMALL-CAP SAAS (Market Cap < $2Bn)

Fleetmatics Group PLC
HubSpot, Inc.
Cornerstone OnDemand, Inc.
Xero Limited.
RealPage, Inc.
101.9%
24.7%
22.9%
24.9%
6.6x
5.2x
4.4x
25.4x
51.1x
HUBS
$1,816
$1,920
93.7%
67.5%
NA
56.6%
54.6%
NM
11.1x
7.6x
5.8x
NM
NM
CSOD
$1,897
$1,880
84.8%
(1.9%)
16.9%
32.3%
29.5%
NM
5.9x
4.3x
3.5x
NM
NM
XRO
$1,685
$1,839
74.7%
7.6%
116.3%
74.8%
69.7%
NM
15.5x
8.4x
5.8x
NM
NM
RP
$1,785
$1,760
93.6%
2.2%
4.1%
14.1%
15.2%
9.0%
4.0x
3.4x
3.1x
26.5x
NM
LOGM
$1,436
$1,682
89.0%
36.0%
199.4%
23.2%
21.6%
11.8%
5.6x
4.5x
3.9x
29.6x
NM
RingCentral, Inc.
RNG
$1,561
$1,673
91.9%
58.0%
NA
35.1%
33.5%
NM
5.7x
4.3x
3.5x
NM
NM
Cvent, Inc.
CVT
$1,306
$1,465
93.7%
25.4%
NA
31.8%
31.5%
1.4%
7.4x
5.6x
4.6x
77.3x
NM
CyberArk Software, Ltd.
CYBR
$1,179
$1,429
59.1%
13.8%
NA
67.9%
48.8%
22.7%
8.1x
5.8x
5.0x
73.9x
63.5x
Marketo, Inc.
MKTO
$1,137
$1,243
80.6%
(12.3%)
NA
42.8%
39.9%
NM
5.9x
4.1x
3.2x
NM
NM
SPS Commerce, Inc.
SPSC
$1,044
$1,167
89.7%
24.0%
88.4%
25.8%
23.8%
10.1%
6.9x
5.5x
4.6x
60.2x
NM
Qualys, Inc.
QLYS
$957
$1,132
59.7%
(12.3%)
123.7%
24.1%
23.1%
22.3%
6.1x
4.7x
3.9x
34.3x
31.1x
LogMeIn, Inc.
Benefitfocus, Inc.
BNFT
$1,027
$1,061
76.6%
10.8%
NA
34.1%
32.9%
NM
6.0x
4.5x
3.7x
NM
NM
Callidus Software Inc.
CALD
$947
$1,042
85.8%
13.7%
309.0%
27.8%
26.6%
NM
5.8x
4.5x
3.8x
NM
NM
Q2 Holdings, Inc.
QTWO
$901
$1,021
86.6%
40.0%
NA
38.5%
36.9%
NM
9.0x
6.3x
4.9x
NM
NM
Alarm.Com Holdings, Inc.
ALRM
$640
$760
82.4%
NA
NA
26.1%
NA
15.1%
3.2x
2.8x
2.4x
NM
57.3x
MINDBODY, Inc.
MB
$509
$593
82.3%
NA
NA
NA
NA
NM
5.5x
3.8x
3.0x
NM
NM
inContact, Inc.
SAAS
$562
$588
80.0%
8.5%
84.2%
33.3%
27.6%
NM
2.7x
2.2x
1.8x
NM
NM
Textura Corporation
TXTR
$490
$563
69.1%
(24.2%)
NA
41.6%
37.4%
NM
6.1x
4.3x
3.4x
NM
NM
Instructure, Inc.
INST
$610
$549
88.1%
NA
NA
NA
NA
NM
9.4x
5.8x
4.1x
NM
NM
OPOWER, Inc.
OPWR
$478
$547
68.0%
(25.8%)
NA
19.6%
15.3%
NM
3.3x
2.7x
2.3x
NM
NM
AppFolio, Inc.
APPF
$450
$490
73.2%
NA
NA
NA
NA
NM
6.6x
4.2x
3.0x
NM
NM
Five9, Inc.
FIVN
$427
$439
96.0%
94.2%
NA
23.0%
22.2%
NM
3.5x
2.9x
2.4x
NM
NM
Castlight Health, Inc.
CSLT
$257
$404
35.6%
(63.5%)
NA
88.9%
64.3%
NM
3.8x
2.5x
1.9x
NM
NM
SciQuest, Inc.
SQI
$225
$361
71.0%
(10.2%)
(18.2%)
2.0%
3.3%
6.8%
2.2x
2.0x
1.8x
11.6x
NM
Bazaarvoice, Inc.
BV
$300
$353
46.6%
(45.5%)
(53.2%)
9.3%
4.0%
NM
1.5x
1.4x
1.3x
NM
NM
XTLY
$213
$249
79.9%
NA
NA
20.9%
NA
NM
3.0x
2.3x
1.9x
NM
NM
AMBR
$135
$134
47.6%
(50.2%)
NA
7.5%
5.8%
NM
2.0x
1.8x
1.5x
NM
NM
$924
$1,032
80.7%
8.5%
88.4%
26.0%
23.4%
11.8%
5.8x
4.3x
3.4x
31.9x
54.2x
Xactly Corporation
Amber Road, Inc.
Median
Software
Bellwethers
Communication
Enterprise
HCM
Marketing
PLM &
Engineering
SCM & Logistics
Energy
Financial
HCIT
Public Sector /
Non-Profit
Large-Cap
SaaS
Small-Cap
SaaS
Data &
Analytics
IT Operations
Data Storage
IT Security
PAGE | 23


Enterprise
Market
% of 52
1-Year Stock
3-Year Stock
Company
Ticker
Value
Capitalization
Week High
Performance
Performance
Splunk, Inc.
SPLK
$6,679
$7,628
76.5%
Tableau Software, Inc.
DATA
6,074
6,825
71.7%
Teradata Corporation
TDC
3,350
3,514
56.2%
Qlik Technologies, Inc.
QLIK
2,624
2,945
73.8%
2.5%
Inovalon Holdings, Inc.
INOV
2,136
2,565
50.4%
Verint Systems Inc.
VRNT
2,912
2,525
61.0%
Pegasystems Inc.
PEGA
1,878
2,102
91.0%
32.4%
MicroStrategy Inc.
MSTR
1,581
2,038
79.2%
10.4%
PROS Holdings, Inc.
PRO
Revenue Growth
LTM EBITDA
Enterprise Value /
LTM
NTM
Margin
LTM Rev.
102.7%
47.7%
44.5%
NM
11.2x
7.8x
6.0x
11.2%
NA
69.1%
57.9%
NM
10.2x
7.0x
(39.5%)
(57.3%)
(6.1%)
(7.9%)
17.2%
1.3x
1.4x
45.8%
10.1%
10.6%
0.5%
4.4x
NA
NA
21.0%
22.1%
33.6%
(30.4%)
38.1%
8.3%
1.1%
14.2%
142.5%
12.7%
13.7%
92.0%
(10.3%)
(8.9%)
Price /
DATA & ANALYTICS
Median
(0.2%)
NM
NM
5.3x
NM
NM
1.4x
4.5x
NM
3.6x
3.1x
63.5x
NM
5.3x
4.0x
3.4x
16.0x
40.4x
2.5x
2.4x
2.2x
10.4x
NM
12.6%
2.9x
2.5x
2.2x
22.8x
59.3x
26.2%
3.0x
2.8x
2.6x
54.6x
22.8x
642
684
82.6%
(16.2%)
26.0%
5.4%
(8.0%)
NM
3.6x
3.9x
3.3x
NM
NM
$2,624
$2,565
73.8%
1.1%
45.8%
10.1%
10.6%
15.7%
3.6x
3.6x
3.1x
19.4x
49.8x
VMware, Inc.
VMW
$18,100
$23,817
60.5%
(31.4%)
(39.9%)
11.4%
9.8%
26.2%
2.8x
2.5x
2.3x
8.4x
25.1x
Red Hat, Inc.
RHT
14,731
15,138
98.1%
19.8%
56.4%
14.3%
14.3%
18.5%
7.5x
6.5x
5.7x
32.4x
78.0x
NOW
13,501
13,763
94.8%
27.6%
188.2%
50.5%
46.7%
NM
14.7x
9.9x
7.5x
NM
NM
CA, Inc.
Citrix Systems, Inc.
F5 Networks, Inc.
Arista Networks, Inc.
Micro Focus International plc
NetScout Systems, Inc.
Software AG
CA
11,239
11,901
85.5%
(6.2%)
29.9%
(6.1%)
(6.0%)
31.4%
2.7x
2.8x
2.7x
6.4x
15.7x
CTXS
11,881
11,637
89.9%
18.6%
15.3%
4.2%
3.3%
24.7%
3.7x
3.6x
3.4x
14.3x
41.1x
FFIV
6,050
6,824
71.7%
(25.7%)
(0.2%)
10.8%
6.9%
31.0%
3.2x
2.9x
2.6x
8.8x
18.7x
ANET
4,748
5,274
87.9%
28.1%
NA
45.7%
42.5%
19.8%
6.2x
4.5x
3.8x
31.4x
48.7x
LSE:MCRO
6,507
5,118
98.3%
39.7%
113.1%
183.7%
47.5%
37.4%
5.3x
5.3x
5.3x
31.4x
37.0x
NTCT
2,975
3,043
67.4%
(16.0%)
18.1%
39.1%
128.5%
18.0%
4.9x
2.2x
2.1x
21.4x
79.6x
XTRA:SOW
2,249
2,247
NA
17.4%
(32.2%)
(2.2%)
0.6%
28.6%
2.4x
2.3x
2.3x
9.0x
15.4x
New Relic, Inc.
NEWR
1,585
1,774
90.8%
4.6%
NA
68.8%
58.8%
NM
11.0x
7.3x
5.7x
NM
NM
Progress Software Corporation
PRGS
1,131
1,205
78.5%
(11.2%)
14.3%
11.4%
22.1%
20.1%
3.1x
2.6x
2.5x
9.0x
79.6x
Infoblox Inc.
BLOX
750
1,101
65.6%
(9.0%)
2.3%
31.5%
23.1%
NM
2.3x
1.9x
1.6x
NM
NM
RDWR
603
695
61.6%
(30.3%)
(7.0%)
4.0%
(2.5%)
18.0%
2.7x
2.7x
2.5x
15.0x
29.6x
$5,399
$5,196
82.0%
(0.8%)
14.8%
12.9%
18.2%
24.7%
3.4x
2.8x
2.7x
14.3x
37.0x
Radware Ltd.
Median
Communication
Enterprise
HCM
Marketing
PLM &
Engineering
IT OPERATIONS MANAGEMENT
ServiceNow, Inc.
Software
Bellwethers
SCM & Logistics

Energy
Financial
HCIT
Public Sector /
Non-Profit
Large-Cap
SaaS
Small-Cap
SaaS
Data &
Analytics
IT Operations
Data Storage
IT Security
PAGE | 24


Enterprise
Market
% of 52
1-Year Stock
3-Year Stock
Ticker
Value
Capitalization
Week High
Performance
Performance
EMC Corporation
EMC
$51,102
$49,789
85.5%
(13.7%)
NetApp, Inc.
NTAP
4,431
7,756
63.5%
IRM
10,397
5,703
65.0%
Brocade Communications Systems, Inc.
BRCD
3,115
3,760
CommVault Systems, Inc.
CVLT
1,383
Box, Inc.
BOX
1,486
Barracuda Networks, Inc.
CUDA
Nimble Storage, Inc.
NMBL
Carbonite, Inc.
CARB
Company
Revenue Growth
LTM EBITDA
Enterprise Value /
LTM
NTM
Margin
LTM Rev.
1.5%
2.8%
1.9%
21.0%
2.1x
2.0x
1.9x
(36.0%)
(20.9%)
(6.7%)
(6.2%)
11.3%
0.8x
0.8x
(30.1%)
(13.0%)
(2.4%)
(3.0%)
29.8%
5.6x
3.3x
70.8%
(22.5%)
72.2%
2.4%
0.6%
25.7%
1.4x
1,783
75.1%
(23.9%)
(43.5%)
(4.9%)
(3.8%)
2.3%
1,653
56.4%
NA
NA
45.5%
38.3%
NM
784
997
39.9%
(47.9%)
NA
17.4%
15.8%
507
716
28.6%
(66.5%)
NA
49.4%
40.9%
Price /
DATA STORAGE
Iron Mountain Incorporated
Median
7.0x
21.1x
0.8x
3.1x
19.6x
3.3x
11.1x
43.8x
1.4x
1.4x
4.9x
11.0x
2.4x
2.2x
2.1x
10.5x
NM
5.3x
3.8x
3.0x
NM
NM
1.6%
2.6x
2.2x
1.9x
10.7x
NM
NM
1.7x
1.3x
1.0x
NM
NM
204
267
63.5%
(31.3%)
5.9%
11.7%
11.8%
NM
1.5x
1.4x
1.2x
NM
NM
$1,486
$1,783
63.5%
(30.7%)
(5.8%)
2.8%
1.9%
16.2%
2.1x
2.0x
1.9x
8.7x
20.3x
Cisco Systems, Inc.
CSCO
$103,363
$137,841
89.6%
(2.4%)
38.2%
4.9%
0.4%
27.6%
2.1x
2.1x
2.0x
7.2x
Palo Alto Networks, Inc.
PANW
14,863
15,132
87.8%
43.7%
229.1%
56.0%
43.7%
NM
14.4x
9.7x
7.6x
NM
NM
Check Point Software Technologies Ltd.
CHKP
13,419
14,718
92.0%
3.6%
70.8%
8.9%
8.9%
52.9%
8.4x
7.6x
7.1x
15.3x
21.7x
Symantec Corporation
SYMC
12,569
14,186
76.9%
(18.1%)
11.6%
(7.9%)
(26.2%)
28.2%
2.0x
3.5x
3.4x
5.9x
21.1x
VeriSign, Inc.
VRSN
9,712
9,741
93.0%
53.3%
125.0%
4.3%
4.6%
62.6%
9.3x
8.6x
8.2x
14.4x
28.7x
14.4x
TSE: 4704
4,561
5,599
NA
47.1%
36.8%
9.3%
7.4%
33.9%
4.5x
3.8x
3.7x
14.1x
29.2x
Fortinet Inc.
FTNT
4,461
5,369
62.0%
1.7%
48.3%
29.4%
31.0%
6.6%
4.8x
3.6x
3.0x
31.6x
309.8x
Gemalto NV
GTO
5,823
5,284
64.8%
(27.0%)
(33.0%)
18.6%
26.2%
16.3%
1.9x
1.6x
1.5x
11.0x
25.2x
FireEye, Inc.
FEYE
2,858
3,330
37.5%
(34.3%)
NA
71.0%
46.8%
NM
4.9x
3.5x
2.8x
NM
NM
Proofpoint, Inc.
PFPT
2,550
2,626
86.2%
34.8%
428.1%
36.8%
34.9%
NM
10.3x
7.4x
5.8x
NM
NM
Imperva Inc.
IMPV
1,736
1,990
81.2%
28.1%
100.8%
37.1%
40.0%
NM
8.2x
6.0x
4.8x
NM
NM
Qualys, Inc.
QLYS
957
1,132
59.7%
(12.3%)
123.7%
24.1%
23.1%
22.3%
6.1x
4.7x
3.9x
34.3x
31.1x
AVG Technologies N.V.
AVG
1,170
1,049
68.8%
1.6%
26.7%
11.5%
14.1%
29.1%
2.8x
2.6x
2.5x
8.5x
31.9x
$4,561
$5,369
76.9%
1.7%
59.6%
18.6%
23.1%
28.2%
4.9x
3.8x
3.7x
14.1x
28.7x
Median
Communication
Enterprise
HCM
Marketing
PLM &
Engineering
IT SECURITY
Trend Micro Inc.
Software
Bellwethers
SCM & Logistics

Energy
Financial
HCIT
Public Sector /
Non-Profit
Large-Cap
SaaS
Small-Cap
SaaS
Data &
Analytics
IT Operations
Data Storage
IT Security
PAGE | 25

OUR FIRM
Harris Williams & Co. has a broad range of industry expertise, which create powerful opportunities. Our clients benefit form our deep-sector experience,
integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information,
visit our website at www.harriswilliams.com/industries.
Aerospace, Defense
& Government
Services
Building Products
& Materials
Business
Services
Consumer
Energy, Power
& Infrastructure
Healthcare
& Life Sciences
Industrials
Specialty
Distribution
Technology,
Media & Telecom
Transportation
& Logistics
HARRIS WILLIAMS & CO. OFFICE LOCATIONS

UNITED STATES
EUROPE
Boston
Richmond (Headquarters)
Frankfurt
Cleveland
San Francisco
London
Two International Place

24th Floor
Boston, Massachusetts 02110
Phone: +1 (617) 482-7501
1900 East 9th Street

20th Floor
Cleveland, Ohio 44114
Phone: +1 (216) 689-2400
1001 Haxall Point

9th Floor
Richmond, Virginia 23219
Phone: +1 (804) 648-0072
575 Market Street

31st Floor
San Francisco, California 94105
Phone: +1 (415) 288-4260
Bockenheimer Landstrasse 33-35

60325 Frankfurt
Germany
Phone: +49 069 3650638 00
63 Brook Street
London W1K 4HS, England
Phone: +44 (0) 20 7518 8900
Minneapolis
222 South 9th Street

Suite 3350
Minneapolis, Minnesota 55402
Phone: +1 (612) 359-2700
NETWORK OFFICES
Beijing
New Delhi
Hong Kong
Shanghai
Mumbai
PAGE | 26

HARRIS WILLIAMS & CO.

SOURCES
S&P Capital IQ.
PNC Capital Markets.
S&P LCD stats.
PitchBook.
HW&Co. proprietary transaction information.
DISCLOSURES
Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry
knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory,
board advisory, private placements, and capital markets advisory services.
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised
and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRDPARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL
INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY
FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT
THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS.
The information and views contained in this report were prepared by Harris Williams & Co. (Harris Williams). It is not a research report, as such term is defined by applicable law
and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial
instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no
representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to,
have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking
services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities,
options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams judgment and are
subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions
using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not
necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams prior written
consent.
Copyright 2016 Harris Williams & Co., all rights reserved.
PAGE | 27

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TECHNOLOGY, MEDIA, & TELECOM

QUARTERLY SOFTWARE SECTOR REVIEW 4Q 2015

TECHNOLOGY, MEDIA, & TELECOM

HARRIS WILLIAMS & CO. OVERVIEW

HARRIS WILLIAMS & CO. (HW&CO.) GLOBAL ADVISORY PLATFORM

25 year history with over 700

SOFTWARE PRIVATE PLACEMENTS

SOFTWARE PUBLIC COMPARABLES

TECHNOLOGY IPO OVERVIEW

HW&CO. TECHNOLOGY, MEDIA & TELECOM (TMT) GROUP FOCUS AREAS

INTERNET & DIGITAL MEDIA

AdTech and Marketing

Telecom and Data Center

Digital Media, Content, and

TMT VERTICAL FOCUS AREAS

Supply Chain / Logistics

TO SUBSCRIBE PLEASE EMAIL:

SELECT 2016 AND 2015 HW&CO. TMT TRANSACTIONS

has been acquired by

has been acquired by

has been acquired by

has been acquired by

has been acquired by

has been acquired by

has been acquired by

has been acquired by

has been acquired by

has been acquired by

TECHNOLOGY, MEDIA, & TELECOM

DEAL SPOTLIGHT INVENTUS

has been acquired by

RPX Corporation views Inventus as a natural extension of the firms expertise in

has been acquired by

has been acquired by

has been acquired by

has been acquired by

Inventus is one of the leading providers of technology-based services to locate,

The Companys LuminosityTM technology provides an overlay to industrystandard

Headquartered in Chicago, Inventus will operate as an independent subsidiary of

TECHNOLOGY, MEDIA, & TELECOM

SELECT SOFTWARE M&A TRANSACTIONS 4Q 2015

Ent. Value: $190.0m

Ent. Value: $91.0m

November 16, 2015

Ent. Value: $122.0m

November 16, 2015

Ent. Value: $675.0m

October 21, 2015

Ent. Value: $675.0m

Quality Systems pending acquisition of HealthFusion

iModules acquisition of Campus Labs

SS&C Technologies acquisition of Primatics Financial

Tyler Technologies acquisition of New World Systems

Roper Technologies acquisition of Aderant Holdings

TECHNOLOGY, MEDIA, & TELECOM

SOFTWARE ACQUISITION ACTIVITY STRATEGIC ACQUIRERS

The 10 most active strategic

Microsofts 2015 acquisitions were

GLOBAL STRATEGIC ACQUIRER SOFTWARE M&A ACTIVITY BY VOLUME

Global strategic software M&A

Technology executives, who are

TECHNOLOGY, MEDIA, & TELECOM

SOFTWARE ACQUISITION ACTIVITY PRIVATE EQUITY