1
Tech M&A Monthly
Quarterly Report: Q3 2017
12 October 2017
2
Timothy joined Corum in 2011, and oversees the company’s marketing efforts globally from the headquarters near
Seattle. Chief among these is Corum's extensive conference schedule, “Selling Up, Selling Out,” the Merge Briefing,
the Tech M&A Monthly webcast and Corum's platinum sponsorship of the World Financial Symposiums' live events
and Market Spotlight series. Through these events, Corum Group serves as the world’s leading educator in
technology mergers and acquisitions.
Prior to joining Corum, Timothy served as marketing and product manager for GIS software startup Depiction, Inc.,
and previously worked in marketing for VizX Labs, a pioneering SaaS startup delivering DNA analysis tools. In
addition to marketing for software startups, Tim has worked for a US Senate campaign and taught science in Rio de
Janeiro.
Timothy graduated Magna Cum Laude from Bethel University in St. Paul, Minnesota, with degrees in History and
Biology.
Welcome
Timothy Goddard
EVP, Marketing
Corum Group Ltd.
3
Agenda
Welcome
Event Reports
Healthtech Market Spotlight Preview
Special Report: Succession Planning
2017 Q3 Research Report
Q&A
4
Event Report:
ABA National Business Law Meeting
Joel Espelien
Vice President, Client Services
Corum Group Ltd.
Joel Espelien has worked in a number of roles over a twenty year career in the technology industry. Most recently Joel served as
Senior Advisor to Karmel Capital, where he advised on corporate spin-offs and M&A transactions, including the private-equity backed
purchase of DivX LLC from Rovi Corporation and subsequent sale to Neulion, Inc, as well as the successful spin-off of Snaptracs,
Inc. and its Tagg wireless pet tracking product from Qualcomm and the eventual two-stage sale to Whistle Labs and Mars Petcare.
Joel has also served on the boards of multiple venture-backed companies resulting in successful exits, including AI startup IQ
Engines (acquired by Yahoo) and IoT-for-AgTech pioneer 640 Labs (acquired by Monsanto/Climate Corporation). He has also written
extensively for the Diffusion Group where he published 14 industry research reports as well as a widely recognized weekly blog.
Previously, Joel was the Chief Business Officer, SVP of Strategy and General Counsel of PacketVideo. While at PacketVideo, Joel
led multiple buy-side acquisitions in the US and Europe, a groundbreaking technology partnership with Google that helped launch
Android, a private-equity backed MBO and ultimately the sale of the company to NTT DoCoMo.
Prior to PacketVideo, Joel was a corporate attorney at Cooley LLP in Palo Alto and San Diego, California. Joel is a member of the
Bar in both Washington and California. He holds a JD/LLM (International and Comparative Law) from Duke University and a BA from
St. Olaf College. Joel is fluent in Spanish and has done business throughout Spain and Latin America.
5
Event Report:
Acetech Quarterly Dinner
David Levine
Senior Vice President
Corum Group Ltd.
Dave joined Corum in 2015 and has a diverse background in technology and life sciences. As an executive and entrepreneur,
Dave has been operating and investing in companies sitting at the convergence of commerce and eCommerce as well as innovative
life science businesses for over 25 years. Recently, Dave was CEO North America for Gaxsys, an eCommerce and logistics
company that is a leader in last mile logistics and fulfillment for eCommerce marketplaces.
Dave has been on both sides of the mergers and acquisitions table, having sold a life science technology company, facilitated sell
side and buy side technology transactions and has also scaled multiple technology companies globally in the eCommerce, life
sciences and innovation intelligence markets.
Dave sits on boards of numerous public and private companies, including one that recently filed for an IPO.
6
Event Report:
Carnegie Mellon University
Ivan Ruzic, PhD
Vice President
Corum Group Ltd.
Ivan Ruzic has had a successful 30+ year career in the software business that has included virtually every senior executive role. His
resume spans marquee companies such as BEA systems, Novell and Borland as well as multiple startups including his own. His
international experience is extensive and in addition to the United States has been involved in mergers and acquisitions in Europe,
Africa and Asia.
His success and extensive experience qualify him as an expert in building value and realizing wealth. Ivan joined Corum Group, the
world’s leading software M&A firm, with a specific focus on educating and helping prospective sellers maximize the value of their
technology companies.
7
Healthtech Market Spotlight Preview
October 17, 2017
10:00AM PT
https://www.wfs.com
8
A leader in the software industry, Bruce has founded or owned four software companies, including the largest vertical market
software company, AMI, an Inc. 500 firm rated by IDC as the fastest growing computer-related company in the world.
He has served on advisory boards for Microsoft, IBM, DEC, Comdex and Apple, and as 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, and founder of the WTIA, the nation’s most active regional
technology trade association.
He worked with the Canadian government to found SoftWorld, and he was recently chosen as one of the 200 most influential
individuals in the IT community in Europe. He was also the only American juror for the recent Tornado 100 Awards given to
Europe’s top technology firms
A graduate with Distinction from Harvard Business School, Bruce has written three books on business models for success,
including Power Planning. He is a frequent lecturer and author.
Bruce Milne
CEO
Corum Group Ltd.
Special Report:
Succession Planning
9
Special Report:
Succession Planning
Joel Espelien
Vice President, Client Services
Corum Group Ltd.
Joel Espelien has worked in a number of roles over a twenty year career in the technology industry. Most recently Joel served as
Senior Advisor to Karmel Capital, where he advised on corporate spin-offs and M&A transactions, including the private-equity backed
purchase of DivX LLC from Rovi Corporation and subsequent sale to Neulion, Inc, as well as the successful spin-off of Snaptracs,
Inc. and its Tagg wireless pet tracking product from Qualcomm and the eventual two-stage sale to Whistle Labs and Mars Petcare.
Joel has also served on the boards of multiple venture-backed companies resulting in successful exits, including AI startup IQ
Engines (acquired by Yahoo) and IoT-for-AgTech pioneer 640 Labs (acquired by Monsanto/Climate Corporation). He has also written
extensively for the Diffusion Group where he published 14 industry research reports as well as a widely recognized weekly blog.
Previously, Joel was the Chief Business Officer, SVP of Strategy and General Counsel of PacketVideo. While at PacketVideo, Joel
led multiple buy-side acquisitions in the US and Europe, a groundbreaking technology partnership with Google that helped launch
Android, a private-equity backed MBO and ultimately the sale of the company to NTT DoCoMo.
Prior to PacketVideo, Joel was a corporate attorney at Cooley LLP in Palo Alto and San Diego, California. Joel is a member of the
Bar in both Washington and California. He holds a JD/LLM (International and Comparative Law) from Duke University and a BA from
St. Olaf College. Joel is fluent in Spanish and has done business throughout Spain and Latin America.
10
Corum Research Report
Elon Gasper
EVP, Research
Amber Stoner
Director of Research
Yasmin Khodamoradi
Director, Valuation Services
Amanda Tallman
Senior Analyst
Patrick Cunningham
Analyst
Becky Hill
Analyst
11
Public Markets 2017
37%
15%
22%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Weekly Percentage Change
S&P TECH
Dow Jones
NASDAQ
Asia
HANG SENG
29%
Nikkei
8%
SSE Composite
8%
Europe
DAX
13%
CAC 40
10%
FTSE 100
5%
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
USA
S&P Tech
37%
NASDAQ
22%
Dow Jones
15%
12
The Bull Market, 2009-Present
Last 3 Quarters
2009
2011
2013
2015
2017
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
500%
Daily Percentage Change
NASDAQ
S&P TECH
Dow Jones
13
*Since the Great Depression. Source: S&P Capital IQ, The Associated Press
Macro view: 4 Longest Bull Market Runs
Start
End
Years
Dotcom Bubble
Oct. 11, 1990
Mar. 24, 2000
9.5
Current
Mar. 9, 2009
?
8.6
Postwar Boom
Jun. 13, 1949
Aug. 2, 1956
7.1
That 70s Inflation
Oct. 3, 1974
Nov. 28, 1980
6.2
14
Corum Index
Market
Transactions
Q3:2017
Q3:2016
911
805
Mega Deals
29
16
Largest Deal
$32B
$23B
Pipeline
Private Equity
Platform Deals
83
111
VC Backed Exits
142
171
Attributes
39%
Cross Border
Transactions
40%
Start-Up
Acquisitions
10%
11%
17 yrs
15 yrs
Average Life
of Target
Q3:2016
Q3:2017
Q3:2016
Q3:2017
0%
34%
17%
12%
45%
28%
15
2017 Mega Deals – YTD
VERTICAL
$58B
$15.3B
$3.7B
$1.6B
$1.1B
$1.1B
INFRASTRUCTURE
$9.9B
$1.1B
$1.3B
HORIZONTAL
$18B
$10.4B
$1.7B
$1.4B
Enterprise software
$2.4B
INTERNET
$12B
$1.9B
$3.4B
$2.4B
$1.6B
$1.2B
$23B
HR BPO assets
$2.6B
$2.8B
IT SERVICES
$15B
$4.3B
$2.0B
$1.6B
Healthcare business
$1.3B
$5.3B
$3.9B
$1.0B
$1.1B
$2.0B
$2.3B
$2.8B
$1.3B
$1.4B
$1.2B
$1.0B
$3.6B
16
2017 Mega Deals – YTD
VERTICAL
$58B
$15.3B
$3.7B
$1.6B
$1.1B
$1.1B
INFRASTRUCTURE
$9.9B
$1.1B
$1.3B
HORIZONTAL
$18B
$10.4B
$1.7B
$1.4B
Enterprise software
$2.4B
INTERNET
$12B
$1.9B
$3.4B
$2.4B
$1.6B
$1.2B
$23B
HR BPO assets
$2.6B
$2.8B
IT SERVICES
$15B
$4.3B
$2.0B
$1.6B
Healthcare business
$1.3B
$5.3B
$3.9B
$1.0B
$1.1B
$2.0B
$2.3B
$2.8B
$1.3B
$1.4B
$1.2B
$1.0B
$3.6B
Target: Syncsort [USA]
Acquirer: Centerbridge [USA]
Transaction Value: $1.3B
- Data integration and management segment
17
2017 Mega Deals – YTD
VERTICAL
$58B
$15.3B
$3.7B
$1.6B
$1.1B
$1.1B
INFRASTRUCTURE
$9.9B
$1.1B
$1.3B
HORIZONTAL
$18B
$10.4B
$1.7B
$1.4B
Enterprise software
$2.4B
INTERNET
$12B
$1.9B
$3.4B
$2.4B
$1.6B
$1.2B
$23B
HR BPO assets
$2.6B
$2.8B
IT SERVICES
$15B
$4.3B
$2.0B
$1.6B
Healthcare business
$1.3B
$5.3B
$3.9B
$1.0B
$1.1B
$2.0B
$2.3B
$2.8B
$1.3B
$1.4B
$1.2B
$1.0B
$3.6B
Sold to
Target: BAMTech [USA]
Acquirer: Walt Disney Company [USA]
Transaction Value: $1.6B
- Previously Major League Baseball’s streaming platform
18
2017 Mega Deals – YTD
VERTICAL
$58B
$15.3B
$3.7B
$1.6B
$1.1B
$1.1B
INFRASTRUCTURE
$9.9B
$1.1B
$1.3B
HORIZONTAL
$18B
$10.4B
$1.7B
$1.4B
Enterprise software
$2.4B
INTERNET
$12B
$1.9B
$3.4B
$2.4B
$1.6B
$1.2B
$23B
HR BPO assets
$2.6B
$2.8B
IT SERVICES
$15B
$4.3B
$2.0B
$1.6B
Healthcare business
$1.3B
$5.3B
$3.9B
$1.0B
$1.1B
$2.0B
$2.3B
$2.8B
$1.3B
$1.4B
$1.2B
$1.0B
$3.6B
Sold to
Target: CompuCom [USA]
Acquirer: Office DEPOT [USA]
Transaction Value: $1B
- Provides an offering of technology solutions for business customers
19
2017 Mega Deals – YTD
VERTICAL
$58B
$15.3B
$3.7B
$1.6B
$1.1B
$1.1B
INFRASTRUCTURE
$9.9B
$1.1B
$1.3B
HORIZONTAL
$18B
$10.4B
$1.7B
$1.4B
Enterprise software
$2.4B
INTERNET
$12B
$1.9B
$3.4B
$2.4B
$1.6B
$1.2B
$23B
HR BPO assets
$2.6B
$2.8B
IT SERVICES
$15B
$4.3B
$2.0B
$1.6B
Healthcare business
$1.3B
$5.3B
$3.9B
$1.0B
$1.1B
$2.0B
$2.3B
$2.8B
$1.3B
$1.4B
$1.2B
$1.0B
$3.6B
Sold to
Target: Bambora [Sweden]
Acquirer: Indenico Group [USA]
Transaction Value: $1.7B
- End-to-end payment solutions market for SMBs
Sold to
Target: Nets Holding A/S [Denmark]
Acquirer: Hellman & Friedman [USA]
Transaction Value: $5.3B [4.5x EV/Sales]
- Payment card transaction processing solutions
20
2017 Mega Deals – YTD
VERTICAL
$58B
$15.3B
$3.7B
$1.6B
$1.1B
$1.1B
INFRASTRUCTURE
$9.9B
$1.1B
$1.3B
HORIZONTAL
$18B
$10.4B
$1.7B
$1.4B
Enterprise software
$2.4B
INTERNET
$12B
$1.9B
$3.4B
$2.4B
$1.6B
$1.2B
$23B
HR BPO assets
$2.6B
$2.8B
IT SERVICES
$15B
$4.3B
$2.0B
$1.6B
Healthcare business
$1.3B
$5.3B
$3.9B
$1.0B
$1.1B
$2.0B
$2.3B
$2.8B
$1.3B
$1.4B
$1.2B
$1.0B
$3.6B
Sold to
Target: WebMD [USA]
Acquirer: Internet Brands [USA]
Transaction Value: $2.8B [4x EV/Sales; 16x EV/EBITDA]
- Web-based educational medical information for consumers and
healthcare professionals
21
3-Year Market Valuation Trends
22
Vertical Application Software Market
Deal Spotlight:
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
17.00 x
18.00 x
19.00 x
20.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17 Sep-17
EV/EBITDA 17.64 x 17.16 x 16.30 x 16.76 x 16.40 x 17.82 x 17.83 x 17.66 x 17.99 x 19.26 x 18.65 x 17.76 x 18.10 x
EV/S
4.72 x
4.39 x
4.50 x
4.57 x
4.61 x
4.70 x
4.71 x
5.00 x
4.93 x
5.12 x
5.00 x
5.05 x
5.05 x
23
Subsector
Sales
EBITDA
Examples
A/E/C
6.29x
26.05x
Automotive
6.26x
19.79x
Energy &
Environment
4.96x
18.61x
Financial
Services
5.23x
17.43x
Government
2.21x
13.71x
Healthcare
4.49x
26.76x
Real Estate
6.32x
28.67x
Vertical Other
3.91x
15.03x
Vertical Application Software Valuations
24
Vertical Application Software Market
Deal Spotlights: Healthcare
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
17.00 x
18.00 x
19.00 x
20.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17 Sep-17
EV/EBITDA 17.64 x 17.16 x 16.30 x 16.76 x 16.40 x 17.82 x 17.83 x 17.66 x 17.99 x 19.26 x 18.65 x 17.76 x 18.10 x
EV/S
4.72 x
4.39 x
4.50 x
4.57 x
4.61 x
4.70 x
4.71 x
5.00 x
4.93 x
5.12 x
5.00 x
5.05 x
5.05 x
Target: T-System [Francisco Partners] [USA]
Acquirer: Fidelity National Financial [USA]
Transaction Value: $200M
- Clinical documentation management software
Sold to
Target: Charm Health International [Australia]
Acquirer: Citadel Group [Australia]
Transaction Value: $6.5M
- Medication and related electronic health record systems and software
- Expands Citadel’s e-health offering
Sold to
25
Vertical Application Software Market
Deal Spotlight: Specialty Pharmacy
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
17.00 x
18.00 x
19.00 x
20.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17 Sep-17
EV/EBITDA 17.64 x 17.16 x 16.30 x 16.76 x 16.40 x 17.82 x 17.83 x 17.66 x 17.99 x 19.26 x 18.65 x 17.76 x 18.10 x
EV/S
4.72 x
4.39 x
4.50 x
4.57 x
4.61 x
4.70 x
4.71 x
5.00 x
4.93 x
5.12 x
5.00 x
5.05 x
5.05 x
Sold to
Target: Santa Lucia Pharma Apps [Italy]
Acquirer: H.I.G. Capital [USA]
- Hospital workflow and logistics management SaaS
- Advances Santa Lucia’s global expansion
26
Vertical Application Software Market
Deal Spotlights: Financial Services
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
17.00 x
18.00 x
19.00 x
20.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17 Sep-17
EV/EBITDA 17.64 x 17.16 x 16.30 x 16.76 x 16.40 x 17.82 x 17.83 x 17.66 x 17.99 x 19.26 x 18.65 x 17.76 x 18.10 x
EV/S
4.72 x
4.39 x
4.50 x
4.57 x
4.61 x
4.70 x
4.71 x
5.00 x
4.93 x
5.12 x
5.00 x
5.05 x
5.05 x
Sold to
Target: G2 Web Services [USA]
Acquirer: Verisk Analytics [USA]
Transaction Value: $112M
- Merchant risk intelligence SaaS
Sold to
Sold to
Target: LCI [USA]
Acquirer: Verisk Analytics [USA]
Transaction Value: $151M
- Bankruptcy data management SaaS
Target: Sequel Business Solutions [HgCapital] [Canada]
Acquirer: Verisk Analytics [USA]
Transaction Value: $322M (9.6x EV/Sales and 20.8 EV/EBITDA)
- Insurance and reinsurance software solutions
27
Vertical Application Software Market
Deal Spotlights: Financial Services
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
17.00 x
18.00 x
19.00 x
20.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17 Sep-17
EV/EBITDA 17.64 x 17.16 x 16.30 x 16.76 x 16.40 x 17.82 x 17.83 x 17.66 x 17.99 x 19.26 x 18.65 x 17.76 x 18.10 x
EV/S
4.72 x
4.39 x
4.50 x
4.57 x
4.61 x
4.70 x
4.71 x
5.00 x
4.93 x
5.12 x
5.00 x
5.05 x
5.05 x
Target: Sybenetix [United Kingdom]
Acquirer: NASDAQ [USA]
- Financial market surveillance and compliance monitoring SaaS
- Expands Nasdaq’s Risk & Surveillance suite of solutions
Sold to
Target: eVestment Alliance [USA]
Acquirer: NASDAQ [USA]
Transaction Value: $705M
- Online investment analysis reference content
- Bolsters Nasdaq’s technology, data and analytics businesses
Sold to
28
Vertical Application Software Market
Deal Spotlights: Loan Management
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
17.00 x
18.00 x
19.00 x
20.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17 Sep-17
EV/EBITDA 17.64 x 17.16 x 16.30 x 16.76 x 16.40 x 17.82 x 17.83 x 17.66 x 17.99 x 19.26 x 18.65 x 17.76 x 18.10 x
EV/S
4.72 x
4.39 x
4.50 x
4.57 x
4.61 x
4.70 x
4.71 x
5.00 x
4.93 x
5.12 x
5.00 x
5.05 x
5.05 x
Target: Snap Capital (assets) [USA]
Acquirer: LendingTree [USA]
Transaction Value: $12M
- Tech-enabled online platform connecting business owners with lenders
- Follows the first LendingTree’s acquisition in the market
Sold to
Target: Vanguard Software Group [USA]
Acquirer: Jack Henry & Associates [USA]
- Commercial loan analysis and management SaaS
- Compliments Jack Henry & Associates‘ lending suite
Sold to
29
Vertical Application Software Market
Deal Spotlights: A/E/C
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
17.00 x
18.00 x
19.00 x
20.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17 Sep-17
EV/EBITDA 17.64 x 17.16 x 16.30 x 16.76 x 16.40 x 17.82 x 17.83 x 17.66 x 17.99 x 19.26 x 18.65 x 17.76 x 18.10 x
EV/S
4.72 x
4.39 x
4.50 x
4.57 x
4.61 x
4.70 x
4.71 x
5.00 x
4.93 x
5.12 x
5.00 x
5.05 x
5.05 x
Target: Dexter + Chaney [Pamlico Capital] [USA]
Acquirer: Viewpoint Construction Software [Bain Capital] [USA]
- Financial and operational management software for construction contractors
- Enhances Dexter + Chaney’s Spectrum suite
Sold to
Target: Newforma [USA]
Acquirer: Battery Ventures [USA]
- Construction project management software
Sold to
30
Vertical Application Software Market
Deal Spotlights: Energy & Environment
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
17.00 x
18.00 x
19.00 x
20.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17 Sep-17
EV/EBITDA 17.64 x 17.16 x 16.30 x 16.76 x 16.40 x 17.82 x 17.83 x 17.66 x 17.99 x 19.26 x 18.65 x 17.76 x 18.10 x
EV/S
4.72 x
4.39 x
4.50 x
4.57 x
4.61 x
4.70 x
4.71 x
5.00 x
4.93 x
5.12 x
5.00 x
5.05 x
5.05 x
Sold to
Target: GreenFlex [France]
Acquirer: Total [France]
- Energy management SaaS, which restores the environment and the global climate
- Total also bought a 23% stake in renewables company EREN
31
2017 Mega Deals – YTD
VERTICAL
$55B
$15.3B
$3.7B
$1.6B
$1.1B
$1.1B
INFRASTRUCTURE
$9.9B
$1.1B
$1.1B
$2.0B
$2.3B
$2.8B
$1.3B
$1.4B
$1.2B
$1.3B
HORIZONTAL
$18B
$10.4B
$1.7B
$1.4B
Enterprise software
$2.4B
INTERNET
$12B
$1.9B
$3.4B
$2.4B
$1.6B
$1.2B
$23B
HR BPO assets
$2.6B
$2.8B
IT SERVICES
$15B
$4.3B
$2.0B
$1.6B
Healthcare business
$1.3B
$5.3B
$3.9B
$1.0B
$1.0B
Sold to
Target: Silver Spring Networks [USA]
Acquirer: Itron [USA]
Transaction Value: $1B (1.9x EV/Sales)
- Networking platform and solutions provider for smart energy networks
32
Vertical Application Software Market
Deal Spotlights: Automotive
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
17.00 x
18.00 x
19.00 x
20.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17 Sep-17
EV/EBITDA 17.64 x 17.16 x 16.30 x 16.76 x 16.40 x 17.82 x 17.83 x 17.66 x 17.99 x 19.26 x 18.65 x 17.76 x 18.10 x
EV/S
4.72 x
4.39 x
4.50 x
4.57 x
4.61 x
4.70 x
4.71 x
5.00 x
4.93 x
5.12 x
5.00 x
5.05 x
5.05 x
Target: automotiveMastermind [USA]
Acquirer: IHS Markit Group [United Kingdom]
Transaction Value: $392M
- Predictive analytics and marketing automation technology
Sold to
Target: DropCar [USA]
Acquirer: WPCS International Incorporated [USA]
- Concierge and vehicle support application and SaaS
Sold to
Target: Luxe [USA]
Acquirer: Volvo [Sweden]
- On-demand valet parking and car services application
Sold to
33
Vertical Application Software Market
Deal Spotlights: Real Estate
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
17.00 x
18.00 x
19.00 x
20.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17 Sep-17
EV/EBITDA 17.64 x 17.16 x 16.30 x 16.76 x 16.40 x 17.82 x 17.83 x 17.66 x 17.99 x 19.26 x 18.65 x 17.76 x 18.10 x
EV/S
4.72 x
4.39 x
4.50 x
4.57 x
4.61 x
4.70 x
4.71 x
5.00 x
4.93 x
5.12 x
5.00 x
5.05 x
5.05 x
Sold to
Target: New Home Feed [USA]
Acquirer: Zillow [USA]
- Real estate listing management system
Target: ForRent (Dominion Enterprises) [USA]
Acquirer: CoStar Group [USA]
Transaction Value: $385M
- Real estate classified ads and information website
Target: The Screening Pros [USA]
Acquirer: CoStar Group [USA]
- Tenant screening and leasing management software
Sold to
Sold to
Target: On-Site [USA]
Acquirer: RealPage [USA]
Transaction Value: $250M
- Apartment property management SaaS
Sold to
34
Vertical Application Software Market
Deal Spotlights: Government
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
17.00 x
18.00 x
19.00 x
20.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17 Sep-17
EV/EBITDA 17.64 x 17.16 x 16.30 x 16.76 x 16.40 x 17.82 x 17.83 x 17.66 x 17.99 x 19.26 x 18.65 x 17.76 x 18.10 x
EV/S
4.72 x
4.39 x
4.50 x
4.57 x
4.61 x
4.70 x
4.71 x
5.00 x
4.93 x
5.12 x
5.00 x
5.05 x
5.05 x
Target: Murphy Technologies [USA]
Acquirer: Kologik [USA]
- Public safety management SaaS
Sold to
Target: EVALS [USA]
Acquirer: Praetorian Digital [USA]
- Online continuing education, field training and skills management SaaS
Murphy Technologies
Sold to
35
Public Valuation Multiples
Internet Application Software Market
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
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
24.00 x
26.00 x
28.00 x
30.00 x
EV/S
EV/EBITDA
Sep-16
Oct-16
Nov-16 Dec-16
Jan-17
Feb-17 Mar-17
Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 22.21 x
20.40 x
19.07 x
18.57 x
20.12 x
21.80 x
21.78 x
26.43 x
27.08 x
26.11 x
28.79 x
24.53 x
25.69 x
EV/S
4.76 x
4.32 x
4.11 x
3.81 x
4.16 x
4.14 x
3.99 x
4.19 x
4.41 x
4.28 x
4.40 x
4.49 x
4.65 x
36
Subsector
Sales
EBITDA
Examples
Diversified
Internet
5.83x
25.69x
eCommerce
0.98x
42.60x
Social Network
5.36x
18.76x
Travel & Leisure
6.23x
27.27x
Internet Application Software Valuations
37
Deal Spotlights: Travel
Target
Acquirer
Target
Country
Acquirer
Country
Description
India
India
Corporate and independent travel services
Bulgaria
USA
Airfare search solutions for global travel industry
Brazil
USA
Online travel search engine
Germany
Germany Personalized travel recommendation platform
Israel
United
Kingdom
Search engine platform for travel agents and tour
operators
United
Kingdom
Australia Online hotel bookings and inbound travel services
Germany
United
Kingdom
Online travel agency specializing in cruising
Internet Application Software Market
38
Target
Acquirer
Target
Country
Acquirer
Country
Description
China
China
Food delivery in China
South Korea
Germany Food delivery in South Korea
USA
USA
Delivery of meal kits with ingredients and recipes
USA
USA
Food ordering service divested by Yelp, which
acquired it in 2015
USA
USA
Food ordering and delivery through web and mobile
application
USA
United
Kingdom
Community platform that invites people to dine in
homes
Internet Application Software Market
Deal Spotlights: Food Ordering
39
Internet Application Software Market
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
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
24.00 x
26.00 x
28.00 x
30.00 x
EV/S
EV/EBITDA
Sep-16
Oct-16
Nov-16 Dec-16
Jan-17
Feb-17 Mar-17
Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 22.21 x
20.40 x
19.07 x
18.57 x
20.12 x
21.80 x
21.78 x
26.43 x
27.08 x
26.11 x
28.79 x
24.53 x
25.69 x
EV/S
4.76 x
4.32 x
4.11 x
3.81 x
4.16 x
4.14 x
3.99 x
4.19 x
4.41 x
4.28 x
4.40 x
4.49 x
4.65 x
Deal Spotlight: Brick To Click Delivery
Sold to
Target: Wing.ae [UAE]
Acquirer: Souq.com [Amazon.com] [UAE]
- Delivery booking application and delivery booking services
- Helps Amazon build out its Prime subscription-based service into UAE
- Souq was acquired for $580M in Q1 2017
40
Internet Application Software Market
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
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
24.00 x
26.00 x
28.00 x
30.00 x
EV/S
EV/EBITDA
Sep-16
Oct-16
Nov-16 Dec-16
Jan-17
Feb-17 Mar-17
Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 22.21 x
20.40 x
19.07 x
18.57 x
20.12 x
21.80 x
21.78 x
26.43 x
27.08 x
26.11 x
28.79 x
24.53 x
25.69 x
EV/S
4.76 x
4.32 x
4.11 x
3.81 x
4.16 x
4.14 x
3.99 x
4.19 x
4.41 x
4.28 x
4.40 x
4.49 x
4.65 x
Deal Spotlights: Dating
Sold to
Target: My True [dba Evolve] [USA]
Acquirer: HubSpot [USA]
- Dating mobile application for consumers based on machine-learning
Sold to
Target: LOVOO [Germany]
Acquirer: Meet Group [USA]
Transaction Value: $6M
- Dating and social discovery online application for mobile devices
- Follows LOVOO’s scandal involving fake female profiles and bots
41
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
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 11.13 x 10.90 x 10.89 x 11.14 x 10.86 x 11.03 x 11.28 x 11.25 x 11.48 x 11.81 x 12.19 x 12.13 x 12.52 x
EV/S
1.32 x
1.27 x
1.21 x
1.30 x
1.37 x
1.25 x
1.36 x
1.45 x
1.42 x
1.41 x
1.40 x
1.44 x
1.41 x
42
Public Valuation Multiples
IT Services – Emerging Markets
1.50 x
1.70 x
1.90 x
2.10 x
2.30 x
2.50 x
2.70 x
2.90 x
3.10 x
3.30 x
3.50 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/S
EV/EBITDA
Sep-16
Oct-16
Nov-16 Dec-16
Jan-17
Feb-17 Mar-17
Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 14.69 x
12.93 x
13.01 x
13.52 x
13.38 x
14.25 x
14.45 x
17.04 x
17.75 x
18.55 x
19.31 x
19.57 x
20.45 x
EV/S
3.15 x
2.91 x
2.77 x
2.70 x
2.70 x
2.95 x
3.04 x
3.14 x
3.26 x
3.27 x
3.34 x
3.00 x
3.27 x
43
Subsector
Sales
EBITDA
Examples
Developed
1.41x
12.52x
Emerging
3.27x
20.45x
IT Services Valuations
44
IT Services – Developed Markets
Deal Spotlights: Microsoft based SI
Target
Acquirer
Target
Country
Acquirer
Country
Description
USA
USA
Microsoft Dynamics CRM services to improve the
Agent Experience (AX)
USA
USA
Consulting services for Microsoft Cloud Business
Solutions including Dynamics 365
Netherlands
Brazil
Microsoft and Cisco-based ICT services
USA
USA
Managed Microsoft Azure services
USA
Canada
SI services for 365 Business App suite, Dynamics
AX, Dynamics CRM and Dynamics GP
45
IT Services – Developed Markets
Deal Spotlights: Cloud Computing
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
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 11.13 x 10.90 x 10.89 x 11.14 x 10.86 x 11.03 x 11.28 x 11.25 x 11.48 x 11.81 x 12.19 x 12.13 x 12.52 x
EV/S
1.32 x
1.27 x
1.21 x
1.30 x
1.37 x
1.25 x
1.36 x
1.45 x
1.42 x
1.41 x
1.40 x
1.44 x
1.41 x
Sold to
Target: Cloud Technology Partners [USA]
Acquirer: Hewlett Packard Enterprise [USA]
- Cloud-based IT services, including systems and security integration
- HPE’s fifth acquisition this year
Sold to
Target: 47Lining[USA]
Acquirer: REAN Cloud [USA]
- AWS systems integration and consulting services
- Scales up 47Lining’s capabilities in Big Data and Internet of Things
46
IT Services – Developed Markets
Deal Spotlight: Cloud Management and Provisioning
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
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 11.13 x 10.90 x 10.89 x 11.14 x 10.86 x 11.03 x 11.28 x 11.25 x 11.48 x 11.81 x 12.19 x 12.13 x 12.52 x
EV/S
1.32 x
1.27 x
1.21 x
1.30 x
1.37 x
1.25 x
1.36 x
1.45 x
1.42 x
1.41 x
1.40 x
1.44 x
1.41 x
Sold to
Target: Greenqloud [aka Qstack] [Iceland]
Acquirer: NetApp [USA]
- Cloud infrastructure provisioning SaaS
- Augments NetApp’s position in hybrid cloud data services
47
IT Services – Developed Markets
Deal Spotlights: Research for Healthcare
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
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 11.13 x 10.90 x 10.89 x 11.14 x 10.86 x 11.03 x 11.28 x 11.25 x 11.48 x 11.81 x 12.19 x 12.13 x 12.52 x
EV/S
1.32 x
1.27 x
1.21 x
1.30 x
1.37 x
1.25 x
1.36 x
1.45 x
1.42 x
1.41 x
1.40 x
1.44 x
1.41 x
Sold to
Sold to
Target: Symphony Health Solutions [USA]
Acquirer: PRA Health Sciences [USA]
Transaction Value: $530M
- Big data analytics services
Target: Invicro [USA]
Acquirer: Konica Minolta Business Solutions [Japan]
- Medical imaging analysis and data management services
48
Horizontal Application 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
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 18.93 x
17.70 x
18.19 x
18.39 x
17.98 x
17.31 x
18.71 x
19.46 x
20.61 x
19.56 x
19.85 x
19.84 x
20.36 x
EV/S
3.83 x
3.75 x
3.46 x
3.47 x
3.70 x
3.83 x
3.80 x
3.90 x
4.31 x
4.49 x
4.35 x
4.33 x
4.27 x
49
Subsector
Sales
EBITDA
Examples
Business
Intelligence
4.03x
19.52x
Marketing &
Ad Tech
2.32x
21.88x
CRM
3.45x
51.72x
ERP
5.04x
25.39x
Human
Resources
6.56x
38.76x
SCM
4.65x
21.14x
Payments
4.14x
18.15x
Other
3.64x
16.15x
Horizontal Application Software Valuations
50
Horizontal Application Software Market
Deal Spotlights: Marketing Automation
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 18.93 x
17.70 x
18.19 x
18.39 x
17.98 x
17.31 x
18.71 x
19.46 x
20.61 x
19.56 x
19.85 x
19.84 x
20.36 x
EV/S
3.83 x
3.75 x
3.46 x
3.47 x
3.70 x
3.83 x
3.80 x
3.90 x
4.31 x
4.49 x
4.35 x
4.33 x
4.27 x
Target: Satmetrix Systems [USA]
Acquirer: NICE Systems [Israel]
- Marketing automation and customer analytics SaaS
- Helps to transform Nice’s contact center into experience center
Sold to
Target: Sense Networks [USA]
Acquirer: Verve Wireless [USA]
- Technology platform analyzing vast amount of mobile location data
- The deal complements Verve's data science inventions in the location mobile category
Sold to
51
Horizontal Application Software Market
Deal Spotlights: Marketing Automation
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 18.93 x
17.70 x
18.19 x
18.39 x
17.98 x
17.31 x
18.71 x
19.46 x
20.61 x
19.56 x
19.85 x
19.84 x
20.36 x
EV/S
3.83 x
3.75 x
3.46 x
3.47 x
3.70 x
3.83 x
3.80 x
3.90 x
4.31 x
4.49 x
4.35 x
4.33 x
4.27 x
Target: Kemvi [USA]
Acquirer: HubSpot [USA]
- AI-enabled customer data analysis SaaS
- HubSpot will incorporate Kemvi’s DeepGraph personalization technology
Sold to
Target: Motion AI [USA]
Acquirer: HubSpot [USA]
- Chat bot creation and deployment software
- Helps HubSpot to launch marketing bot platform
Sold to
52
Horizontal Application Software Market
Deal Spotlights: Order Management / Logistics
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 18.93 x
17.70 x
18.19 x
18.39 x
17.98 x
17.31 x
18.71 x
19.46 x
20.61 x
19.56 x
19.85 x
19.84 x
20.36 x
EV/S
3.83 x
3.75 x
3.46 x
3.47 x
3.70 x
3.83 x
3.80 x
3.90 x
4.31 x
4.49 x
4.35 x
4.33 x
4.27 x
Sold to
Target: MacroPoint [USA]
Acquirer: Descartes Systems Group [Canada]
Transaction Value: $107M (8.5x EV/Sales)
- Automated location tracking solutions
- Helps to build out Descartes’ Global Logistics Platform
Sold to
Target: Newgistics [USA]
Acquirer: Pitney Bowes [USA]
Transaction Value: $475M
- E-commerce and order management software and services
- Accelerates Pitney Bowes’ expansion into the residential shipping
53
Horizontal Application Software Market
Deal Spotlights: Advertising
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 18.93 x
17.70 x
18.19 x
18.39 x
17.98 x
17.31 x
18.71 x
19.46 x
20.61 x
19.56 x
19.85 x
19.84 x
20.36 x
EV/S
3.83 x
3.75 x
3.46 x
3.47 x
3.70 x
3.83 x
3.80 x
3.90 x
4.31 x
4.49 x
4.35 x
4.33 x
4.27 x
Sold to
Target: Simpli.fi [USA]
Acquirer: GTCR [USA]
- Demand side platform and real-time bidding, automation and analytics SaaS
Sold to
Sold to
Target: Tapit Media [Australia]
Acquirer: Geronimo Mobile [Australia]
- Near Field Communications (NFC) and beacon advertisement management SaaS
Target: AdinCube [France]
Acquirer: Mozoo [United Kingdom]
Transaction Value: $20M
- Mobile advertising monetization application
54
Horizontal Application Software Market
Deal Spotlights: Advertising
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 18.93 x
17.70 x
18.19 x
18.39 x
17.98 x
17.31 x
18.71 x
19.46 x
20.61 x
19.56 x
19.85 x
19.84 x
20.36 x
EV/S
3.83 x
3.75 x
3.46 x
3.47 x
3.70 x
3.83 x
3.80 x
3.90 x
4.31 x
4.49 x
4.35 x
4.33 x
4.27 x
Target: WorkBook Software [Denmark]
Acquirer: Deltek [Roper Technologies] [USA]
- ERP project & resource management SaaS
- Fosters Deltek’s moves in the media market
Sold to
55
Horizontal Application Software Market
Deal Spotlight: Compliance
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 18.93 x
17.70 x
18.19 x
18.39 x
17.98 x
17.31 x
18.71 x
19.46 x
20.61 x
19.56 x
19.85 x
19.84 x
20.36 x
EV/S
3.83 x
3.75 x
3.46 x
3.47 x
3.70 x
3.83 x
3.80 x
3.90 x
4.31 x
4.49 x
4.35 x
4.33 x
4.27 x
Sold to
Target: Paperless [Chile]
Acquirer: Sovos Compliance [HgCapital] [USA]
- Document management SaaS
- Complements Sovos' Intelligent Compliance Cloud
56
Horizontal Application Software Market
Deal Spotlight: Human Resources
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 18.93 x
17.70 x
18.19 x
18.39 x
17.98 x
17.31 x
18.71 x
19.46 x
20.61 x
19.56 x
19.85 x
19.84 x
20.36 x
EV/S
3.83 x
3.75 x
3.46 x
3.47 x
3.70 x
3.83 x
3.80 x
3.90 x
4.31 x
4.49 x
4.35 x
4.33 x
4.27 x
Sold to
Target: Elevated Careers [eHarmony] [USA]
Acquirer: Candidate.Guru [USA]
- All-in-one employee engagement, employment branding and hiring platform
- Adds to AI job-matching tech of Candidate.Guru
57
Infrastructure Software Market
Public Valuation Multiples
2.00 x
2.20 x
2.40 x
2.60 x
2.80 x
3.00 x
3.20 x
3.40 x
3.60 x
3.80 x
4.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 13.89 x 15.38 x 15.17 x 15.20 x 15.66 x 15.50 x 16.65 x 16.56 x 14.53 x 14.97 x 15.03 x 15.47 x 14.97 x
EV/S
3.45 x
3.20 x
3.42 x
3.32 x
3.32 x
3.54 x
3.53 x
3.54 x
3.60 x
3.62 x
3.48 x
3.63 x
3.83 x
58
Subsector
Sales
EBITDA
Examples
Endpoint
3.67x
19.39x
IT Services
Management
5.27x
13.91x
Network
Management
2.70x
8.81x
Security
4.23x
29.30x
Storage
& Hosting
3.44x
12.23x
Other
5.87x
12.17x
Infrastructure Software Market
59
Infrastructure Software Market
Deal Spotlights: Network Security
2.00 x
2.20 x
2.40 x
2.60 x
2.80 x
3.00 x
3.20 x
3.40 x
3.60 x
3.80 x
4.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 13.89 x 15.38 x 15.17 x 15.20 x 15.66 x 15.50 x 16.65 x 16.56 x 14.53 x 14.97 x 15.03 x 15.47 x 14.97 x
EV/S
3.45 x
3.20 x
3.42 x
3.32 x
3.32 x
3.54 x
3.53 x
3.54 x
3.60 x
3.62 x
3.48 x
3.63 x
3.83 x
Target: Cyphort [USA]
Acquirer: Juniper Networks [USA]
- Single-pane advance threat prevention and management SaaS
- Bolsters Juniper’s secure network solutions
Sold to
Target: RedOwl Analytics [dba RedOwl] [USA]
Acquirer: Forcepoint [Raytheon] [USA]
- Enterprise security information management software
- Follows the acquisition of Skyfence, security software provider for cloud applications
Sold to
Sold to
Target: SecureAuth [USA]
Acquirer: K1 Investment Management [USA]
Transaction Value: $225M (6.4x EV/Sales)
- Authentication, single sign-on and user identity management SaaS
- Adds the identity and access management component to K1’s security operations roster
60
Infrastructure Software Market
Deal Spotlights: Cisco Acquisitions
2.00 x
2.20 x
2.40 x
2.60 x
2.80 x
3.00 x
3.20 x
3.40 x
3.60 x
3.80 x
4.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 13.89 x 15.38 x 15.17 x 15.20 x 15.66 x 15.50 x 16.65 x 16.56 x 14.53 x 14.97 x 15.03 x 15.47 x 14.97 x
EV/S
3.45 x
3.20 x
3.42 x
3.32 x
3.32 x
3.54 x
3.53 x
3.54 x
3.60 x
3.62 x
3.48 x
3.63 x
3.83 x
Target: Observable Networks [USA]
Acquirer: Cisco Systems [USA]
- Endpoint security modeling SaaS
- Strengthens Cisco’s Stealthwatch solution
Sold to
Target: Springpath [USA]
Acquirer: Cisco Systems [USA]
Transaction Value: $320M
- Authentication, single sign-on and user identity management SaaS
- Aligns with Cisco’s transition to software-centric solutions
Sold to
61
Infrastructure Software Market
Deal Spotlights: Backup and Disaster Recovery
2.00 x
2.20 x
2.40 x
2.60 x
2.80 x
3.00 x
3.20 x
3.40 x
3.60 x
3.80 x
4.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 13.89 x 15.38 x 15.17 x 15.20 x 15.66 x 15.50 x 16.65 x 16.56 x 14.53 x 14.97 x 15.03 x 15.47 x 14.97 x
EV/S
3.45 x
3.20 x
3.42 x
3.32 x
3.32 x
3.54 x
3.53 x
3.54 x
3.60 x
3.62 x
3.48 x
3.63 x
3.83 x
Sold to
Target: Axcient [USA]
Acquirer: eFolder [USA]
- Data backup and recovery SaaS
Sold to
Target: Zetta [USA]
Acquirer: Arcserve [Marlin Equity Partners] [USA]
- Online backup and recovery SaaS and disaster-recovery-as-a-service
62
Infrastructure Software Market
Deal Spotlights: IoT
2.00 x
2.20 x
2.40 x
2.60 x
2.80 x
3.00 x
3.20 x
3.40 x
3.60 x
3.80 x
4.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 13.89 x 15.38 x 15.17 x 15.20 x 15.66 x 15.50 x 16.65 x 16.56 x 14.53 x 14.97 x 15.03 x 15.47 x 14.97 x
EV/S
3.45 x
3.20 x
3.42 x
3.32 x
3.32 x
3.54 x
3.53 x
3.54 x
3.60 x
3.62 x
3.48 x
3.63 x
3.83 x
Target: IQP Corporation [USA]
Acquirer: GE Digital [General Electric Company] [USA]
Transaction Value: $40M
- IoT application development software and SaaS
- Boosts GE Digital's Predix IoT platform
Sold to
Target: Arrayent [USA]
Acquirer: Prodea Systems [USA]
-Cloud platform connecting products to web and smartphone apps
-The deal facilitates the creation of the carrier-grade IoT services platform
Sold to
63
Consumer Application Software Market
Public Valuation Multiples
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 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
22.00 x
EV/S
EV/EBITDA
Sep-16
Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17
Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 17.32 x
17.80 x
14.73 x
14.82 x
15.82 x
17.52 x
18.23 x
20.43 x
20.02 x
15.85 x
17.48 x
13.74 x
13.09 x
EV/S
2.31 x
2.16 x
2.12 x
2.04 x
2.27 x
2.18 x
2.44 x
2.62 x
2.83 x
3.22 x
2.96 x
3.06 x
2.96 x
64
Subsector
Sales
EBITDA
Examples
Casual Gaming
4.14x
13.17x
Core Gaming
2.65x
11.86x
Other
1.36x
N/A
Consumer Application Software Valuations
65
Consumer Application Software Market
Deal Spotlight: Gaming
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 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
22.00 x
EV/S
EV/EBITDA
Sep-16
Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17
Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 17.32 x
17.80 x
14.73 x
14.82 x
15.82 x
17.52 x
18.23 x
20.43 x
20.02 x
15.85 x
17.48 x
13.74 x
13.09 x
EV/S
2.31 x
2.16 x
2.12 x
2.04 x
2.27 x
2.18 x
2.44 x
2.62 x
2.83 x
3.22 x
2.96 x
3.06 x
2.96 x
Sold to
Target: Ejoy [China]
Acquirer: Alibaba [China]
- Online video games for consumers in China
- Expands Alibaba’s online gaming business
66
Consumer Application Software Market
Deal Spotlight: Smart Home
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 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
22.00 x
EV/S
EV/EBITDA
Sep-16
Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17
Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 17.32 x
17.80 x
14.73 x
14.82 x
15.82 x
17.52 x
18.23 x
20.43 x
20.02 x
15.85 x
17.48 x
13.74 x
13.09 x
EV/S
2.31 x
2.16 x
2.12 x
2.04 x
2.27 x
2.18 x
2.44 x
2.62 x
2.83 x
3.22 x
2.96 x
3.06 x
2.96 x
Sold to
Target: Stringify [USA]
Acquirer: Comcast [USA]
- IoT smart home platform
- Consolidates Comcast’s smart home product portfolio
67
Consumer Application Software Market
Deal Spotlights: Digital Streaming
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 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
22.00 x
EV/S
EV/EBITDA
Sep-16
Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17
Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 17.32 x
17.80 x
14.73 x
14.82 x
15.82 x
17.52 x
18.23 x
20.43 x
20.02 x
15.85 x
17.48 x
13.74 x
13.09 x
EV/S
2.31 x
2.16 x
2.12 x
2.04 x
2.27 x
2.18 x
2.44 x
2.62 x
2.83 x
3.22 x
2.96 x
3.06 x
2.96 x
Sold to
Target: Chew.tv [United Kingdom]
Acquirer: BandLab Singapore [Singapore]
- Video streaming service for DJs and music bands
Sold to
Target: Slacker Radio [USA]
Acquirer: LiveXLive [USA]
Transaction Value: $50M
- Free internet radio service
Sold to
Sold to
Target: Funimation Entertainment [USA]
Acquirer: Sony Pictures Television [USA]
Transaction Value: $143M
- Entertainment, anime, and foreign licensing company
Target: Livestream [USA]
Acquirer: Vimeo [USA]
- Video live streaming platform
68
Deal Spotlights: Ridesharing
Target
Acquirer
Target
Country
Acquirer
Country
Description
Germany
USA
Peer-to-peer car rental marketplace
Germany
Germany Peer-to-peer style car pooling platform
Germany
Germany
App providing information about vacant car parks,
prices, electric vehicle charging stations, etc.
Israel
United
Kingdom
Short route search engine application
(Russia
assets)
USA
Russia
Ride sharing and private ride hailing mobile
application
Consumer Application Software Market
69
Deal Spotlight: On-Demand Services Platform
Horizontal Application Software Market
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/S
EV/EBITDA
Sep-16 Oct-16 Nov-16 Dec-16
Jan-17
Feb-17 Mar-17 Apr-17 May-17
Jun-17
Jul-17
Aug-17
Sep-17
EV/EBITDA 18.93 x
17.70 x
18.19 x
18.39 x
17.98 x
17.31 x
18.71 x
19.46 x
20.61 x
19.56 x
19.85 x
19.84 x
20.36 x
EV/S
3.83 x
3.75 x
3.46 x
3.47 x
3.70 x
3.83 x
3.80 x
3.90 x
4.31 x
4.49 x
4.35 x
4.33 x
4.27 x
Sold to
Target: TaskRabbit [USA]
Acquirer: IKEA [Sweden]
- Online marketplace connecting with freelancers willing to run errands
- Bolsters IKEA’s digital customer service capabilities
70
Deal Spotlights: Bricks & Clicks
Seller
Acquirer
Month
Description
October
Online marketplace and product launch platform
October
Same-day / last-mile delivery company
October
IT managed services, infrastructure solutions, consulting
and products to Fortune 1000 companies
September
Online delivery of premier meal kits with ingredients and
recipes
September Marketplace for freelancers willing to run errands
August
Platform for managing same-day and local delivery in the
North American market
August
Bespoke solutions to brick and mortar jewelry stores
Horizontal Application Software Market
71
Corum Research Report
Elon Gasper
EVP, Research
Amber Stoner
Director of Research
Yasmin Khodamoradi
Director, Valuation Services
Amanda Tallman
Senior Analyst
Patrick Cunningham
Analyst
Becky Hill
Analyst
72
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