May 2016
M A R K E T
U P D A T E
INVESTMENT BANKING AND STRATEGIC ADVISORY TO THE TECHNOLOGY,
INFORMATION AND HEALTHCARE INDUSTRIES
www.MarlinLLC.com
© Marlin & Associates Holdings LLC, All Right Reserved
Toronto
Washington, D.C.
San Francisco
New York
The report that follows clearly indicates that the m&a market in the dozen+ information technology sectors that we follow and
sometimes lead is strong. High demand often translates to high values. We recently advised on a sale at more than 30x
EBITDA.

With interest rates low, corporate cash high, the US bull market now firmly in its 9th year (significantly longer than average)
and m&a values up substantially over the past few years, it is no surprise that many boards, CEOs and business owners are
asking us: Is this the time to raise capital or sell? Maybe. If your company is growing and cash flow positive, your
management team is having fun, and your investors are not in a rush – why sell? Your firm probably will be worth more in a
year. Timing markets is not an exact science. But if you are seriously contemplating a liquidity event, this is not a bad
environment to do so – as long as you are realistic about your own strengths and weaknesses and value expectations.
I wrote a recent blog post on this subject which you can see HERE. In short, while the market remains strong, it is what I call
cautiously optimistic – as opposed to irrationally exuberant. In fact, deal volume is down a bit from last year’s torrid pace.
For many it’s about perceived risk.
Marlin & Associates is one of the most active firms advising buyers and sellers of U.S. and international middle-market firms that provide software, data,
and related services. The firm is based in New York City, with offices in San Francisco, CA, Washington, D.C., and Toronto, Canada. It has been the
recipient of numerous awards including “Boutique Investment Bank of the Year,” “Middle-Market Investment Bank of the Year,” "Middle-Market Financing
Agent of the Year – Equity," and “TMT Advisory Bank of the Year.” Marlin & Associates' team of professionals has advised over 200 information-
technology transactions.
DEAR
CLIENTS AND FRIENDS,
Don’t panic, we expect
m&a values to remain
strong for the next 12-
18 months…



Sincerely,
• XIO Group (London, United Kingdom) agreed to acquire
J.D. Power and Associates from McGraw Hill Financial for
$1.1bn;
• EQT Partners (Stockholm, Sweden) agreed to acquire
Sitecore at an implied enterprise value of $1.1bn;
• Veritas Capital (New York, NY) agreed to acquire Verisk
Health for $820mm;
• Huatai Securities (SHSE:601688) agreed to acquire
AssetMark for $780mm;

• Oracle (NYSE:ORCL) agreed to acquire Textura for
$680mm;
• Experian plc (LSE:EXPN) acquired CSIdentity for
$360mm;
• Ally Financial (NYSE:ALLY) agreed to acquire TradeKing
for $275mm;
• CEB (NYSE:CEB) agreed to acquire Evanta for $275mm;
• Human Longevity (San Diego, CA) raised $220mm in a
Series B round led by Celgene, Illumina, and GE Ventures.
Is it time to sell? Welcome to our May 2016 M&A Market Update

Sellers de-risk. They trade the promise of the future for certainty now.
Buyers and investors take on risk – giving up safety of cash, debt capacity
or equity for the promise of what is to come. The more uncertainty they
feel about the future of a target company, the lower the price they are
willing to pay. Most still want to transact. They are aware that the world is
changing rapidly, anxious not to be left behind, and often optimistic about
the long-term opportunity. At the same time their optimism is tempered by
the realities and risks that also are prevalent in the current market.

Don’t panic, we expect m&a values to remain strong for the next 12-18 months – which is about as far as our crystal ball
can see. Sellers who persist in wishful thinking in spite of the realities on the ground may have challenges, but those that
have reached scale, are growing and have a realistic view of their firm’s strengths and weaknesses – and a realistic sense
of value – will find a host of willing investors and buyers. We’re happy to help.

Details of recent transactions are in the report that follows. Some of the more interesting ones include:

Kenneth B. Marlin | Managing Partner
Marlin & Associates | www.marlinllc.com
Author | The Marine Corps Way to Win on Wall Street
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/29/16. These companies are a sample
of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and median
multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.
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15

16

17

18

19

18
Sector Comparison Snapshot


Sector Analyses

Application Software

B2B E-commerce & Marketing Technologies

Banking Software & Processors

Business Intelligence Software

Capital Markets Software & Services

Data & Analytics – Financial Services

Healthcare Information Software Systems

Information & Market Research

Insurance Technology

Payment Technology

Securities Exchanges

Security Software

Technology-Enabled Financial Institutions

Technology-Enabled Healthcare Services




Merger-and-Acquisition Activity Trends
MARLIN & ASSOCIATES MARKET UPDATE
MAY 2016
02
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/29/16. These companies are a sample
of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and median
multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.
03
SECTOR COMPARISON SNAPSHOT:
CURRENT REVENUE & EBITDA MULTIPLES
Enterprise Value / 2015 Revenue
Enterprise Value / 2015 EBITDA
MAY 2016
*Tech-enabled Financial Institutions multiples calculated using Market Cap / Revenue and Market Cap / EBT
0x
2x
4x
6x
8x
10x
Insurance Technology
Tech-enabled Healthcare Services
Capital Markets Software & Services
Tech-enabled Financial Institutions *
Information & Market Research
Business Intelligence Software
Payment Technology
Security Software
Healthcare Info Software
Banking Software & Processors
B2B E-commerce & Marketing Technologies
Application Software
Data & Analytics - Financial Services
Securities Exchanges
0x
5x
10x
15x
20x
25x
30x
Tech-enabled Financial Institutions *
Payment Technology
Business Intelligence Software
Security Software
Insurance Technology
Data & Analytics - Financial Services
Securities Exchanges
Tech-enabled Healthcare Services
Information & Market Research
Capital Markets Software & Services
Application Software
B2B E-commerce & Marketing Technologies
Banking Software & Processors
Healthcare Info Software
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/29/16. These companies are a sample
of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and median
multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.
Application Software
Public Market Data
Recent Activity
04
MAY 2016
Company
Market
Enterprise
EV / Revenue
EV / EBITDA
Revenue Growth
EBITDA Margin
Revenue
(USD millions)
Cap
Value
CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E
Oracle
174,368
164,173
4.4x
4.4x
10.8x
9.6x
(3%)
(0%)
41%
46%
SAP
97,190
103,697
4.4x
4.2x
16.0x
12.2x
18%
6%
27%
34%
Intuit
27,446
28,357
6.3x
6.0x
21.8x
15.7x
6%
6%
29%
38%
CA Technologies
13,005
12,755
3.2x
3.2x
10.4x
8.2x
(7%)
(0%)
31%
38%
Amdocs
9,105
7,919
2.2x
2.1x
11.4x
22.1x
1%
3%
19%
9%
Constellation Softw are
8,756
8,917
4.9x
4.2x
20.9x
16.5x
10%
15%
23%
26%
NetSuite
5,366
5,285
7.1x
5.5x
na
63.1x
33%
30%
n/a
9%
Manhattan Associates
4,219
4,090
7.4x
6.7x
24.2x
19.7x
13%
10%
30%
34%
NICE Systems
3,984
3,559
3.8x
3.5x
15.9x
13.0x
6%
8%
24%
27%
Softw are AG
3,068
3,085
3.1x
3.1x
10.5x
10.1x
2%
1%
30%
30%
Paycom Softw are
2,057
2,032
9.0x
6.5x
48.3x
31.4x
49%
38%
19%
21%
Zendesk
1,847
1,602
7.7x
5.4x
na
na
64%
42%
n/a
n/a
Paylocity
1,629
1,550
8.3x
6.1x
na
63.0x
47%
35%
n/a
10%
SciQuest
385
243
2.3x
2.2x
30.1x
10.3x
3%
5%
8%
21%
Trim Mean
14,806
15,237
5.2x
4.5x
17.9x
20.3x
16%
13%
26%
26%
Median
4,793
4,688
4.6x
4.3x
16.0x
15.7x
8%
7%
27%
27%
Date
Announced
Acquirer(s) / Investor(s) Target / Issuer
Description
4/28/16
Oracle (NYSE:ORCL) agrees to acquire Textura for $680mm in cash. The transaction
valued Textura at an implied enterprise value of $619mm or 6.7x LTM revenue.
Textura provides collaboration and productivity tools for the construction industry.
3/22/16
Micro Focus International (LSE:MCRO) agrees to acquire Serena Software for
$540mm in cash. Serena Software provides application lifecycle management IT
solutions for the Global 2000 companies.
3/15/16
Couchbase (Mountain View, CA) raises $30mm in a Series F round from Sorenson
Capital. Existing investors also participated in the transaction. Couchbase provides
NoSQL databases to enterprises for Web and mobile applications. The company
plans to use the proceeds to accelerate sales and expand technical support and
engineering investments.
0x
10x
20x
30x
40x
2.0x
4.0x
6.0x
8.0x
10.0x
May-11
May-12
May-13
May-14
May-15
May-16
E
V
/
E
B
IT
D
A
E
V
/
R
e
v
e
n
u
e
5 Year LTM Revenue & EBITDA Multiples
EV / LTM Revenue
EV / LTM EBITDA
80
130
180
230
280
May-11
May-12
May-13
May-14
May-15
May-16
5 Year M&A Application Software Index vs. S&P 500, base = 100
M&A Application Software Index
S&P 500
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/29/16. These companies are a sample
of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and median
multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.
B2B E-commerce & Marketing Technologies
Public Market Data
Recent Activity
05
MAY 2016
[1] Shopify (SHOP) added to the index as of IPO 5/21/15
10x
20x
30x
40x
50x
60x
3.0x
5.0x
7.0x
9.0x
11.0x
13.0x
May-11
May-12
May-13
May-14
May-15
May-16
E
V
/
E
B
IT
D
A
E
V
/
R
e
v
e
n
u
e
5 Year LTM Revenue & EBITDA Multiples[1]
EV / LTM Revenue
EV / LTM EBITDA
80
100
120
140
160
May-11
May-12
May-13
May-14
May-15
May-16
5 Year M&A eCommerce Index[1] vs. S&P 500, base = 100
M&A eCommerce Index
S&P 500
Company
Market Enterprise
(USD millions)
Cap
Value
CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E
Mercadolibre
5,515
5,442
8.3x
7.7x
30.5x
29.7x
17%
8%
27%
26%
Shopify
2,408
2,218
10.8x
6.8x
na
na
95%
60%
na
na
Demandw are
1,685
1,490
6.3x
4.9x
na
55.3x
48%
28%
na
9%
HubSpot
1,520
1,416
7.8x
5.7x
na
na
57%
38%
na
na
NeuStar
1,291
2,292
2.2x
1.9x
5.7x
4.1x
9%
17%
38%
46%
Focus Technology
1,136
1,011
13.3x
6.6x
nm
na
(3%)
100%
3%
na
Marketo
967
879
4.2x
3.2x
na
na
40%
30%
na
na
ChannelAdvisor
329
273
2.7x
2.4x
na
nm
18%
12%
na
2%
Mediagrif Interactive
188
202
3.6x
3.5x
10.4x
8.2x
2%
2%
34%
42%
QuinStreet
159
124
0.4x
0.4x
na
6.3x
3%
17%
na
6%
Trim Mean
1,190
1,223
5.7x
4.4x
10.4x
14.7x
24%
26%
31%
21%
Median
1,213
1,213
5.2x
4.2x
10.4x
8.2x
18%
23%
31%
17%
EV / Revenue
EV / EBITDA
Revenue Growth
EBITDA Margin
Date
Announced
Acquirer(s) / Investor(s) Target / Issuer
Description
4/19/16


Private Investor(s)

Insightly (San Francisco, CA) raises $25mm in a Series C round led by Scott
Bommer, an individual investor. The round included participation from existing
investors Emergence Capital Partners, Cloud Apps Management and Sozo Ventures.
The company has raised a total of more than $40mm in funding to date.
4/1/16
EQT Partners (Stockholm, Sweden) agrees to acquire Sitecore at an implied
enterprise value of $1.1bn or 5.0x LTM revenue. Sitecore develops customer
experience management software for marketers worldwide.
3/30/16




Alternative Investment
Partners
Invoca (Santa Barbara, CA) raises $30mm in a Series D round led by Morgan Stanley
Alternative Investment Partners. Invoca plans to use the proceeds to extend its
leadership across sales, marketing, customer success and product development, with
a focus on helping Fortune 500 marketers capitalize on the massive wave of mobile
adoption, and to expand its operations.
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/29/16. These companies are a sample
of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and median
multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.
Banking Software & Processors
Public Market Data
06
MAY 2016
Recent Activity
[1] Q2 Holdings (QTWO) added to the index as of IPO 3/20/14
8x
12x
16x
20x
2.0x
3.0x
4.0x
5.0x
May-11
May-12
May-13
May-14
May-15
May-16
E
V
/
E
B
IT
D
A
E
V
/
R
e
v
e
n
u
e
5 Year LTM Revenue & EBITDA Multiples[1]
EV / LTM Revenue
EV / LTM EBITDA
60
120
180
240
May-11
May-12
May-13
May-14
May-15
May-16
5 Year M&A Banking Software Index[1] vs. S&P 500, base = 100
M&A Banking Software Index
S&P 500
Company
Market Enterprise
(USD millions)
Cap
Value
CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E
Fiserv
22,632
26,633
5.1x
4.8x
16.6x
13.8x
4%
6%
31%
35%
FIS
21,517
32,208
4.9x
3.4x
19.1x
11.1x
3%
43%
26%
31%
Jack Henry & Associates
6,464
6,509
5.0x
4.7x
14.3x
13.5x
6%
6%
35%
35%
Oracle Financial Services
4,625
4,245
7.0x
6.0x
16.7x
13.7x
5%
16%
42%
44%
Temenos
3,701
3,966
7.3x
6.5x
33.5x
17.1x
16%
12%
22%
38%
Ellie Mae
2,598
2,527
10.0x
7.9x
52.6x
27.2x
57%
26%
19%
29%
ACI Worldw ide
2,402
3,274
3.1x
3.3x
18.7x
12.6x
3%
(4%)
17%
26%
Bottomline Technologies
936
955
2.8x
2.6x
22.3x
12.4x
4%
8%
13%
21%
Q2 Holdings
927
816
7.5x
5.6x
nm
nm
38%
34%
na
na
Polaris Consulting & Services
299
264
0.9x
0.8x
7.5x
6.0x
0%
7%
12%
14%
Sw ord Group
255
211
1.4x
1.1x
9.3x
7.4x
18%
20%
15%
15%
Microgen
164
156
3.4x
3.2x
12.9x
12.4x
7%
7%
27%
26%
Gresham Computing
95
88
4.2x
3.7x
30.9x
16.1x
16%
14%
14%
23%
Trim Mean
3,990
4,505
4.7x
4.1x
19.4x
13.0x
11%
14%
22%
28%
Median
2,402
2,527
4.9x
3.7x
17.7x
13.1x
6%
12%
20%
28%
EV / Revenue
EV / EBITDA
Revenue Growth
EBITDA Margin
Date
Announced
Acquirer(s) / Investor(s) Target / Issuer
Description
4/22/16
Orange (ENXTPA:ORA) agrees to acquire a 65% stake in Groupama Banque from
Groupama. The company will be renamed Orange Bank and plans to launch a mobile
exclusive banking service in France in early 2017.
4/5/16
Ally Financial (NYSE:ALLY) agrees to acquire TradeKing for $275mm. The acquisition
will add wealth management capabilities to Ally’s online banking franchise. The
transaction is expected to be accretive beginning in 2018.
3/22/16
Open Lending (Austin, TX) raises $40mm in a round of funding from new investor
Bregal Sagemount. Bregal secured a significant minority position in the transaction.
Open Lending provides analytics, risk modeling, and decision support services for
automotive lenders.
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/29/16. These companies are a sample
of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and median
multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.
Business Intelligence Software
Public Market Data
Recent Activity
07
MAY 2016
[1] Tableau Software (DATA) added to the index as of IPO 5/17/13, Hortonworks (HDP) added to the index as of IPO 12/12/14
8x
16x
24x
32x
40x
48x
56x
64x
2.0x
4.0x
6.0x
8.0x
10.0x
May-11
May-12
May-13
May-14
May-15
May-16
E
V
/
E
B
IT
D
A
E
V
/
R
e
v
e
n
u
e
5 Year LTM Revenue & EBITDA Multiples[1]
EV / LTM Revenue
EV / LTM EBITDA
70
100
130
160
190
May-11
May-12
May-13
May-14
May-15
May-16
5 Year M&A BI Index[1] vs. S&P 500, base = 100
M&A BI Index
S&P 500
Company
Market Enterprise
(USD millions)
Cap
Value
CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E
Splunk
6,838
5,829
8.7x
6.6x
na
nm
48%
32%
na
7%
Open Text
6,806
7,498
4.1x
4.0x
14.2x
11.1x
(2%)
2%
29%
36%
Tableau Softw are
3,785
2,989
4.6x
3.6x
na
41.6x
58%
29%
na
9%
Qlik Technologies
2,892
2,522
4.1x
3.6x
nm
33.2x
10%
14%
1%
11%
Verint Systems
2,129
2,467
2.2x
2.2x
17.7x
9.0x
0%
(0%)
12%
24%
Microstrategy
2,058
1,522
2.9x
2.7x
10.3x
7.9x
(9%)
5%
28%
34%
Hortonw orks
529
434
3.6x
2.3x
na
na
165%
54%
na
na
Trim Mean
3,534
3,066
3.8x
3.2x
14.2x
17.7x
23%
16%
20%
20%
Median
2,892
2,522
4.1x
3.6x
14.2x
11.1x
10%
14%
20%
18%
EV / Revenue
EV / EBITDA
Revenue Growth
EBITDA Margin
Date
Announced
Acquirer(s) / Investor(s) Target / Issuer
Description
4/14/16
Oracle Corporation (NYSE:ORCL) agrees to acquire Crosswise for $50mm. Founded
in 2013, Crosswise provides an authoritative consumer device map to ad tech
vendors, consumer brands, and premium publishers. The acquisition of Crosswise
follows a string of Big Data buys for Oracle since it launched its data cloud in
February 2015. Prior to acquisition, Crosswise had raised $5mm over two rounds.
3/24/16
Domo (American Fork, UT) raises $131mm in a Series D round led by existing
investors BlackRock and Credit Suisse. The round valued the company at $2bn. In
addition to the funding, Domo has also announced a new investment program that will
seek to commit up to $50mm in capital to companies developing on their application
cloud.
2/16/16
Zoomdata (Reston, VA) raises $25mm in a Series C round led by Goldman Sachs’
Merchant Banking Division. Zoomdata is a supplier of fast visual analytics for real-time
streaming and historical data. Zoomdata has now raised a total of $47.2mm since its
launch in 2012. Over the past year, the company added 35 new enterprise customers
including Cisco, Deloitte and Markerstudy to its Fusion platform.
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/29/16. These companies are a sample
of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and median
multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.
Capital Markets Software & Services
Public Market Data
Recent Activity
08
MAY 2016
Company
Market Enterprise
(USD millions)
Cap
Value
CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E
Broadridge
7,283
7,748
2.8x
2.6x
13.0x
12.0x
7%
7%
21%
22%
Markit
6,683
7,362
6.6x
6.1x
18.7x
14.3x
5%
8%
35%
43%
SS&C Technologies
6,245
8,868
8.9x
5.9x
26.9x
14.0x
30%
50%
33%
42%
Computershare
4,122
5,488
2.8x
2.9x
9.2x
10.7x
(3%)
(1%)
31%
27%
DST
4,139
4,480
2.2x
2.1x
11.1x
9.8x
(1%)
5%
20%
22%
SimCorp
1,835
1,769
5.6x
5.3x
21.0x
22.3x
15%
4%
26%
24%
IRESS
1,371
1,506
5.5x
4.9x
21.9x
16.1x
10%
11%
25%
31%
Fidessa group
1,334
1,221
2.8x
2.7x
16.6x
10.3x
7%
4%
17%
26%
Envestnet
1,339
1,595
3.8x
2.7x
31.5x
16.4x
21%
38%
12%
17%
First Derivatives
646
661
4.3x
3.7x
22.1x
18.2x
35%
16%
19%
20%
Linedata Services
335
355
1.8x
1.8x
7.2x
6.7x
9%
2%
25%
26%
Cinnober
91
81
2.2x
na
33.4x
na
10%
na
6%
na
StatPro Group
73
71
1.6x
1.4x
12.4x
10.3x
(6%)
14%
13%
14%
Brady
67
58
1.4x
1.3x
nm
8.5x
(12%)
11%
0%
15%
Lombard Risk Management
43
39
1.1x
0.9x
11.4x
8.8x
5%
21%
10%
11%
Trim Mean
2,175
2,492
3.3x
3.1x
18.0x
12.5x
8%
12%
20%
24%
Median
1,339
1,506
2.8x
2.7x
17.7x
11.4x
7%
9%
20%
23%
EV / Revenue
EV / EBITDA
Revenue Growth
EBITDA Margin
10x
12x
14x
16x
18x
20x
2.0x
2.5x
3.0x
3.5x
4.0x
4.5x
May-11
May-12
May-13
May-14
May-15
May-16
E
V
/
E
B
IT
D
A
E
V
/
R
e
v
e
n
u
e
5 Year LTM Revenue & EBITDA Multiples
EV / LTM Revenue
EV / LTM EBITDA
80
100
120
140
160
180
May-11
May-12
May-13
May-14
May-15
May-16
5 Year M&A Capital Markets Index vs. S&P 500, base = 100
M&A Capital Markets Index
S&P 500
Date
Announced
Acquirer(s) / Investor(s) Target / Issuer
Description
4/19/16
Bridgepoint Advisers (London, United Kingdom) and Summit Partners (Boston, MA)
agree to acquire Calypso Technology for an undisclosed sum. Calypso offers an
integrated suite of trading and risk management solutions used by more than 34,000
market professionals in more than 60 countries.
4/11/16
Huatai Securities (SHSE:601688) agrees to acquire AssetMark for $780mm, valuing
the company at a reported13x EBITDA. AssetMark provides asset management
software to investment managers, broker dealers and investors, which collectively
manage more than $28bn on its platforms.
3/22/16
Edgewater Markets (New York, NY), a leader in electronic foreign exchange
aggregation and distribution to institutional clients, raises $30mm in a funding round
from FTV Capital. The company plans to use the capital to enhance its technology
platform, grow the sales team and expand its global reach.
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/29/16. These companies are a sample
of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and median
multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.
Data & Analytics – Financial Services
Public Market Data
09
MAY 2016
Recent Activity
10x
12x
14x
16x
18x
3.0x
4.0x
5.0x
6.0x
May-11
May-12
May-13
May-14
May-15
May-16
E
V
/
E
B
IT
D
A
E
V
/
R
e
v
e
n
u
e
5 Year LTM Revenue & EBITDA Multiples
EV / LTM Revenue
EV / LTM EBITDA
80
120
160
200
240
May-11
May-12
May-13
May-14
May-15
May-16
5 Year M&A Data & Analytics Financials Index vs. S&P 500, base = 100
M&A D&A Financial Index
S&P 500
Company
Market Enterprise
(USD millions)
Cap
Value
CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E
Thomson Reuters
30,554
39,109
3.2x
3.4x
15.1x
12.2x
(3%)
(7%)
21%
28%
S&P Global
28,550
31,859
6.0x
5.6x
14.4x
13.3x
5%
6%
42%
42%
Moody's
18,943
20,305
5.8x
5.7x
12.8x
12.8x
5%
1%
46%
45%
Experian
17,603
20,952
4.5x
4.7x
11.7x
13.5x
(5%)
(4%)
38%
35%
Equifax
14,526
17,544
6.6x
5.7x
19.2x
16.1x
9%
17%
34%
35%
Verisk Analytics
13,303
16,149
7.8x
7.0x
17.1x
14.9x
18%
12%
46%
47%
MSCI
7,594
8,729
8.1x
7.6x
18.1x
15.9x
8%
7%
45%
48%
CoStar Group
6,389
6,277
8.8x
7.5x
68.7x
25.8x
24%
18%
13%
29%
FactSet Research Systems
6,262
6,363
6.2x
5.5x
17.1x
15.2x
10%
12%
36%
36%
Dun & Bradstreet
4,019
5,489
3.4x
3.2x
12.8x
10.8x
3%
5%
26%
29%
Morningstar
3,586
3,435
4.4x
4.3x
13.5x
13.3x
4%
2%
32%
32%
FICO
3,461
3,990
4.7x
4.5x
20.5x
19.1x
7%
4%
23%
24%
CoreLogic
3,190
4,300
2.8x
2.3x
13.3x
9.0x
9%
22%
21%
26%
Trim Mean
11,294
12,905
5.5x
5.2x
15.8x
14.3x
7%
7%
33%
35%
Median
7,594
8,729
5.8x
5.5x
15.1x
13.5x
7%
6%
34%
35%
EV / Revenue
EV / EBITDA
Revenue Growth
EBITDA Margin
Date
Announced
Acquirer(s) / Investor(s) Target / Issuer
Description
4/4/16
WM/Reuters FX
Benchmark Business
Thomson Reuters (TSX:TRI) acquires WM/Reuters FX benchmark rate calculation
business of The World Markets Company (WM) from State Street Corporation.
Thomson Reuters will own, administer and calculate the benchmark, which is used by
financial professionals globally for portfolio valuation, performance measurement,
index calculation, and as a price reference in financial contracts.
3/31/16
Morningstar (NASDAQ:MORN) acquires RequiSight (dba RightPond) for an
undisclosed sum. RightPond provides business intelligence data and analytics on
defined contribution and defined benefit plans for financial services firms. Morningstar
plans to integrate RightPond into Morningstar Data and Morningstar DirectSM, the
company’s cloud-based investment analysis platform for institutions and advisors.
3/21/16
Markit (NYSE:MRKT) agrees to merge with IHS implying an enterprise value of
$6.2bn for Markit and valuing Markit at an implied 5.6x 2015 revenue and 12.4x 2015
EBITDA. Under the terms of the transaction, IHS shareholders will own ~57% and
Markit shareholders will own ~43% of the combined company, to be renamed IHS
Markit. See our blog post here.
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/29/16. These companies are a sample
of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and median
multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.
Healthcare Information Software Systems
Public Market Data
Recent Activity
10
MAY 2016
[1] Benefitfocus added to the index as of IPO 9/18/13, Veeva added on 10/16/13, and Imprivata added on 6/24/14
Company
Market Enterprise
(USD millions)
Cap
Value
CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E
Cerner
19,531
19,623
4.5x
3.9x
16.3x
11.6x
na 31%
14%
28%
34%
athenahealth
5,203
5,401
5.8x
4.8x
nm
23.0x
na 23%
21%
7%
21%
Veeva Systems
3,994
3,648
8.9x
7.1x
41.2x
25.3x
na 31%
25%
22%
28%
Inovalon
2,604
2,157
4.9x
4.2x
15.4x
12.0x
na 21%
18%
32%
35%
Allscripts
2,566
3,086
2.2x
2.1x
27.4x
11.1x
na 1%
5%
8%
19%
Medidata
2,459
2,389
6.1x
5.2x
59.6x
22.3x
na 17%
17%
10%
23%
CompuGroup Medical
1,757
2,107
3.3x
3.2x
19.8x
13.8x
na 5%
4%
17%
23%
HealthEquity
1,494
1,370
10.8x
7.9x
39.4x
23.9x
na 44%
36%
27%
33%
The Advisory Board
1,324
1,805
2.3x
2.2x
17.6x
9.5x
na 34%
7%
13%
23%
Benefitfocus
1,104
1,080
5.8x
4.6x
nm
na
na 35%
26%
na
na
Quality Systems
863
758
1.5x
1.5x
13.3x
8.1x
na 3%
6%
12%
18%
Computer Programs & Systems
573
538
3.0x
1.7x
16.2x
6.2x
na(11%)
72%
18%
28%
Imprivata
304
256
2.1x
1.8x
nm
na
na 23%
16%
na
na
Trim Mean
2,177
2,213
4.5x
3.7x
24.2x
15.0x
20%
17%
17%
26%
Median
1,757
2,107
4.5x
3.9x
18.7x
12.0x
23%
17%
17%
23%
EV / Revenue
EV / EBITDA
Revenue Growth
EBITDA Margin
10x
15x
20x
25x
30x
35x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
May-11
May-12
May-13
May-14
May-15
May-16
E
V
/
E
B
IT
D
A
E
V
/
R
e
v
e
n
u
e
5 Year LTM Revenue & EBITDA Multiples[1]
EV / LTM Revenue
EV / LTM EBITDA
50
100
150
200
May-11
May-12
May-13
May-14
May-15
May-16
5 Year M&A HISS Index[1] vs. S&P 500, base = 100
M&A HISS Index
S&P 500
Date
Announced
Acquirer(s) / Investor(s) Target / Issuer
Description
4/4/16
Human Longevity (San Diego, CA) raises $220mm in a Series B round led by
Celgene, Illumina GE Ventures and a number of other investors around the world.
Human Longevity is leveraging technology to develop the largest database of whole
genome, phenotype and clinical data related to aging, oncology and other therapeutic
areas. Including this round, Human Longevity has raised approximately $300mm.
4/4/16
Medidata (NASDAQ:MDSO) acquires Intelemage for an undisclosed sum. Intelemage
provides PACS administration, network management and software solutions and web
services for the radiology and telecommunication industries. Since going public in
2009, this is the third acquisition for Medidata, which provides cloud-based drug
development solutions to the life sciences industry.
4/4/16
Sunquest Information Systems (Tucson, AZ) acquires GeneInsight for an undisclosed
sum. GeneInsight, backed by Partners Healthcare System, streamlines the analysis,
interpretation and reporting of genetic tests. Sunquest, a subsidiary of Roper
Technologies (NYSE:ROP), had previously entered into a partnership with Sunquest.
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/29/16. These companies are a sample
of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and median
multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.
Information & Market Research
Public Market Data
Recent Activity
11
MAY 2016
Company
Market Enterprise
(USD millions)
Cap
Value
CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E
Reed Elsevier (RELX Group)
37,078
42,523
4.9x
4.5x
16.3x
12.9x
3%
9%
30%
35%
Nielsen
19,209
26,647
4.3x
4.2x
17.8x
13.5x
(2%)
4%
24%
31%
Wolters Kluw er
11,366
13,417
2.8x
2.7x
10.5x
10.4x
15%
3%
26%
26%
Pearson
9,457
8,972
1.4x
1.4x
8.7x
8.1x
(2%)
(1%)
16%
17%
IHS
8,497
11,435
5.2x
4.9x
20.1x
14.5x
5%
8%
26%
34%
Gartner
7,414
7,871
3.6x
3.3x
22.3x
17.3x
7%
12%
16%
19%
Informa
6,146
7,445
4.2x
4.0x
13.6x
12.4x
7%
5%
31%
32%
UBM
3,646
4,384
3.9x
3.8x
15.1x
13.3x
40%
3%
26%
28%
Euromoney Institutional Investor
1,763
1,714
2.9x
3.0x
10.8x
11.1x
(2%)
(1%)
27%
27%
comScore
1,160
1,046
2.8x
2.0x
28.2x
8.4x
12%
42%
10%
24%
Forrester Research
609
508
1.6x
1.6x
15.7x
13.5x
1%
4%
10%
11%
Trim Mean
7,629
9,215
3.4x
3.2x
15.8x
12.2x
5%
5%
22%
27%
Median
7,414
7,871
3.6x
3.3x
15.7x
12.9x
5%
4%
26%
27%
EV / Revenue
EV / EBITDA
Revenue Growth
EBITDA Margin
11x
13x
15x
17x
19x
2.0x
2.5x
3.0x
3.5x
4.0x
May-11
May-12
May-13
May-14
May-15
May-16
E
V
/
E
B
IT
D
A
E
V
/
R
e
v
e
n
u
e
5 Year LTM Revenue & EBITDA Multiples
EV / LTM Revenue
EV / LTM EBITDA
80
100
120
140
160
May-11
May-12
May-13
May-14
May-15
May-16
5 Year M&A Info & Mkt Research Index vs. S&P 500, base = 100
M&A Info & Mkt Research Index
S&P 500
Date
Announced
Acquirer(s) / Investor(s) Target / Issuer
Description
4/15/16
XIO Group
XIO Group (London, United Kingdom), a private equity firm, agrees to acquire J.D.
Power and Associates from McGraw Hill Financial for $1.1bn in cash, valuing the
company at an implied 3.1x LTM revenue. J.D. Power and Associates provides
consumer surveys in more than a dozen industries, among other marketing
information.
4/4/16
CEB (NYSE:CEB) agrees to acquire Evanta for $275mm, valuing the company at a
reported 12x estimated 2016 EBITDA. Evanta fosters collaboration and the exchange
of best practices among IT & Security, HR and Finance leaders through
approximately 200 annual events, online and offline learning platforms and
subscription information services.
4/1/16
Consortium
A consortium led by John Royall, CEO of Gulf Publishing, and Russell Denson, a
media investor, agrees to acquire Gulf Publishing Company and Petroleum Economist
from Euromoney Institutional Investor for $18mm. The divestitures follow a recent
Investor Day in which Euromoney presented its strategy which included seeking to
sell assets that do not align with its strategy.
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/29/16. These companies are a sample
of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and median
multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.
Insurance Technology
Public Market Data
Recent Activity
12
MAY 2016
[1] Connecture added to the index as of IPO 12/12/14
5x
10x
15x
20x
25x
0.0x
1.0x
2.0x
3.0x
4.0x
May-11
May-12
May-13
May-14
May-15
May-16
E
V
/
E
B
IT
D
A
E
V
/
R
e
v
e
n
u
e
5 Year LTM Revenue & EBITDA Multiples[1]
EV / LTM Revenue
EV / LTM EBITDA
70
100
130
160
190
May-11
May-12
May-13
May-14
May-15
May-16
5 Year M&A Insurance Tech Index[1] vs. S&P 500, base = 100
M&A Insurance Tech Index
S&P 500
Company
Market Enterprise
(USD millions)
Cap
Value
CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E
Guidew ire Softw are
4,182
3,591
9.1x
8.3x
nm
42.9x
7%
9%
5%
19%
Ebix
1,633
1,781
6.7x
6.3x
18.2x
16.2x
24%
6%
37%
39%
CorVel
897
871
1.8x
nm
13.6x
nm
1%
na
13%
na
Sapiens
584
522
2.8x
2.5x
18.3x
15.3x
18%
13%
15%
16%
msg life
113
87
0.7x
0.7x
9.0x
7.1x
6%
1%
8%
10%
Connecture
53
96
1.0x
0.9x
16.6x
7.8x
13%
9%
6%
12%
Trim Mean
807
817
3.1x
3.2x
16.1x
13.1x
11%
8%
10%
16%
Median
740
696
2.3x
2.5x
16.6x
15.3x
10%
9%
10%
16%
EV / Revenue
EV / EBITDA
Revenue Growth
EBITDA Margin
Date
Announced
Acquirer(s) / Investor(s) Target / Issuer
Description
4/26/16
Trov (Danville, CA) raises $26mm in a Series C round led by new investor Oak HC/FT
partners. The round also included participation from new investors Guidewire
Software and Suncorp Group, as well as returning investor Anthemis Group. The
round will allow Trov to begin offering on-demand insurance for individual valuable
items. Trov will launch the insurance service initially in Australia and the UK.
4/18/16
Apax Partners (London, United Kingdom) agrees to acquire a 60% stake in Duck
Creek Technologies from Accenture. The new joint venture will be led by Duck Creek
President Mike Jackowski and is expected to invest heavily in Duck Creek On-
Demand, the company's SaaS offering.
4/11/16
Aquiline Capital Partners (New York, NY) and the management team of Simply
Business agree to acquire Simply Business for an undisclosed sum in a management
buyout from AnaCap Financial Partners. Simply Business is an online provider of
insurance to small businesses in the UK.
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/29/16. These companies are a sample
of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and median
multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.
Payment Technology
Public Market Data
Recent Activity
13
MAY 2016
[1] SafeCharge (SCH) added to the index as of IPO 4/1/14. PayPal (PYPL) added to the index as of IPO 7/20/15
Company
Market Enterprise
(USD millions)
Cap
Value
CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E
PayPal
47,996
43,229
4.7x
4.1x
22.2x
15.3x
15%
15%
21%
27%
FleetCor Technologies
14,594
17,007
10.0x
9.6x
20.1x
17.5x
42%
4%
50%
55%
Vantiv
10,732
14,006
8.4x
7.7x
19.7x
15.8x
19%
10%
43%
48%
Western Union
10,064
12,130
2.2x
2.2x
8.7x
8.9x
(2%)
(0%)
25%
25%
Total System Services
9,404
10,406
3.7x
3.5x
15.6x
11.4x
14%
6%
24%
31%
Global Payments
9,395
10,762
3.8x
4.9x
17.5x
15.8x
6%
(23%)
22%
31%
Wirecard
5,363
4,434
5.3x
4.1x
17.9x
13.6x
23%
30%
29%
30%
Euronet Worldw ide
4,204
4,155
2.3x
2.1x
15.1x
12.0x
6%
10%
16%
18%
WEX
3,671
4,360
5.1x
5.0x
14.6x
13.9x
27%
2%
35%
36%
Blackhaw k Netw ork Holdings
1,791
2,126
1.2x
1.0x
13.2x
9.5x
25%
16%
9%
11%
EVERTEC
1,023
1,647
4.4x
4.4x
9.8x
9.0x
3%
1%
45%
48%
PayPoint
834
765
2.5x
2.4x
9.6x
9.0x
2%
4%
26%
26%
Cass Information Systems
566
313
2.6x
nm
7.9x
nm
1%
na
33%
na
SafeCharge
540
425
4.1x
3.5x
13.9x
11.1x
34%
19%
30%
31%
Moneygram International
384
1,367
1.0x
0.9x
9.6x
5.2x
(1%)
8%
10%
17%
Trim Mean
5,552
6,430
3.9x
3.7x
14.3x
12.1x
13%
8%
28%
31%
Median
4,204
4,360
3.8x
3.8x
14.6x
11.7x
14%
7%
26%
30%
EV / Revenue
EV / EBITDA
Revenue Growth
EBITDA Margin
6x
8x
10x
12x
14x
16x
18x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
May-11
May-12
May-13
May-14
May-15
May-16
E
V
/
E
B
IT
D
A
E
V
/
R
e
v
e
n
u
e
5 Year LTM Revenue & EBITDA Multiples[1]
EV / LTM Revenue
EV / LTM EBITDA
75
100
125
150
175
200
225
May-11
May-12
May-13
May-14
May-15
May-16
5 Year M&A Payment Tech Index[1] vs. S&P 500, base = 100
M&A Payment Tech Index
S&P 500
Date
Announced
Acquirer(s) / Investor(s) Target / Issuer
Description
4/28/16
Emerchants (Brisbane, Australia) agrees to acquire Store Financial for $35mm. Store
Financial is one of the world’s largest processors and managers of payment card
programs, such as gift and rewards cards.
4/11/16
Global Payments (NYSE:GPN) acquires eWay, an Australian payments gateway
provider, for $50mm. eWay processed 5.8 billion transactions in the last year and
represents about one-quarter of Australian online transactions.
4/7/16
RetailMeNot (NASDAQ:SALE) acquires Giftcard Zen for $22mm. Giftcard Zen
operates a secondary marketplace for gift cards and enables consumers to buy or sell
gift cards from merchants.
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/29/16. These companies are a sample
of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and median
multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.
Securities Exchanges
Public Market Data
14
MAY 2016
Recent Activity
6x
9x
12x
15x
4.0x
8.0x
12.0x
16.0x
May-11
May-12
May-13
May-14
May-15
May-16
E
V
/
E
B
IT
D
A
E
V
/
R
e
v
e
n
u
e
5 Year LTM Revenue & EBITDA Multiples
EV / LTM Revenue
EV / LTM EBITDA
80
100
120
140
160
May-11
May-12
May-13
May-14
May-15
May-16
5 Year M&A Sec Exchanges Index vs. S&P 500, base = 100
M&A Sec Exchanges Index
S&P 500
Company
Market Enterprise
(USD millions)
Cap
Value
CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E
Hong Kong Exchange
31,123
29,795
18.0x
19.0x
25.2x
27.0x
31%
(6%)
71%
70%
CME Group
31,116
32,121
9.7x
9.0x
14.4x
12.9x
7%
8%
67%
69%
IntercontinentalExchange (ICE)
28,564
35,283
10.6x
7.8x
16.6x
13.1x
8%
36%
64%
60%
Deutsche Börse Group
15,411
17,687
5.6x
6.1x
13.7x
11.2x
16%
(8%)
41%
54%
London Stock Exchange (LSE)
13,937
15,590
7.2x
6.8x
17.6x
14.1x
15%
5%
41%
49%
The Nasdaq OMX Group
10,392
12,367
6.5x
5.5x
11.3x
11.1x
13%
20%
58%
49%
BM&F Bovespa
8,578
7,689
12.0x
11.1x
18.3x
16.9x
9%
8%
65%
66%
Australian Exchange (ASX)
6,345
5,563
10.3x
9.9x
12.8x
12.9x
9%
4%
80%
76%
Singapore Exchange (SGX)
5,988
5,415
8.8x
9.0x
16.3x
14.7x
18%
(2%)
54%
61%
CBOE
5,069
4,975
7.8x
7.7x
13.6x
13.3x
3%
2%
58%
58%
TMX Group
2,227
2,870
4.7x
4.9x
9.4x
10.5x
(4%)
(4%)
50%
46%
Trim Mean
13,933
14,578
8.7x
8.1x
15.0x
13.3x
11%
4%
59%
60%
Median
10,392
12,367
8.8x
7.8x
14.4x
13.1x
9%
4%
58%
60%
EV / Revenue
EV / EBITDA
Revenue Growth
EBITDA Margin
Date
Announced
Acquirer(s) / Investor(s) Target / Issuer
Description
3/16/16
Deutsche Börse (Eschborn, Germany) and the London Stock Exchange (London,
United Kingdom) have agreed to merge in an all-stock deal for $30bn. The transaction
would unite two of the biggest European exchange operators and would create one
better able to compete globally for stock listings, as a provider of clearing services
and as a purveyor of market data.
3/9/16
Nasdaq (NASDAQ:NDAQ) agrees to acquire the International Securities Exchange
(ISE) for $1.1bn from Deutsche Börse. ISE’s exchanges represent more than 15% of
all trading in United States stock options. The acquisition will help Nasdaq bolster its
presence in a fiercely competitive industry that has been growing faster than the
traditional equity exchange business.
1/24/16
(Australian and Japanese
Businesses)
J.C. Flowers & Co. (New York, NY) acquires Chi-X’s Australian and Japanese
businesses. The acquisition gives J.C. Flowers two exchanges that have battled for
more than four years to grab market share from dominant bourse operators.
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/29/16. These companies are a sample
of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and median
multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.
Security Software
Public Market Data
Recent Activity
15
MAY 2016
16x
20x
24x
28x
32x
36x
40x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
May-11
May-12
May-13
May-14
May-15
May-16
E
V
/
E
B
IT
D
A
E
V
/
R
e
v
e
n
u
e
5 Year LTM Revenue & EBITDA Multiples
EV / LTM Revenue
EV / LTM EBITDA
80
120
160
200
240
280
May-11
May-12
May-13
May-14
May-15
May-16
5 Year M&A Security Index vs. S&P 500, base = 100
M&A Security Index
S&P 500
Company
Market Enterprise
EV / Revenue
EV / EBITDA
Revenue Growth
EBITDA Margin
Revenue
(USD millions)
Cap
Value
CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E
Check Point Softw are
14,667
13,296
8.2x
8.2x
16.4x
16.4x
9%
9%
50%
50%
Palo Alto Netw orks
13,065
12,598
11.0x
8.0x
na
34.9x
56%
36%
na
23%
Qihoo 360 Technology
11,924
11,697
6.5x
4.3x
30.7x
17.4x
30%
52%
21%
25%
Symantec
11,169
10,640
1.7x
3.0x
5.5x
9.1x
32%
(43%)
32%
33%
F5 Netw orks
7,102
6,327
3.3x
3.1x
10.6x
8.1x
9%
3%
31%
39%
Fortinet
5,583
4,631
4.6x
3.6x
nm
20.2x
31%
26%
6%
18%
FireEye
2,709
2,243
3.6x
2.7x
na
na
46%
33%
na
na
Proofpoint
2,394
2,335
8.8x
6.6x
na
nm
36%
33%
na
5%
Imperva
1,459
1,194
5.1x
3.9x
na
nm
43%
30%
na
4%
CyberArk
1,459
1,221
7.6x
5.9x
34.8x
27.1x
56%
29%
22%
22%
AVG Technologies
1,026
1,138
2.7x
2.6x
8.8x
6.9x
14%
4%
30%
37%
Barracuda Netw orks
936
785
2.5x
2.3x
nm
13.2x
16%
9%
1%
18%
VASCO Data Security
689
564
2.3x
2.7x
10.3x
16.7x
20%
(12%)
23%
16%
Radw are
480
280
1.3x
1.3x
9.1x
12.2x
(2%)
(1%)
14%
11%
Axw ay Softw are
464
423
1.3x
1.2x
8.9x
7.8x
9%
8%
14%
15%
mimecast
338
240
1.8x
1.5x
17.5x
26.7x
na
16%
10%
6%
Absolute Softw are
220
188
2.0x
2.1x
11.2x
14.6x
(1%)
(2%)
18%
14%
Zix
211
184
3.4x
3.1x
18.3x
11.4x
9%
9%
18%
27%
Trim Mean
3,814
3,532
4.1x
3.5x
14.2x
15.4x
24%
14%
20%
20%
Median
1,459
1,208 nm3.3x
3.0x
10.9x
14.6x
20%
9%
20%
18%
Date Announced Acquirer(s) / Investor(s) Target / Issuer
Description
4/21/16
Forter (Tel Aviv, Israel) raises $32mm in Series C round led by Scale Venture
Partners and including existing investors New Enterprise Associates and Sequoia
Capital Israel. Forter offers real-time decision technology that stops fraudulent
shoppers at the moment of checkout.
4/21/16
Anomali (Redwood City, CA) raises $30mm in Series C round led by Institutional
Venture Partners and included returning investors General Catalyst Partners, Paladin
Capital Group and GV. Anomali delivers early detection and identification of network
threats by correlating millions of threat indicators against real time activity logs.
4/9/16
Experian plc (LSE:EXPN) acquires CSIdentity for $360mm. Founded in 2006 and
headquartered in Austin, Texas, CSID is a market leading provider of enterprise level
identity theft protection technology solutions to businesses and government agencies.
Investcorp initially invested in CSID in December 2009 and was the majority owner of
the company prior to the sale to Experian.
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/29/16. These companies are a sample
of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and median
multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.
Technology-Enabled Financial Institutions
Public Market Data
16
MAY 2016
Recent Activity
6x
10x
14x
18x
22x
1.0x
2.0x
3.0x
4.0x
5.0x
May-11
May-12
May-13
May-14
May-15
May-16
E
V
/
E
B
IT
D
A
E
V
/
R
e
v
e
n
u
e
5 Year LTM Revenue & EBT Multiples
Market Cap / LTM Revenue
Market Cap / LTM EBT
60
100
140
180
May-11
May-12
May-13
May-14
May-15
May-16
5 Year M&A Fintech Sector Index vs. S&P 500, base = 100
M&A Tech-enabled Fin Institutions Index
S&P 500
Company
Market Market Cap / Revenue Market Cap / EBT
Revenue Growth
EBT Margin
(USD millions)
Cap
CY2015A
CY2016E
CY2015A
CY2016E
CY2015A
CY2016E
CY2015A
CY2016E
Charles Schw ab
37,785
6.0x
5.1x
17.1x
11.8x
10%
5%
35%
35%
TD Ameritrade
15,959
5.0x
4.7x
12.5x
10.2x
11%
1%
41%
40%
E*TRADE
7,219
3.9x
3.8x
12.0x
8.4x
12%
4%
29%
33%
MarketAxess
4,624
15.3x
13.2x
31.3x
23.8x
10%
16%
45%
49%
ICAP
4,470
2.4x
2.6x
11.8x
11.7x
(10%)
5%
13%
20%
IG Group
4,098
6.5x
6.1x
15.9x
12.7x
2%
4%
47%
41%
BGC Partners
3,948
1.6x
1.4x
nm
6.9x
3%
43%
na
na
LendingClub
3,100
7.2x
4.7x
nm
27.6x
115%
104%
na
na
Interactive Brokers Group
2,480
1.8x
1.5x
4.2x
2.2x
5%
13%
42%
43%
Tullett Prebon
1,193
1.1x
1.0x
8.9x
7.9x
(13%)
13%
13%
12%
Monex Group
758
1.6x
1.6x
11.6x
nm
(15%)
16%
12%
14%
Investment Technology Group
646
1.0x
1.3x
5.3x
11.7x
6%
14%
12%
19%
On Deck Capital
607
3.4x
2.1x
nm
nm
141%
99%
na
na
FXCM
592
2.7x
2.7x
13.9x
12.1x
(4%)
(36%)
6%
19%
BinckBank
396
1.8x
2.2x
8.8x
nm
(6%)
1%
19%
20%
GAIN Capital
336
0.8x
0.8x
8.2x
3.9x
34%
17%
15%
10%
Trim Mean
3,578
3.3x
2.9x
11.5x
11.0x
12%
18%
25%
27%
Median
2,790
2.5x
2.4x
11.8x
11.7x
5%
13%
19%
20%
Date
Announced
Acquirer(s) / Investor(s) Target / Issuer
Description
4/20/16
Various Investors
OnDeck (NYSE:ONDK) offers $212mm of 4.21% Class A Asset-Backed Notes due
May 31, 2020 and $39mm of 7.63% Class B Asset-Backed Notes due May 31, 2020.
The proceeds will be used to purchase a revolving pool of small business loans from
the company
4/12/16
Affirm (San Francisco, CA) raises $100mm in a Series D round led by Founders Fund
at a $700mm pre-money valuation. The transaction also included participation from
existing investors Lightspeed Venture Partners, Spark Capital, Khosla Ventures, SVB
and Andreessen Horowitz.
3/29/16
State Street Global Advisors (Boston, MA) agrees to acquire GE Asset Management
from GE for $485mm. The transaction is expected to increase State Street’s AUM by
approximately $100bn and to be accretive in the twelve months post-closing.
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/29/16. These companies are a sample
of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and median
multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.
Technology-Enabled Healthcare Services
Public Market Data
17
MAY 2016
Recent Activity
Company
Market Enterprise
(USD millions)
Cap
Value
CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E CY2015A CY2016E
McKesson
38,431
44,035
0.2x
0.2x
10.3x
8.6x
10%
5%
2%
3%
WebMD
3,283
3,382
5.3x
4.9x
23.1x
15.1x
10%
10%
23%
32%
Press Ganey
1,624
1,754
5.5x
5.0x
61.8x
13.3x
13%
10%
9%
37%
HMS Holdings
1,427
1,481
3.1x
3.0x
16.4x
12.3x
7%
3%
19%
25%
Emis
866
884
3.9x
3.6x
14.9x
11.0x
13%
8%
26%
33%
HealthStream
723
573
2.7x
2.5x
22.6x
15.2x
22%
10%
12%
16%
Evolent Health
722
852
8.8x
3.9x
nm
n/a
na na
123%
na
n/a
MINDBODY
537
461
4.6x
3.4x
nm
n/a
45%
33%
na
n/a
Teladoc
470
377
4.9x
3.1x
nm
n/a
78%
56%
na
n/a
Healthw ays
421
648
0.8x
0.9x
19.6x
8.0x
4%
(1%)
4%
11%
Castlight Health
347
226
3.0x
2.2x
nm
n/a
65%
33%
na
n/a
Vocera Communication
309
190
1.8x
1.6x
nm
n/a
9%
11%
na
1%
Accretive Health
235
112
1.0x
0.3x
nm
4.3x
(44%)
196%
na
8%
Everyday Health
190
273
1.2x
1.1x
11.3x
6.1x
26%
11%
10%
17%
Cranew are
171
126
2.7x
2.4x
8.9x
7.5x
8%
15%
30%
31%
Trim Mean
1,147
1,138
3.1x
2.5x
16.9x
10.3x
19%
25%
15%
19%
Median
629
611
3.0x
2.5x
16.4x
9.8x
12%
11%
12%
17%
EV / Revenue
EV / EBITDA
Revenue Growth
EBITDA Margin
8x
12x
16x
20x
1.0x
2.0x
3.0x
4.0x
5.0x
May-11
May-12
May-13
May-14
May-15
May-16
E
V
/
E
B
IT
D
A
E
V
/
R
e
v
e
n
u
e
5 Year LTM Revenue & EBITDA Multiples[1]
EV / LTM Revenue
EV / LTM EBITDA
60
100
140
180
May-11
May-12
May-13
May-14
May-15
May-16
5 Year M&A Tech-Enabled HCS Sector Index[1] vs. S&P 500, base = 100
M&A Tech-Enabled HCS Index
S&P 500
Date
Announced
Acquirer(s) / Investor(s) Target / Issuer
Description
4/25/16
Veritas Capital (New York, NY) agrees to acquire Verisk Health for $820mm. Verisk
Health, a subsidiary of Verisk Analytics (Nasdaq:VRSK), provides data and analytics
solutions in the payments, population health and quality space. Verisk Health has over
350 clients across the United States including health plans, providers employers and
other risk bearing entities.
4/15/16
naviHealth agrees to acquire Curaspan for an undisclosed sum. This is the second
acquisition for naviHealth since it was acquired by Cardinal Health (NYSE:CAH) in
August 2015 for nearly $300mm. Curaspan provides care transition services; over
20% of all U.S. hospital discharges use the company’s platform to assist in
transitioning patients to post-acute environments.
4/8/16
Midmark Corporation (Dayton, OH) agrees to acquire Versus Technology for an
undisclosed sum. Midmark, founded in 1915, is one of the oldest privately-held
companies involved in the manufacturing of medical, dental and veterinary equipment.
Versus, which is traded on the Pink Sheets, offers real-time location systems used for
patient, bed and asset tracking within a hospital.
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/29/16. These companies are a sample
of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and median
multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.
18
MERGER AND ACQUISITION TRANSACTIONS
Software and Services Transaction Activity
Software and Services Transaction Multiples
MAY 2016
0.0
5.0
10.0
15.0
20.0
25.0
0
50
100
150
200
250
300
350
400
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
2014
2015
2016
A
g
g
re
g
a
te
V
a
lu
e
(
$
b
n
)
N
u
m
b
e
r
o
f
T
ra
n
s
a
c
ti
o
n
s
Number of Transactions
Aggregate Value
0x
0.5x
1x
1.5x
2x
2.5x
3x
3.5x
0x
2x
4x
6x
8x
10x
12x
14x
16x
18x
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
2014
2015
2016
E
V
/
R
e
v
e
n
u
e
E
V
/
E
B
IT
D
A
EV / EBITDA
EV / Revenue
Note: Not a complete list
CLIENTS CHOOSE M&A TO ADVISE THEM ON THEIR
IMPORTANT STRATEGIC MOVES
19
MAY 2016
has invested in
Marlin & Associates acted as strategic and
financial advisor to Aquiline Capital
Partners.
Dublin, Ireland
New York, NY
has been acquired by
Marlin & Associates acted as exclusive
strategic and financial advisor
to Varden Technologies Inc.
Windsor, CT
Boston, MA
has been acquired by
Marlin & Associates acted as exclusive
strategic and financial advisor
to Alacra, Inc.
Pa lo A lto, CA
New York, NY
rece ived an investment from
Marlin & Associates acted as exclusive
strategic and financial advisor
to Trunomi.
Campbell, CA
Brentwood, TN
a portfolio company of
Marlin & Associates acted as
strategic and financial advisor to
Agilum Healthcare Intelligence.
has been acquired by
San Mateo, CA
Marlin & Associates acted as
exclusive strategic and financial
advisor to Xignite.
received a strategic
investment from
Tokyo, Japan
Two transactions on which Marlin &
Associates advised were named as
part of The M&A Advisor’s “Deals-of-
the Decade Celebration”
Acquisition International recognized Marlin
& Associates for the M&A Award USA TMT
Advisory Firm of the Year (2012, 2015)
The Global M&A Network recognized Marlin & Associates for
excellence in multiple deal categories through its M&A Atlas
Awards:
• Financial Technology Deal of the Year (2012, 2011)
• North America Small Mid Markets Corporate Deal of the Year (2013)
• Corporate M&A Deal of the Year (2010)
• Technologies Deal of the Year (2010)
* Firm-wide Awards
The M&A Advisor and The M&A Forum have
recognized Marlin & Associates for excellence in
multiple deal categories including:
• Boutique Investment Banking Firm of the Year (2014, 2015, 2016)*
• Middle Market International Professional Services (B-to-B) Deal of the Year (2013)
• Financial Services Deal of the Year (2013, 2012 and 2011
• Information Technology Deal of the Year (2011)
• Middle Market Deal of the Year <$25M (2011)
• Corporate and Strategic Acquisition of the Year (2011)
• Middle Market Financial Services Deal of the Year (2011 and 2010)
• Middle Market Information Technology Deal of the Year (2011 and 2010)
• Middle Market International Financial Services Deal of the Year (2013 and 2010)
• Middle Market International Information Technology Deal of the Year (2010)
• Middle Market Financial Services Turnaround Deal of the Year (2009)
• Middle Market Information Technology Turnaround Deal of the Year (2009)
• Middle Market International Deal of the Year(2008)
• Middle Market Financial Services Deal of the Year (2008)
• Middle Market Technology Deal of the Year (2008)
• Middle Market Investment Banking Firm of the Year (2008 and 2007)*
• Middle Market International/Cross Border Deal of the Year (2007, Below $100M)
• Middle Market Financial Services Deal of the Year (2007, Below $100M)
• Middle Market Financing Agent of the Year – Equity (2007)*
• Middle Market Computer and Information Technology Deal of the Year (2007, Below $100M)
• Middle Market Financing Deal of the Year - Equity (2007)
• Middle Market Financing - Financial Services Deal of the Year (2007)

The 451 Group, a noted independent
technology industry analyst company,
identified Marlin & Associates as a
leader in cross-Atlantic technology
merger and acquisition transaction
advisory
SNL Financial, a market research
company, identified Marlin &
Associates as leading the most
financial technology transactions in
2009, in a tie with Citigroup and
Credit Suisse, and one of the top 10
advisors in 2010
Boutique
Investment Banking
Firm of the Year
(2014, 2015, 2016)
PEERS AND INDUSTRY GROUPS RECOGNIZE MARLIN &
ASSOCIATES
MAY 2016
“
”
Marlin & Associates has been
recognized over
40
times by leaders in the M&A
world.
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/30/14. These
companies are a sample of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the
sector. M&A calculates mean and median multiples for the sector using data from a set of firms that it believes to be
reasonable and which may not be identical to the set reflected above
MARLIN & ASSOCIATES SENIOR TEAM
21

Ken Marlin
Jason Panzer
Michael Maxworthy
Paul Friday
Afsaneh Naimollah
Tom Selby
Jonathan Kaufman
George Beckerman


Founder and Managing Partner of M&A
• Named to II’s tech 50 three times
• Member Market Data Hall of Fame
• MD Veronis Suhler Stevenson
• CEO of Telesphere Corporation
• CEO of Telekurs (NA)
• EVP Bridge Information systems
• SVP at Dun & Bradstreet
• BA from the University of California
(Irvine)
• MBA from UCLA, post-MBA from New
York University



Chief Operating Officer of M&A
• 20+ years of M&A experience advising
technology and PE firms, globally
• VP Business Development at FactSet
• M&A attorney of Skadden, Arps, Slate,
Meagher and Flom
• CFO of JCF Group
• MBA from Columbia Business School
• J.D. from Fordham Law School
• CFA Charterholder
• 18+ years of investment banking and
private equity experience
• Named twice to Dealer’s Digest and
recently M&A Advisor’s “40-Under-40”
• Founded Marlin & Associates with Ken
Marlin
• Formerly at Veronis Suhler Stevenson,
Morgan Stanley and American
International Group
• BS from Binghamton University
• 20+ years of investment banking
experience
• Focused on entrepreneurial
technology-based companies
• Formerly at Robertson Stephens and
PaineWebber (UBS)
• BS, Finance from Pennsylvania State
University

• 20+ years of M&A experience
• Founder of Chela Capital
• Global Head of Barclays’ Capital
Technology Group
• BA in Economics from Milton College
• MBA in International Finance from
• University of Wisconsin-Madison
• Post-MBA from Northwestern University
• 16+ years of M&A experience
• VP of Business Development at
• SunGard
• Founder of software company sold to
SunGard
• Started career designing trading
software for TD Bank
• BaSC, Engineering from University of
Toronto
• 15+ years of corporate finance
experience
• Thought leader in payments technology
• 8+ years in investment banking at UBS
and Deutsche Bank
• BS from Union College
• MBA from University of Virginia’s
Darden School of Business
• Named to Dealer’s Digest 40-Under-40

• 25+ years of investment banking/
strategic consulting
• Co-founder of MarketResearch.com
• Advisor at Dun & Bradstreet, R.R.
Donnelly & Sons, and BDM
• Executive positions in Washington
• Post’s Legislate subsidiary and
Thomson Financial’s legal research
business
• National Defense Education Fellow
at New York University’s Graduate

School of Public Administration
Jeffrey Trongone
• 10+ years on Wall Street
• Named a winner of M&A Advisor’s
Emerging Leaders Award
• Previously at Scotia Capital's Equity
Research
• Previously at Bear Stearns
• Previously at J.P. Morgan
• BSBA from Villanova University
• CFA Charterholder
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/29/16. These companies are a sample
of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and median
multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.
New York | San Francisco | Washington, D.C. | Toronto

www.MarlinLLC.com
22