Technology M&A Report Q3 2015

Transcription

1 John Hill Senior Managing Director (813) John McDonald Senior Managing Director (813) Keith Hodgdon Managing Director (813) Technology M&A Report Q Jami Gold Vice President (813) Greg Bosl Vice President (813) Kenneth Burnside Business Development Officer (864) Jeffrey Hendricks Vice President (678) Hyde Park Capital Advisors, LLC 701 N. Franklin Street Tampa, FL Tel: Member FINRA/SIPC

2 Capital Markets Overview Commentary As of September 30, 2015 the major market indices including the S&P 500, Nasdaq and S&P Global Information Technology index experienced mixed performances; led by the Nasdaq (up 4.5%), while the S&P Global Information Technology index (down 0.1%) and the S&P 500 (down 1.3%) both fell during the period. The table on the right illustrates select public equity offerings completed in Q Rapid7, Inc. (Nasdaq:RPD), provider of security data and analytic software solutions, raised $103 million in the largest IPO during the quarter, valuing the company at more than $600 million. The Software as a Service (SaaS) and Enterprise Software sectors were the industry s leaders with respect to valuation during the 3 rd quarter, trading at revenue multiples of 5.9x and 3.9x, respectively. ($ in millions) Select Technology Public Offerings (Q3 2015) Offer Date Issuer Industry Sector Transaction Type Transaction Value 08/12/15 First Data Corp. SaaS Secondary $430 09/15/15 Paycom Software, Inc. Infrastructure Software Secondary $171 09/24/15 Paylocity Holding Corp. Infrastructure Software Secondary $111 07/16/15 Rapid7, Inc. Infrastructure Software IPO $103 09/24/15 Q2 Holdings, Inc. Internet Secondary $97 08/06/15 Benefitfocus, Inc. Internet Secondary $74 07/16/15 Ooma, Inc. IT Services IPO $65 08/18/15 Applied Optoelectronics, Inc. Technology Hardware Secondary $40 08/19/15 ORBCOMM, Inc. Infrastructure Software Secondary $22 Public Market Performance (LTM) Market Performance by Sector 120% 115% 110% 105% 100% 4.5% 0.1% Median Change in Stock Price LTM Industry Sector 3 Months 12 months Revenue EBITDA Enterprise Software (7.2%) 1.5% 3.9x 11.2x Software as a Service (SaaS) (3.1%) 15.9% 5.9x 14.3x Infrastructure Software (6.4%) (6.3%) 3.6x 13.4x Informatics & Data Services (5.0%) 10.4% 3.5x 13.3x 95% 1.3% 90% Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Internet 4.8% 11.9% 2.9x 17.9x IT Services 1.6% 27.4% 2.6x 12.1x Technology Hardware (13.4%) (4.3%) 0.8x 7.9x Source: S&P Capital IQ S&P Global Information Technology Index Nasdaq S&P 500 2

3 Annual Middle Market M&A Activity Technology Commentary Middle Market M&A Transactions by Deal Size Technology As detailed in the table on the right, Technology M&A transaction volume and value decreased significantly during the year to date period ended September 30, 2015 compared to the prior year period. U.S.middlemarketM&Aactivity,ordealvolume,intheTechnology industry fell to 207 closed transactions during YTD 2015, a 28% decrease from YTD The total value of completed M&A transactions declined by 26% to $28.4 billion, down from $38.6 billion in the prior year period. Although middle market technology deal volume has declined significantly, the size of completed transactions has increased. Deals valued over $100M accounted for 83% of the value of completed transactions, up from 78% in the prior year period. U.S. Middle Market M&A Activity Annual Trends: VOLUME ($ in billions) YTD '14 YTD '15 % Change Deal Size Volume Value Volume Value Volume Value Less than $100M 192 $ $5.1 (27%) (40%) $100 $499M 79 $ $11.0 (38%) (43%) $500 $1,000M 18 $ $12.4 0% 12% Total Middle Market 289 $ $28.4 (28%) (26%) % of Total Market Less than $100M 66% 22% 67% 17% $100 $499M 27% 50% 24% 39% $500 $1,000M 6% 28% 9% 44% Total Middle Market 100% 99% 100% 100% U.S. Middle Market M&A Activity Annual Trends: VALUE Total Transaction Volume Total Transaction Value ($ in billions) Less than $100M $100 $499M $500 $1,000M Source: S&P Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion) Less than $100M $100 $499M $500 $1,000M 3

4 Quarterly Middle Market M&A Activity Technology Commentary Middle market M&A activity in the Technology sector decreased during Q compared with Q The volume of completed transactions fell 33% as 57 deals were completed in Q3 2015, while thetotalvalueofcompletedtransactionsdecreased34%to$8.9 billion. Transactions valued between $100 million and $499 million experienced the largest decline in Q3 15. Deal volume in this range fell 56% while the total value of completed transactions declined 70% to $2.2 billion, down from $7.1 billion in Q3 14. Deals valued between $500 million and $1 billion were the only size range to experience growth during Q3 15. Transaction volume and deal value in this range increased 14% and 7%, respectively, over the prior year period. U.S. Middle Market M&A Activity Quarterly Trends: VOLUME Middle Market M&A Transactions by Deal Size Technology ($ in billions) Q Q % Change Deal Size Volume Value Volume Value Volume Value Less than $100M 51 $ $1.4 (27%) (6%) $100 $499M 27 $ $2.2 (56%) (70%) $500 $1,000M 7 $4.9 8 $5.3 14% 7% Total Middle Market 85 $ $8.9 (33%) (34%) % of Total Market Less than $100M 60% 11% 65% 16% $100 $499M 32% 53% 21% 24% $500 $1,000M 8% 36% 14% 60% Total Middle Market 100% 100% 100% 100% U.S. Middle Market M&A Activity Quarterly Trends: VALUE Total Transaction Volume Total Transaction Value ($ in billions) Less than $100M $100 $499M $500 $1,000M Source: S&P Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion) Less than $100M $100 $499M $500 $1,000M 4

5 Recent M&A Activity Technology Select Announced M&A Transactions (Q3 2015) Announced Date Target Buyer Industry Enterprise Value ($mm) EV / Revenue EV / EBITDA 09/30/15 Pericom Semiconductor Corp. Montage Technology Group Ltd. Technology Hardware $ x 14.5x 08/31/15 Spigot, Inc. Genimous Investment Co., Ltd. Internet $252.6 NA NA 09/22/15 Portware, LLC. FactSet Research Systems, Inc. Internet $265.0 NA NA 09/20/15 Atmel Corp. Dialog Semiconductor Plc Technology Hardware $4, x 23.7x 09/13/15 Solera Holdings, Inc. Vista Equity Partners Enterprise Software $6, x 15.2x 09/10/15 Premiere Global Services, Inc. Siris Capital Group Infrastructure Software $ x 13.2x 09/09/15 TNS, Inc. NeuStar, Inc. IT Services $220.0 NA NA 09/08/15 NEXTracker, Inc. Flextronics International Ltd. Technology Hardware $330.0 NA NA 09/04/15 Good Technology Corp. Blackberry Ltd. Inftrastructure Software NA NA NA 09/03/15 Elemental Technologies, Inc. Amazon Web Services, Inc. Infrastructure Software $500.0 NA NA 09/03/15 Pericom Semiconductor Corp. Diodes, Inc. Technology Hardware $ x 13.0x 08/27/15 VITAL Network Services, Inc. * Vology, Inc. IT Services NA NA NA 08/18/15 Dot Hill Systems Corp. Seagate Technology PLC Technology Hardware $ x 29.7x 08/11/15 Veritas Technologies Corp. The Carlyle Group LP Enterprise Software $8,000.0 NA NA 08/11/15 GT Nexus, Inc. Infor (US), Inc. Internet $ x 67.5x Source: S&P Capital IQ. *Denotes Hyde Park Capital transaction. 5

6 Recent M&A Activity Technology Select Announced M&A Transactions (Q3 2015) Announced Date Target Buyer Industry Enterprise Value ($mm) EV / Revenue EV / EBITDA 08/10/15 NTELOS Holdings Corp. Shenandoah Telecommunications Co. IT Services $ x 5.1x 08/10/15 Yodlee, Inc. Envestnet, Inc. Enterprise Software $ x NA 08/03/15 HERE Holding Corp. Diamler AG Internet $3, x NA 08/03/ data, Inc. Advance Communication Corp. Internet $500.0 NA NA 07/31/15 Polyvore, Inc. Yahoo! Inc. Internet $230.0 NA NA 07/27/15 SNL Financial LC McGraw Hill Financial, Inc. Internet $2,225.0 NA NA 07/23/15 ExteNet Systems, Inc. Stonepeak Infrastructure Partners IT Services $1,000.0 NA NA 07/22/15 Cisco, (Customer Premises Equipment Business) Technicolor SA Technology Hardware $599.8 NA NA 07/20/15 SoloPower Systems, Inc. Opera Investments Plc Technology Hardware $220.0 NA NA 07/16/15 ebay Enterprise, Inc. Permira Advisers Ltd. IT Services $ x NA 07/14/15 The Telx Group, Inc. Digital Realty Trust Inc. Internet $1, x 24.0x 07/01/15 Xoom Corp. PayPal, Inc. Internet $ x 123.2x 07/01/15 Navitaire, LLC Amadeus IT Group SA Infrastructure Software $830.0 NA 13.8x Source: S&P Capital IQ. 6

7 M&A Activity by Technology Sector U.S. Middle Market M&A Activity by Technology Sector: VALUE ($ in millions) % Change 2% 37% 14% 64% Q Q U.S. Middle Market M&A Activity by Technology Sector: VOLUME % Change 26% 50% 0% 33% Q Q Source: S&P Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion). *Includes Enterprise Software and Infrastructure Software industry sectors. 7

8 Private Equity Activity Technology As detailed in the chart to the right, financial sponsors announced a limited number of transactions in the Technology industry during Q Several of the notable private equity backed transactions announced during Q include The Carlyle Group LP s announced acquisition of Veritas Technologies Corp. for $8.0 billion; Vista Equity Partners proposed purchase of Solera Holdings, Inc. for $6.2 billion; and The Carlyle Group LP s announced purchase of The Telx Group, Inc. for $1.8 billion. Commentary During Q3 2015, financial sponsors were most active in the Enterprise Software and Internet sectors, announcing 12 transactions in each sector. Financial Sponsors Industry Transactions ($ in millions) Select Announced Private Equity Transactions (Q3 2015) Announced Date Target Buyer Industry Enterprise Value 09/30/15 Alacra, Inc. Opus Global Holdings Internet NA 09/29/15 G5 Search Marketing, Inc. Milestone Partners Infrastructure Software NA 09/16/15 Coalfire Systems, Inc. The Carlyle Group LP IT Services NA 09/14/15 Virpus Networks, Inc. Cloud Equity Group Internet NA 09/13/15 Solera Holdings, Inc. Vista Equity Partners Enterprise Software $6,272 09/10/15 Premiere Global Services, Inc. Siris Capital Group IT Services $979 09/07/15 4Wall Entertainment, Inc. Odyssey Investment Partners, LLC Technology Hardware 09/03/15 Sirius Computer Solutions, Inc. Kelso & Co. IT Services NA NA 09/02/15 Baker Hill Corp. The Riverside Co. Enterprise Software $100 08/28/15 DigiCert, Inc. Thoma Bravo, LLC Technology Hardware NA 08/26/15 Smart Start, Inc. ABRY Partners, LLC Technology Hardware NA Number of Transactions 08/11/15 Veritas Technologies Corp. The Carlyle Group LP Enterprise Software $8,000 07/23/15 ExteNet Systems, Inc. Stonepeak Infrastructure Partners Enterprise Software $1,000 07/20/15 irth Solutions, Inc. Bregal Sagemount Enterprise Software NA 07/16/15 ebay Enterprise, Inc. Permira Advisors Ltd. Infrastructure Software $925 07/14/15 The Telx Group, Inc. The Carlyle Group LP Enterprise Software $1,886 Source: S&P Capital IQ. 8

9 Industry Sector Overview Recent Stock Price Performance Commentary The charts included on the following pages detail the recent stock price performance by sector for the leading public companies within the Technology industry for the 12 month period ended September 30, The shaded section represents Q During the 12 month period ending September 30, 2015, the Technology industry had mixed performances as the IT Services and Software as a Service (SaaS) sectors increased 27.4% and 15.9%, respectively, while the Infrastructure Software sector decreased 6.3%. During the 3rd quarter of 2015, most sectors in the Technology industry declined, with only the Internet ( up 4.8%) and IT Services (up 1.6%) sectors increasing. The Technology Hardware and Enterprise Software sectors declined the most, falling 13.4% and 7.2%, respectively. Software as a Service (SaaS) Enterprise Software 120% 110% 1.5% 100% 1.3% 90% 80% Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Enterprise Software S&P 500 Infrastructure Software 130% 120% 120% 15.9% 110% 110% 100% 1.3% 6.3% 100% 1.3% 90% 90% Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Software as a Service (SaaS) S&P % Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Infrastructure Software S&P 500 Source: S&P Capital IQ 9

10 Industry Sector Overview Recent Stock Price Performance Informatics & Data Services Internet 130% 130% 120% 120% 110% 10.4% 110% 11.9% 100% 1.3% 100% 1.3% 90% Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Informatics & Data Services S&P % Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Internet S&P 500 IT Services Technology Hardware 140% 120% 130% 27.4% 110% 120% 100% 1.3% 110% 4.3% 100% 1.3% 90% 90% Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 IT Services S&P % Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Technology Hardware S&P 500 Source: S&P Capital IQ 10

11 Industry Sector Overview Public Company Analysis ($ in millions, except per share) Enterprise Software Enterprise Resource Planning Oracle Corp. ORCL $ % $161,420 $147,981 $38,078 $22,697 $15, % 41.5% 3.9x 9.4x SAP AG DB:SAP $ % $77,266 $83,615 $22,218 $15,698 $7, % 32.2% 3.8x 11.7x Sage Group plc LSE:SGE $ % $8,205 $8,962 $2,005 $1,884 $ % 28.4% 4.5x 15.8x NetSuite, Inc. N $ % $6,529 $6,433 $693 $465 ($71) 67.1% (10.3%) 9.3x* NM Average 79.6% $63,355 $61,748 $15,748 $10,186 $5, % 23.0% 4.0x 12.3x Median 79.6% $42,736 $46,289 $12,111 $8,791 $3, % 30.3% 3.9x 11.7x Supply/Demand Chain Management Manhattan Associates, Inc. MANH $ % $4,634 $4,515 $545 $312 $ % 29.0% 8.3x 28.5x SPS Commerce, Inc. SPSC $ % $1,154 $1,031 $152 $104 $ % 10.1% 6.8x 67.0x* SciQuest, Inc. SQI $ % $277 $150 $104 $71 $5 68.2% 5.1% 1.4x 28.3x Average 77.1% $2,022 $1,899 $267 $162 $ % 14.8% 5.5x 28.4x Median 87.3% $1,154 $1,031 $152 $104 $ % 10.1% 6.8x 28.4x Customer Relationship Management Oracle Corp. ORCL $ % $161,420 $147,981 $38,078 $22,697 $15, % 41.5% 3.9x 9.4x Salesforce.com CRM $ % $44,787 $45,638 $5,974 $4,498 $ % 5.3% 7.6x* NM Amdocs, Ltd. DOX $ % $8,983 $7,581 $3,617 $1,289 $ % 19.4% 2.1x 10.8x NetSuite, Inc. N $ % $6,529 $6,433 $693 $465 ($71) 67.1% (10.3%) 9.3x* NM Pegasystems, Inc. PEGA $ % $1,940 $1,716 $647 $441 $ % 12.9% 2.7x 20.6x* CSG Systems International, Inc. CSGS $ % $1,030 $1,121 $747 $361 $ % 16.3% 1.5x 9.2x Average 85.5% $37,448 $35,078 $8,293 $4,958 $2, % 14.2% 2.5x 9.8x Source: S&P Capital IQ *Excluded from average and median calculation. Median 88.3% $7,756 $7,007 $2,182 $877 $ % 14.6% 2.4x 9.4x 11

12 Industry Sector Overview Public Company Analysis ($ in millions, except per share) Enterprise Software Human Capital Management The Ultimate Software Group, Inc. ULTI $ % $5,300 $5,179 $583 $355 $ % 11.4% 8.9x 78.0* Cornerstone OnDemand, Inc. CSOD $ % $1,773 $1,777 $301 $206 ($53) 68.3% (17.5%) 5.9x NM Average 86.4% $3,536 $3,478 $442 $280 $7 64.6% (3.1%) 7.4x NM Median 86.4% $3,536 $3,478 $442 $280 $7 64.6% (3.1%) 7.4x NM Content Management Adobe Systems, Inc. ADBE $ % $41,718 $39,955 $4,562 $3,859 $1, % 24.1% 8.8x 36.4x* Open Text Corp. OTEX $ % $5,502 $6,380 $1,852 $1,331 $ % 28.1% 3.4x 12.3x Synchronoss Technologies, Inc. SNCR $ % $1,561 $1,594 $552 $327 $ % 28.4% 2.9x 10.2x LogMeIn, Inc. LOGM $ % $1,760 $1,514 $255 $222 $ % 11.8% 5.9x 50.4x* Average 79.4% $12,635 $12,361 $1,805 $1,435 $ % 23.1% 5.3x 11.2x Median 81.4% $3,631 $3,987 $1,202 $829 $ % 26.1% 4.7x 11.2x Business Intelligence/Analytics Teradata Corp. TDC $ % $4,293 $3,972 $2,633 $1,378 $ % 18.5% 1.5x 8.2x Qlik Technologies, Inc. QLIK $ % $3,335 $3,014 $590 $505 $3 85.7% 0.5% 5.1x x* MicroStrategy, Inc. MSTR $ % $2,264 $1,807 $535 $426 $ % 26.5% 3.4x 12.8x Average 78.2% $3,297 $2,931 $1,253 $770 $ % 15.1% 3.3x 10.5x Median 86.4% $3,335 $3,014 $590 $505 $ % 18.5% 3.4x 10.5x Source: S&P Capital IQ *Excluded from average and median calculation. 12

13 Industry Sector Overview Public Company Analysis Software as a Service (SaaS) ($ in millions, except per share) Salesforce.com CRM $ % $44,787 $45,638 $5,974 $4,498 $ % 5.3% 7.6x 145.0x* NetSuite, Inc. N $ % $6,529 $6,433 $693 $465 ($71) 67.1% (10.3%) 9.3x NM athenahealth, Inc. ATHN $ % $5,218 $5,400 $880 $535 $ % 7.8% 6.1x 79.1x* The Ultimate Software Group, Inc. ULTI $ % $5,300 $5,179 $583 $355 $ % 11.4% 8.9x 78.0x* Blackbaud, Inc. BLKB $ % $2,600 $2,824 $615 $320 $ % 16.1% 4.6x 28.6x Cornerstone OnDemand, Inc. CSOD $ % $1,773 $1,777 $301 $206 ($53) 68.3% (17.5%) 5.9x NM Demandware, Inc. DWRE $ % $1,824 $1,638 $195 $141 ($29) 72.1% (14.7%) 8.4x NM Synchronoss Technologies, Inc. SNCR $ % $1,561 $1,594 $552 $330 $ % 29.3% 2.9x 9.9x LogMeIn, Inc. LOGM $ % $1,760 $1,514 $255 $222 $ % 11.8% 5.9x 50.4x* SPS Commerce, Inc. SPSC $ % $1,154 $1,031 $152 $104 $ % 10.1% 6.8x 67.0x* ExactTarget, Inc. ET $ % $786 $715 $269 $152 $ % 25.3% 2.7x 10.5x Constant Contact, Inc. CTCT $ % $807 $627 $353 $257 $ % 12.4% 1.8x 14.3x Bazaarvoice, Inc. BV $ % $357 $311 $194 $121 ($20) 62.3% (10.5%) 1.6x NM SciQuest, Inc. SQI $ % $279 $151 $104 $71 $8 67.8% 7.7% 1.4x 18.7x Average 75.0% $5,338 $5,345 $794 $555 $ % 6.0% 5.3x 16.4x Median 78.0% $1,766 $1,616 $327 $240 $ % 9.0% 5.9x 14.3x Source: S&P Capital IQ *Excluded from average and median calculation. 13

14 Industry Sector Overview Public Company Analysis ($ in millions, except per share) Infrastructure Software Enterprise IT Management VMware, Inc. VMW $ % $33,810 $28,088 $6,481 $5,475 $1, % 26.2% 4.3x 16.6x Red Hat, Inc. RHT $ % $13,436 $12,972 $1,905 $1,616 $ % 19.0% 6.8x* 35.9x* Citrix Systems, Inc. CTXS $ % $11,226 $11,639 $3,222 $2,737 $ % 26.5% 3.6x 13.6x CA Technologies CA $ % $11,985 $10,582 $4,096 $3,497 $1, % 31.4% 2.6x 8.2x SolarWinds, Inc. SWI $ % $3,021 $2,781 $467 $418 $ % 30.9% 6.0x* 19.3x Pegasystems, Inc. PEGA $ % $1,940 $1,714 $647 $441 $ % 12.9% 2.6x 20.5x Progress Software Corp. PRGS $ % $1,320 $1,267 $363 $317 $ % 20.1% 3.5x 17.4x Average 83.9% $10,963 $9,863 $2,454 $2,072 $ % 23.8% 3.3x 15.9x Median 84.5% $11,226 $10,582 $1,905 $1,616 $ % 26.2% 3.5x 17.0x Data Storage EMC Corp. EMC $ % $47,897 $48,497 $24,738 $15,136 $5, % 21.0% 2.0x 9.3x Iron Mountain, Inc. IRM $ % $6,396 $11,012 $3,070 $1,750 $ % 29.7% 3.6x 12.1x NetApp, Inc. NTAP $ % $9,308 $5,469 $5,969 $3,722 $ % 12.1% 0.9x 7.6x Teradata Corp. TDC $ % $4,293 $4,012 $2,633 $1,378 $ % 18.5% 1.5x 8.3x CommVault Systems, Inc. CVLT $ % $1,537 $1,150 $584 $501 $ % 2.3% 2.0x 84.6x* Average 68.9% $13,886 $14,028 $7,399 $4,498 $1, % 16.7% 2.0x 9.3x Median 67.8% $6,396 $5,469 $3,070 $1,750 $ % 18.5% 2.0x 8.8x Source: S&P Capital IQ *Excluded from average and median calculation. 14

15 Industry Sector Overview Public Company Analysis ($ in millions, except per share) Infrastructure Software Security Check Point Software Technologies, Ltd. CHKP $ % $14,749 $13,449 $1,592 $1,407 $ % 52.9% 8.4x 16.0x Palo Alto Networks, Inc. PANW $ % $14,038 $13,737 $928 $677 ($105) 72.9% (11.3%) 14.8x NM Symantec Corp. SYMC $ % $13,473 $11,856 $6,153 $5,117 $1, % 28.2% 1.9x 6.8x VeriSign, Inc. VRSN $ % $9,430 $9,401 $1,043 $851 $ % 62.6% 9.0x 14.4x Fortinet, Inc. FTNT $ % $7,422 $6,514 $937 $669 $ % 6.6% 7.0x 118.0x* Trend Micro, Inc. TSE:4704 $ % $5,051 $4,034 $986 $809 $ % 34.3% 4.1x 11.9x FireEye, Inc. FEYE $ % $3,533 $3,061 $581 $359 ($389) 61.8% (66.9%) 5.3x NM Average 80.7% $9,671 $8,865 $1,746 $1,413 $ % 15.2% 7.2x 12.3x Median 85.8% $9,430 $9,401 $986 $809 $ % 28.2% 7.0x 13.2x Source: S&P Capital IQ *Excluded from average and median calculation. 15

16 Industry Sector Overview Public Company Analysis ($ in millions, except per share) Informatics & Data Services Thomson Reuters Corp. TSX:TRI $ % $31,715 $40,179 $12,272 $3,404 $2, % 21.1% 3.3x 15.5x Moody's Corp. MCO $ % $20,229 $23,354 $3,496 $2,516 $1, % 45.8% 6.7x* 14.6x Experian plc LSE:EXPN $ % $15,818 $19,099 $4,810 $2,177 $1, % 32.2% 4.0x 12.3x Equifax, Inc. EFX $ % $11,776 $13,040 $2,622 $1,745 $ % 34.8% 5.0x 14.3x Wolters Kluwer NV ENXTAM:WKL $ % $9,200 $11,511 $4,410 $3,013 $1, % 24.9% 2.6x 10.5x IHS, Inc. IHS $ % $8,049 $9,871 $2,308 $1,419 $ % 25.3% 4.3x 16.9x Gartner, Inc. IT $ % $7,364 $7,722 $2,074 $1,262 $ % 16.0% 3.7x 23.3x* Informa plc LSE:INF $ % $5,359 $6,796 $1,865 $744 $ % 30.7% 3.6x 11.9x FactSet Research Systems, Inc. FDS $ % $6,750 $6,602 $1,007 $601 $ % 36.1% 6.6x* 18.2x TransUnion TRU $ % $3,938 $6,192 $1,456 $944 $ % 31.2% 4.3x 13.6x Dun & Bradstreet Corp. DNB $ % $3,827 $5,486 $1,685 $1,124 $ % 25.9% 3.3x 12.6x CoreLogic, Inc. CLGX $ % $3,383 $4,627 $1,483 $739 $ % 22.7% 3.1x 13.8x Fair Isaac Corp. FICO $ % $2,770 $3,334 $828 $553 $ % 22.3% 4.0x 18.1x Morningstar, Inc. MORN $ % $3,568 $3,305 $784 $457 $ % 31.6% 4.2x 13.3x NeuStar, Inc. NSR $ % $1,538 $1,964 $1,022 $759 $ % 39.7% 1.9x 4.8x Acxiom Corp. ACXM $ % $1,529 $1,678 $1,030 $224 $ % 14.6% 1.6x 11.1x Ipsos SA ENXTPA:IPS $ % $895 $1,531 $1,945 $1,251 $ % 11.5% 0.8x 6.9x Forrester Research, Inc. FORR $ % $575 $465 $313 $188 $ % 11.2% 1.5x 13.3x Average 86.6% $7,682 $9,264 $2,523 $1,284 $ % 26.5% 3.2x 13.0x Median 87.3% $4,648 $6,397 $1,775 $1,034 $ % 25.6% 3.5x 13.3x Source: S&P Capital IQ *Excluded from average and median calculation. 16

17 Industry Sector Overview Public Company Analysis ($ in millions, except per share) Internet Online Content and Search Google, Inc. GOOG $ % $420,294 $357,879 $71,763 $44,866 $23, % 32.5% 5.0x 15.4x Facebook, Inc. FB $ % $250,057 $236,081 $14,640 $12,207 $6, % 43.6% 16.2x* 37.0x Yahoo!, Inc. YHOO $ % $27,429 $22,798 $4,948 $3,185 $ % 9.6% 4.6x 47.8x LinkedIn Corp. LNKD $ % $24,199 $22,251 $2,772 $2,386 $ % 8.3% 8.0x 98.9x* Twitter, Inc. TWTR $ % $17,491 $15,603 $1,987 $1,339 ($208) 67.4% (10.5%) 7.9x NM Scripps Networks Interactive, Inc. SNI $ % $6,641 $9,300 $2,704 $1,947 $1, % 45.6% 3.4x 7.5x IAC/InterActiveCorp. IACI $ % $5,780 $5,985 $3,213 $2,394 $ % 12.5% 1.9x 14.9x WebMD Health Corp. WBMD $ % $1,923 $2,114 $607 $368 $ % 21.2% 3.5x 16.4x Yelp, Inc. YELP $ % $1,625 $1,256 $506 $463 $ % 3.2% 2.5x 77.5x Software & Services Average 66.6% $83,938 $74,807 $11,460 $7,684 $3, % 18.4% 4.6x 30.9x Median 68.8% $17,491 $15,603 $2,772 $2,386 $ % 12.5% 4.0x 16.4x Akamai Technologies, Inc. AKAM $ % $12,480 $12,376 $2,155 $1,459 $ % 33.1% 5.7x 17.4x Rovi Corp. ROVI $ % $933 $1,756 $525 $422 $ % 31.8% 3.3x 10.5x Box, Inc. BOX $ % $865 $624 $259 $194 ($155) 74.9% (59.8%) 2.4x NM Average 59.5% $4,759 $4,919 $979 $692 $ % 1.7% 3.8x 13.9x Median 50.9% $933 $1,756 $525 $422 $ % 31.8% 3.3x 13.9x e Commerce Amazon.com, Inc. AMZN $ % $242,252 $246,411 $100,588 $32,606 $7, % 7.0% 2.4x 35.2x priceline.com, Inc. PCLN $1, % $64,565 $66,956 $9,064 $8,357 $3, % 37.9% 7.4x 19.5x Netflix, Inc. NFLX $ % $44,920 $44,710 $6,441 $2,084 $ % 5.8% 6.9x 119.2x* ebay, Inc. EBAY $ % $30,257 $32,395 $17,705 $11,916 $4, % 27.6% 1.8x 6.6x Expedia, Inc. EXPE $ % $15,576 $17,193 $6,330 $5,074 $ % 11.1% 2.7x 24.5x Cimpress N.V. CMPR $ % $2,581 $3,357 $1,536 $940 $ % 13.0% 2.2x 16.8x GODaddy Inc. GDDY $ % $1,703 $2,685 $1,554 $999 $ % 6.7% 1.7x 25.7x Shutterfly, Inc. SFLY $ % $1,343 $1,593 $995 $492 $ % 9.3% 1.6x 17.1x Etsy, Inc. ETSY $ % $1,012 $737 $251 $161 $6 64.2% 2.4% 2.9x 120.6x* Blue Nile, Inc. NILE $ % $396 $363 $488 $92 $ % 3.5% 0.7x 21.5x Source: S&P Capital IQ *Excluded from average and median calculation. Average 74.3% $40,461 $41,640 $14,495 $6,272 $2, % 9.9% 3.1x 20.9x Median 81.4% $9,078 $10,275 $3,942 $1,542 $ % 6.7% 2.3x 20.5x 17

18 Industry Sector Overview Public Company Analysis ($ in millions, except per share) IT Services IT Consulting & Other Services Accenture plc ACN $ % $66,695 $62,873 $31,048 $9,809 $5, % 16.6% 2.0x 12.2x Cognizant Technology Solutions Corp. CTSH $ % $38,392 $35,888 $11,320 $4,539 $2, % 19.9% 3.2x 15.9x Wipro, Ltd. WIPRO $ % $22,426 $19,640 $7,455 $2,330 $1, % 22.0% 2.6x 12.0x Cap Gemini S.A. ENXTPA:CAP $ % $15,371 $13,856 $12,339 $3,093 $1, % 10.9% 1.1x 10.3x Computer Sciences Corp. CSC $ % $8,834 $9,277 $11,697 $2,501 $1, % 8.7% 0.8x 9.1x Syntel, Inc. SYNT $ % $3,811 $2,963 $949 $375 $ % 29.8% 3.1x 10.5x CACI International, Inc. CACI $ % $1,814 $2,779 $3,321 $1,127 $ % 9.1% 0.8x 9.2x ManTech International Corp. MANT $ % $958 $916 $1,559 $235 $ % 7.5% 0.6x 7.8x SAIC, Inc. SAI $ % $676 $832 $422 $144 $ % 18.5% 2.0x 10.7x Unisys Corp. UIS $ % $593 $629 $3,131 $648 $ % 4.1% 0.2x 4.9x CIBER, Inc. CBR $ % $253 $265 $812 $172 $ % 3.1% 0.3x 10.4x Computer Task Group, Inc. CTG $ % $99 $88 $384 $70 $ % 2.9% 0.2x 7.9x Average 78.9% $13,327 $12,500 $7,036 $2,087 $1, % 12.8% 1.4x 10.1x Median 84.6% $2,812 $2,871 $3,226 $887 $ % 10.0% 1.0x 10.4x Data & Transaction Processing PayPal Holdings, Inc. PYPL $ % $37,900 $33,601 $8,885 $4,494 $1, % 21.3% 3.8x 17.7x Fiserv, Inc. FISV $ % $20,944 $24,870 $5,202 $2,304 $1, % 30.8% 4.8x 15.5x First Data Corp. FDC $0.00 NM $0 $23,906 $7,722 $4,623 $2, % 37.4% 3.1x 8.3x Fidelity National Information Services, Inc. FIS $ % $19,150 $23,754 $6,410 $2,128 $1, % 25.9% 3.7x 14.3x Total System Services, Inc. TSS $ % $8,337 $9,337 $2,698 $910 $ % 24.2% 3.5x 14.3x Global Payments, Inc. GPN $ % $7,652 $9,274 $2,818 $1,783 $ % 21.7% 3.3x 15.2x Broadridge Financial Solutions, Inc. BR $ % $6,833 $7,281 $2,733 $873 $ % 21.2% 2.7x 12.5x Jack Henry & Associates, Inc. JKHY $ % $5,648 $5,565 $1,276 $547 $ % 35.1% 4.4x 12.4x ACI Worldwide, Inc. ACIW $ % $2,495 $3,225 $1,028 $561 $ % 19.3% 3.1x 16.2x Heartland Payment Systems, Inc. HPY $ % $2,340 $2,796 $2,588 $415 $ % 7.8% 1.1x 13.8x Average 91.1% $11,130 $14,361 $4,136 $1,864 $1, % 24.5% 3.3x 14.0x Median 93.3% $7,652 $9,306 $2,818 $1,346 $ % 21.3% 3.4x 14.3x Source: S&P Capital IQ 18

19 Industry Sector Overview Public Company Analysis ($ in millions, except per share) Technology Hardware PCs, Servers & Components Apple, Inc. AAPL $ % $638,976 $661,456 $233,715 $93,626 $82, % 35.3% 2.8x 8.0x International Business Machines Corp. IBM $ % $143,281 $173,530 $83,795 $42,139 $21, % 25.6% 2.1x 8.1x Samsung Electronics Co., Ltd. KOSE:A $ % $142,631 $94,625 $168,979 $64,781 $38, % 22.5% 0.6x 2.5x Hewlett Packard Co. HPQ $ % $47,603 $56,329 $106,047 $25,450 $12, % 12.0% 0.5x 4.4x Xerox Corp. XRX $ % $11,022 $18,187 $18,425 $5,423 $1, % 9.2% 1.0x 10.8x Lenovo Group, Ltd. SEHK:992 $ % $9,229 $10,006 $46,617 $6,980 $1, % 3.6% 0.2x 6.0x NCR Corp. NCR $ % $3,850 $6,817 $6,461 $1,429 $ % 5.3% 1.1x 19.9x Pitney Bowes, Inc. PBI $ % $4,018 $6,556 $3,625 $2,047 $ % 23.2% 1.8x 7.8x Lexmark International, Inc. LXK $ % $1,784 $2,738 $3,605 $1,373 $ % 8.7% 0.8x 8.7x Diebold, Inc. DBD $ % $1,949 $2,375 $2,931 $758 $ % 7.6% 0.8x 10.6x ScanSource, Inc. SCSC $ % $1,014 $1,067 $3,298 $337 $ % 3.4% 0.3x 9.4x Average 69.9% $91,396 $93,971 $61,591 $22,213 $14, % 14.2% 1.1x 8.7x Median 75.1% $9,229 $10,006 $18,425 $5,423 $1, % 9.2% 0.8x 8.1x Electronic Manufacturing Services Flextronics International, Ltd. FLEX $ % $6,105 $7,102 $24,860 $1,537 $1, % 4.6% 0.3x 6.2x Jabil Circuit, Inc. JBL $ % $4,385 $5,161 $17,899 $1,503 $1, % 6.2% 0.3x 4.6x Celestica, Inc. TSX:CLS $ % $2,129 $1,917 $5,549 $394 $ % 3.8% 0.3x 9.0x Sanmina SCI Corp. SANM $ % $1,849 $1,865 $6,424 $494 $ % 5.1% 0.3x 5.7x TTM Technologies, Inc. TTMI $ % $553 $1,604 $1,818 $285 $ % 10.9% 0.9x 8.1x Plexus Corp. PLXS $ % $1,326 $1,232 $2,654 $240 $ % 6.2% 0.5x 7.4x Benchmark Electronics, Inc. BHE $ % $1,148 $695 $2,625 $217 $ % 6.1% 0.3x 4.4x Average 82.1% $2,499 $2,797 $8,833 $667 $ % 6.1% 0.4x 6.5x Median 83.1% $1,849 $1,865 $5,549 $394 $ % 6.1% 0.3x 6.2x Source: S&P Capital IQ 19

20 Industry Sector Overview Public Company Analysis ($ in millions, except per share) Storage & Networks Technology Hardware Western Digital Corp. WDC $ % $18,827 $16,131 $14,572 $4,221 $2, % 19.8% 1.1x 5.6x SanDisk Corp. SNDK $ % $11,922 $12,015 $5,757 $2,483 $1, % 25.5% 2.1x 8.2x QLogic Corp. QLGC $ % $907 $590 $490 $286 $ % 21.0% 1.2x 5.7x Average 61.5% $10,552 $9,579 $6,940 $2,330 $1, % 22.1% 1.5x 6.5x Median 64.3% $11,922 $12,015 $5,757 $2,483 $1, % 21.0% 1.2x 5.7x Communications Equipment Cisco Systems, Inc. CSCO $ % $134,800 $100,314 $49,598 $30,208 $13, % 27.9% 2.0x 7.2x QUALCOMM, Inc. QCOM $ % $88,063 $81,704 $25,281 $15,175 $8, % 34.3% 3.2x 9.4x Harris Corp. HRS $ % $8,158 $12,920 $5,739 $1,925 $1, % 21.5% 2.3x 10.5x Alcatel Lucent, SA ENXTPA:ALU $ % $10,202 $11,212 $15,396 $5,337 $1, % 7.6% 0.7x 9.6x Juniper Networks, Inc. JNPR $ % $10,315 $10,281 $4,640 $2,927 $ % 21.0% 2.2x 10.6x Polycom, Inc. PLCM $ % $1,449 $1,076 $1,299 $759 $ % 12.7% 0.8x 6.5x Netgear, Inc. NTGR $ % $985 $721 $1,293 $363 $ % 9.3% 0.6x 6.0x ADTRAN, Inc. ADTN $ % $764 $667 $605 $273 $ % 4.8% 1.1x 19.5x* Average 76.9% $31,842 $27,362 $12,981 $7,121 $3, % 17.4% 1.6x 8.5x Median 76.6% $9,180 $10,746 $5,189 $2,426 $1, % 16.8% 1.6x 9.4x Source: S&P Capital IQ *Excluded from average and median calculation. 20

21 Hyde Park Capital Featured Q3 Transaction VITAL Network Services, Inc. has been acquired by Vology, Inc. Overview of the Transaction Sale of VITAL Network Services, Inc. ( VITAL ) to Vology, Inc. VITAL is an independent, network support organization delivering highquality data, unified communications and wireless network lifecycle solutions for resellers, integrators and carriers. has been acquired by Vology is a leading technology solutions provider to tens of thousands of North American customers offering a unique mix of new and certified pre owned technology hardware, asset disposition, IT lifecycle management, value added professional services, cloud and utility computing solutions to help customers optimize their IT budgets. More information about Vology is available at Hyde Park Capital s Role Hyde Park Capital was engaged as the exclusive investment banker and financial advisor to VITAL in connection with the sale of the Company. Hyde Park Capital marketed the opportunity to select strategic and financial sponsors and identified, negotiated and closed the transaction with Vology. 21

22 Integrity Expertise Results John Hill Senior Managing Director (813) Recent Transactions John McDonald Senior Managing Director (813) Keith Hodgdon Managing Director (813) Jami Gold Vice President (813) Greg Bosl Vice President (813) Kenneth Burnside Business Development Officer (864) Jeffrey Hendricks Vice President (678) Hyde Park Capital Advisors, LLC 701 N. Franklin Street Tampa, FL Tel: Member FINRA/SIPC