Piper Jaffray Software Activity Update November 2016
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
November 2016
Piper Jaffray Software
Activity Update
November 2016
Michael Kim Marc Steifman
Co-Head of Technology Co-Head of Technology
Investment Banking Investment Banking
MINNEAPOLIS | BOSTON | CHICAGO | HOUSTON | LONDON | LOS ANGELES | NEW YORK | SAN FRANCISCO | ZURICH
Piper Jaffray Software Team Overview
Global Reach Domestic Expertise Technology Team
Michael Kim
Co-Head of Technology
Investment Banking
Application Software
Michael.P.Kim@pjc.com
Marc Steifman
Co-Head of Technology
Investment Banking
Infrastructure & Security Software
Marc.A.Steifman@pjc.com
Garin Arevian
Managing Director
Technology Office Locations: Vertical Applications & Tech-Enabled Services
San Francisco, CA Minneapolis, MN Garin.K.Arevian@pjc.com
New York, NY Boston, MA
Jason Harkness
Our firm consists of 1,200+ professionals in Managing Director
25 investment bankers focused Digital Media and Related Software
59 offices globally including Minneapolis (HQ), Jason.P.Harkness@pjc.com
on Software, Financial Technology,
San Francisco, Charlotte, New York, Chicago,
Tech-Enabled Services, BPO and Michael Hirsch
Seattle, Boston, Aberdeen, London,
Internet & Digital Media Managing Director
Hong Kong and Zurich Digital Media and Related Software
Michael.S.Hirsch@pjc.com
Recent Transactions Andy Livadariu
Managing Director
Application Software
Andy.X.Livadariu@pjc.com
$107,036,250 Undisclosed $329,906,250 $77,280,000 $105,000,000 Undisclosed
Jason Myler
has acquired Senior & has been acquired by Managing Director
Initial Public
Follow-On Offering Follow-On Offering Subordinated Debt Vertical Applications & Tech-Enabled Services
Offering Offering
J.Jason.Myler@pjc.com
Lead Bookrunner Buy-Side Advisor Co-Manager Joint Bookrunner Sole Agent Sell-Side Advisor
Steven Schmidt
Managing Director
Undisclosed Undisclosed $115,000,000 Undisclosed $574,000,000 Undisclosed Financial and Application Software
Steven.D.Schmidt@pjc.com
has received a significant
has been sold to investment from has been sold to Follow-On has been sold to
Convertible Offering Offering Greg Klancher
Exclusive Financial Exclusive Financial Exclusive Financial Principal
Lead Manager Joint Advisor Co-Manager
Advisor Advisor Advisor Infrastructure & Security Software
Gregory.V.Klancher@pjc.com
Leading Industry Conferences and Events
Technology Growth Equity Summit
September 2017 | New York, NY
• 50+ leading privately held software and internet companies
• 100+ leading technology growth equity and strategic investors
• 500+ one-on-one meetings between attending CEO's/CFO's and investors
Silicon Valley Technology
Technology Ski Summit
Crossover Investor Summit
January 10–13, 2017 | Aspen, CO
May 18, 2017 | Menlo Park, CA
30 senior representatives from leading software and internet 15 of the highest growth late-stage private technology companies
companies, venture capital and private equity firms focused on the will have their own suite at the Rosewood Sand Hill as 15 of the top
technology and business services sectors public and crossover investors visit for one-on-one’s.
PIPER JAFFRAY 3
Case Study: CallidusCloud (Nasdaq:CALD) Follow-on
Transaction Overview $107,036,250
Company Overview:
CallidusCloud is a global leader in cloud-based sales, marketing, learning and customer experience solutions.
Through its leading SaaS platform, CallidusCloud enables its customers to accelerate their “Lead to Money”
process with a suite of solutions that identify leads, train personnel, implement territory and quota plans, Follow-on Offering
empower sales forces, automate configuration pricing and quoting, manage contracts, streamline sales
compensation and capture customer feedback for competitive advantage September 15, 2016
Global Coordinator Joint Bookrunner
Investment Highlights:
Large & Growing Market Opportunity –According to IDC, spending on CRM applications will reach $31.7
billion in 2018 with a projected cumulative annual growth rate of 6.9%. MarketsandMarkets estimates the Offering Details
learning management systems market will be $7.8 billion in 2018 and customer experience systems to be $7.1
billon Offer Date 9/15/2016
Market Defining Vision – CallidusCloud is positioned the highest in the leader’s quadrant for ability to
execute based on the latest report from Gartner Inc.’s Magic Quadrant for Sales Performance Management. Filing Date 9/13/2016
The Company has earned a number of recognition and a number of awards in 2016
Breadth & Depth of Platform –CallidusCloud’s end-to-end suite of applications solves various challenges Filing Price $18.90
faced by sales, marketing, learning and customer experience teams, which otherwise would require the
purchase and use of multiple and disparate point applications Offer Price $18.25
Expanding Customer Base – At the time of the transaction, the company had more than 4,800 customers,
Shares Filed 4.0mm (0% insider)
representing a 21% increase year over year. Of these customers, less than 400 subscribe to more than one
product, representing a significant upsell / cross-sell opportunity for the platform within the installed base Upsized to 5.1mm shares
alone with 15% overallotment
Shares Offered
Marketing Highlights: option for 5.865mm shares
total
Piper Jaffray acted as the lead left bookrunner and stabilization agent on the transaction
CallidusCloud was the first upsized technology follow-on under a $2bn market cap this year Total Deal Size $107.0mm
The 2-day domestic roadshow included approximately 70 accounts with a mix of 1-on-1 and group meetings
The book received early orders, indicating strong demand and ended over 2x oversubscribed on the first day Total Shares
62,257,616
of marketing. Outstanding
By the end of the second day of marketing, the book was over 6x oversubscribed and the deal was upsized Market Cap $1,173mm
from 4.0mm shares to 5.1mm shares to satisfy investor demand
CallidusCloud priced at $18.25/share, or about 84% of its 52-week high compared to an average of 68%. The Use of Proceeds General Corporate Purposes
deal had a file-to-offer of -3.44% compared to an average of -14.10% for sub $2bn market cap technology
follow-ons this year File-to-Offer
(3.4%)
On the first day of trading, CallidusCloud traded up 3.5% with over 10x the 30-day average trading volume, Discount
showing high interest and demand from investors post transaction 1-Day Aftermarket
3.5%
This case study was prepared by Piper Jaffray Capital Markets and is intended to be provided with the final prospectus dated September 15, 2016
Performance
Souces: IDC, MarketsandMarkets, GartnerDealogic, Company Filings, Bloomberg, Capital iQ & Piper Jafray ECM; Piper Jaffray & Co., Member SIPC and NYSE 9/16
PIPER JAFFRAY 4Recent Software IPO and Follow-On Performance
Recent Software IPOs Recent Technology Follow-ons
Deal Deal Val Current % Current %
Pricing Pricing Mkt Cap % Price Offer / Offer / Pricing Deal Val Mkt Cap Deal Val / % Price Offer / Offer /
Issuer Value / Mkt Mkt Cap Selling Issuer Mkt Cap Selling
Date to Range ($MM) FTO 30-Day Current Date ($MM) ($MM) Mkt Cap FTO 30-Day Current
($MM) Cap ($MM) Shrs ($MM) Shdr
11/1/16 GDS Holdings Ltd Below $193 $941 20% $908 0% (23%) NA (4%) 9/15/16 Callidus Software Inc $107 $1,173 9% $1,063 0% (3.4%) 0% (8%)
10/27/16 BlackLine Inc Above $168 $839 20% $1,179 0% 21% NA 41%
8/16/16 Shopify Inc $330 $3,347 10% $3,528 33% (2.1%) 8% 4%
10/5/16 Coupa Software Inc Above $153 $866 18% $1,265 0% 20% 40% 46%
2/25/16 Sabre Corp $547 $7,659 7% $6,989 100% (1.7%) 1% (9%)
9/22/16 Apptio Inc Above $110 $597 19% $736 0% 14% 25% 20%
2/1/16 Hortonworks Inc $92 $568 16% $559 0% (42.7%) 26% (3%)
9/22/16 Gridsum Holding Inc Above $100 $373 27% $442 0% 13% 23% 14%
9/20/16 Trade Desk Inc Above $97 $688 14% $982 0% 20% 47% 41% 11/13/15 Paycom Software Inc $190 $2,622 7% $2,496 100% (5.0%) (11%) (1%)
In 11/4/15 Sabre Corp $779 $8,290 9% $6,989 100% (2.0%) 2% (15%)
9/15/16 Everbridge Inc $104 $323 32% $410 17% 0% 30% 27%
Range
9/24/15 Q2 Holdings Inc $111 $999 11% $1,288 78% (13.2%) (3%) 26%
7/28/16 Talend SA Above $109 $503 22% $698 0% 13% 61% 39%
China Online In 9/24/15 Paylocity Holding Corp $128 $1,554 8% $1,720 100% (12.9%) 11% 13%
6/9/16 $52 $374 14% $253 0% 0% 3% (33%)
Education Group Range
9/24/15 2U Inc $137 $1,559 9% $1,625 11% (11.7%) (32%) 2%
12/9/15 Atlassian Corp plc Above $531 $4,382 12% $2,059 0% 20% 29% 31%
9/16/15 Paycom Software Inc $171 $2,316 7% $2,496 100% (6.5%) 6% 9%
11/18/15 Square Inc Below $279 $2,952 9% $4,183 5% (25%) 37% 32%
In 8/5/15 Sabre Corp $510 $7,525 7% $6,989 100% (2.3%) 3% (7%)
11/12/15 Instructure Inc $81 $425 19% $537 0% (6%) 27% 19%
Range
7/8/15 Globant SA $114 $963 12% $1,534 100% (7.9%) 10% 57%
6/25/15 Xactly Corp Below $65 $222 29% $409 3% (27%) (16%) 66%
SS&C Technologies
In 6/18/15 $743 $5,846 13% $6,320 0% 1.6% 6% 1%
6/25/15 AppFolio Inc $86 $388 22% $741 0% (8%) 23% 83% Holdings
Range
In 6/10/15 CyberArk Software Ltd $344 $2,006 17% $1,781 82% (5.1%) (4%) (13%)
6/18/15 MINDBODY Inc $100 $548 18% $812 0% 0% (11%) 43%
Range 6/10/15 TubeMogul Inc $90 $558 16% $514 34% (8.1%) (13%) (11%)
5/20/15 Shopify Inc Above $151 $1,265 12% $3,528 0% 31% 109% 133%
5/20/15 Sabre Corp $718 $7,194 10% $6,989 100% (0.2%) (6%) (4%)
In
4/23/15 Apigee Corp $87 $494 18% NM 0% 0% (8%) 2%
Range 5/15/15 Paycom Software Inc $290 $2,290 13% $2,496 100% (7.6%) (1%) 15%
In
3/5/15 MaxPoint Interactive $75 $294 25% $58 0% 0% (23%) (83%) 3/27/15 Globant SA $74 $625 12% $1,534 100% 2.7% 20% 141%
Range
1/22/15 Box Inc Above $201 $1,630 12% $1,989 0% 17% 35% 7% 3/18/15 Zendesk Inc $223 $1,936 12% $2,342 12% (1.1%) 3% 8%
In 3/17/15 HubSpot Inc $175 $1,204 15% $2,060 79% (6.2%) 6% 56%
12/11/14 Workiva Inc $101 $553 18% $629 0% 0% 14% 9%
Range
12/11/14 New Relic Inc Above $132 $1,059 12% $1,862 0% 21% 47% 55% 3/16/15 Mobileye NV $822 $9,199 9% $8,541 100% 10.6% 14% (7%)
12/11/14 Hortonworks Inc Above $115 $666 17% $559 0% 23% 69% (43%) 3/12/15 Imperva Inc $135 $1,194 11% $1,317 0% (14.2%) 19% 3%
In 3/11/15 CyberArk Software Ltd $235 $1,700 14% $1,781 100% (18.4%) 15% 4%
12/10/14 Momo Inc $248 $2,517 10% $3,878 0% 0% (11%) 62%
Range
In 3/4/15 Callidus Software Inc $69 $738 9% $1,063 0% (9.9%) (2%) 29%
11/5/14 Upland Software Inc $46 $172 27% $150 0% (8%) (7%) (29%)
Range
2/26/15 Q2 Holdings Inc $116 $761 15% $1,288 71% (4.7%) 5% 63%
10/8/14 HubSpot Inc Above $144 $759 19% $2,060 0% 25% 47% 131%
Mean $141 $953 19% $1,264 1% 6% 26% 28% Mean $290 $2,953 11% $3,012 64% (7%) 3% 14%
Median $109 $597 18% $777 0% 0% 27% 31% Median $175 $1,700 11% $1,781 82% (5%) 3% 3%
Source: Dealogic
Data as of market close on November 11, 2016
Includes all IPOs and FOs since 2014 greater than $20MM
PIPER JAFFRAY 5Software Stock Performance
Performance in LTM Period and October Period – By Sub-Sector
LTM Performance YTD Performance
8.0% 9.9%
5.8% 7.5%
4.6% 6.8%
SUB-SECTOR SUB-SECTOR
Moderate Growth SaaS 19.2% Moderate Growth SaaS 20.6%
Infrastructure / IT Management 13.5% Contact Center 17.7%
Large-Cap Technology 8.9% Infrastructure / IT Management 14.8%
Contact Center 8.8% Large-Cap Technology 12.5%
HR Outsourcing 6.8% HR Outsourcing 11.8%
Security Software 4.6% Human Capital Management 9.3%
Human Capital Management 2.1% Security Software 6.3%
CRM / Marketing (4.6%) CRM / Marketing (2.4%)
SaaS High Growth (5.3%) SaaS High Growth (2.6%)
BI / Data Analytics (19.8%) BI / Data Analytics (16.8%)
Source: Capital IQ
Note: LTM Date between 11/12/16 and 11/11/16. YTD data between 1/4/16 and 11/11/16
PIPER JAFFRAY 6Comparable Public Software Comps (Valuation Metrics)
2016E EV/REV 2017E EV/REV
Human Capital Management 6.2x Human Capital Management 5.2x
SaaS High Growth 5.7x SaaS High Growth 4.8x
Large-Cap Technology 4.1x Large-Cap Technology 4.0x
Security 4.1x Security 3.6x
Infrastructure / IT Management 3.3x Infrastructure / IT Management 3.2x
Business Intellgience / Data Analytics 3.3x Business Intellgience / Data Analytics 2.9x
CRM / Marketing 3.2x HR Outsourcing 2.9x
HR Outsourcing 3.0x Contact Center 2.7x
Contact Center 2.9x CRM / Marketing 2.7x
Moderate Growth SaaS 2.4x Moderate Growth SaaS 2.1x
0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x
2016E Rev Growth 2017E Rev Growth
Human Capital Management 26.7% Human Capital Management 23.4%
SaaS High Growth 26.7% SaaS High Growth 23.2%
CRM / Marketing 15.4% CRM / Marketing 16.2%
Moderate Growth SaaS 9.2% Business Intellgience / Data Analytics 15.8%
Infrastructure / IT Management 8.8% Moderate Growth SaaS 10.7%
HR Outsourcing 7.8% Security 10.4%
Security 7.5% HR Outsourcing 7.1%
Large-Cap Technology 5.8% Contact Center 7.0%
Contact Center 3.2% Large-Cap Technology 6.5%
Business Intellgience / Data Analytics 2.4% Infrastructure / IT Management 5.3%
0.0% 10.0% 20.0% 30.0% 0.0% 10.0% 20.0% 30.0%
PIPER JAFFRAY 7
Source: Capital IQSaaS Valuation Framework
EV / 2017E Revenue vs. 2017E Revenue Growth + FCF Margin
10.0x
R² = 0.7456
9.0x WDAY TEAM
VEEV
8.0x TYL
GWRE N NOW
EV / 2017E Revenue Multiple
ADBE
7.0x
PCTY PAYC
ZEN
ULTI SPLK
SHOP
6.0x
HUBS
TWOU CRM
NEWR
5.0x QTWO FLTX
CSOD
4.0x BNFT CALD
AMBR BOX
3.0x
DATA
BV
2.0x LPSN
ECOM
MODN
1.0x SREV
MRIN
0.0x
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60%
2017E Revenue Growth + FCF Margin
PIPER JAFFRAY 8
Source: Capital IQ as of 10/17/2016, Thomson Reuters, Company Filings
*Piper Jaffray estimate using EBITDA as proxy for FCFBest & Worst Performing Software Stocks
Top and Bottom 20 LTM Performers
Bottom 20 Performers Top 20 Performers
(50.1%) Tableau Software, Inc. Five9, Inc. 160.1%
(43.6%) Imperva Inc. Amber Road, Inc. 157.4%
Varonis Systems, Inc. 90.7%
(42.8%) eGain Corporation
WageWorks, Inc. 73.7%
(39.8%) Marin Software Incorporated
Insperity, Inc. 64.3%
(37.4%) H&R Block, Inc. Tangoe, Inc. 52.4%
(36.6%) athenahealth, Inc. Xactly Corporation 52.0%
(36.0%) Parkit Enterprise Inc. LogMeIn, Inc. 39.6%
8x8 Inc. 36.4%
(35.2%) FireEye, Inc.
RealPage, Inc. 36.2%
(31.8%) Benefitfocus, Inc.
Barrett Business Services Inc. 36.0%
(24.6%) Cegedim SA
CommVault Systems, Inc. 34.3%
(24.6%) VASCO Data Security International… CyberArk Software, Ltd. 31.7%
(23.0%) Paylocity Holding Corporation VMware, Inc. 29.7%
(20.9%) Jive Software, Inc. Micro Focus International plc 27.5%
Barracuda Networks, Inc. 26.8%
(19.7%) Verint Systems Inc.
Software Aktiengesellschaft 26.0%
(16.3%) Callidus Software Inc.
Symantec Corporation 26.0%
(13.8%) Radware Ltd. Datawatch Corporation 25.2%
(10.3%) SPS Commerce, Inc. AVG Technologies N.V. 24.2%
Source: Capital IQ
Note: LTM Date between 11/12/15 and 11/11/16.
PIPER JAFFRAY 9Recent Review
Transaction Activity
Mergers and Acquisitions
Salesforce Acquires Krux for $680M Criteo Acquires HookLogic for $250M
Krux will extend the Salesforce Marketing Cloud’s audience With HookLogic's acquisition, Criteo is adding a complementary
segmentation and targeting capabilities to power consumer performance marketing solution to its portfolio, focusing on delivering
marketing with even more precision, at scale. In addition, Krux will more value to brand manufacturers and retailers.
feed Salesforce Einstein with billions of new signals, enabling
Elecosoft Acquires ICON for $2.93Bn
companies to be even smarter about their customers.
The acquisition is consistent with Elecosoft's strategy of investment in
Telenor Descartes Systems Group Acquires Appterra for $5.8Bn
SaaS technology to grow its customer reach and strengthen its
By adding Appterra's technology and services, Descartes customers position as an international provider of innovative, market-leading
will have access to broader data integration capabilities for visual software applications.
standardizing and automating buy-side and sell-side processes.
Intuit Acquires Bankstream for Undisclosed Amount
Equally, Appterra's customers will now join Descartes' logistics
community, presenting additional opportunities for trading partners to Bankstream’s strong relationships with financial institutions will help
collect and share logistics data earlier in the business process. Intuit's small business and accountant customers save time when
accessing bank information and improve how they manage their
finances with QuickBooks.
IPOs & Follow-Ons Private Placements
Coupa Software Inc., a San Mateo, Calif.-based cloud-based software EverQuote Inc., a Cambridge, Mass. - based insurance marketplace,
platform that helps companies manage spending, achieve cost savings has raised $23 million in Series B funding. Savano Capital Partners led
and drive profitability has raised $133.2 million during its IPO and the round, and was joined by Stratim Capital, Oceanic Partners and T
priced above the range at $18 a share for the offering. The firm Capital Partners.
increased its IPO terms to 7.4 million shares being offered at between
$16-$18 per share ( previously was 6.7m shares being offered at $14- Apttus, a San Mateo, Calif.-based provider of quote-to-cash solutions,
$16). has raised $88 million in Series D funding. GII led the round, and was
joined by K1, ICONIQ Capital and KIA
Callidus Software Inc., a Dublin, Calif.-based cloud-based sales,
marketing and learning software platform priced 5,100,000 shares of its Everwise, a software platform for talent development, has raised $16
common stock at a price to the public of $18.25 per share. The million in Series B funding. Sequoia Capital led the round, and was
company was able to raise $107.0 million during its follow-on offering. joined by return backers Canvas Ventures and Webb Investment
Network. The company has offices in San Francisco and New York
Source: Public news release articles
PIPER JAFFRAY 10Software M&A Activity
Q1 2014 – Q3 2016
( USD in millions) Total Deal Value Average EV / REV Multiple
$60,000 14.0x
$53,011
12.0x
$50,000
10.5x
10.0x
$40,000
7.0x 7.3x $33,046 8.0x
$30,000 6.1x
5.9x
$23,829 5.6x $22,438 6.0x
$18,421
4.2x 4.5x
$20,000 5.2x
5.0x $15,304 4.0x
$13,482
$11,957 $12,062 4.7x
$11,740
$10,000 $9,861
2.0x
$0 0.0x
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2014 2015 2016
# of Deals 48 55 48 45 47 54 50 49 29 42 38
Source: 451 Research
Note: Software transactions greater than 10 million USD in enterprise value
PIPER JAFFRAY 11Public Target M&A Activity in Software
Q1 2014 – Q3 2016
( USD in millions) Total Deal Value Average EV / REV Multiple
$45,000 8.0x
$40,761
$40,000 6.7x 7.0x
6.2x
$35,000
6.0x
5.3x
$30,000 4.9x 5.0x $26,207
4.4x 5.0x
$25,000 4.9x
4.0x
$20,000 3.1x 3.3x
2.6x 2.6x 3.0x
$15,000 $12,690 $11,721
$9,085 2.0x
$10,000
$6,775 $6,125 $6,967
$5,807
$5,000 $3,070 $2,957 1.0x
$0 - x
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2014 2015 2016
# of Deals 7 7 7 8 6 11 10 12 6 18 13
Source: 451 Research
Note: Software transactions greater than 10 million USD in enterprise value
PIPER JAFFRAY 12Private Target M&A Activity in Software
Q1 2014 – Q3 2016
( USD in millions) Total Deal Value Average EV / REV Multiple
$18,000
13.4x 14.0x
$16,000 $15,472
$14,000 12.0x
$12,251
$12,000 9.3x 10.0x
$11,139
$10,000 $8,887 7.3x 8.0x
7.2x
$7,675 6.5x
$8,000 6.0x
$6,904 $6,839
4.9x 5.0x $6,220 $6,700 6.0x
4.6x $5,615
$6,000 $5,287
5.0x 4.6x 4.0x
$4,000
$2,000 2.0x
$0 - x
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2014 2015 2016
# of Deals 41 48 41 37 41 43 40 37 23 24 25
Source: 451 Research
Note: Software transactions greater than 10 million USD in enterprise value
PIPER JAFFRAY 13Strategic Public Acquirer M&A Activity in Software
Q1 2014 – Q3 2016
( USD in millions)
Total Deal Value Average EV / REV Multiple $40,912
$45,000 10.8x 12.0x
10.0x
$40,000 9.1x 10.0x
$35,000
$30,000 6.6x 6.4x 8.0x
$19,764 5.9x
$25,000 $21,282
4.9x 4.9x $17,689 6.0x
$20,000 6.9x
$15,000 5.2x $11,302 4.0x
$9,583 $8,247 4.7x
$10,000 $6,722 $6,348 $7,040
$5,289 2.0x
$5,000
$0 0.0x
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2014 2015 2016
# of Deals 33 43 38 35 40 33 31 36 24 29 23
Notable Recent Announced Transactions ($ millions)
Acquirer
Target
Announcement
11/2/15 4/28/16 5/18/16 6/1/16 6/12/16 6/13/16 7/28/16
Date
Deal Amount $1,100 $663 $871 $2,800 $4,650 $26,200 $9,300
EV / LTM REV
2.6x 7.2x 4.0x 11.0x 7.8x 8.2x 10.8x
Source: 451 Research
Note: Software transactions greater than 10 million USD in enterprise value
PIPER JAFFRAY 14Private Equity M&A Activity in Software
Q1 2014 – Q3 2016
( USD in millions) Total Deal Value Average EV / REV Multiple
$14,000 8.0x 9.0x
$11,434 8.0x
$12,000
$9,543 7.0x
$10,000
$7,827 6.0x
4.6x
$8,000 3.8x 5.0x
$3,982 3.6x
$6,000 $4,795 $5,478 4.0x
3.7x 4.3x 4.3x
$3,600 $3,388 3.0x
$4,000 $2,360 $2,870
3.1x
3.0x 2.0x
$2,000 1.7x $732 1.0x
$0 - x - x
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2014 2015 2016
# of Deals 8 7 6 5 5 12 9 8 5 10 7
Notable Recent Announced Transactions ($ millions)
Acquirer
Target
Announced
4/30/15 4/18/16 5/31 6/1/16 6/7/16 7/13/16 8/31/16 9/7/16
Date
Deal Amount $438 $1,650 $,790 $509 $3,000 $544 $1,400 $2,200
EV / LTM REV
3.2x 8.0x 7.9x 3.5x 4.2x 4.4x 3.3x 6.8x
Source: 451 Research
Note: Software transactions greater than 10 million USD in enterprise value
PIPER JAFFRAY 15Private Placement Activity
Software Private VC / PE Summary: Q1 2014 – Q3 2016
( USD in millions) Total Deal Value Total # of Deals
$7,000 180
164 161
$5,883 151 160
$6,000 145 143 143
133 133 140
$5,000 121 $4,963
136
112 $4,337 120
$4,000 100
$3,320 $3,306
$3,000 $2,810 $2,695 80
$2,111 $2,097 60
$2,000 $1,589
$1,407
40
$1,000
20
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2014 2015 2016
Source: 451 Research
Note: Software transactions greater than 10 million USD in enterprise value
PIPER JAFFRAY 16Appendix
LTM Software M&A Activities
Ann. Implied Enterprise EV / TTM
Date Buyer Seller Seller Description Value ($) TTM Rev Rev
The interactive entertainment technology business and related trademarks of Micoy Corporation, which provides an omni-
10/31/16 Digital Domain Holdings Inc. Micoy Corporation (IP assets) $5.5 NA NA
directional 3D rendering toolkit software for creating 360 degree stereoscopic environments in the entertainment sector.
Provides on-premise and cloud-based multi-channel contact center software to the travel, healthcare, insurance,
10/28/16 Enghouse Systems Limited Presence Technology SL [Valora Corporation] $13.0 $9.9 1.3x
banking, government, retail and education industries globally.
10/27/16 Aspen Technology Inc. Mtelligence Corporation [dba Mtell] Provides industrial equipment prescriptive maintenance and related analytics software and SaaS for businesses. $37.4 NA NA
LDC (Managers) Limited/Mitrefinch Provides time and attendance, payroll, attendance and workforce management software and SaaS for private and public
10/25/16 Mitrefinch Ltd. $24.5 $20.1 1.2x
management businesses.
10/24/16 Enea AB Qosmos SA Provides IP traffic classification and network intelligence software used in physical, SDN and NFV architectures. $57.8 NA NA
10/21/16 Playtech plc ECM Systems Provides game management software and systems for the retail bingo gaming markets in the UK and Ireland. $18.3 $12.2 1.5x
10/20/16 Proofpoint Inc. [NASDAQ: PFPT] FireLayers Provides cloud application control (CAC) software for enterprises. $55.0 NA NA
10/13/16 Descartes Systems Group Inc. Appterra Inc. Provides supply chain relationship management and trading partner collaboration SaaS for businesses. $5.8 NA NA
Provides cloud-based third-party access control SaaS to IT businesses, enabling access to applications that are hosted
10/04/16 Akamai Technologies Inc. Soha Systems [fka BubblewrApp] $60.0 $2.0 30.0x
in data centers and to Microsoft SharePoint on enterprise networks.
10/04/16 Criteo SA [NASDAQ: CRTO] HookLogic Inc. Provides retail brand and e-commerce online shopping marketing and advertising SaaS for businesses. $250.0 NA NA
10/04/16 salesforce.com Inc. Krux [aka Krux Digital] Provides real-time audience data management and targeting SaaS for marketers, Web publishers and ad agencies. $768.0 $52.0 14.8x
10/04/16 Wolters Kluwer Health Emmi Solutions LLC Provides patient engagement and analytics SaaS for healthcare providers. $170.0 NA NA
Provides parking software, SaaS and systems that enables parking management, enforcement, permits, collections,
09/29/16 Thoma Bravo LLC T2 Systems Inc. [Pamlico Capital] $180.0 $75.0 2.4x
access and revenue control.
Provides email and digital subscription management SaaS that enables US government agencies to provide citizens with
09/26/16 Vista Equity Partners Management LLC GovDelivery Inc. $153.0 NA NA
information about such topics as local emergencies, events, council minutes and other matters through email, wireless
The technology assets of INVeSHARE Inc. which provides embeddable Web-based shareholder communication SaaS to
09/19/16 Broadridge Financial Solutions Inc. INVeSHARE Inc. (technology assets) $135.0 NA NA
brokerage firms and shareholders.
09/14/16 IRESS Ltd. INET BFA [Media24 [Naspers]] Provides financial data and analysis SaaS enabling businesses in Africa to buy or sell on the Capital Market. $10.4 NA NA
Provides healthcare electronic medical records (EMR) electronic information exchange and clinical document
09/12/16 Atos SE Anthelio Healthcare Solutions Inc. [Actis] $275.0 NA NA
collaboration SaaS, online patient and doctor portals that enable appointment booking, patient/doctor communications
The indirect loan origination solutions division, which provides consumer loan origination and regulatory compliance SaaS
09/08/16 Reynolds and Reynolds Company, The Wolters Kluwer Governance, Risk & Compliance $35.8 NA NA
and BPO services for the automotive, watercraft and recreational vehicle dealership industry.
09/07/16 HMS Holdings Corp Essette Provides Micosoft.NET-based care management SaaS and related integration for the healthcare industry. $20.0 NA NA
HPE's software business division, which provides systems management, security, content management, application
09/07/16 Micro Focus International plc Hewlett Packard Enterprise (software business division) $8,800.0 $3,087.0 2.9x
delivery, and analytic software for enterprises.
09/07/16 TPG Capital Intel Security [fka McAfee] [Intel] Provides network anti-malware and PC security software for consumers and enterprises worldwide. $4,200.0 NA NA
Provides endpoint data protection, multi-factor authentication, virtual smart cards, access control and anti-malware
09/01/16 ESW Capital LLC Wave Systems Corporation $6.9 NA NA
software for enterprises.
Ecom Access' digital marketing services provide campaign management, analytics and data management, and
09/01/16 Paysafe Group Plc. Ecom Access (digital marketing assets) $30.0 NA NA
commission payments. Software includes payment systems, tracking and reporting, fraud monitoring, and customized
Provides credit assessment software systems, in addition to outsourced finance processing services to the finance and
09/01/16 Tieto [fka TietoEnator Oyj] Emric AB [MBO] $35.1 NA NA
leasing industry in the Nordic region.
09/01/16 Ve Interactive Ltd. Optomaton Provides proprietary demand-side video advertising SaaS for online marketers. $5.7 NA NA
08/31/16 Blackhawk Network Holdings Inc. Grass Roots Group Holdings Ltd. Provides customer and employee engagement CRM software and digital marketing services for businesses globally. $118.1 NA NA
Genesys Telecommunications Provides VoIP, unified communications, PBX and call center management software and software-as-a-service (SaaS) for
08/31/16 Interactive Intelligence Inc. $1,394.3 $410.1 3.4x
Laboratories businesses globally.
Source: Capital IQ, 451 Research, Wall Street Research
PIPER JAFFRAY 18LTM Software M&A Activities
Ann. Implied Enterprise EV / TTM
Date Buyer Seller Seller Description Value ($) TTM Rev Rev
Provides business intelligence (BI) and e-commerce marketing SaaS for brands, corporations, and retailers in North
08/25/16 Ascential PLC One Click Retail $44.0 NA NA
America, Europe and Asia.
08/25/16 Clavister AB PhenixID AB Provides identity and access management software and services for businesses. $7.6 NA NA
Return Path's EFP business unit, which provides standards-based DMARC authentication and proprietary sender-
08/24/16 Proofpoint, Inc. Return Path - Email Fraud Protection Division $18.0 NA NA
analysis SaaS for enterprise email systems. Also provides managed services which include.
Provides practice management SaaS for physicians. Software includes application capabilities for practitioner qualification
08/09/16 Echo Inc. [HealthStream Inc.] Morrisey Associates Inc. $48.0 NA NA
credentialing, billing, resident data tracking, peer reviews, and performance management.
Provides process and performance improvement patient survey SaaS, report generation and management and a
08/09/16 EQT AB [fka EQT Holdings] Press Ganey Associates Inc. $2,350.0 $344.3 6.8x
national comparative online database for the healthcare industry. Also provides healthcare-related patient care
Provides underwriting and document processing, and related analytics SaaS for businesses in the property and casualty
08/04/16 Guidewire Software Inc. FirstBest Systems Inc. $34.0 NA NA
insurance sectors.
Provides digital marketing analytics and advertising management SaaS to enable targeted marketing and advertising
08/03/16 Vector Capital Sizmek Inc. $85.2 $185.2 0.5x
across social media, Web, display ads and mobile devices, for media marketers and businesses.
MYOB Technology Pty Ltd. [Bain
08/01/16 Greentree International Limited Provides ERP, CRM, SCM and BI software and SaaS for businesses globally. $20.2 NA NA
Capital]
Provides project and portfolio management (PPM), application portfolio management (APM) and predictive portfolio
08/01/16 Planview Inc. [Insight Venture Partners] Innotas Inc. $80.0 $15.0 5.3x
analysis (PPA) SaaS for the healthcare, government, education and commercial sectors.
Provides game management software for the electronic gaming machine sector in Australia. Also provides related
08/01/16 Tabcorp Holdings Limited INTECQ Limited $86.5 NA NA
customer monitoring and tracking software.
07/28/16 Nemetschek AG Design Data Corporation Provides steel modeling and fabrication software and SaaS for the construction and engineering sectors. $46.4 $10.0 4.6x
Provides financial management and planning, ERP, e-commerce, CRM, SCM, and business intelligence (BI) analytics
07/28/16 Oracle Corporation NetSuite Inc. $9,173.8 $846.4 10.8x
software as a service (SaaS) for businesses globally.
Riverbed Technology Inc. [Thoma Provides end user experience management SaaS and mobile APM software tools, enabling the monitoring of applications
07/28/16 Aternity [fka Gelion Networks] $55.0 $30.0 1.8x
Bravo] on desktops, mobile devices and in the cloud.
Provides Web-based cloud-native application delivery SaaS for enterprises and datacenters utilizing public, private &
07/26/16 A10 Networks Inc. Appcito $6.5 NA NA
hybrid cloud environments.
Provides enterprise vulnerability assessment and management, penetration testing and attack intelligence and analytics
07/22/16 Core Security Technologies, Inc. Damballa, Inc. $9.0 NA NA
software.
Monotype Imaging [fka Agfa Monotype Provides marketing automation, customer analytics, and sales management SaaS for retailers. Software enables
07/21/16 Olapic Inc. $130.0 NA NA
Corp.] marketers to collect and deliver user generated content (UGC) from various mediums.
Nuance Communications Inc. [fka Provides customer engagement and customer analytics SaaS for businesses in the telecom, insurance, finance, travel,
07/21/16 TouchCommerce Inc. $215.0 NA NA
ScanSoft] hospitality and retail sectors.
Provides threat detection and response software for businesses that enables security professionals to assess potential
07/19/16 Carbon Black, Inc. Confer Technologies, Inc. NA NA NA
vulnerabilities, endpoint integrity and detect advanced threats in real time.
Provides gaming terminal management systems and software for the casino, bingo, virtual gaming and sports betting
07/14/16 Hydra Industries Acquisition Corp. Inspired Gaming Group Limited $262.5 NA NA
businesses globally.
Provides single sign-on (SSO) and password management software, as well as appliance-based authentication and
07/13/16 Thoma Bravo LLC Imprivata Inc. [NYSE: IMPR] $544.0 $125.0 4.4x
employee access management systems, for hospitals and healthcare providers.
Provides customer purchasing predictive behavior analytics and big data SaaS that uses machine learning to enable
07/11/16 Ebay SalesPredict NA NA NA
targeted marketing, lead generation and lead scoring sales and marketing teams.
07/11/16 Lyceum Capital Partners LLP Sabio Ltd. Provides enterprise customer contact center SaaS and related call center managed communications services. $64.7 $53.6 1.2x
Provides anti-virus, anti-malware, anti-spam, firewall, mobile device and endpoint security software for consumers and
07/07/16 AVAST Software a.s. AVG Technologies NV [fka Grisoft s.r.o.] [NYSE: AVG] $1,395.4 $433.4 3.2x
businesses globally.
Provides real-time remote highway traffic control, monitoring and management systems, including Bluetooth-enabled
07/06/16 Costain Group PLC Simulation Systems Ltd. [aka SSL] $22.6 NA NA
mobile traffic flow monitoring, motorway control systems, smart motorways, digital CCTV and road message signage, for
Kohlberg Kravis Roberts & Co. L.P. [dba
07/05/16 Epicor Software Corporation [Apax Partners] Provides ERP, CRM and SCM software and SaaS for businesses globally. $3,300.0 $1,000.0 3.3x
KKR]
Provides student well-being predictive analytics and social media analysis and monitoring software and managed services
07/01/16 BigAir Group Limited CyberHound [fka Netbox Blue] $5.2 NA NA
that enables schools to monitor student Web activity and intervene in cases of online student cyber-bullying,
Provides material handling, automation, logistics and warehouse management software and hardware for the retail,
07/01/16 Honeywell International Intelligrated Inc. $1,500.0 NA NA
wholesale, e-commerce, food and beverage, consumer packaged goods, pharmaceutical and medical supply, third-
Source: Capital IQ, 451 Research, Wall Street Research
PIPER JAFFRAY 19LTM Software M&A Activities
Ann. Implied Enterprise EV / TTM
Date Buyer Seller Seller Description Value ($) TTM Rev Rev
Provides power and fuel management, and related analytics software for the maritime shipping and travel sectors
06/30/16 Wartsila Corporation Eniram Ltd. $47.5 $10.9 4.4x
globally.
Provides access control and anti-data leakage SaaS to enable businesses to secure cloud applications and provide data
06/28/16 Cisco Systems Inc. CloudLock Inc. $293.0 NA NA
loss prevention (DLP).
Infor Global Solutions [dba Infor] [fka Provides retail predictive analytics SaaS that uses big data to enable retailers and wholesalers to forecast merchandise
06/28/16 Predictix LLC $125.0 NA NA
Agilisys Inc.] [Golden Gate Capital] planning, assortment, category management, pricing and supply chain optimization.
06/28/16 Sartorius AG IntelliCyt Corp. Provides immuno-oncology target assay measurement systems for the life sciences sector globally. $90.0 $16.7 5.4x
Callidus Software Inc. [dba
06/24/16 Badgeville (certain assets) Certain assets of Badgeville, which provides gamification software for employee and customer training and incentivizing. $7.5 NA NA
CallidusCloud]
Icontrol Networks' Connect and Piper business units, which provides smart home automation, remote control and
06/23/16 Alarm.com Inc. [Nasdaq: ALRM] Icontrol Networks Inc. (Connect and Piper business units) $140.0 NA NA
security monitoring systems.
06/23/16 Snagajob.com Inc. PeopleMatter Inc. [Reality Wireless Networks] Provides Web-based workforce and risk management measurement, analysis and optimization SaaS to enterprises. $40.0 $15.0 2.7x
06/21/16 KION GROUP AG Dematic Group [AEA Investors LP / Teachers Private CapitaProvides automated logistics systems integration services and related SCM software the manufacturing industry. $3,250.0 $1,800.0 1.8x
Francisco Partners/Elliott Management Provides BI analytics and corporate performance management, database management, identity and access
06/20/16 Dell Software Group $2,200.0 $1,363.0 1.6x
Corporation management, network security management, endpoint integrity and identity and access management software and
Provides process automation and manufacturing plant management software for the industrial processing industry in the
06/20/16 Spectris plc Capstone Technology Corporation $22.5 NA NA
energy, paper, mining, food and beverage and chemical sectors.
Provides order and related shipping management SaaS that enables online retailers to download, process and ship
06/20/16 Stamps.com Inc. ShippingEasy Inc. [aka Shipping Easy] $55.0 NA NA
orders.
Provides fashion design and prototyping software, including 2D and 3D clothing and apparel computer-aided design
06/16/16 Electronics for Imaging Inc. [dba EFI] Optitex Ltd. $20.0 NA NA
(CAD), 3D computer-aided manufacturing (CAM) and virtual prototyping, for the clothing and textile brands and
Substantially all the assets of eSupply Systems, which provides procurement, group purchasing, budgeting and spend
06/16/16 RealPage Inc. eSupply Systems LLC (assets) $7.1 NA NA
management SaaS for businesses.
06/13/16 Microsoft Corporation LinkedIn Corporation Provides a social networking website for professionals and businesses globally. $26,190.9 $3,233.4 8.1x
Provides security and operations management software and SaaS for software defined data centers (SDDC). Also
06/13/16 VMware, Inc. Arkin Net Inc. NA NA NA
provides related analytics software.
Provides enterprise cybersecurity, Web traffic management and mobile device security systems and software as a
06/12/16 Symantec Corporation Blue Coat Systems Inc. [Bain Capital] $4,650.0 $598.3 7.8x
service (SaaS) for businesses globally. Hardware and software provide features for Web content filtering, anti-data
Provides mental healthcare billing and revenue cycle management SaaS and outsourced services, as well as financial
06/09/16 Inspira Financial Inc. RBP Healthcare Technologies $8.5 NA NA
and clinical performance management and health records (EHR) SaaS, for mental health and substance abuse out-
06/07/16 Fortinet Inc. [NASDAQ: FTNT] AccelOps Inc. [fka ProspectHills, Inc.] Provides hybrid on-premises and hosted data center, and cloud monitoring software and SaaS for businesses. $28.0 $6.0 4.7x
Provides supply chain management (SCM) software, SaaS and related integration services to the chemical and oil
06/07/16 Thoma Bravo LLC Elemica Inc. $175.0 $50.0 3.5x
industries globally.
06/07/16 Fortinet Inc. AccelOps, Inc. Provides hybrid on-premises and hosted data center, and cloud monitoring software and SaaS for businesses. $28.0 $6.0 4.7x
Provides on-premise and cloud-based business intelligence (BI) analytics and reporting software for businesses,
06/02/16 Thoma Bravo LLC QlikTech Inc. [dba Qlik] $2,614.9 $637.8 4.1x
government agencies and educational institutions globally.
Provides enterprise cloud-based e-commerce SaaS for Web merchants and multi-channel online retailers. Software
06/01/16 salesforce.com Inc. [dba Salesforce] Demandware Inc. $2,800.0 $254.1 11.0x
includes features for order management, multiple e-commerce site creation and maintenance and mobile transaction
SolarWinds Inc. [Silver Lake Provides Web-based IT service management (ITSM) SaaS for managed service providers and IT support businesses
06/01/16 LOGICnow Ltd. $500.0 $80.0 6.3x
Partners/Thoma Bravo] globally. Software integrates features including remote monitoring, mail security, backup and recovery and IT service
Provides enterprise Identity-as-a-Service (IDaaS), including identity and access management and authentication SaaS.
06/01/16 Vista Equity Partners Ping Identity Corporation [fka Next Identity Corporation] $600.0 NA NA
Software enables an organization's employees to use a single sign-on (SSO) to securely access Internet applications and
Provides procurement, SCM, contract and inventory management, and accounts payable automation SaaS for the
05/31/16 Accel-KKR Company SciQuest Inc. $373.0 $106.3 3.5x
scientific, education, healthcare and government sectors.
Provides marketing automation SaaS for businesses. Software provides features for sales lead management and
05/31/16 Vista Equity Partners Marketo [NASDAQ:MKTO] $1,790.0 $226.1 7.9x
analytics, email and social media marketing, and marketing campaign analytics. Marketo began trading on the NASDAQ
Wolters Kluwer Legal & Regulatory Provides operational risk management, environmental, health, safety, and sustainability processes (EHS&S) and energy
05/31/16 Enablon $277.8 $49.2 5.6x
Solutions [fka Wolters Kluwer Law & and carbon management SaaS, software and systems integration for companies and enterprises in over 160 countries.
Source: Capital IQ, 451 Research, Wall Street Research
PIPER JAFFRAY 20LTM Software M&A Activities
Ann. Implied Enterprise EV / TTM
Date Buyer Seller Seller Description Value ($) TTM Rev Rev
505 Games' PAYDAY 2 and PAYDAY for mobile videogame franchise, which develops and provides console, PC, online
05/30/16 Starbreeze Studios AB 505 Games S.r.l. [Digital Bros. S.p.A] (PAYDAY 2 videogame $30.0 NA NA
and mobile first-person shooter videogames for consumers globally.
Tech Mahindra Ltd. [fka Mahindra- Provides loan and mortgage management software, insurance policy administration software, and related outsourced
05/27/16 Target Group Limited $164.1 $75.6 2.2x
British] services for the financial and insurance sectors globally.
Provides application program interfaces (API) and software development kits (SDK) PaaS to enable voice, text, chat
05/18/16 Vonage Holdings Nexmo $230.0 $70.0 3.3x
application and phone verification services for enterprises and developers globally....
Hexis Cyber Solutions' HawkEye G division which provides behavior-based threat detection, verification and automated
05/18/16 WatchGuard Technologies, Inc. Hexis Cyber Solutions, Inc., Hexis HawkEye G NA NA NA
machine-guided containment of zero-day and unknown malware variants for organizations and government
Provides predictive dialing, IVR and analytics call center SaaS and related integration services for call center operators
05/18/16 NICE Systems Ltd. inContact Inc. $937.4 $233.0 4.0x
globally.
Vista Equity Partners; Vista Equity Provides enterprise Identity-as-a-Service (IDaaS), including identity and access management and authentication SaaS.
05/18/16 Ping Identity Corporation NA NA NA
Partners Fund VI, L.P. Software enables an organization's employees to use a single sign-on (SSO) to securely access Internet applications and
Certain assets of D-Vasive, which provides Android mobile device and PC-based anti-spy applications and software for
05/09/16 MGT Capital Investments Inc. D-Vasive Be Free [dba D-Vasive] (assets) $9.0 NA NA
consumers and businesses. Software enables protection against malicious and invasive use of a device's camera,
Provides cloud-based utility and energy management SaaS for power suppliers. Software enables the analysis of smart
05/02/16 Oracle Corporation Opower Inc. $532.0 $148.7 3.6x
meter reading and analytics for demand side power optimization, customer engagement and billing automation and Web
Provides enterprise healthcare data analytics software and services that enable revenue management, claim and
04/25/16 Veritas Capital Verisk Health [Verisk Analytics Inc.] $820.0 $307.3 2.7x
payment accuracy, fraud protection, population health predictive big data analytics, risk assessment, compliance, and
Teradata's marketing applications business, which provides omni-channel marketing and advertising resource and data
04/22/16 Marlin Equity Partners LLC Teradata Corporation (marketing applications business) $90.0 $152.0 0.6x
management SaaS and services for companies and marketing agencies.
Provides secure identification, identity management, fraud detection and illegal substance detection hardware and
04/21/16 Smiths Group plc Morpho Detection Inc. [Safran Group] $710.0 $320.0 2.2x
software, as well as secure e-document smartcards and related software, for a variety of businesses, telecoms and
Provides enterprise consumer identity management, identity theft protection and fraud detection software, including
04/19/16 Experian plc [aka Experian Group Ltd.] CSIdentity Corporation [dba CSID] $360.0 $103.0 3.5x
credit monitoring, identity authentication, voice biometrics and breach mitigation and resolution.
Provides property management and residential sales management software and SaaS, including inventory management,
04/19/16 Zoopla Property Group PLC Property Software Group, The $106.5 $22.9 4.7x
marketing, CRM communications, accounting and business reporting, for real estate agents and agencies. In December
Provides insurance policy management, underwriting, billing and rating software and SaaS for property and casualty
04/18/16 Apax Partners LLP Duck Creek Technologies [Accenture Ltd.] $600.0 $150.0 4.0x
insurers businesses and processors.
The HP TeamSite, HP MediaBin, HP Qfiniti, HP Explore, HP Aurasma, and HP Optimost software and service assets of
04/18/16 OpenText Corporation [aka Open Text] Hewlett-Packard Company [dba HP Inc.] (customer experie $170.0 NA NA
HP, which enable customer service automation, Web content and digital asset management, and contact center
Provides event planning management SaaS for businesses globally. Software provides features for event registration,
04/18/16 Vista Equity Partners Cvent Inc. $1,413.0 $199.0 7.1x
email marketing, payment processing, budget management and Web design. Also provides online survey creation and
Provides customer experience management, including Web content management, website analytics, search engine
04/17/16 EQT Sitecore $1,131.0 $218.5 5.2x
optimization and email marketing software and SaaS for businesses globally....
Provides real-time IT security threat detection, automated incident response and analytics reporting software, available
04/15/16 Alert Logic, Inc. Click Security, Inc. NA NA NA
either on premises or in a hosted environment
Provides machine-learning based cross-device user identification tracking SaaS for the purposes of marketing for ad tech
04/14/16 Oracle Corporation Crosswise Ltd. $50.0 $1.5 33.3x
vendors, consumer brands and Web publishers. Software maps individual consumers across connected devices such as
Provides hybrid cloud application management software to enable migration, governance and management of
04/05/16 ServiceNow Inc. ITapp Corporation $15.0 $2.0 7.5x
applications from on-premises, cloud or hybrid cloud environments. Software enables application on-boarding, testing
Provides interactive online and mobile casino-style gaming and sports betting software for online and offline gambling
04/04/16 NYX Gaming Group Ltd. OpenBet $387.9 NA NA
operators. Software enables users to make bets in multiple languages, currencies and across platforms.
04/01/16 HCL Technologies Ltd. Geometric Ltd. (business assets) The business assets of Geometric, which provides computer aided manufacturing (CAM) software for businesses globally. $193.7 NA NA
Senstar Corporation [Magal Security Manufactures and provides video-based security surveillance, intrusion detection, monitoring and video management
04/01/16 Aimetis Corporation $14.0 NA NA
Systems] systems for businesses and government agencies. Software enables license plate recognition, outdoor object tracking,
Basware Oyj [aka Basware Provides e-procurement, invoice processing, EDI and purchasing automation software-as-a-service (SaaS) for
03/31/16 Verian Corporation $36.0 $10.5 3.4x
Corporation] businesses.
The Medical Director business assets (formerly known as Health Communication Network) of Primary Health Care, which
03/29/16 Affinity Equity Partners Primary Health Care Limited $116.3 NA NA
provides healthcare clinical and practice management software, as well as pharmaceutical management and electronic
Provides predictive analytics, risk scoring data and pricing and underwriting information SaaS to businesses in the
03/29/16 Guidewire Software Inc. EagleEye Analytics $42.0 NA NA
financial services and property & casualty insurance industries.
China Distance Education Holdings Provides accounting professional training course software, as well as teaching simulation software, for colleges and
03/28/16 Xiamen NetinNet Software Co. Ltd. $32.6 NA NA
Limited college students in China.
Source: Capital IQ, 451 Research, Wall Street Research
PIPER JAFFRAY 21LTM Software M&A Activities
Ann. Implied Enterprise EV / TTM
Date Buyer Seller Seller Description Value ($) TTM Rev Rev
Provides cloud infrastructure provisioning SaaS and software-defined infrastructure-as-a-service (IaaS) that enables
03/24/16 Intralinks Holdings Inc. [dba Intralinks] Verilume Inc. $6.4 NA NA
enterprises and managed service providers (MSPs) to deploy, manage and provision distributed data centers and private
Allscripts Healthcare Solutions/ GI Provides medical practice, pharmacy and electronic healthcare records (EHR) management software and software as-a-
03/23/16 Netsmart Technologies Inc. [Genstar Capital] $950.0 NA NA
Partners service (SaaS) for healthcare providers and related government agencies.
Gaming Innovation Group Inc. [fka NIO Provides B2B sports betting statistical modeling and analysis software that enables sports betting businesses to predict
03/22/16 OddsModel AS $8.9 NA NA
Inc.] the probability of sports events, provide automated bet pricing and enables betting risk management.
Asure Software Inc. [fka Forgent Provides employee recruitment, benefits, payroll, tax and workforce management software-as-a-service (SaaS) for
03/21/16 Mangrove Software $17.3 $6.0 2.9x
Networks] businesses.
Provides construction management SaaS, including project, bid and financial management and performance monitoring
03/17/16 Aconex Ltd. [ASX:ACX] CONJECT Holding GmbH $71.8 $26.3 2.7x
software, for the commercial real estate construction industry globally.
Ali Fortune Investment Holding Limited Provides lottery and gaming software, systems, terminals and related EDI services for businesses, consumers and
03/06/16 AGTech Holdings Ltd. $307.2 $34.4 8.9x
[Alibaba Group Holding Ltd.] government agencies in China.
The key opinion leader (KOL) business and products known as Qforma CrowdLink, which provides online opinion leader
03/03/16 Veeva Systems Inc. Qforma Inc. $9.8 NA NA
social analytics and customer market intelligence and related healthcare big data analytics and research SaaS and
Provides electronic surveillance systems, RFID tags, anti-theft management software, and fire alarm systems for
03/02/16 CCL Industries Inc. Checkpoint Systems Inc. $411.9 $607.4 0.7x
businesses globally.
Provides hybrid cloud application management software to enable migration, governance and management of
03/01/16 Cisco Systems Inc. CliQr Technologies $260.0 NA NA
applications from on-premises, cloud or hybrid cloud (public and private) environments for businesses. Software enables
Provides sensor-based video monitoring systems for businesses and consumers globally. Systems transmit data via 3G
03/01/16 Honeywell International RSI Video Technologies Inc. [dba Videofied] $123.0 NA NA
and 4G cellular service, and via Ethernet connections.
Provides insurance risk assessment and actuarial analytics software and SaaS that enables pricing, valuation, modeling
03/01/16 Moodys Corporation GGY [dba GGY AXIS] $86.9 $28.0 3.1x
of insurance and annuity products, asset liability management, risk analytics and financial reporting, for life insurance
Provides cybersecurity incident response management SaaS that enables enterprise security teams to automate,
02/29/16 IBM Corporation Resilient Systems Inc. $145.0 $10.0 14.5x
orchestrate, analyze and mitigate IT security incidents such as malware and DDoS attacks.
Provides windows-based endpoint security, application control, password management and desktop compliance
02/23/16 Thycotic Software Ltd. Arellia Corporation NA NA NA
software for enterprises utilizing the altiris/symantec mangement platform
Provides desktop, Web-based and mobile inbound call and Web chat-based customer service automation software for
02/22/16 Verint Systems Inc. Contact Solutions LLC $66.9 $47.0 1.4x
business and government agency call centers.
02/18/16 Cross River Advisors LLC ValidSoft Limited [ElephantTalk Communications] Provides transaction verification and authentication software for anti-fraud purposes for businesses. $12.5 NA NA
Provides in-vehicle driver behavior video recording systems, as well as related driver behavior coaching, fleet tracking and
02/18/16 GTCR LLC Lytx Inc. [fka DriveCam Inc.] $500.0 NA NA
fuel management SaaS, for commercial and public sector transportation fleet operators. Software enables driver safety
Provides data analytics and corporate performance management SaaS and services for healthcare providers, employers
02/18/16 IBM Corporation Truven Health Analytics Inc. [Veritas Capital] $2,600.0 $598.9 4.3x
and health plans, government entities and life sciences businesses. Truven was formerly the healthcare business division
Provides SMS-based multi-factor authentication software for enterprises, telecommunications carriers and government
02/17/16 Censornet Ltd. SMS Passcode A/S NA NA NA
agencies globally. Software enables authorized user network remote systems access...
ID Global Solutions Corporation [fka IIM Operates as a holding company for ID Solutions, which provides biometric-based fingerprinting software for financial
02/16/16 FIN Holdings Inc. $9.0 NA NA
Global Corporation] institutions, and Cards Plus SA which provides secure membership ID, loyalty and gift cards, card printing hardware and
Protection One Inc. [dba Protection 1] Provides home security, access control and video surveillance systems and services for businesses, consumers and
02/16/16 ADT Corporation [NYSE:ADT] $12,269.1 $3,587.0 3.4x
[Apollo Global Management] government agencies globally. ADT Corporation began trading on the NYSE under the ticker symbol ADT on October 1,
Provides food label analytics and market intelligence SaaS for government entities, retailers, manufacturers and app
02/11/16 KPMG LLP Label Insight Inc. $10.0 NA NA
developers. Analysis includes allergens, additives, ingredients, claim analysis and product photos.
Provides call center management and performance optimization SaaS for businesses. Software also enables related
02/08/16 BroadSoft Inc. [NASDAQ: BSFT] Transera Communications Inc. $19.8 $8.0 2.5x
customer service automation and customer analytics.
Provides enterprise threat intelligence data aggregation and collaboration SaaS for businesses. Software enables the
02/08/16 Infoblox Inc. IID [fka Internet Identity] $45.0 NA NA
exchange, analysis and translation into machine-readable threat intelligence (MRTI) of curated threat data from multiple
Provides enterprise IT security vulnerability assessment, change management and firewall and compliance auditing SaaS
02/03/16 Providence Equity Partners Inc. Skybox Security Inc. $96.0 NA NA
for businesses globally.
Castleton Technology plc [fka Redstone
02/01/16 Kypera Holdings Limited Provides housing management and transaction processing software for the property management sector in the UK. $5.0 $3.7 1.4x
plc]
Provides automated threat response, or unified threat management, software and SaaS for use by network security
02/01/16 FireEye Inc. [NASDAQ: FEYE] Invotas International Corporation [fka CSG Invotas] $20.0 NA NA
teams in the government, finance, military, energy, healthcare and retail sectors.
Provides cross-screen, targeted advertising software, customer analytics and advertising delivery software, and related
02/01/16 Telenor ASA Tapad Inc. $360.0 $57.0 6.3x
digital marketing campaign management services for marketers and advertising professionals globally.
Source: Capital IQ, 451 Research, Wall Street Research
PIPER JAFFRAY 22LTM Software M&A Activities
Ann. Implied Enterprise EV / TTM
Date Buyer Seller Seller Description Value ($) TTM Rev Rev
Learning Technologies Group plc [fka In-
01/29/16 Rustici Software Provides standards compliance, content management and collaboration software for E-learning institutions globally. $26.0 $6.6 3.9x
Deed Online plc]
Provides physical security systems, including access control, intrusion detection, CCTV video surveillance, burglar alarms
01/25/16 Johnson Controls Inc. Tyco International Plc $5,645.0 $9,902.0 0.6x
and automated fire suppression systems, for businesses and consumers globally. Also provides home alarm, temperature
Provides computational fluid dynamics (CFD)-focused computer aided engineering (CAE) simulation software for
01/25/16 Siemens AG CD-adapco $970.0 $200.0 4.9x
automotive, aerospace, energy and marine manufactures globally.
Provides cybersecurity threat intelligence, detection and management SaaS for global enterprises and infrastructure
01/20/16 FireEye Inc. [NASDAQ: FEYE] iSIGHT Partners $200.0 $40.0 5.0x
providers. Software enables the integration of up-to-date actionable threat intelligence into existing cyber security
Cobham's surveillance systems assets, which provides video and audio surveillance systems for businesses and
01/15/16 Marlin Equity Partners LLC Cobham plc (surveillance business assets) $10.0 NA NA
government agencies. Surveillance assets are a division of Cobham's Communications and Connectivity business unit.
Provides consumer interaction analytics SaaS for enterprises and government agencies. Software enables the analysis
01/11/16 NICE Nexidia $135.0 $50.0 2.7x
and conversion of unstructured audio, video, and text-based consumer content for...
Provides POS system customer analytics and reporting software, Web hosting and related consulting services for
01/06/16 SPS Commerce Inc. ToolBox Solutions Inc. $21.8 NOTES
retailers and consumer packaged goods suppliers in North America.
Provides video-based shopper information collection systems, related outsourced reporting services and Web-based
12/22/15 Tyco Retail Solutions ShopperTrak $175.0 $75.0 2.3x
customer analytics tracking SaaS
12/21/15 ShoreTel Inc. Corvisa LLC Provides call center, interactive voice response (IVR), SIP trunking and virtual collaborative communications SaaS $8.5 NA NA
12/17/15 CoreLogic Inc FNC Inc. Provides property appraisal and real estate collateral management software $475.0 NA NA
The assets of EVault, which provides enterprise data protection, disaster recovery and business continuity, storage and
12/16/15 Carbonite, Inc. EVault, Inc. $14.0 NA NA
data retrieval SaaS and appliances for small businesses....
12/16/15 CVC Capital Partners Limited Kount Inc. Provides fraud detection and related risk management SaaS for e-commerce businesses and payment processors. $80.0 NA NA
Provides signature-less online endpoint threat detection and response (ETDR), advanced threat prevention and anti-
12/14/15 Sophos Group plc SurfRight B.V. $32.0 NA NA
malware software for consumers and businesses. Software locates, identifies and rem...
12/14/15 Kapsch TrafficCom AG Telvent Trafico y Transporte Provides traffic and tolling management software systems for the transportation industry worldwide. $38.4 NA NA
Provides signature-less online endpoint threat detection and response (ETDR), advanced threat prevention and anti-
12/14/15 Sophos Plc SurfRight B.V. $31.8 $5.0 6.4x
malware software for consumers and businesses.
12/11/15 Digital Barriers plc Brimtek Inc. Provides physical security, surveillance and monitoring systems for the public sector $25.0 $26.1 1.0x
12/11/15 LookingGlass Cyber Solutions Inc. Cyveillance Inc. Provides open-source Web-based enterprise threat intelligence SaaS solutions $35.0 NA NA
Provides real-time e-commerce transaction fraud detection, fraud prevention and identity verification services for online
12/10/15 Transunion Netherlands I B.V. Trustev Limited $44.0 NA NA
retailers, financial service providers and travel businesses....
Provides enterprise vulnerability assessment and management, penetration testing and attack intelligence and analytics
12/09/15 Courion Corporation Core Security Technologies Inc. $30.0 NA NA
software.
Provides contact center management software-as-a-service (SaaS) for businesses. In January 2014, LiveOps
12/01/15 Marlin Equity LiveOps Cloud NA NA NA
announced the formation of two separate corporate entities: LiveOps Cloud Platform and LiveO...
11/30/15 EQT Partners AB IFS AB Provides ERP, CRM, EAM and BPM software $1,044.6 $390.2 2.7x
11/30/15 FLIR Systems Inc. DVTEL Inc. Provides physical security surveillance systems and software $92.0 NA NA
Provides managed security services, including threat intelligence, forensics, online fraud detection, banking security,
11/24/15 NCC Group (Solutions) Limited Fox-IT Group B.V. $141.0 $30.0 4.7x
incident response and auditing services, for businesses, financial institutio...
11/24/15 Sabre Corporation Trust Group of Companies Provides online and mobile hotel booking and reservations management software $154.0 NA NA
Currently operating in stealth mode, intends to provide cloud application development tools that enable enterprises to
11/19/15 Google Inc. Bebop Technologies Inc. [dba bebop] $380.2 NA NA
build, maintain and integrate cloud applications.
11/19/15 Familiprix Inc. ZoomMed Inc. Provides multi-pharmacy laboratory management software $1.5 NA NA
11/18/15 Tack Fiori International Group Limited Beijing Tianya Co. Ltd. Provides mobile healthcare application security software for businesses. $40.0 NA NA
Source: Capital IQ, 451 Research, Wall Street Research
PIPER JAFFRAY 23You can also read
