Sectorwatch: Advanced Analytics - 7 Mile Advisors - April 2022 - 7 Mile ...
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7 Mile Advisors Sectorwatch: Advanced Analytics April 2022
Advanced Analytics
7 Mile Advisors appreciates the opportunity to present this confidential information to the Company. This document is meant to be delivered only in
conjunction with a verbal presentation, and is not authorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of the document.
All data cited in this document was believed to be accurate at the time of authorship and came from publicly available sources. Neither 7 Mile Advisors nor 2
7M Securities make warranties or representations as to the accuracy or completeness of third-party data contained herein. This document should be treated
as confidential and for the use of the intended recipient only. Please notify 7 Mile Advisors if it was distributed in error.Overview DASHBOARD
• Summary metrics on the sector
• Commentary on market momentum by comparing the
most recent 12-month performance against the last 3-
year averages.
PUBLIC BASKET PERFORMANCE
• Summary valuation and operating metrics for a basket of
We advise on M&A and private capital transactions and provide market comparable public companies.
assessments and benchmarking. As a close-knit team with a long history
together and a laser focus on our target markets, we help our clients sell
their companies, raise capital, grow through acquisitions, and evaluate new
markets. VALUATION COMPARISON
We publish our sectorwatch, a review of M&A and operational trends in • Graphical, detailed comparison of valuation multiples for
the industries we focus. the public basket.
RECENT DEALS
• The most recently announced deals in the sectorDashboard
1 - year revenue growth compared to revenue growth average for last 3 years - Current revenue
growth rate is less than the average of the last 3 years, indicating that the market may be
flattening or declining
4Public Basket Overview
TMT
Big Data
Advanced
Analytics
CloudTech & DevOps
Marketing Tech
5Public Basket
Rev
LTM LTM Rev TEV / Rev TEV / Rev / FTE
Company TEV $m Growth GP % EBITDA % # FTEs
EBITDA $m $m X EBITDA X $k
YoY
Alteryx 4,982 -122 536 8.2% 89.6% -22.7% 9.3x #N/A 2,000 268
Fair Isaac 12,247 556 1,326 1.4% 76.5% 41.9% 9.2x 22.0x 3,516 377
Splunk 23,057 -1,050 2,674 19.9% 72.5% -39.3% 8.6x #N/A 7,500 356
SAP 132,361 7,623 32,918 1.8% 71.5% 23.2% 4.0x 17.4x 107,415 306
International Business Machines 171,518 12,357 57,351 3.9% 54.9% 21.5% 3.2x 14.7x 307,600 186
Adobe Systems 202,246 6,470 16,142 18.0% 88.0% 40.1% 12.5x 31.3x 25,988 621
Alphabet 1,582,669 102,022 257,637 41.2% 56.9% 39.6% 6.1x 15.5x 156,500 1,646
Microsoft 2,085,487 90,791 184,903 20.6% 68.8% 49.1% 11.3x 23.0x 181,000 1,022
526,821 27,331 69,186 14.4% 72.3% 19.2% 8.0x 20.6x 98,940 598
151,940 7,047 24,530 13.1% 72.0% 31.4% 8.9x 19.7x 66,702 367
share price as of 22Apr22
6Public Basket
7Operational Metrics
8Operational Metrics
9Operational Metrics
10Valuation
11Valuation
12Valuation
EBITDA(x)
EBITDA(x)
LTM R GR%
LTM GP%
15x 16x 17x 22x 23x 31x 15x 16x 17x 22x 23x 31x
EBITDA(x) LTM GP% EBITDA(x) LTM RGR%
13Recent Transactions
Total Transaction Target TEV / TEV /
Date Target Buyer / Investor Amount Revenue Revenue EBITDA Target Business Description Transactions Comments
01-Apr-22 Zasti - 1.50 - - - Developer of AI technology platform The company raised $1.5 million of venture funding in the form of options
24-Mar-22 Quinsite Jeffrey Clarke 2.50 - - - intended
Developertoofimprove business
a healthcare efficiency
management from undisclosed
The company investors
raised on April
$2.5 million of 1, 2022.
seed funding in a deal led by The Aurora
20-Mar-22 Aggero GapMinder Venture Partners 2.22 - - - platform
Developerdesigned to deliver
of big data advanced
analytics software Funds and Jeffrey
The company Clarke
raised on March
$2 million 24, 2022.
of seed Other
funding in a undisclosed investors also
deal led by LAUNCHub
15-Mar-22 Upscalio Gulf Islamic Investments 15.00 - - - designed to reshape the way influencerto
Provider of financial services intended Ventures on March 20, 2022. GapMinder Venture Partners, Klaas Kersting,
The company raised $ 15 million of Series B venture funding through a
10-Mar-22 Slingshot Aerospace AIM13 CV Partners 25.00 - - - invest in, ofgrow
Operator and buy e-commerce
a situational intelligence combination
The companyofraised
debt and
$25 equity
million inof aSeries
deal led
A1 by Gulf Islamic
venture fundingInvestments
in a deal ledon
by
02-Mar-22 Master Works Merak Capital 40.00 - - - platform intended to provide a
Provider of digital transformation ATX Venture Partners on March 10, 2022. Lockheed Martin Ventures,
The company received $40 million of development capital from MerakValor Capital
01-Mar-22 Ascent Software - - - - - services
Provider intended fordevelopment
of software businesses. The on
TheMarch 2, 2022.
company This investment
completed will enable
a debt refinancing the company toMarch
in approximately accelerate
2022. its
01-Mar-22 Ciscom (Toronto) - - - - - products and services
Provider of informationtoand
mid-market HSBC Bank UK provided the funding in the form of a loan to the company.
The company received an undisclosed amount of debt financing in the form of
01-Mar-22 Dandelion (Toronto) LoKnow - - - - communication technology
Provider of information servicesand
technology aThe
term loan from
company wasBMO Financial
acquired Group in
by LoKnow forMarch 2022. Proceeds
an undisclosed amountof on
theMarch
funds 1,
01-Mar-22 Holocene Beam (Berlin) - - - - marketing solutions
Developer of intended toplatform
trade compliance help 2022. This acquisition
The company raised anstrengthens
undisclosedLoKnow's
amount ofposition
ventureasfunding
a leaderfrom
in providing
Beam in
01-Mar-22 Oktopi B&Y Venture Partners - - - - intended
Developertoofscale trade compliance
a teaching management approximately Marchan
The company raised 2022.
undisclosed amount of venture funding from B&Y
24-Feb-22 bitsCrunch Animoca Brands 3.60 - - - platform designed
Provider of to help consulting
data analytics educators and Venture Partners in approximately
The company raised $3.6 million ofMarch 2022.
venture funding in a deal led by Animoca
23-Feb-22 R.R. Donnelley & Sons Chatham Asset Management 1,955.23 4,935.10 0.00 6.58 services intended to uncover hidden
R.R.Donnelley & Sons Co provides Brands on February
The company 24, 2022.
was acquired by Coinbase
Chatham Ventures, Crypto.com
Asset Management Capital,
through an
22-Feb-22 Upstream Logix SentiLink - - - - integrated
Provider of communication
data intelligencestrategies
services by estimated $1.96 billion public to private LBO on February 23, 2022.
The company was acquired by SentiLink for an undisclosed amount on The
18-Feb-22 Analytical Wizards Advent International 65.00 - - - intended for alternative finance
Developer of a business analytics February 22, 2022.
The company The acquisition
was acquired helps Healthcare,
by Definitive SentiLink tovia
support companies
its financial in
sponsors
02-Feb-22 Accentf(x) Marketing After (Norwalk) - - - - platform
Operator designed to empower
of marketing agency intended Advent International and Spectrum Equity, through a $65 million LBO
The company was acquired by After (Norwalk), a subsidiary of Edgewood on
02-Feb-22 Spike (Chile) Bain & Company - - - - to help clients engage, influence
Provider of advanced analytics and
and Partners Insurance
The company Center, for
was acquired an undisclosed
by Bain & Companyamount on February amount
for an undisclosed 2, 2022.on
19-Jan-22 Cognitive Solutions and Innovation ei3 - - - - machine
Developerlearning solutions
of advanced operating
artificial February 2, 2022. This acquisition is the culmination of a partnership
The company was acquired by ei3 for an undisclosed amount on January that19,
has
18-Jan-22 The Market Base Techquity Digital - - - - intelligence software systems
Developer of on-demand marketingdesigned 2022. The acquisition
The company will enhance
was acquired ei3's IIoT
by Techquity suite
Digital forofanproducts with amount
undisclosed world- on
11-Jan-22 Actify Data Labs Bradford Brown Capital Partners - - - - platform
Developerdesigned for businesses.
of an end-to-end The
data and January 18, 2022.
The company entered into a definitive agreement to be acquired by Voxco,
11-Jan-22 Neal Analytics Apax Partners - - - - analytics
Provider ofplatform intended
cloud, data to consulting
and IT offer via
Theits financialwas
company sponsors Bradford
acquired Brown
by Fractal Capital via
Analytics, Partners, Cetinasponsors
its financial Capital, TPG
22-Dec-21 Covail GoSecure - - - - intended
Provider oftoadvanced
deliver measurable
analytics and and Apax Partners
The company , throughbyanGoSecure
was acquired LBO on January 11, 2022 foramount
for an undisclosed an undisclosed
on
17-Dec-21 Captivate Audio Global Radio 10.65 - - - cybersecurity
Developer andservices
operatorintended to equip
of a podcast December 22,was
The company 2021.
acquired by Global Radio for GBP 8 million on December
17-Dec-21 Rebate.ai Chicago Pacific Founders - - - - hosting
Operatorplatform designed to SaaS-
of a cloud-enabled, promote 17,
The 2021. The acquisition
company, a subsidiarywill enable Global
of Exactus Radio
Advisors wastoacquired
support by
all Tredence,
talent in the
via
16-Dec-21 digi.me Innovate Me - - - - based advanced analytics platform that
Operator of a data sourcing application its financial sponsor Chicago Pacific Founders, through an LBO on
The company was acquired by Innovate Me Ltd for an undisclosed December
amount on
designed to be used for downloading December 16, 2021.
1415
Public Basket Alteryx
Its software platform enables organizations to dramatically improve business outcomes and the productivity of business analysts. The
firm offers solutions such as advanced analytics, location intelligence, data preparation, technology integrations, and others. It serves
Financial Services; Healthcare; Retail; Transportation and Logistics; Oil and Gas; Pharmaceuticals, Biotechnology and other industries.
The company generates its revenue from the sale of a subscription-based software platform.
16Public Basket Alteryx
Company Name Date Deal Synopsis
The company raised an undisclosed amount of funding from Alteryx on March 28, 2022. The funds will be used to scale and meet
Vertis 28-Mar-22
enterprise requirements and demand in the evolving talent landscape.
Trifacta 07-Feb-22 The company was acquired by Alteryx (NYS: AYX) for $400 million on February 7, 2022.
17Public Basket Fair Isaac
The firm operates in two segments: Software segment that includes pre-configured analytic and decision management solutions
designed for a specific type of business need or process - such as account origination, customer management, customer
engagement, fraud detection, financial crimes compliance, and marketing - as well as associated professional services. Scores
segment includes business-to-business scoring solutions and services which give clients access to predictive credit and other scores.
18Public Basket Fair Isaac
Company Name Date Deal Synopsis
The company was acquired by Fair Isaac (NYS: FICO) for an undisclosed amount on December 12, 2018. The acquisition will enable
GoOn 12-Dec-18
the acquirer to grow in areas of Brazil and Latin America.
The company was acquired by FICO for $5.7 million amount on May 19, 2016. In acquiring QuadMetrics, FICO becomes the exclusive
QuadMetrics 19-May-16 licensee of QuadMetrics' intellectual property and pending patents, and gains access to a rich historical pool of development data for
additional analytics research.
19Public Basket Splunk
The company is a major player in two markets: security and full-stack monitoring & analysis. Splunk is currently undergoing a cloud
transition as the company weans its on-premises customers over to its cloud products that are delivered as software-as-a-service.
The firm's top line consists of the sale of software licenses, cloud subscriptions, and maintenance and support.
20Public Basket Splunk
Company Name Date Deal Synopsis
The company raised $550 million of Series C venture funding from Science Applications International, Splunk and CapitalG on October
Orca Security 05-Oct-21 5, 2021, putting the company's pre-money valuation at $1.25 billion. 10 other investors also participated in the round. The funding will
be used by the company to continue to deliver more functionality, extend its global reach, and be on the go-to-market.
The company raised an undisclosed amount of venture funding from GV, Splunk, HardYaka and Real Ventures on July 1, 2021. DCVC
Fletch (Database Software) 01-Jul-21
and August Capital also participated in the round.
21Public Basket International Business Machines
The company primarily sells software, IT services, consulting, and hardware. IBM operates in 175 countries and employs
approximately 350,000 people. The company has a robust roster of 80,000 business partners to service 5,200 clients--which
includes 95% of all Fortune 500. While IBM is a B2B company, IBM's outward impact is substantial. For example, IBM manages 90% of
all credit card transactions globally and is responsible for 50% of all wireless connections in the world.
22Public Basket International Business Machines
Company Name Date Deal Synopsis
Neudesic 15-Feb-22 The company was acquired by International Business Machines (NYS: IBM) for an undisclosed amount on February 02, 2022.
The company was acquired by International Business Machines (NYS: IBM) for an undisclosed amount on January 31, 2022. The
Sentaca 31-Jan-22 acquisition enables International Business Machines strengthen its position as a prime systems integrator for the emerging network and
5G market.
23Public Basket SAP
Across more than 180 countries, the company serves 440,000 customers, approximately 80% of which are small to medium-size
enterprises.
24Public Basket SAP
Company Name Date Deal Synopsis
The company was acquired by SAP (ETR: SAP) for an undisclosed amount on February 10, 2022. The acquisition will help to boost
Taulia 10-Feb-22
business performance of the company.
Icertis 04-Feb-22 The company raised $80 million of venture funding from SAP and other undisclosed investors on February 4, 2022.
25Public Basket Adobe Systems
The company operates with three segments: digital media content creation, digital experience for marketing solutions, and
publishing for legacy products (less than 5% of revenue).
26Public Basket Adobe Systems
Company Name Date Deal Synopsis
The company reached a definitive agreement to be acquired by Adobe Systems (NAS: ADBE) for an undisclosed amount on March 28,
Spin VR 28-Mar-22 2022. The acquisition allows Adobe to pair its growing set of 3D tools with publishing tools suited to social media and ecommerce
platforms.
Abstract 07-Jan-22 The company was acquired by Adobe Systems (NAS: ADBE) for an undisclosed amount on January 7, 2022.
27Public Basket Alphabet
Google generates 99% of Alphabet revenue, of which more than 85% is from online ads. Google's other revenue is from sales of apps
and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue. Sales of hardware such as
Chromebooks, the Pixel smartphone, and smart homes products, which include Nest and Google Home, also contribute to other
revenue. Alphabet's moonshot investments are in its other bets segment, where it bets on technology to enhance health (Verily),
faster Internet access to homes (Google Fiber), self-driving cars (Waymo), and more. Alphabet's operating margin has been 25%-30%,
with Google at 30% and other bets operating at a loss.
28Public Basket Alphabet
Company Name Date Deal Synopsis
The company is in talks for seeking $200 million of venture funding for Series H from Temasek Holdings, Times Internet and Google as
ShareChat 28-Mar-22
of March 28,2022.
The company reached a definitive agreement to be acquired by Alphabet (NAS: GOOGL) for $1 billion on March 16, 2022. The
Raxium 16-Mar-22 acquisition will help the acquirer to allow the Internet giant to keep pace with rivals such as Apple Inc. and Meta Platforms Inc. in the
race to develop such gadgets.
29Public Basket Microsoft
It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad
segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype,
LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server),
and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
30Public Basket Microsoft
Company Name Date Deal Synopsis
The company raised $450 million of Series D venture funding from Launchpad Capital, Temasek, SoftBank Vision Fund Phase II on April
ConsenSys 01-Apr-22 1, 2022, putting the company's pre-money valuation at $6.65 billion. Microsoft, Anthos Capital, Sound Ventures, Fabrica Ventures, Third
Point, Marshall Wace, True Capital Management, UTA Ventures and other undisclosed investors also participated in the round.
The company was acquired by Microsoft for an undisclosed amount on March 31, 2022. The acquisition will further empower
Minit 31-Mar-22 Microsoft to help customers digitally transform and drive operational excellence by creating a complete picture of their business
processes, enabling every process to be easily and automatically analyzed and improved.
31Leroy Davis, Partner 704.899.5962 leroy@7mileadvisors.com
Tripp Davis, Partner 704.899.5762 tripp@7mileadvisors.com
Andy Johnston, Partner 704.899.5961 andy@7mileadvisors.com
Contact Info John Cooper, Partner
Mark Landry, Partner
Simon Baitler, Executive Managing Director
704.973.3996
561.972.0609
310.829.1635
john@7mileadvisors.com
mark@7mileadvisors.com
simon.baitler@7mileadvisors.com
Tim Frye, Managing Director 704.973.3994 tim@7mileadvisors.com
Kristina Sergueeva, Managing Director 704.899.5149 kristina@7mileadvisors.com
Horacio Yenaropulos, Managing Director (+) 54.261.4617300 horacio@7mileadvisors.com
Chris Calton, Senior Advisor 629.236.6119 chris.calton@7mileadvisors.com
Steve Buffington, Vice President 704.960.1828 steve@7mileadvisors.com
Ben Garber, Vice President 412.626.7898 ben.garber@7mileadvisors.com
Garth Martin, Vice President 704.973.3997 garth.martin@7mileadvisors.com
Nicholas Prendergast, Vice President 704.973.3995 nicholas@7mileadvisors.com
Sydney Scadden, Vice President 704.973.3998 sydney@7mileadvisors.com
Ilia Ulianchuk, Vice President 704.414.8743 ilia@7mileadvisors.com
Ariail Barker, Director, Sales & Marketing 704.981.2908 ariail@7mileadvisors.com
As a close-knit team with a long history together Ben Bruggeworth, VP, Business Development 704.365.8859 ben.bruggeworth@7mileadvisors.com
and a laser focus on our target markets, we help
Steve Sypek, VP, Business Development 704.414.8736 steve.sypek@7mileadvisors.com
our clients sell their companies, raise capital, grow
through acquisitions, and evaluate new markets. Emily Halstenberg, Marketing & Sales Manager 704.409.9912 emily@7mileadvisors.com
Securities offered through 7M Securities LLC. Alexis Papa, Marketing & Sales Coordinator 704.414.8732 lexi.papa@7mileadvisors.com
Nic Anderko, Analyst, Business Development 704.398.3991 nic.anderko@7mileadvisors.com
Kevin Postigo, Associate 704.912.4903 kevin.postigo@7mileadvisors.com
Conor Smith, Associate 704.855.2134 conor.smith@7mileadvisors.com
Nic Anderle, Senior Analyst 704.826.7492 nic.anderle@7mileadvisors.com
Adam Alderfer, Analyst 704.644.1917 adam@7mileadvisors.com
Lucas Cerbelli, Analyst 704.336.0118 lucas@7mileadvisors.com
Tanner Lange, Analyst 704.672.0611 tanner.lange@7mileadvisors/com
Trent McCauley, Analyst 704.644.1916 trent.mccauley@7mileadvisors.com
Tyler Ratterree, Analyst 704.706.9168 tyler@7mileadvisors.com 32You can also read
