Technology, Media & Telecom - Cloud Managed Services and Hosting| Q 2 2020 - Harris Williams
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CLOUD MANAGED SERVICES AND HOSTING SECTOR REVIEW | Q1 2020
Technology, Media & Telecom
Cloud Managed Services and Hosting| Q2 2020
TECHNOLOGY, MEDIA & TELECOM PAGE | 0
HW Cloud Managed Services and Hosting Solutions Introduction
HARRIS WILLIAMS (“HW”) HW TECHNOLOGY, MEDIA & TELECOM (“TMT”) GROUP
• 25+ years and more than 1,000 closed transactions • 35+ dedicated TMT professionals
• 350+ professionals across eight office globally • TMT offices include Boston, San Francisco, and London
• 170+ closed transactions in the last 24 months
• 10 industry groups KEY TMT THEMES
✓ SaaS / Cloud ✓ Data & Analytics ✓ Digital Transformation ✓ A.I. / Machine Learning
FOCUSED ADVISORY SERVICES HORIZONTAL FOCUS SECTORS VERTICAL FOCUS SECTORS
• Mergers and acquisitions (M&A) • Application Software • Architecture, Engineering, and Construction Software
• Capital raises • Cloud Managed Services and Hosting Solutions • Education Technology and Services
• Corporate divestitures • Compliance Solutions • Energy Technology
• CRM and Marketing Automation • Facilities and Real Estate Software
• Human Capital Management • Financial Technology and Payments
CONSISTENT RECOGNITION FOR QUALITY • Infrastructure and Security Software • Government Technology
• IT and Tech-Enabled Services • Healthcare IT
• Marketing, Research, and Insights Software • Industrial and Supply Chain Technology
• Internet and eCommerce
• Retail Technology
HW CLOUD MANAGED SERVICES AND HOSTING SOLUTIONS TEAM OTHER TMT GROUP LEADERSHIP
Thierry Monjauze Anthony Basmajian Priyanka Naithani Sylvain Noblet Tyler Dewing Sam Hendler Erik Szyndlar Mike Wilkins
Managing Director Director Director Director Managing Director Managing Director Managing Director Managing Director
tmonjauze@harriswilliams.com abasmajian@harriswilliams.com pnaithani@harriswilliams.com snoblet@harriswilliams.com tdewing@harriswilliams.com shendler@harriswilliams.com eszyndlar@harriswilliams.com mwilkins@harriswilliams.com
Office: +44 20 7518 8901 Office: +1 (804) 887-6030 Office: +1 (617) 654-2115 Office: +44 20 7518 8917 Office: +1 (617) 654-2133 Office: +1 (617) 654-2117 Office: +1 (415) 217-3418 Office: +1 (415) 217-3411
SELECT &
CLOUD AND
MANAGED has been acquired by has made a significant has acquired has been acquired by has been acquired by has been acquired by has been acquired by
SERVICES investment in
HOSTING
EXPERIENCE
1
HW Current Market Observations and Insights
CURRENT MARKET OBSERVATIONS LATEST HW MARKET INSIGHTS
Economic Outlook For access to HW’s latest insight and perspective,
email us at insights@harriswilliams.com or visit
• Volatility in the public markets will likely remain as investors, businesses and www.harriswilliams.com/news-insights
policymakers evaluate rapidly evolving COVID-19 developments
• Economists and industry analysts expect a meaningful decline in GDP in 2Q’20 and 3Q’20
while they debate the shape and timing of the recovery
Buyer Sentiment Recent Publications
• The desire to invest remains – buyers are actively seeking to deploy capital Global Consumer
• Private equity firms and strategic acquirers have focused on meeting near-term Businesses Consider
operational needs and assessing the medium- to long-term impact of COVID-19 Emergence from COVID-19
• Despite economic uncertainty, financial sponsors have record levels of capital to deploy,
and many are communicating that they are “open for business” while acknowledging M&A Learnings from Past
high-quality deal flow will be limited Economic Disruptions
• Investors have expressed greater flexibility in investment interest including minority,
growth equity and merger transactions as a way to put capital to work COVID-19 and M&A:
Insights from Asia
Debt Markets
• In contrast to the first half of 1Q’20, debt markets have shifted to a risk-off mentality.
Recent activity levels / discussions suggest lender support for M&A is starting to return Deep Sector Expertise Across Key TMT Focus Areas
• Concerns over liquidity and funding availability contribute to uncertainty regarding the
duration of the COVID-19 risk mitigation focus • Architecture, Engineering and Construction
• Education Technology and Services
M&A Valuations • Financial Technology and Payments
• COVID-19 has pushed timelines for many transactions, but select deals are still closing • Healthcare IT
successfully. Sectors benefitting from COVID (i.e., distance learning, eCommerce, etc.) • Industrial and Supply Chain Technology
have seen valuations hold at pre-COVID levels • and more
• For new processes, sellers are deploying a “match making” strategy by engaging with a
For access to HW’s TMT content, email us at
smaller universe of most likely buyers and communicating expectations (value and
terms) early on in the process TMT_Insights@harriswilliams.com
2
Cloud Managed Services and Hosting Taxonomy
WEB HOSTING MANAGED SERVICES IT OUTSOURCING
Refers to a service in which a vendor offers the Refers to the delivery of network, application, system Refers to the use of external service providers to
housing of business-to-business or business-to- and e-management services across a network to effectively deliver IT-enabled business process,
consumer eCommerce websites via vendor-owned multiple enterprises, using a “pay as you go” pricing application service and infrastructure solutions
shared or dedicated servers and applications for model for business outcomes
enterprises at the provider-controlled facilities
SELECTED MARKET PARTICIPANTS SELECTED MARKET PARTICIPANTS SELECTED MARKET PARTICIPANTS
SELECTED HW CLOUD MANAGED SERVICES AND HOSTING TRANSACTIONS
&
has made a significant have been acquired by has been acquired by has been acquired by
has been acquired by has acquired
investment in
Provider of a post-warranty Provider of mass hosting Provider of services Provider of web domains, Provider of managed Provider of SME-focused
alternative for storage, server services for SMEs, including allowing SMEs to move shared web hosting and technology services with hosting and cloud solutions,
and networking hardware web hosting, domains, their IT infrastructure and value-added services with national scale in the US and including domain and
maintenance for IT data eCommerce and operations into the cloud, leading positions in Sweden the capability to design, website hosting, email for
centers application solutions in the as well as providing end and the Czech Republic, and deploy and support smaller customers, and
Benelux, Nordic countries user support and consulting presence in Central Europe technology solutions from managed servers and
and Switzerland as part of a full-service IT and the UK cable to cloud applications for larger
offering customers
3
Market Observations
Key Public Comparables Indexed stock price performance1 Transaction Spotlight Market Observations2
May 7, 2020 The global Cloud Managed Services (“CMS”) market is projected
MANAGED
120
SERVICES
to reach $116bn by 2025, a 13.3% CAGR, primarily driven by
Acquired an additional
100 45% stake, bringing total businesses looking to avoid significant infrastructural capital
shareholding to 75% investments and shift into operational costs by adopting CMS
Enterprise Value / 80
In the News
LTM Rev. LTM EBITDA 2020E EBITDA Arq Group rebrands again, remaining business emerges as
60
2.5x 11.2x 9.6x Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Webcentral Group
Key Public Comparables Indexed stock price performance1 Transaction Spotlight Market Observations3
June 24, 2020 IT Services spending is expected to decline 7.7% to $950bn in
120
GLOBAL IT
2020 as organizations prioritize spending on mission-critical
SERVICES
100
technology and services over those aimed at growth or
transformation in light of COVID-19 and the effects of the
80 global recession
Enterprise Value /
LTM Rev. LTM EBITDA 2020E EBITDA 60
In the News
2.0x 10.5x 8.7x Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Wipro names Thierry Delaporte as CEO
Key Public Comparables Indexed stock price performance1 Transaction Spotlight Market Observations4
LOCAL IT SERVICES
June 3, 2020 Across the Nordics, IT outsourcing is predicted to continue at a
160
similar or higher pre-COVID-19 pace over the next two
120
years, with businesses citing more scalability being the key
driver alongside cost optimization
Enterprise Value / 80
LTM Rev. LTM EBITDA 2020E EBITDA
40
In the News
1.2x 13.8x 9.0x Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Bechtle expands cloud portfolio with Pickit
Key Public Comparables Indexed stock price performance1 Transaction Spotlight Market Observations5
WEB HOSTING
April 7, 2020 With physical retail stores having shut, consumer buying
240
patterns have likely changed permanently as a result of
COVID-19, which will serve as a catalyst for growth in the
Registry business
180 web hosting services market as the pace of eCommerce
120 adoption dramatically increases
Enterprise Value /
LTM Rev. LTM EBITDA 2020E EBITDA 60 In the News
Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Walmart partners with Shopify to expand its online marketplace
3.3x 14.2x 15.4x
Key Public Comparables Indexed stock price performance1 Transaction Spotlight Market Observations6
DATA CENTERS /
The data center industry is set to see rising demand in the
COLOCATION
140 June 1, 2020
near-term as it supports the increasing digitalization to
120 Portfolio of 25**
online services for businesses, schools and not-for-profits
data centers from brought on by the COVID-19 pandemic
100
Enterprise Value / In the News
LTM Rev. LTM EBITDA 2020E EBITDA 80 Equinix and GIC enter into $1bn+ data center
11.3x 22.4x 20.8x Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 joint venture in Japan
*Group weighted average stock price performance over the past year based on market capitalizations
** Based on BCE methodology, which counts each expansion within a building as a separate data center 4
Impact of COVID-19 on Cloud Managed Services and Hosting
The global COVID-19 pandemic represents a pivotal moment for Cloud Managed Services and Hosting as consumer,
business and government behaviors change dramatically, with significant short- and long-term implications
Y E A R - T O - D AT E P U B L I C E Q U I T Y P E R F O R M A N C E 1 MANAGED SERVICES
Managed Global Local Web Data Centers / Whilst managed services providers in select end-markets such as
Services IT Services IT Services Hosting Colocation hospitality and travel have been materially impacted by the pandemic, the
102.8% broader Managed Services market has faired fairly well, with many
companies accelerating ongoing cloud migration as workforces for both
small and large enterprises shift to working-from-home. In turn, this shift,
which is expected to persist post-COVID-19, has driven significant demand
10.7% for remote-centric solutions, particularly security services
9.6%
S&P 500 1.4%
Index (4.0%)
(2.2%)
IT SERVICES
IT Services are likely to continue to underperform other sub-sectors as
businesses shift away from large new projects and focus on cost
STRONGEST SUB -SECTOR PERFORMERS (YTD) 1 optimization in the current environment; however, a growing need for
cloud-enabled solutions brought on by rapid digitalization in the current
Redcentric continues to see strong demand in light of COVID-19, environment poses a significant opportunity
Managed
Services 21.9% with recurring revenue orders in Q1-FY21 marginally ahead of
Q1-FY20 and significantly ahead of the Board’s expectations
WEB HOSTING
Atos has outperformed the broader sub-sector due to its largely
Global IT Web hosting providers have seen a significant increase in the volume of
Services 2.1% resilient revenue profile, of which two-thirds is based on multi-
year contracts customers and overall user base resulting from lockdown restrictions and
its effects on bricks-and-mortars, which has positively impacted financials
and valuations in the near-term. The sub-sector is likely to be a structural
Primarily exposed to the public sector, Netcompany is well winner post-COVID-19 as its impact has accelerated eCommerce adoption
Local IT
Services 37.2% positioned to benefit from government stimulus and accelerated and has likely shifted consumer buying patterns permanently, both of
digitalization plans brought on by COVID-19 which will serve as catalysts for growth
Shopify has significantly outperformed the broader sector with
Web
Hosting 138.7% demand surging as businesses shift to eCommerce during the DATA CENTERS / COLOCATION
pandemic, a trend that is driving short- and long-term valuations
Overall, the sub-sector has experienced strong performance driven by
COVID-19 related demand for services such as cloud platforms and video
Equinix is well positioned to continue benefiting from several streaming. Similar to managed services, data centers have benefitted from
Data Centers cloud adoption with companies shifting away from on-premise solutions, a
/ Colocation 20.3% secular trends, principally accelerated cloud option, as a result
of its unique interconnection-focused data centers trend that has been greatly accelerated in the current environment
*Group weighted average stock price performance for the year-to-date period ended June 30, 2020, based on market capitalizations 5Select Cloud Managed Services and Hosting M&A Transactions
Announced April 10, 2020 Loopia Group’s double acquisition of Hostingpalvelu and Domainhotelli7 Web Hosting
• Hostingpalvelu and Domainhotelli are Finnish providers of SME-focused web hosting and domain services
• Combined, Hostingpalvelu and Domainhotelli have over 40,000 customers and will enable the Loopia Group to continue
executing its growth strategy in the Nordics and Central Eastern Europe
• After the transaction, the Loopia Group will have 600,000 customers across Europe supported by a workforce of 300 employees
Announced June 1, 2020 Equinix’s acquisition of 25* data centers from BCE7 Data Centers / Colocation
• A portfolio of 25* data center facilities across 8 Canadian cities, adding 1.2 million gross square feet of data center space and
Portfolio of 25* 400,000 square feet of colocation space to Platform Equinix
data centers from
• The transaction will add more than 500 net new customers across various sectors and segments, including enterprise, cloud and IT,
government and financial services
• The acquisition will transform Equinix into a data center and interconnection services market leader in Canada while also serving
as a platform for future expansion
Announced June 19, 2020 Team.Blue’s acquisition of Natro7 Web Hosting
• Founded in 1999, Natro is a Turkish hosting provider
• The company primarily provides domain services, web hosting solutions and security solutions to over 120,000 customers across
multiple market segments
• The transaction will enable Team.Blue to expand its footprint to the fast-growing Turkish market as well as serve as a platform for
consolidation in the region
Announced June 24, 2020 Netrics merges with Waterland-backed Tineo and nexellent7 Local IT Services
• Founded in 2002, Netrics is a Swiss IT services provider to SMEs and large enterprises operating across various verticals
• Netrics is particularly focused on digitalization using cloud solutions as well as modern workplace services
• The merger combines Netrics’ cloud expertise with Tineo and nexellent’s IT infrastructure solutions and colocation services,
creating a group with a broad service offering and a nationwide geographic presence
Announced June 24, 2020 Atos’ acquisition of Paladion7 Managed Services
• Paladion is a US provider of managed security services with more than 800 employees and cybersecurity experts globally
• The company provides cloud-native managed detection and response (“MDR”) services to over 400 clients across 12
countries via a network of security delivery centers in the US, Middle East and India
• The acquisition builds on Atos’ broader strategy to expand its cybersecurity and cloud solutions by adding MDR capabilities
to its portfolio and enhancing its Prescriptive Security Operations Center offering
* Based on BCE methodology, which counts each expansion within a building as a separate data center 6IT & Tech-Enabled Services – Trading Comparables
VALUATION1
As of June 30, 2020 ($ in millions)
Hosting and Managed Services Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth 2020E EBITDA Enterprise Value /
Company Value Capitalization Week High Performance Performance 2020E 2021P Margin '20E Rev. '21P Rev. '20E EBITDA '21P EBITDA
MANAGED SERVICES
iomart $544 $473 85.6% 8.0% 14.2% 4.6% 4.5% 37.1% 3.8x 3.6x 10.3x 9.6x
Redcentric $277 $227 92.5% 52.5% 51.1% 1.9% 5.2% 26.0% 2.5x 2.4x 9.6x 9.0x
Proact IT $204 $172 69.9% (25.1%) (14.5%) (0.1%) 7.5% 8.7% 0.6x 0.5x 6.4x 5.7x
Managed Services Median $277 $227 85.6% 8.0% 14.2% 1.9% 5.2% 26.0% 2.5x 2.4x 9.6x 9.0x
GLOBAL IT SERVICES
Accenture $134,139 $136,604 98.5% 16.2% 73.6% 3.4% 5.6% 17.8% 3.0x 2.8x 16.7x 16.2x
Tata Consultancy Services $99,866 $103,431 90.7% (6.5%) 76.3% 2.3% 7.4% 26.3% 4.8x 4.4x 18.2x 16.6x
Infosys $38,879 $41,318 86.9% (8.3%) 34.6% (1.0%) 6.1% 24.0% 3.1x 3.0x 13.0x 12.0x
Capgemini $21,245 $19,413 84.3% (6.8%) 12.7% 11.6% 8.5% 14.4% 1.2x 1.1x 8.3x 7.4x
HCL Technologies $19,542 $20,004 89.3% (4.6%) 12.0% 1.7% 6.1% 23.6% 2.0x 1.9x 8.5x 7.9x
CGI $19,054 $16,220 74.7% (15.0%) 29.1% 0.9% 3.8% 19.5% 2.1x 2.0x 10.9x 10.4x
Wipro $13,439 $16,554 77.0% (21.6%) 13.2% 0.5% 3.3% 19.2% 1.7x 1.6x 8.7x 8.3x
Atos $12,704 $9,304 92.0% 3.2% (38.2%) (2.5%) 1.0% 13.9% 1.0x 1.0x 7.2x 6.7x
Indra Sistemas $2,128 $1,388 61.5% (21.3%) (44.6%) (3.9%) 3.3% 9.7% 0.6x 0.6x 6.2x 5.3x
Global IT Services Median $19,542 $19,413 86.9% (6.8%) 13.2% 0.9% 5.6% 19.2% 2.0x 1.9x 8.7x 8.3x
LOCAL IT SERVICES
Bechtle $7,713 $7,421 94.9% 55.4% 179.1% 6.1% 9.8% 6.0% 1.2x 1.1x 20.1x 18.3x
TietoEVRY $4,407 $3,236 77.5% (6.8%) (10.3%) 0.0% 2.6% 15.5% 1.4x 1.4x 9.1x 8.2x
Netcompany $3,352 $3,224 98.6% 64.5% NM 16.6% 19.5% 28.6% 7.8x 6.5x 27.1x 22.2x
Capita $2,739 $904 23.8% (58.2%) (93.6%) (8.8%) 3.9% 12.2% 0.7x 0.6x 5.4x 4.7x
Atea $1,265 $1,055 67.6% (20.2%) (17.3%) 8.1% 4.9% 3.5% 0.3x 0.3x 8.9x 7.0x
NNIT $516 $436 89.6% (7.3%) (40.9%) (6.6%) 1.2% 15.6% 1.2x 1.2x 7.7x 7.4x
Local IT Services Median $3,045 $2,139 83.6% (7.0%) (17.3%) 3.0% 4.4% 13.8% 1.2x 1.1x 9.0x 7.8x
7IT & Tech-Enabled Services – Trading Comparables
VALUATION1
As of June 30, 2020 ($ in millions)
Hosting and Managed Services Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth 2020E EBITDA Enterprise Value /
Company Value Capitalization Week High Performance Performance 2020E 2021P Margin '20E Rev. '21P Rev. '20E EBITDA '21P EBITDA
WEB HOSTING
Shopify $111,083 $113,303 99.0% 216.2% 992.3% 37.5% 35.4% 2.6% NM 37.8x NM NM
VeriSign $24,551 $23,897 93.3% (1.1%) 122.5% 2.1% 3.8% 71.0% 19.5x 18.8x 27.5x 25.9x
GoDaddy $13,952 $12,119 86.8% 4.5% 72.9% 8.9% 10.1% 25.0% 4.3x 3.9x 17.2x 14.5x
Wix.com $12,924 $13,202 99.7% 80.3% 268.1% 25.8% 24.1% 16.1% 13.5x 10.9x NM NM
United Internet $9,966 $7,946 98.2% 30.2% (21.7%) 2.1% 3.0% 23.9% 1.7x 1.6x 7.0x 6.8x
Endurance $2,228 $566 65.1% (16.0%) (51.7%) (2.4%) 1.7% 26.6% 2.1x 2.0x 7.7x 7.4x
Tucows $718 $606 85.1% (6.1%) 7.1% (2.6%) (2.6%) 14.2% 2.2x 2.2x 15.4x 15.8x
Web Hosting Median $12,924 $12,119 93.3% 4.5% 72.9% 2.1% 3.8% 23.9% 3.2x 3.9x 15.4x 14.5x
DATA CENTERS / COLOCATION
KDDI $85,561 $68,995 93.7% 17.9% 8.7% 1.4% 2.4% 33.1% 1.7x 1.7x 5.3x 5.2x
Equinix $74,072 $62,164 97.8% 39.3% 63.6% 8.3% 9.3% 47.5% 12.5x 11.4x 26.2x 23.6x
Digital Realty Trust $53,757 $38,130 89.7% 20.6% 25.8% 17.2% 12.1% 54.9% 14.3x 12.7x 25.9x 22.8x
CenturyLink $45,786 $11,008 65.6% (14.7%) (58.0%) (8.2%) (3.0%) 42.4% 2.2x 2.3x 5.2x 5.4x
CyrusOne $11,650 $8,381 91.2% 26.0% 30.5% 4.9% 10.7% 52.5% 11.3x 10.2x 21.6x 19.2x
CoreSite Realty $6,412 $4,589 94.2% 5.1% 16.9% 5.7% 8.3% 52.9% 10.6x 9.8x 20.0x 18.5x
QTS Realty Trust $6,275 $4,153 92.9% 38.8% 22.5% 10.9% 12.2% 52.8% 11.8x 10.5x 22.4x 19.7x
Switch $3,114 $1,838 91.1% 36.1% NM 12.1% 11.3% 49.6% 6.0x 5.4x 12.1x 10.8x
Data Centers / Colocation Median $28,718 $9,694 92.1% 23.3% 22.5% 7.0% 10.0% 51.1% 11.0x 10.0x 20.8x 18.8x
8IT & Tech-Enabled Services – Transaction Activity
SELECT RECENT M&A TRANSACTIONS7
Announced date Target / Issuer Buyer Description
04/02/2020 Yes l er Accenture US-ba s ed provi der of B2B ma rketi ng a nd bus i nes s s upport s ervi ces , i ncl udi ng di gi ta l ma rketi ng, ma na ged s ervi ces a nd s tra tegi c res ourci ng s ol uti ons
04/06/2020 IKOR Ufena u Ca pi ta l Germa ny-ba s ed technol ogy cons ul ta ncy a nd i ntegra ti on s peci a l i s t
04/07/2020 Neus ta r's regi s try bus i nes s GoDa ddy US-ba s ed regi s try bus i nes s of Neus ta r
04/07/2020 a l pha Ques t Fa mi l y Trus t Inves tor Germa ny-ba s ed IT s ervi ces provi der s peci a l i zi ng i n da ta a na l yti cs , bus i nes s a na l yti cs a nd s oftwa re engi neeri ng
UK-ba s ed ma na ged IT s ervi ces provi der offeri ng a ra nge of IT s upport a nd cl oud s ol uti ons to hel p mi d-ma rket orga ni za ti ons moderni ze thei r i nfra s tructure a nd
04/07/2020 Acora Pa l a ti ne Pri va te Equi ty
opera te i n the di gi ta l economy
04/07/2020 Va nta ge Da ta Centers Next Genera ti on Da ta UK-ba s ed Ti er III da ta center fa ci l i ty offeri ng cus tomers l ow l a tency between Wa l es a nd London
US-ba s ed provi der of enterpri s e cybers ecuri ty for IT a nd opera ti ona l technol ogy envi ronments wi th a s ervi ce offeri ng tha t i ncl udes the des i gni ng a nd bui l di ng
04/07/2020 Revol uti ona ry Securi ty Accenture
of s ecuri ty progra ms a nd functi ons
04/10/2020 Suomen Hos ti ngpa l vel u Loopi a Group Fi nl a nd-ba s ed hos ti ng s ervi ces provi der
04/10/2020 Doma i nhotel l i Loopi a Group Fi nl a nd-ba s ed hos ti ng s ervi ces provi der
04/10/2020 Gl eSYS Stockhol m Internet eXcha nge Sweden-ba s ed technol ogy compa ny
04/20/2020 Gekko Accenture Fra nce-ba s ed Ama zon Web Servi ces (AWS) cl oud s ervi ces compa ny
04/22/2020 Mi ner & Ka s ch Atos US-ba s ed a rti fi ci a l i ntel l i gence a nd da ta s ci ence cons ul ti ng fi rm
04/30/2020 NIKE Group Accenture Ita l y-ba s ed cons ul ti ng fi rm tha t provi des regul a tory technol ogy s ervi ces a nd s ol uti ons to fi na nci a l s ervi ces fi rms
US-ba s ed provi der of cons ul ti ng a nd di gi ta l ma nufa cturi ng s ervi ces , i ncl udi ng des i gn a nd i mpl ementa ti on of ma nufa cturi ng executi on s ys tems , IoT s ys tems
05/05/2020 Ca l l i s to Integra ti on Accenture
a nd s hop-fl oor control s ys tems
05/05/2020 Fi na vi s ta Cegeka Netherl a nds -ba s ed IT cons ul ti ng fi rm wi th opera ti ons i n the fi el d of da ta mi gra ti on, da ta governa nce, da ta qua l i ty a nd da ta a na l ys i s
05/06/2020 Ka tes Kes l er Accenture US-ba s ed orga ni za ti ona l des i gn cons ul ta ncy focus ed on hel pi ng compa ni es des i gn a nd a cti va te new orga ni za ti ona l s tructures
UKFa s t
05/07/2020 Infl exi on UK-ba s ed cl oud hos ti ng provi der
(i ncrementa l 45% s ta ke)
05/13/2020 Project Informa ti ca HIG Ca pi ta l Ita l y-ba s ed provi der of IT s ecuri ty, s ys tem i ntegra ti on a nd cl oud computi ng s ervi ces for pri va te a nd publ i c compa ni es
05/18/2020 Byte Prophecy Accenture Indi a -ba s ed a utoma ted i ns i ghts a nd bi g da ta a na l yti cs compa ny
05/19/2020 PLM Sys tems Accenture Ita l y-ba s ed bouti que s ys tems i ntegra tor, s peci a l i zed i n des i gni ng a nd bui l di ng i nforma ti on s ys tems for product l i fecycl e ma na gement
05/27/2020 Wei s s IT Sol uti ons Ba yBG Germa ny-ba s ed provi der of IT s ervi ces to more tha n 85,000 us ers a t over 30 l oca ti ons i n Germa ny
Ci s co’s Sel f-Opti mi zi ng Network US-ba s ed Ci s co Sys tems ’ Sel f-Opti mi zi ng Network technol ogy, a powerful pl a tform us i ng ma chi ne l ea rni ng a nd a s et of a ppl i ca ti ons to a utoma te the Ra di o
05/29/2020 HCL Technol ogi es
technol ogy Acces s Network
06/01/2020 25 BCE da ta centers Equi ni x 25 Ca na da -ba s ed da ta centers a t 13 s i tes
Interna p's Hous ton da ta center
06/02/2020 Netra l i ty Properti es US-ba s ed da ta center fa ci l i ty
fa ci l i ti es
06/02/2020 SIAB KPMG Aus tri a -ba s ed IT cons ul ti ng s ervi ces provi der, s peci a l i zed i n SAP cons ul ti ng s ervi ces
06/03/2020 Suomen Konehuone NetNordi c Fi nl a nd-ba s ed IT compa ny focus ed on modern hyperconverged s ol uti ons for da ta centers a nd a s s oci a ted profes s i ona l s ervi ces
06/05/2020 Pri vo Na vi s i te US-ba s ed cons ul ti ng pa rtner i n the Ama zon Web Seri es Pa rtner Network
06/10/2020 Infra da x BB Ca pi ta l Netherl a nds -ba s ed IT s ervi ce provi der
9IT & Tech-Enabled Services – Transaction Activity
SELECT RECENT M&A TRANSACTIONS7
Announced date Target / Issuer Buyer Description
06/11/2020 Cl oudKnox Securi ty Wi pro US-ba s ed cl oud s ecuri ty pl a tform
06/15/2020 Da taCenter Frys l â n Penta Infra Netherl a nds -ba s ed opera tor of two hi gh qua l i ty a nd wel l connected da ta center fa ci l i ties i n the Fri es l a nd regi on
06/15/2020 Sentel i s Accenture Fra nce-ba s ed i ndependent da ta cons ul ting a nd engi neeri ng compa ny, focus ed on i ndus tri a l i zi ng AI a nd bi g da ta technol ogi es
06/17/2020 Productora de Softwa re Perfi ci ent Col ombi a -ba s ed provi der of cus tom a ppl i ca tion a nd s oftwa re devel opment s ervi ces s peci a l i zi ng i n the devel opment a nd depl oyment of a gi l e s oftwa re
06/19/2020 Na tro tea m.bl ue Turkey-ba s ed hos ting provi der wi th a product ra nge tha t i ncl udes doma i n na mes , web hos ting s ol utions , ema i l , vi rtua l s ervers a nd va ri ous s ecuri ty s ol utions
06/22/2020 Technogroup Evernex Germa ny-ba s ed ha rdwa re ma i ntena nce fi rm provi di ng da ta center ma i ntena nce a nd va l ue-a dd s ervi ces for da ta centers
06/23/2020 Stel l a Tel ecom Cel es te Bul ga ri a -ba s ed s uppl i er of gl oba l tel ecom s ol utions , i nternet, fi bre, VPN, s ecuri ty, fi xed a nd mobi l e tel ephony a nd cl oud s ervi ces
06/24/2020 Pa l a di on Atos US-ba s ed provi der of Ma na ged Securi ty Servi ces
06/24/2020 Al i a Cons ul ting Atos Fra nce-ba s ed IT cons ul ting compa ny s peci a l i zed i n SAP a ppl i ca tions for the util i ties s ector a nd S/4HANA tra ns forma tion
06/24/2020 netri cs Ti neo a nd Nexel l ent Swi tzerl a nd-ba s ed cl oud pi oneer a nd ma na ged s ervi ces provi der
06/25/2020 ma tri x technol ogy Ufena u Ca pi tal Pa rtners Germa ny-ba s ed IT s ervi ces provi der, s peci a l i zed i n IT s ervi ces a nd IT cons ul ting a s wel l a s IT outs ourci ng opera tions
06/26/2020 Fel ton Cl oud Securi ty Group Netherl a nds -ba s ed IT ma na ged s ervi ces provi der
Chri s tia ens Bel gi um-ba s ed ful l s ervi ce IT s ervi ces provi der, focus ed on i mpl ementing ERP s oftwa re from Mi cros oft Dyna mi cs 365 Bus i nes s Centra l a nd rel a ted s oftwa re
06/30/2020 Sofi ndev
(50% s take) s ol utions
10IT & Tech-Enabled Services – Representative Landscape
Representative IT & Tech-Enabled Services providers
Domain
Data Centers Colocation / Dedicated Shared Hosting Diversified Comms.
Registrars
Managed Services
Managed Hosting Managed Applications
Cloud Consultancies and
VARs
IT Outsourcing / Diversified System Integration
11Harris Williams Capabilities and Locations
Harris Williams has a broad range of industry expertise, which create powerful opportunities. Our clients
benefit from our deep-sector experience, integrated industry intelligence and collaboration across the firm,
and our commitment to learning what makes them unique. For more information, visit our website at
www.harriswilliams.com/industries.
Aerospace, Defense & Building Products Business Consumer Energy, Power Healthcare Industrials Specialty Technology, Transportation
Government Services & Materials Services & Infrastructure & Life Sciences Distribution Media & Telecom & Logistics
HARRIS WILLIAMS OFFICE LOCATIONS
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Cleveland San Francisco London
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12Sources and Disclosures
Sources
1. CapIQ; market data as of June 30, 2020.
2. Businesswire.
3. Gartner.
4. Whitelane Research.
5. RBC Capital Markets.
6. Data Center Frontier.
7. Mergermarket.
Disclosures
The information and views contained in this report were prepared by Harris Williams LLC (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided
for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities or financial instruments or to participate in any particular trading
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or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have
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positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are
subject to change without notice. The securities and financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own
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