Leaders Among Leaders:

Transcription

1 Leaders Among Leaders: Valuation Gap Widens Between SaaSiest and SaaSy Companies The martinwolf M&A Advisors 2012 Report on Leading SaaS Companies Based on the MW IT Index May 2013

2 Executive Summary This martinwolf M&A advisors report on leading SaaS companies in 2012 reveals two key findings: 1. Of the 20 SaaS leaders we track in our MW IT Index, U.S. Edition, 30 percent or six companies were acquired in The six companies acquired in 2012 were purchased by large traditional software companies jockeying for leadership in the SaaS space. These software leaders acquired two other SaaS companies in 2012 that were not tracked in our Index because they did not meet all of our criteria. Of the eight SaaS leaders acquired by traditional software companies in 2012, five garnered premium valuations of between 5.7 and 12 times 12 months trailing revenue. Also notable in 2012 were the acquisitions that SaaS companies made of other SaaS companies. These purchases were driven primarily by the desire to acquire offerings that would expand the buyers functional capabilities or enable them to enter adjacent spaces. We highlight five of these transactions in this report. The leading SaaS companies also made many smaller transactions of approximately $20 million or less, primarily to acquire talent or unique niche functionality. A significant majority of these smaller SaaS companies acquired had professional financial backing. 1. As we predicted in our report last year on leading SaaS companies in 2011, the valuation gap between the top 10 SaaS leaders and the second 10 SaaS leaders continued to widen in Last year in our inaugural report on SaaS leaders, we observed that as the SaaS industry has matured, younger SaaS companies are giving established players a run for their money in growth rates, gross margins and valuations. This has created a new class of leaders among leaders and a distinction between companies that are the SaaSiest and companies that are merely SaaSy. Last year, we predicted that enterprise valuations of the SaaSiest and SaaSy companies would vary even more in It turns out we were right: the valuation gap got even wider. A year ago the difference between the median enterprise value of the Top 10 SaaSiest companies and the Second 10 SaaSy companies was 7.4 times 12 months trailing revenue versus 3.2 times. In other words, the Top 10 were worth more than twice the Second 10. 2

3 As of March 2013, the valuations of the Top 10 SaaS companies have increased to 8.7 times 12 months trailing revenue while valuations of the Second 10 have decreased to 2.7 times a difference of more than three times. Unlike companies in dotcom boom of the late 1990s, SaaS companies are the real deal. They have real customers, real sales, real profits, and real enterprise value because they provide real ROI to their customers. As a result, we expect these high valuations for SaaS companies to continue for at least the next months. Top 10 SaaSiest Companies Given the high number of acquisitions in the space in 2012, the Top 10 SaaSiest Companies as of March 2013 present a very different picture from the previous year. Newcomers to the Top 10 are Workday, Splunk, Cornerstone OnDemand and Demandware Ticker Company #1 - WDAY Workday, Inc.* #2 - SPLK Splunk, Inc.* #3 #1 N NetSuite Inc. #4 - CSOD Cornerstone OnDemand, Inc.* #5 - DWRE Demandware, Inc.* #6 #6 CRM Salesforce.com #7 #7 ULTI The Ultimate Software Group, Inc. #8 #5 CNQR Concur Technologies, Inc. #9 #4 OPEN OpenTable, Inc. #10 #3 RP RealPage, Inc. *New to Top 10 in 2013 Our confidence in the SaaS sector continues as we head into 2013, as SaaS is still outperforming all of the other industries we track in our MW IT Index. 3

4 About This Report The martinwolf M&A Advisors 2012 report on the Sassiest Companies, our second annual report on leaders in the SaaS space, is based on the MW IT Index, U.S. Edition, a proprietary analysis of market value for key segments in information technology. The Index analysis uses securities that are weighted according to the market value of their outstanding shares. The Index for 2012 included 120 IT companies traded in the U.S. stock markets (NYSE, NASDAQ and OTC) that were a composite representative sampling of enterprise values in the following categories: IT Services & Business Process Outsourcing (BPO) 52 companies, including seven in BPO IT Supply Chain Services 23 companies Software 45 companies, including 20 in Software as a Service (SaaS) The MW IT Index starts on January 1, 2008 with a value of Companies used for the U.S. Edition can be based in any country, but must be traded on a U.S. stock exchange. See the Appendix for the formula used to determine the MW IT Index value. The 20 SaaS companies included in the Index share the following characteristics: Publicly traded with revenue of approximately $100 million (or likely to achieve that milestone within 12 months) 75% of revenue is recurring revenue from the SaaS delivery model Business/enterprise customers (as opposed to consumer customers) Leaders in their target segment, #1 or #2 in market share The 20 SaaS companies included in the MW IT Index for 2012 were: CNQR Concur Technologies, Inc. N NetSuite Inc. CTCT Constant Contact, Inc. OPEN OpenTable, Inc. CNVO Convio, Inc. RP RealPage, Inc. TRAK DealerTrack Holdings, Inc. RNOW RightNow Technologies, Inc. DMAN DemandTec, Inc. CRM Salesforce.com, Inc. SAAS incontact, Inc. SQI SciQuest, Inc. IL IntraLinks Holdings, Inc. SFSF SuccessFactors, Inc. LPSN LivePerson, Inc. TLEO Taleo Corporation KNXA Kenexa Corporation ULTI The Ultimate Software Group, Inc. LOGM LogMeIn, Inc. VOCS Vocus Inc. 4

5 It s important to note that the 20 SaaS companies in our Index remained the same from 2011 to However, there were an unusually high number of acquisitions in the SaaS sector in of the 20 companies in our Index were acquired and are no longer independent publicly traded companies. Therefore, we removed them from our Index and replace them with six other companies that met our criteria for inclusion in the Index. Furthermore, we decided that with so much change, the new list of SaaS companies had to be factored into our analysis of 2012 and our outlook for The six companies that are no longer in the Index because they were acquired in 2012 are: Convio, DemandTec, Kenexa, RightNow Technologies, SuccessFactors and Taleo. They were replaced by six newcomers to the Index replacing the companies that were acquired in 2012 are: Bazaarvoice, Cornerstone OnDemand, Demandware, Exact Target, Splunk and Workday. The 20 SaaS companies currently included in the MW IT Index are: BV Bazaarvoice, Inc.* LOGM LogMeIn, Inc. CNQR Concur Technologies, Inc. N NetSuite Inc. CTCT Constant Contact, Inc. OPEN OpenTable, Inc. CSOD Cornerstone OnDemand, Inc.* RP RealPage, Inc. DWRE Demandware, Inc.* CRM Salesforce.com, Inc. TRAK DealerTrack Holdings, Inc. SQI SciQuest, Inc. ET Exact Target, Inc.* SPLK Splunk, Inc.* SAAS incontact, Inc. ULTI The Ultimate Software Group, Inc. IL IntraLinks Holdings, Inc. VOCS Vocus, Inc. LPSN LivePerson, Inc. WDAY Workday, Inc.* *Companies added to the Index in

6 Key Findings 30 Percent of the 20 SaaS Index Companies Were Acquired in 2012 Table 1 is a list of the 20 publicly traded SaaS companies included in our inaugural report on SaaS leaders, published in the first quarter of The table also shows details on the acquisitions of the six companies on the list, representing 30 percent of the total, that were acquired last year. Table 1: MW IT Index SaaS Companies Acquired in 2012 SaaS 01/31/12 Current Price ($) Revenue (ltm, $M) Revenue Growth % (ltm) GM% (ltm) EBITDA% (ltm) Market Cap ($M) Enterprise Value 2 ($M) EV/LTM Revenue N NetSuite Inc , , SFSF SuccessFactors, Inc , , OPEN OpenTable, Inc , , RP RealPage, Inc , , CRM salesforce.com, inc , , , CNQR Concur Technologies, Inc , , ULTI The Ultimate Software Group, Inc , , LOGM LogMeIn, Inc RNOW Rightnow Technologies Inc , , SQI SciQuest, Inc TLEO Taleo Corp , , LPSN LivePerson Inc DMAN DemandTec, Inc TRAK Dealertrack Technologies, Inc , , CNVO Convio, Inc VOCS Vocus Inc CTCT Constant Contact, Inc SAAS incontact, Inc KNXA Kenexa Corp , , IL IntraLinks Holdings, Inc Median Mean High 3, , , Low (12.7) =Acquired Companies 1: For acquired companies, the current price, market cap, and enterprise value are reported as the date prior to transaction close. All other financials are reported as LTM from the fiscal quarter prior to transaction close. 2: Enterprise Value = Market Cap + Net Debt These six companies were purchased by large traditional software companies jockeying for leadership in the SaaS space. IBM acquired business analytics company DemandTec and talent management firm Kenexa. Oracle acquired CRM company RightNow Technologies and talent management company Taleo. SAP acquired talent management company SuccessFactors and Blackbaud acquired Convio, a provider of solutions for non-profit organizations. Also in 2012, SAP bought supplier network management firm Ariba, Inc. and IBM acquired marketing automation firm Eloqua, Inc. two SaaS companies that were not included in our Index because they did not meet all of our criteria. 6

7 As shown in Table 2, of the eight SaaS leaders acquired by traditional software companies in 2012, five garnered premium valuations of between 5.7 (Taleo) and 12 times (SuccessFactors) 12 months trailing revenue. Table 2: Transaction Comparisons of Software Companies Acquiring SaaS Companies in 2012 Transaction Comparables Software acquiring SaaS ($ in millions) Transaction Multiples Transaction Enterprise Announce Date Target Acquirer EV/Revenue EV/EBITDA Value Value 12/8/2011 DemandTec, Inc. IBM x NM 8/27/2012 Kenexa Corp. IBM 1, , x 49.0x 2/8/2012 Taleo Corp. Oracle Corporation 1, , x 60.91x 10/24/2011 Rightnow Technologies, Inc. Oracle Corporation 1, , x 63.8x 12/19/2012 Eloqua, Inc. Oracle Corporation x NM 12/3/2012 SuccessFactors, Inc. SAP 3, , x NM 5/22/2012 Ariba, Inc. SAP 4, , x x 1/16/2012 Convio, Inc. Blackbaud Inc x 35.45x Mean 6.94x 63.59x Median 6.36x 60.91x Acquisitions of SaaS Companies by SaaS Companies Also notable in 2012 were the acquisitions that SaaS companies made of other SaaS companies. These purchases were driven primarily by the desire to acquire offerings that would expand the buyers functional capabilities or enable them to enter adjacent spaces. Summarized in Table 3, these SaaS on SaaS transactions included: Salesforce.com s acquisition of Buddy Media, a venture capital backed social media marketing company that had raised nearly $100 million in venture financing. Salesforce.com paid $745 million, a multiple of 26 times 12 months trailing revenue. This acquisition probably created an even greater impetus for Oracle s subsequent acquisition of Eloqua. Vocus purchase of private equity backed icontact for $236 million at a valuation of 4.6 times revenue, driven by the goal of transforming itself from a public relations management software company into a digital marketing SaaS company. Constant Contact s acquisition of venture capital backed SinglePlatform for $95 million, setting the stage for moving beyond marketing to a broader digital and social marketing position. No valuation information is available for this transaction. 7

8 DealerTrack Technologies purchase of 1 st Auto Transport Directory for $74 million at approximately 7x trailing revenue and of ClickMotive for $57 million. No valuation information is available for the latter deal. Table 3: Transaction Comparisons of SaaS Companies Acquiring SaaS Companies in 2012 Transaction Comparables SaaS acquiring SaaS ($ in millions) Transaction Multiples Transaction Enterprise Announce Date Target Acquirer EV/Revenue EV/EBITDA Value Value 6/4/2012 Buddy Media, Inc. Salesforce.com x NM 2/28/2012 icontact Corp. Vocus, Inc x NM 6/13/2012 SinglePlatform, Inc. Constant Contact, Inc NA NA NA 7/19/2012 1st Auto Transport Directory, Inc. DealerTrack Technologies, Inc NA NA 10/2/2012 ClickMotive LP DealerTrack Technologies, Inc NA NA Mean 15.30x NA Median 15.30x NA The leading SaaS companies also made many smaller transactions of approximately $20 million or less, primarily to acquire talent or unique niche functionality. A significant majority of these smaller SaaS companies acquired had professional financial backing. Valuation Gap Widens Between Top 10 and Second 10 SaaS Leaders Last year in our inaugural report on SaaS leaders, we observed that not all SaaS companies are created equal. As the SaaS industry has matured, younger SaaS companies are giving established players a run for their money in growth rates, gross margins and valuations. This has created a new class of leaders among leaders and a distinction between companies that are the SaaSiest and companies that are merely SaaSy. Making this observation a year ago, we predicted that enterprise valuations of the SaaSiest and SaaSy companies would vary even more in the coming year. It turns out we were right: the valuation gap got even wider. As shown in Chart 1, a year ago the difference between the median enterprise value of the Top 10 SaaSiest companies and the Second 10 SaaSy companies was 7.4 times 12 months trailing revenue versus 3.2 times. In other words, the Top 10 were worth more than twice the Second 10. The chart also shows that as of March 2013, the valuations of the Top 10 SaaS companies have increased to 8.7 times 12 months trailing revenue while valuations of the Second 10 have decreased to 2.7 times a difference of more than three times. 8

9 Percentage Gross Margin EV/LTM REVENUE 9.0x 8.0x 7.0x 7.4x Chart 1: Median Valuations (2012 versus 2013) 8.2x 6.0x 5.0x 4.0x 3.0x 3.2x 2.7x 2.0x SaaSiest SaaSy SaaSiest SaaSy Chart 2: Median Gross Margins (2012 versus 2013) 75% 70% 71% 70% 70% 65% 65% 60% 9

10 Percentage Growth Rate As shown in Chart 2, the difference in median gross margins between the two groups of companies has leveled off, but there is still a difference in median growth rates a difference that has accelerated. As shown in Chart 3, a year ago the SaaSiest companies were growing 20 percent faster than the SaaSy companies. Today they are growing nearly 50 percent faster. Chart 3: Median Growth Rates (2012 versus 2013) 33% 31% 31% 29% 27% 27% 25% 23% 21% 19% 17% 22% 21% 15% SaaSiest SaaSy SaaSiest SaaSy These valuation, growth rate and gross margin comparisons are for groups of companies, but it s worth noting that there are relatively few individual SaaS companies that are valued at or above 5 times 12 months trailing revenue. Those that are have a significant time to market advantage, strong management teams and are unquestioned leaders in their respective segments. These attributes have enabled them to achieve critical mass in terms of size and momentum in terms of growth. Aside from these standouts, the majority of SaaS companies are valued between 2 and 5 times revenue. In fact, of the 20 SaaS companies included in the MW IT Index, only the Top 10 the SaaSiest have achieved valuation multiples above 5 times revenue, as shown in Chart 4. 10

11 EV/LTM Revenue 35.0x Chart 4: Top 20 SaaS Leaders Enterprise Valuations x 25.0x 20.0x 15.0x 10.0x SaaSiest Median Valuation: 8.2x SaaSy Median Valuation: 2.7x 5.0x 0.0x The current standout in the SaaSiest group is Workday, which went public in October Workday grew at 100+ percent from a base of approximately $160 million in revenue in 2012, compared with Salesforce.com, which grew revenue 36 percent from a base of $3 billion. Going forward, Workday is expected to grow 60 percent in 2013 while Salesforce.com is expected to grow 27%. All of the companies in SaaSy group (companies ranked 11-20) are valued from 2 to 5 times revenue. It is worth noting that of the Top 10 (SaaSiest) companies, six of them are unprofitable, as of their last reported fiscal quarters. These include: (in rank order of their current valuations in the Top 10): 1. Workday 2. Splunk 3. NetSuite 4. Cornerstone OnDemand 11

12 5. Demandware 8. Concur. Lack of profitability is a common occurrence in the evolution of fast-growth technology companies in emerging industries. At this stage of their development, SaaS companies are being valued as much on perceived future value as they are on current performance. Most companies will fall between 2 and 3 times revenue high-margin revenue growth is critical to achieving the higher end of the 2 to 5 times multiple range. This is not surprising and not a cause for concern. Unlike the dotcom boom of the late 1990s whose IPOs and market caps were fueled by too much venture money being poured into too many companies that failed to turn a profit SaaS companies are the real deal. They have real customers, real sales, real profits, and real enterprise value because they provide real ROI to their customers. As a result, high valuations for SaaS should continue for at least the next months based on accelerated growth. The Top 10 SaaSiest Companies As mentioned previously, given the high number of acquisitions in the space in 2012, the Top 10 or SaaSiest Companies as of March 2013 present a very different picture from the previous year. Newcomers to the Top 10 are Workday, Splunk, Cornerstone OnDemand and Demandware Ticker Company #1 - WDAY Workday, Inc.* #2 - SPLK Splunk, Inc.* #3 #1 N NetSuite Inc. #4 - CSOD Cornerstone OnDemand, Inc.* #5 - DWRE Demandware, Inc.* #6 #6 CRM Salesforce.com #7 #7 ULTI The Ultimate Software Group, Inc. #8 #5 CNQR Concur Technologies, Inc. #9 #4 OPEN OpenTable, Inc. #10 #3 RP RealPage, Inc. *New to Top 10 in

13 1. Workday, Inc. Workday is founder Dave Duffield s fourth software venture and the third in the human capital management space. His first two companies were in the mainframe applications space Integral Systems, the first company to offer DB2- based human resources and accounting systems, and Information Associates, which specialized in applications for the higher education market. In 2005, Duffield founded PeopleSoft in 1987, which grew to be the world s second largest software company. PeopleSoft was acquired by Oracle for $5 billion in Three months later, he co-founded Workday, where he serves as co-ceo. Workday sent public in October 2012 and has an enterprise value of close to $10 billion as of December 31, However, with the percentage float at around 16%, its valuation metrics do not make for a good comparable Splunk, Inc. Splunk is in a big player in the hot new market of big data. The company monitors, processes and analyzes huge volumes of performance data generated by applications and IT infrastructure. Splunk went public in April 2012 and is valued at $2.5 billion as of December 31, NetSuite Inc. As with other leading SaaS players such as Salesforce.com, NetSuite too started with mid-market companies as primary customers and is now increasingly winning large accounts. However, at just $300 million revenue in 2012, it is still 1/10 th the size of Salesforce.com In 2012, nearly 30 percent of its business came from channel partners indicating the growing momentum of SaaS ERP with the channel and the repositioning of the ecosystem around the SaaS business model Cornerstone OnDemand As a leading player in the hot talent management space, Cornerstone OnDemand narrowly missed making the SaaSiest list last year because of its smaller size newness. However, with SuccessFactors acquired by SAP, Taleo acquired by Oracle and Kenexa acquired by IBM, Cornerstone OnDemand had a good year because it was able to stay focused on its business and acquiring new 13

14 customers instead of making a merger work. Staying independent in this space is going to be tough, though, and our prediction is that Cornerstone OnDemand will either get acquired or suffer in the face of some formidable competition over the next 12 to 24 months Demandware, Inc. Demandware provides SaaS based e-commerce software to large retail brands. The company beat Wall Street s expectations in the fourth quarter of 2012 due to impressive performance on a number of key financial metrics. These include a 50 percent increase in live customers, a 60 percent increase in live sites under management and a 40 percent increase in subscription revenue year over year. While less than our $100 million minimum revenue requirement to make it into our Index list, we expect it to exceed that minimum in the very near future. With approximately 130 customers within a very focused industry vertical, it is very vulnerable. Of all the companies in this report, we vote it Most likely to be acquired in This acquisition target premium may be reflected in the valuations or it may be because it recently had an IPO, however, we don t see the valuation multiples being sustainable on a standalone basis Salesforce.com Salesforce.com continues to be the biggest and most innovative SaaS player. Its revenues in 2014 are expected to cross $4 billion, up from less than $2 billion in Its strategy of providing a Platform as a Service (PaaS) with Force.com and hosting infrastructure is gaining significant momentum. It now has more than 1 million developers on this platform that have together built more 3 million applications, with 360,000 applications being native Force.com apps. Salesforce.com has acquired more than two dozen companies and made investments in numerous more. In the near future we expect the company to make acquisitions overseas and to fill the holes or expand the capabilities of their marketing cloud. Specifically areas such as marketing and social marketing will be priorities. Salesforce.com s ranking on our SaaSiest list remains unchanged while its revenue multiple has gone from 6-7 times in 2012 to 8-9 times in first few months of

15 7. The Ultimate Software Group, Inc. As a leading provider of SaaS-based people management solutions, Ultimate Software is the ultimate story of a company that made the successful transition from a legacy software provider to a dominant SaaS player. The company has done especially well in the midmarket and will continue to grow as it delivers faster, better, less expensive services in the cloud. Workday and Ultimate have effectively the same offering, with Workday targeting the larger enterprise and Ultimate focused on the mid-market. Overall Workday s IPO has helped boost Ultimate s valuation multiple from 6 times revenue to 7 times revenue as the market adoption seems to grow and Ultimate is executing well Concur Technologies, Inc. More similarities between Concur and OpenTable have emerges as Concur has become the enterprise travel management portal from its roots in integrated travel and expense management solutions (T&E). Founded in 1993, Concur is one of the few companies that has migrated successfully from a legacy software provider to a cloud-based provider. Moreover, Concur is becoming ubiquitous on mobile platforms and is the leading T&E application integrated into Salesforce.com. While its 12 month trailing revenue sales growth rate and valuation multiples have increased from the last time we did this analysis, its ranking has dropped because of the new entrants in our list of SaaSiest companies OpenTable, Inc. A year ago, OpenTable was a star, the leading provider of free, real time online restaurant reservations for diners along with and reservation and guest management solutions for restaurants. Then after more than a decade of putting restaurants first, it achieved a 50 percent market share and its growth rate began to slow, indicating that it had perhaps reached a saturation point. As a second act, it looked like OpenTable was moving into a phase in which it would leverage its millions of reservations and traffic into a marketing network, selling advertising and promotional offers for restaurant discounts. But that plan 15

16 did not translate into new growth or an increase in enterprise valuation. In fact, OpenTable s valuation multiple remained unchanged while other SaaS companies in our Index grew their value. That in large measure explains why OpenTable dropped to #9 on our top 10 SaaSiest list from #3 last year. What s on OpenTable s plate for 2013? Expanding its service overseas in efforts to find new paths to grow. We ll have to wait and see how that works out RealPage, Inc. RealPage is a leading provider of SaaS-based products and services for the rental housing industry. Similar to OpenTable and Concur, RealPage is in a very narrowly focused vertical market, which means that it achieved critical mass in customer acquisition, resulting in a large market share in a small market. Growth rates are down meaningfully, however, and the company s position on the list has fallen as well. Its vertical focus in real estate limits the company to a smaller target market and its EBITDA is growing faster than their revenue, though it is trading at a very healthy EBITDA multiple of 22 times and the company did two small acquisitions in The Road Ahead in 2013 Our confidence in the SaaS sector continues as we head into 2013 as SaaS is still outperforming all of the other industries we track in our MW IT Index. However, we don t expect another fireworks display like the one we ve enjoyed watching for the last 18 months, Specifically, we believe the velocity of smaller SaaS acquisitions will increase as both the major software and SaaS players continue to buy unique functionality, technology and talent. But we expect fewer large SaaS transactions as buyers shift their focus to integrating the ones they ve already made. Make no mistake: being able to integrate organizations and keep customers and talent is not a trivial task. And ultimately, the success of these larger acquisitions will boil down to buyers ability to execute. 16

17 MW IT Index Description and Formula The MW IT Index is a market-value-weighted index. The representation of each security in the Index is proportional to its last sales price times the total number of shares outstanding, relative to the total market value of the respective index. The formula used to determine the Index value is as follows: Current Market Value Index Level = Adjusted Base Period x Base Value Market Value Current Market Value After Adjustments x Previous Base Period Adjusted Period = Current Market Market Value Before Market Value Value Adjustments Adjustments for securities being added to or deleted from the Index, or capitalization changes, are made periodically. Stock splits and stock dividends are likewise adjusted for during the process. In the case of cash dividends, no adjustments are made. 17

18 About martinwolf martinwolf is the world s leading middle market IT M&A advisory. Since 1997, the firm has completed more than 115 transactions in eight countries. Its knowledge and experience with IT outsourcing and managed services, combined with its disciplined approach, which includes a proprietary, proven, step-by-step work plan customized for each client, has produced one of the highest transaction completion rates in the industry. martinwolf is a member of the Merrill Lynch PS Referral Network and is both an exclusive strategic partner to ICICI Bank, India s leading private bank, and a strategic partner to the Enterprise Advisory Department of the China International Capital Corporation, a leading Chinese investment bank. Member FINRA, SIPC. For more information, visit Contributors Marty Wolf has been involved in more than 115 IT M&A transactions during the last 16 years. In addition to his role as President of the firm, he actively manages transactions, and has been directly involved in the divestiture of five Fortune 500 divisions, and closed transactions in eight countries in the IT Services, BPO, Supply Chain and Software segments. Sunil Grover has more than 15 years of operational and transactional experience in the IT services industry. Prior to joining martinwolf, Sunil was president of Evergreen Co., and advised CEOs at staffing, outsourced product development, ERP/CRM implementation, consumer Internet, mobile web and SaaS companies on M&A and capital financing. Sunil was also an investment banker in Morgan Stanley s Technology Group.RR 18