TECHNOLOGY, MEDIA, & TELECOM

Transcription

1 Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

2 HARRIS WILLIAMS & CO. OVERVIEW HARRIS WILLIAMS & CO. (HW&CO.) GLOBAL ADVISORY PLATFORM KEY FACTS 24+ year history with over 170 closed transactions in the past 3 years Approximately 230 professionals across seven offices in the U.S. and Europe Strategic relationships in India and China 10 industry groups SOFTWARE / SAAS HW&Co. OFFICE HW&CO. TECHNOLOGY, MEDIA & TELECOM (TMT) GROUP INDUSTRY SECTORS INTERNET & DIGITAL MEDIA STRATEGIC RELATIONSHIPS CONTENTS DEAL SPOTLIGHT WHAT WE RE READING M&A TRANSACTIONS 2Q 201 SOFTWARE M&A ACTIVITY SOFTWARE SECTOR OVERVIEWS SOFTWARE PRIVATE PLACEMENTS OVERVIEW SOFTWARE PUBLIC COMPARABLES OVERVIEW TECHNOLOGY IPO OVERVIEW DEBT MARKET OVERVIEW APPENDIX: PUBLIC COMPARABLES DETAIL TMT CONTACTS UNITED STATES Jeff Bistrong Managing Director [email protected] Sam Hendler Managing Director [email protected] Enterprise Software Data and Analytics Infrastructure Software Education Technology Energy Technology IT and Tech-Enabled Services Telecom and Data Center Solutions Financial Technology Healthcare IT AdTech and Marketing Solutions Consumer Internet TMT VERTICAL FOCUS AREAS Digital Media, Content, and Gaming ecommerce Mobile Public Sector Supply Chain / Logistics Mike Wilkins Managing Director [email protected] EUROPE Thierry Monjauze Managing Director [email protected] TO SUBSCRIBE PLEASE [email protected] SELECT 2014 & 201 HW&CO. TMT TRANSACTIONS has acquired a majority interest in has received a minority Investment from has received a majority Investment from has merged with has become a wholly owned subsidiary of PAGE 1

3 DEAL SPOTLIGHT DMEAUTOMOTIVE HW&Co. advised DMEautomotive ( DME ), a leading provider of data-driven customer retention marketing solutions for the retail automotive industry, on its sale to Solera Holdings (NYSE: SLH). Solera's acquisition of DME is one of a series of recent strategic investments to enhance its Service, Maintenance, and Repair ("SMR") capabilities (e.g., Identifix, AutoPoint, and Service Dynamics). DME supports Solera s strategy of fortifying its digital transformation and capturing valuable customer content for its risk and asset management platform. June 2, 201 With DME, Solera s extensive SMR database will expand to include nearly 100 million unique owner-vehicle relationships and three billion automotive transactional detail records representing 62% of U.S. households. ABOUT DMEAUTOMOTIVE Deep expertise with large, disparate data sets, leveraging proprietary data analytics and customer segmentation modeling. Broad market reach and expansive relationships within the retail automotive sector, including over 6,00 franchised dealer and aftermarket client locations. DMEautomotive was founded in 1982 and is based in Daytona Beach, FL. PAGE 2

4 WHAT WE RE READING CISCO: OVERCROWDED SECURITY MARKET NEEDS MORE M&A JULY 14, 201 Cisco reports that the average large enterprise currently uses more than 4 separate IT security vendors, with some enterprises using as many as 100 different vendors. These patterns suggest that corporate buyers of IT security solutions will increasingly demand more holistic, integrated IT security solutions in an effort to condense their number of IT security vendors. This growing preference for more comprehensive security solutions over niche point solutions is expected to drive further industry consolidation. As evidence of this trend, many big tech and non-traditional security companies, such as defense companies like Raytheon, are making significant investments in the sector compared to the pure-play IT security vendors, such as Check Point, Symantec, Palo Alto Networks, and Fortinet, which have largely remained on the sidelines. Investor s Business Daily MORE COMPANIES WILLING TO SPEND BIG BUCKS ON BIG DATA TECHNOLOGY JULY 6, 201 Today, it is standard for companies to amass large amounts of data in the hope that they can analyze and use it to make better business decisions. The process of analyzing data doesn t come cheap, however, and companies of all sizes need to invest in software that does the grunt work of crunching numbers. Thus, the market for big data software is expected to grow 0% by Data management software currently accounts for over 40% of the total big data technology spend in the United States, with $1.9 billion so far in 201. Fortune ENTERPRISE SOFTWARE S TRILLION-DOLLAR OPPORTUNITY JUNE 21, 201 As the world economy continues to become more digital in nature, large corporations are being forced to disperse with legacy cultures, business processes and technology that leave them vulnerable to technological disruption. For this reason, corporations are spending $330 billion annually on enterprise software which is expected to grow to over a trillion dollars as all sectors continue to go digital. With a greater number of products becoming information-based, there are significant opportunities for billion dollar technology companies to grow into the space. Ultimately, the competitive use of technology will determine the winners and losers in every legacy sector. TechCrunch MARKETING TECH STAYS HOT: $6.8B IN DEALS IN THE PAST 2 MONTHS JUNE 2, 201 Investors continue to fuel the marketing tech fire, with 2 acquisitions and 63 investments totaling $6.8 billion in April and May alone. The true totals are likely much higher, as this amount does not include undisclosed acquisitions, angel investors, or friends-and-family fundraising. Driving this investment is a proliferation of data, caused by a massive and long-term shift in both consumer and business buying patterns. Marketers are most impacted by this proliferation, as they are tasked with sifting through the data in order to derive actionable insights. VentureBeat TECH, TELECOM M&A SO FAR THIS YEAR AT HIGHEST LEVEL SINCE 2000 MAY 29, 201 Technology and telecom firms are bulking up at the fastest rate in more than a decade, driven by a continuing explosion of Internet data usage that is hitting everything from handheld gadgets to massive data centers and the straining networks that connect them. To be sure, data isn t the only driver of heightened M&A activity in the sector. Cheap cash from low interest rates is driving investment activity in a diverse set of industries as companies seek to increase scale while the market is hot. Technology and Telecom M&A activity, however, continues to outpace broader dealmaking, which by itself is already on pace to eclipse peak 2007-levels. The Wall Street Journal PAGE 3

5 SELECT M&A TRANSACTIONS 2Q 201 TECHNOLOGY, MEDIA, & TELECOM Ent. Value: $376M Revenue: $12M Ent. Value: $432.4 Revenue: $92.M Ent. Value: NA Revenue: NA Ent. Value: $4.B Revenue: $948.4M Ent. Value: NA Revenue: NA Closed 6/24/1 Announced 6/1/1 Ent. Value: $600M Revenue: NA Closed 7/13/1 Closed 7/8/1 Closed /31/1 Closed /4/1 EV / Revenue: 3.0x EV / EBITDA: NM EV / Revenue: 4.7x EV / EBITDA: NM EV / Revenue: NA EV / EBITDA: NA EV / Revenue: 4.7x EV / EBITDA: 36.1x EV / Revenue: NA EV / EBITDA: NA EV / Revenue: NA EV / EBITDA: NA Francisco Partners take-private acquisition of ClickSoftware ClickSoftware is the leading provider of SaaS-based mobile workforce management solutions for the field service industry. Francisco Partners will assist ClickSoftware in further enhancing its cloud solutions, growing its customer pipeline, and advancing its strategic goals. The Francisco Partner's transaction represents yet another take-private acquisition by a private equity firm in the software sector. CA Technologies acquisition of Rally Software Development Rally Software provides cloud-based Agile development software and services. Rally s highly complementary solutions will expand CA s strengths in the areas of DevOps and Management Cloud. The acquisition is consistent with CA s strategy of enabling its customers to thrive in the application economy, where software applications are pervasive and Agile software and services is increasingly important for custom development. GI Partners acquisition of MRI Software MRI Software is a leading global provider of real estate property and investment management software solutions. GI will assist MRI in executing its strategic growth plan by driving innovation of MRI s flagship property management and accounting solution, aiding expansion into new markets, and building relationships with a fast growing partner network. GI was drawn to MRI's unique market position in the real estate industry, an end market that GI has significant experience in with past investments in Waypoint Homes and Ladder Capital. Cox Automotive s pending acquisition of Dealertrack Technologies Dealertrack Technologies provides SaaS-based solutions for the automotive retail industry in the U.S. and Canada. The acquisition of Dealertrack will expand Cox Automotive s collection of businesses, which is currently focused on the used-car market, into the new-car market. The combination will also provide dealers, consumers, and manufacturers with a more comprehensive platform that will make buying and selling cars easier. MasterCard s acquisition of Applied Predictive Technologies Applied Predictive Technologies provides cloud-based predictive analytics software solutions. The acquisition will enhance MasterCard's merchant offerings, and will complement the recent purchase of London-based One, another retail analytics technology firm. Applied Predictive Technologies team, technology, and flagship Test & Learn platform, are highly compatible with MasterCard s analytics solutions, providing customers with enhanced and more actionable decision-making capabilities. IBM s acquisition of Phytel Phytel is a leading provider of integrated SaaS-based population health management software. IBM will integrate Phytel and another recent acquisition, Explorys, to build a new business unit, Watson Health, focused on IBM s Watson supercomputer. Through the acquisitions of Phytel and Explorys, IBM has aggressively formalized its strategy within the healthcare market and extended the scope of IBM Watson s capabilities. PAGE 4

6 SOFTWARE ACQUISITION ACTIVITY STRATEGIC ACQUIRERS MOST ACTIVE STRATEGIC ACQUIRERS OF SOFTWARE ASSETS BY VOLUME 1, 2 The 10 most active strategic software consolidators combined for 28 acquisitions in 1H 201. Microsoft was the most active software acquirer in 1H 201 with 8 acquisitions, including LiveLoop, Datazen, and 6 Wunderkinder, that complement Microsoft s mobileand cloud- based application ecosystem. Google, Cisco, and IBM were also active in 1H 201, completing a combined 1 acquisitions. Notable deals include Google s acquisition of Pulse.io, IBM s acquisitions of Phytel & Explorys, and Cisco s acquisition of OpenDNS H GLOBAL STRATEGIC ACQUIRER SOFTWARE M&A ACTIVITY BY VOLUME 2 Global strategic software M&A registered 43 transactions in 2Q, a 14% increase over the prior quarter and the highest volume quarter in the last four years. With stock prices at or near all-time highs and cash reserves largely untapped and expanding, Big Tech is increasingly turning to M&A as a primary growth vehicle, fueling the historic pace of strategic dealmaking seen in Q Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '1 2Q '1 PAGE

7 SOFTWARE ACQUISITION ACTIVITY PRIVATE EQUITY MOST ACTIVE PRIVATE EQUITY BUYERS OF NEW SOFTWARE PLATFORMS BY VOLUME 1, 2 Francisco Partners, Vista Equity, and Marlin Equity were the most active private equity acquirers of new software platforms in 1H 201, with a combined 13 acquisitions. Collectively, the top 10 most active private equity software acquirers have completed 22 acquisitions in 1H 201, including take-private transactions. Notable take-private transactions include: E2open / Insight Venture Partners, ClickSoftware Technologies / Francisco Partners, and Riverbed Technologies / Thoma Bravo. 4 1H GLOBAL NEW PLATFORM PRIVATE EQUITY SOFTWARE M&A ACTIVITY BY VOLUME 2 After a flat 1Q 201, global private equity software investment activity increased 18% in 2Q, reaching its highest quarterly level in over three years. Private equity investment in the software sector has broadly been driven by attractive debt market conditions, large amounts of dry powder, and increased liquidity in private markets as a result of improving investor confidence Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '1 2Q '1 PAGE 6

8 APPLICATION SOFTWARE M&A MARKET SUMMARY APPLICATION SOFTWARE M&A VOLUME (GLOBAL) MEDIAN M&A REVENUE MULTIPLES (REPORTED) In 2Q 210, Application Software M&A activity increased 18% over the prior quarter, representing the most active quarter in four years. Median reported Application Software M&A revenue multiples rebounded in 2Q as large strategics demonstrated a willingness to stretch on valuation for sector leaders x 1.9x 1.9x 1.2x 2.1x 2.4x 1.3x 1.4x 1.x 1.6x 2.x 2.8x 2.1x 2.4x 2.3x 1.4x 2.x 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '1 2Q '1 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '1 2Q '1 NOTABLE APPLICATION SOFTWARE M&A TRANSACTIONS Business Management software vendors continue to be among the most sought after assets as companies are facing increasing pressure to improve operational agility and performance. Some of the more notable Business Management transactions include SS&C s acquisition of Advent, Lexmark s acquisition of Kofax, and Vista s acquisition of ACS. DATE CLOSED ACQUIRER TARGET DESCRIPTION ENTERPRISE VALUE (MM) Pending Stamps.com Inc. PSI Systems, Inc. Software that allow users to print postage and shipping labels. $21 3.6x 07/08/1 SS&C Technologies Holdings, Inc. Advent Software, Inc. Software for investment management organizations. $2,0 6.4x 06/24/1 GI Partners, LLC MRI Software LLC Real estate enterprise software applications for the property management industry. NA NA 06/0/1 On Assignment Inc. Creative Circle, LLC Digital/creative staffing solutions to the marketing and advertising industries. $ x 0/21/1 Lexmark International Kofax Limited Capture and business process management software and related services. $9 3.2x 0/20/1 HgCapital The Foundry Visionmongers Ltd. Software for the design, film, television, shortform, and games industries. $310 NA 04/01/1 Visa Inc. TrialPay, Inc. Cross-platform monetization and stabilization solutions. NA NA 03/19/1 Vista Equity Partners Advanced Computer Software Group Healthcare and business software solutions. $1, x 03/19/1 Nordic Capital Vizrt Ltd. Real-time 3D graphics, studio automation, sports analysis, and asset management tools. $ x 03/1/1 LDC; Scottish Equity Partners SSP Holdings Limited Software solutions for insurance and financial services industries. $30 NA 02/27/1 Apax Partners LLP Exact Holding NV Business management software solutions for SMBs. $ x 02/23/1 Thoma Bravo, LLC PowerPlan, Inc. Asset-centric accounting, tax, budgeting, and analytics software. NA NA 02/09/1 3D Systems Corporation Cimatron Ltd. Computer-aided design software solutions. $76 1.6x 02/09/1 Roper Technologies, Inc. SoftWriters, Inc. Pharmacy management solutions for institutional pharmacy providers. $220 CONFIDENTIAL 10.2x 01/31/1 TA Associates Management Access Technology Group Ltd. Business and accounting software for the middle market. $32 CONFIDENTIAL 2.8x 01/31/1 HgCapital Allocate Software plc. Workforce optimization and compliance software application services. $14 2.3x 01/16/1 GI Partners, LLC Logibec Inc. Clinical and administrative information systems for the healthcare industry. $342 CONFIDENTIAL.x REVENUE MULTIPLE MEDIAN $ x PAGE 7

9 SAAS M&A MARKET SUMMARY SAAS M&A VOLUME (GLOBAL) MEDIAN M&A REVENUE MULTIPLES (REPORTED) SaaS M&A activity continued its upward trajectory in 2Q 201, with an 11% increase over the prior quarter s record results. In 2Q 201, median reported M&A revenue multiples remained near.0x as SaaS assets continue to garner attractive valuations x 2.4x 4.x 3.3x 8.8x 2.8x 6.0x.0x.0x 3.4x 7.4x 6.1x 3.4x 3.8x 3.3x 4.7x 4.7x 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '1 2Q '1 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '1 2Q '1 NOTABLE SAAS M&A TRANSACTIONS 2Q 201 was marked by high levels of vertical SaaS transactions, notably in the automotive, healthcare, hospitality, and education verticals. In one of the largest vertical transactions, Cox Automotive announced its $4. billion acquisition of Dealertrack Technologies, demonstrating the increased desire for newage, SaaS-based capabilities in a traditionally low-tech vertical. DATE CLOSED ACQUIRER TARGET DESCRIPTION ENTERPRISE VALUE (MM) Pending Vista Equity Partners Pearson SIS (d.b.a. PowerSchool) Web-based student information systems for the education market. $30 NA Pending Insight Venture Partners Fourth Ltd. Cloud-based software management solutions to the hospitality industry. $31 8.x 07/13/1 Francisco Partners Management ClickSoftware Technologies Ltd. SaaS-based energy management solutions. $ x 06/09/1 NetSuite Inc. Bronto Software, Inc. Cloud-based marketing platform for commerce-driven organizations. $200 NA 0/11/1 Extend Health, Inc. Acclaris, Inc. SaaS technology and services supporting account-based healthcare plans. $140 NA 0/08/1 Visma AS e-conomic international a/s Cloud-based accounting software for small and medium-sized businesses. $226 NA 0/04/1 IBM Corporation Phytel, Inc. Population health management and improvement solutions for healthcare organizations. NA NA 04/13/1 IBM Corporation Explorys, Inc. Cloud-computing platform for health system performance management. NA NA 03/30/1 Vector Capital Saba Software, Inc. SaaS intelligent talent management solution for organizations. $270 NA 03/2/1 Insight Venture Partners E2open, Inc. Cloud-based supply chain management and optimization solutions. $20 3.2x 03/11/1 Kennet Partners Limited Impartner SaaS CRM solutions for marketers and partner program managers. NA NA 03/02/1 Deltek, Inc. HRsmart, Inc. SaaS human resources and talent management software solutions. NA NA 02/16/1 Infosys Ltd. Panaya Ltd. SaaS quality management solutions for enterprise applications. $200 NA 02/10/1 Coupa Software Incorporated ZenPurchase, Inc. On-demand collaborative B2B purchasing platform for large organizations. NA NA 01/27/1 Bridgepoint Advisers Limited efront S.A. Web-based software solutions for the financial industry. $ x 01/09/1 Dealertrack Technologies, Inc. Incadea Plc Enterprise software solutions to the automotive retail and wholesale markets. $ x 01/0/1 AVEVA Group plc 8over8 Limited SaaS lifecycle contract management software solutions. $41 NA 01/02/1 EnerNOC, Inc. World Energy Solutions, Inc. SaaS-based energy management solutions. $77 2.0x REVENUE MULTIPLE MEDIAN $226 3.x PAGE 8

10 DATA AND ANALYTICS M&A MARKET SUMMARY DATA AND ANALYTICS M&A VOLUME (GLOBAL) MEDIAN M&A REVENUE MULTIPLES (REPORTED) In 2Q 201, the Data and Analytics software M&A market registered its strongest quarter in the past four years, with 101 reported transactions. Median reported revenue multiples for Data and Analytics transactions increased to near a four-year high, as companies continue to prioritize and pay a premium for Big Data assets that enhance their solution suites x 1.3x 1.4x 3.3x 1.6x 0.9x 1.8x 1.1x 0.9x 1.4x 1.3x 1.9x 1.9x 2.3x 2.7x 2.6x 3.2x 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '1 2Q '1 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '1 2Q '1 NOTABLE DATA AND ANALYTICS M&A TRANSACTIONS As enterprises seek to leverage the ever-increasing data available in their ecosystems, consolidation remains vigorous, particularly among strategic buyers which are driving the majority of M&A activity. Notable Data and Analytics transactions include MasterCard s $600 million acquisition of Applied Predictive Technologies and Permira s pending $4.8 billion take-private acquisition of Informatica. DATE CLOSED ACQUIRER TARGET DESCRIPTION Pending Aval Data Corporation Fixstars Corporation Application development tools for big data analysis. $ x Pending Cavendish Square Holding B.V. comscore, Inc. Digital media analytics software and services. $1,61 4.6x Pending Microsoft Corporation Revolution Analytics, Inc. Software and support for the open source statistical computing language. NA NA Pending Permira Advisers Ltd. Informatica Corporation Enterprise data integration software and services. $4, x 06/04/1 Hitachi Data Systems Corporation Pentaho Corporation Data integration and business analytics platforms. NA NA 06/04/1 Francisco Partners Management Procera Networks, Inc. Subscriber experience assurance solutions based on deep packet inspection (DPI). $ x 06/04/1 Solera Holdings Inc. DMEautomotive, LLC Automotive direct marketing and analytics solutions. $143 CONFIDENTIAL 2.3x 0/31/1 MasterCard Incorporated Applied Predictive Technologies, Inc. Cloud-based predictive analytics software solutions. $600 NA 0/19/1 Verisk Analytics, Inc. Wood Mackenzie Ltd Research and consulting commercial intelligence platform. $2, x 0/06/1 ABRY Partners, LLC Sentry Data Systems, Inc. Data intelligence solutions for healthcare providers. NA NA 04/17/1 IHS Inc. RootMetrics Inc. Mobile analytics solutions providing insight into the consumer mobile experience. NA NA 04/08/1 Harman International Industries Symphony Teleca Corp. Enterprise software, mobile, big data and analytic, and integrated solutions. $ x 04/01/1 MAXIMUS Federal Services, Inc. Acentia, LLC DaaS management solutions to healthcare, financial, and regulatory markets. $ x 03/18/1 AppNexus Inc. Yieldex, Inc. Advertisement forecasting, analytics, and trading tools. $100 NA 02/26/1 Engility Holdings, Inc. TASC, Inc. Big-data cybersecurity and counterintelligence solutions. $1,100 NA 01/28/1 Capita plc Constructionline Online database that enables buyers to source pre-qualified construction resources. $3 3.8x 01/23/1 Roper Technologies, Inc. Strata Decision Technology, L.L.C. Cloud solutions for financial analytics, business intelligence, and decision support needs. NA NA MEDIAN ENTERPRISE VALUE (MM) REVENUE MULTIPLE $40 3.8x PAGE 9

11 INFRASTRUCTURE SOFTWARE M&A MARKET SUMMARY INFRASTRUCTURE SOFTWARE M&A VOLUME (GLOBAL) MEDIAN M&A REVENUE MULTIPLES (REPORTED) In 2Q 201, Infrastructure Software M&A volume rebounded to 0 transactions after decreasing in the prior two quarters. Median reported Infrastructure Software M&A revenue multiples were 3.1x in 2Q 201, in line with longer term averages x 3.1x 4.8x 4.8x 1.8x 2.3x 2.8x 1.8x 4.0x 2.1x 2.x 2.7x 3.2x 4.x 3.1x 1.3x 0.6x 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '1 2Q '1 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '1 2Q '1 NOTABLE INFRASTRUCTURE SOFTWARE M&A TRANSACTIONS Security software vendors are attracting significant interest due to recent well-publicized global security breaches and the ongoing shift towards cloud-based computing, which is perceived as less secure than on-premise systems. Notable security transactions include Proofpoint s pending acquisition of Emerging Threats, Cisco s acquisition of OpenDNS, and Singapore Telecom s acquisition of TrustWave. DATE CLOSED ACQUIRER TARGET DESCRIPTION Pending Thoma Bravo; Ontario Teacher's Riverbed Technologies Application performance infrastructure solutions. $3, x Pending Proofpoint, Inc. Emerging Threats Pro, Inc. Cloud-based security software provider. $40 NA Pending Cisco Systems, Inc. OpenDNS, Inc. Internet security and domain name system services. NA NA Pending Comverse, Inc. Acision Ltd. Messaging infrastructure, consumer, and enterprise solutions. $ x Pending Singapore Telecommunications TrustWave Holdings, Inc. On-demand data security and compliance management solutions. $ x 07/09/1 EMC Corporation Virtustream, Inc. Enterprise data integration software. $1,200 NA 07/08/1 CA, Inc. Rally Software Development Corp. Enterprise cloud software and services for DevOps. $ x 06/08/1 CA, Inc. IdmLogic LTD. Cloud-based solutions for the management of Agile software development. NA NA 06/02/1 F-Secure Oyj nsense ApS Identity and access governance (IAG) solutions. $20 2.6x 0/26/1 Bain Capital, LLC Blue Coat Systems Inc. Cyber protection and vulnerability assessment. $2,400 NA 04/30/1 NCC Group plc Accumuli plc Web security and WAN optimization solutions. $73 2.x 04/29/1 Mitel U.S. Holdings, Inc. Mavenir Systems, Inc. IT infrastructure solutions and services. $ x 02/23/1 Zayo Group, LLC Latisys Holdings, LLC VMware-based hybrid cloud and hosting services. $678 NA 01/07/1 Gemalto NV SafeNet, Inc. Solutions to visualize, analyze, alert, and store metrics that impact businesses. $890 NA 01/02/1 Belden Inc. Tripwire, Inc. Data protection and software monetization solutions. $ x 12/1/14 Thoma Bravo, LLC Compuware Corporation Configuration audit and control management software. $2, x 12/02/14 Progress Software Corporation Telerik AD Software solutions and application practices for information technology organizations. $ x 11/20/14 Micro Focus International plc The Attachmate Group, Inc. Unified data management and data protection solutions. $2,302 2.x MEDIAN ENTERPRISE VALUE (MM) REVENUE MULTIPLE $ x PAGE 10

12 PRIVATE PLACEMENT ACTIVITY BY SOFTWARE SECTOR PRIVATE PLACEMENTS BY SOFTWARE SUB-SECTOR AND NEW CAPITAL RAISED While total private placement volume declined slightly in 2Q 201, total reported capital raised by software companies increased by $2.2 billion over the prior quarter and continues to exhibit strong upward momentum. Volume 1,200 1,100 1, Q-11 3Q-11 4Q-11 1Q-12 2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-1 2Q-1 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 $ in Thousands Application Software SaaS Data & Analytics Infrastructure Software Total New Capital (Reported) PRIVATE PLACEMENT CAPITAL RAISED BY ROUND (AS PERCENTAGE OF TOTAL REPORTED PRIVATE PLACEMENT CAPITAL) In 2Q 201, 9% of private capital raised was deployed in early stage rounds (Series B / or earlier), up from 3% in the prior quarter. The continued growth in early stage investing may suggest further investment activity ahead. 21% 23% 2% 30% 27% 26% 24% 22% 24% 21% 22% 2% 34% 30% 3% 42% 11% 2% 23% 14% 1% 11% 24% 18% 20% 18% 2% 16% 27% 16% 12% 23% 28% 22% 19% 29% 23% 31% 29% 18% 31% 34% 28% 28% 14% 31% 20% 30% 17% 26% 28% 36% 34% 2% 29% 26% 24% 28% 21% 22% 22% 19% 20% 22% 24% 19% 11% 3% 2% 3% 6% 4% 4% 6% 3% 6% 6% 6% 4% 2% 4% 7% 2% 4% 4% 2Q-11 3Q-11 4Q-11 1Q-12 2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-1 2Q-1 Seed Series A Series B Series C Series D / or later PAGE 11

13 SELECT RECENT SOFTWARE PRIVATE PLACEMENTS DATE COMPANY SECTOR TOTAL ROUND ROUND RAISED INVESTORS (CURRENT ROUND) DESCRIPTION SIZE ($M) ($M) 06/22/201 Data & Analytics Late Stage $7 $128 Bessemer Venture Partners; JMI Equity; Norwest Venture Partners; Onset Ventures; Information Venture Partners; Cardinal Venture Capital; Monitor Ventures Prov ider of cloud-based corporate performance management and business intelligence solutions. 06/04/201 Infrastructure B $148 $176 Technology Crossov er Ventures; Halyard Capital Prov ider of Business Process-as-a-Serv ice (BPaaS) for the Workday platform. 06/01/201 Data & Analytics D $30 $7 New Enterprise Associates; Riv er Cities Capital Funds; Sequoia Capital; PJC Capital Management; Blue Cloud Ventures Prov ider of B2B intelligence software solutions for sales and marketing applications. 0/26/201 SaaS Late Stage $80 $169 Battery Ventures; El Dorado Ventures; CrossLink Capital; T. Rowe Price Associates; PremjiInv est; ICONIQ Capita; Rally Ventures Prov ider of SaaS applications for financial serv ices, food and bev erage, healthcare, oil and gas, retail, and technology industries worldwide. 0/13/201 Infrastructure Late Stage $126 $29 Salesforce Venures; Serv icenow: Cisco Inv estments; Adage Capital Management; Brookside Capital; Sands Capital Ventures; and return inv estors Prov ider of an integration platform for connecting applications, data sources, and dev ices both onpremises and in the cloud. 0/13/201 SaaS A $18 $20 Sequoia Capital Prov ider of mobile, cloud-based applications for contractors to store, v iew, and manage their blueprints. 0/07/201 Data & Analytics C $20 $20 Accel Partners; Symphony Technology Group; Salesforce Ventures Prov ider of a gov ernment market analytics platform. 0/01/201 SaaS C $13 $98 Insight Venture Partners; Institutional Venture Partners; TPG Growth; Fidelity Management ; Founders Fund; Khosla Ventures; Andreessen Horowitz; Palm Driv e Ventures; Sound Ventures Prov ider of a SaaS human resources automation platform for small-and medium-sized businesses. 04/17/201 Infrastructure B $8 $13 Benchmark Capital; Institutional Venture Partners; Comcast Ventures; Bezos Expeditions; Greylock Partners Prov ider of a mobile application dev elopment platform. 04/1/201 Application Late Stage $2 $4 Bain Capital Ventures; Goldman Sachs Priv ate Capital Inv esting Prov ider of automated inv oice-to-cash solutions for businesses across B2B and B2C markets. 04/14/201 Infrastructure D $9 $166 Insight Venture Partners; Goldman Sachs, Coatue, Northern Trust: and existing inv estors Prov ider of an open platform for building, shipping, and running distributed applications. 04/08/201 Data & Analytics C $23 $44 Battery Ventures; Nth Power; IDInv est Partners; RockPort Capital Partners; Next World Capital; Electranov a Capital; E.ON Strategic Co-Inv estments Prov ider of an energy analytics platform for commercial buildings. PAGE 12

14 PUBLIC SOFTWARE VALUATION MULTIPLES BY SECTOR STOCK PERFORMANCE (1- & 3-YEAR) REVENUE MULTIPLE ANALYSIS 2Q 201 VS. 2Q 2014 Bellwethers ( 4.1%) 40.0% 9.7x 2Q Q 201 Communication 12.3% 3.4% 8.7x 8.6x 8.x 8.1x Enterprise HCM Marketing PLM & Design ( 1.6%) ( 3.%) 49.1% 16.0% 6.% 81.2% 13.0% 72.1% 2.8x2.6x 3.8x 3.8x 4.0x 3.4x 4.x.3x 3.x 3.7x 6.2x.7x 1.6x 1.7x 4.7x 4.7x 4.9x 6.2x 3.9x.0x 6.6x.9x 4.2x 3.6x 3.x 3.6x 2.9x2.x.8x SCM ( 1.8%) 89.1% Energy ( 3.2%) 4.3% 9.4% Financial ( 0.1%) 87.4% EBITDA MULTIPLE ANALYSIS 2Q 201 VS. 2Q 2014 HCIT 44.7% Public Sector Large-Cap SaaS 14.% 48.9% 94.8% 121.9% 8.2x 9.2x 62.1x 7.0x 2Q Q 201 Small-Cap SaaS Data & Analytics Network Management Data Storage ( 4.3%) (.0%) 22.4% 38.8% 13.3% 1.1% 1.1% 97.0% 9.4x 8.2x 1.7x 13.6x 12.7x 13.1x 42.7x 29.6x 32.4x 24.2x 24.1x 21.3x 20.8x 16.2x 17.3x 16.x 13.8x 14.x 14.0x 10.x 37.6x 43.8x 27.2x 2.1x 17.6x 14.0x 11.4x 11.8x 10.2x 9.3x IT Security 30.8% 69.2% 1-Year Performance 3-Year Performance PAGE 13

15 KEY METRICS BY SECTOR COMPARABLE PUBLIC SOFTWARE COMPANIES COMP SET MEDIANS CORRELATION WITH EV / REVENUE MULTIPLE EV / LTM REVENUE MULTIPLE NTM REVENUE GROWTH NTM EBITDA GROWTH LTM EBITDA MARGIN NTM REVENUE GROWTH NTM EBITDA GROWTH LTM EBITDA MARGIN HCM 8.7x 29% 7% 16% 88% 81% - Large-Cap SaaS 8.6x 24% 24% 12% 73% 28% - IT Security 8.1x 19% 8% 31% 88% 81% 9% SCM 6.2x 12% 20% 26% - 7% 76% HCIT 6.2x 14% 12% 22% 6% 76% 47% Small-Cap SaaS.9x 22% 27% 10% 73% 4% 67% Marketing Software.3x 22% 32% 8% 88% 27% - Public Sector Financial Network Mgmt.0x 4.7x 4.2x 12% 14% 16% 93% 61% 68% ` 1% 21% 32% 61% - 7% 11% 13% 2% 37% 6% - Enterprise 4.0x 10% 3% 2% 21% - % Data & Analytics 3.7x 3% 9% 21% 27% 42% 77% PLM & Design 3.6x 9% 6% 12% 9% 86% - Communication 3.4x 14% 8% 16% 20% 31% - Bellwethers 2.6x 4% 2% 30% 72% 4% 87% Data Storage 2.x % 8% 19% 78% 80% - Energy 1.7x 3% - 8% 47% 4% 99% PAGE 14

16 SUMMARY OF TECHNOLOGY IPOS RECENT U.S. IPO ACTIVITY (BY OFFERING SIZE) $0-0M $0-100M $100-20M $20M Technology IPO activity increased in 2Q 201, with 1 IPO s throughout the quarter. 0% of technology IPOs over the past year received valuations in excess of $1 billion at offering, demonstrating the markets preference for more sizable assets. Hypergrowth software companies continue to seek liquidity through public markets, with 0% of tech companies over the past 12 months generating 7%+ annual revenue growth leading up to their IPOs. 2Q-11 3Q-11 4Q-11 1Q-12 2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-1 2Q-1 OFFERING SIZE AT IPO (LTM) MARKET CAP AT IPO (LTM) REVENUE GROWTH (1YR PRIOR TO IPO) All tech IPOs over the last 12 months All tech IPOs over the last 12 months All tech IPOs over the last 12 months $0-0M $0-100M $100-20M $20M + $0-0M $0-00M $00M-$1B $1B+ < 2% 2-7% > 7% 24% 18% % 24% 0% 29% 49% 24% 34% 16% 27% PAGE 1

17 KEY PERFORMANCE METRICS FOR RECENT SOFTWARE IPOS % Revenue Growth % 22.0% 200.0% 17.0% 10.0% 12.0% 100.0% 7.0% 0.0% 2.0% 101.7% 164.6% 17.8% 100.% 186.% 83.4% 22.2% 61.1% 43.4% 11.8% 192.6% 7.4% 34.8% 102.3% 26.9% 0.0% (2.0%) (0.0%) 12.0% 100.0% 98.3% 98.3% 7.0% Stock Performance 2 0.0% 2.0% 0.0% (2.0%) (0.0%) (23.2%) (23.2%) 32.0% 32.0% (1.2%) (1.2%) 3.0% 3.0% 33.1% 33.1% 3.3% 3.3% (29.7%) (29.7%) (41.6%) (41.6%) 14.7% 14.7% 14.7% 14.7% (1.2%) (1.2%) 7.4% 7.4% 17.% 17.% 9.9% 9.9% (7.0%) (100.0%) (12.0%) IPO DATE OFFER PRICE OFFERING SIZE ($M) OFFER TO CURRENT Circle Size Denotes Revenue ($) 10/8/14 11//14 12/11/14 12/11/14 12/11/14 1/22/1 2/11/1 3//1 4/23/1 /20/1 6/4/1 6/18/1 6/2/1 6/2/1 6/2/1 $2.0 $12.0 $8.0 $14.0 $23.0 $14.0 $27.0 $11. $17.0 $2.0 $17.0 $14.0 $8.0 $12.0 $14.0 $12.0 $46.2 $3.1 $100.8 $11.0 $17.0 $600.0 $74.8 $87.0 $222. $19. $100.1 $6.3 $74.4 $ % (23.2%) 32.0% (1.2%) 3.0% 33.1% 3.3% (29.7%) (41.6%) 14.7% 14.7% (1.2%) 7.4% 17.% 9.9% PAGE 16

18 DEBT MARKET OVERVIEW MIDDLE MARKET LBO LOAN MULTIPLES MIDDLE MARKET LOAN VOLUME In 1Q 201, middle market LBO leverage multiples and loan volumes decreased slightly. Lenders remain aggressive for high quality software credits with significant recurring revenue and proven earnings bases. 4.9x FLD/EBITDA SLD/EBITDA Other Sr Debt/EBITDA Sub Debt/EBITDA.6x.3x 4.8x 4.7x 4.7x 4.8x 4.x 4.x 4.3x 4.2x 4.3x 4.1x 4.0x 3.8x 3.8x 3.4x 3.3x 4.9x Institutional Pro Rata $.2B $4.9B $4.7B $3.9B $3.8B $3.4B $3.B $3.4B $3.B $3.B $2.7B $2.6B $2.6B $2.B $2.B $1.9B $1.7B Q1 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q1 LBO LOAN VOLUME BY INDUSTRY MEDIAN BUYOUT DEBT PERCENTAGES In 2014, technology companies were the second largest recipients of LBO loans, signifying strong appetite for new platform investments. Median buyout debt as a percentage of total purchase price declined to 8.%, which may signal a broader stabilization of debt markets Volume: $6.1 Billion Percentage of Total Purchase Price Services & Leasing 29.1% Technology 24.1% 62.6% 63.4% Chemicals 9.6% 60.3% Healthcare 8.3% 6.6% Environmental 4.% Manufacturing & Machinery 3.9% 4.% Telecom Equipment 3.9% 60.0% 66.3% 60.0% 8.% Automotive 3.6% 0.0% Other 13.0% H 201 PAGE 17

19 SAMPLE HW&CO. TMT TRANSACTIONS Please contact us regarding our experience in any TMT sector. has acquired a majority interest in has been recapitalized by has received a significant equity investment from has acquired ERP / SCM SOFTWARE SUPPLY CHAIN MANAGEMENT HEALTHCARE TECHNOLOGY HEALTHCARE TECHNOLOGY EDUCATION TECHNOLOGY MARKETING ANALYTICS ERP / SCM SOFTWARE ERP / SCM SOFTWARE HEALTHCARE TECHNOLOGY Business management and accounting software Supply-chain software for the food and beverage industry SaaS-based revenue-cycle management solutions SaaS-based clinical guidelines software solutions SaaS-based healthcare compliance training Direct marketing and analytics for the automotive sector ERP and e- commerce software ERP and e- commerce software Medical claims processing software solutions has received a significant equity investment from has merged with has been recapitalized by HEALTHCARE TECHNOLOGY Medical claims processing software solutions INFRASTRUCTURE SOFTWARE ITOM, business intelligence, and security software solutions SUPPLY CHAIN MANAGEMENT SaaS-based supply chain management solutions HEALTHCARE TECHNOLOGY SaaS-based software for the post-acute care industry ECOMMERCE FULFILLMENT ecommerce fulfillment, direct marketing, & B2B logistics services HEALTHCARE TECHNOLOGY SaaS-based Medical data archiving and storage solutions MANAGED SERVICES Cloud computing and IT services HEALTHCARE TECHNOLOGY Regulatory process management HEALTHCARE TECHNOLOGY Clinical and administrative HCIT systems became a wholly owned subsidiary of has received a majority investment from has received a minority investment from has received a significant equity investment from FINANCIAL TECHNOLOGY Property tax collection, valuation and ancillary solutions ENTERPRISE SOFTWARE SaaS-based giving and employee engagement solutions ECOMMERCE RETAIL Discount ecommerce retailer of clothing and apparel EDUCATION TECHNOLOGY SaaS-based training solutions for senior care employees ENERGY TECHNOLOGY Solar inverters supported by leading software HEALTHCARE TECHNOLOGY Pharmacy management solutions MARKETING ANALYTICS Sampling, data collection, and data analytic solutions ENERGY TECHNOLOGY SaaS-based energy service management solutions MOBILE INTERNET Mobile monetization solutions for emerging markets PAGE 18

20 APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY UNIVERSE Software Bellwethers Google Microsoft IBM Oracle Cisco SAP HP EMC Communication Software Nuance NICE NeuStar Synchronoss BroadSoft Tangoe MobileIron APPLICATION SOFTWARE HORIZONTAL VERTICAL Enterprise Software IBM Oracle SAP Adobe Intuit Sage Open Text TOTVS Progress IFS Human Capital Management (HCM) Workday Ultimate Paycom Cornerstone Paylocity Xactly Halogen Marketing Software Salesforce HubSpot Marketo Callidus CTCT Bazaarv oice MaxPoint PLM & Design Software Dassault Autodesk Ansys Synopsys Cadence PTC Mentor Graphics Supply Chain Management (SCM) Manhattan Aspen Tech Fleetmatics Descartes SPS SciQuest American Amber Road Speed Comm. Energy Software Av ev a Silv er Spring OPOWER EnerNOC PSI Financial Software Fiserv Solera Jack Henry Black Knight Oracle Financial DH Corp. Ev estnet Bottomline Q2 Healthcare IT (HCIT) Cerner athenahealth Inov alon Veev a Allscripts Medidata MedAssets Press Ganey HMS Quality Systems Public Sector Software Constellation Tyler Tech Blackbaud 2U NIC K12 Large-Cap SaaS ( $2Bn Mkt Cap) Salesforce Workday NetSuite Solera athenahealth Ultimate Dealertrack Veev a Guidewire Medidata Large-Cap SaaS (cont'd) Proofpoint Demandware SAAS Small-Cap SaaS ( $2Bn Mkt Cap) Paycom Cornerstone Fleetmatics Zendesk RealPage HubSpot Xero LogMein Qualys Benefitfocus Small-Cap SaaS (cont'd) RingCentral Marketo SPS Q2 Cv ent Callidus MINDBODY Alarm.com Castlight incontact Small-Cap SaaS (cont'd) OPOWER AppFolio BazaarVoice SciQuest Connecture Xactly Fiv e9 Amber Road Upland Data & Analytics Splunk Tableau Teradata Verint Inov alon Qlik MicroStrategy Pegasystems PROS Holdings INFRA SOFTWARE Network Management VMware Red Hat Citrix CA F Networks SolarWinds Progress NetScout Infoblox Radware Data Storage EMC Iron Mountain NetApp Brocade Box Nimble Storage Barracuda CommVault Carbonite IT Security Symantec Check Point FireEye VeriSign Fortinet Trend Micro Proofpoint Imperv a AVG Tech Qualys PAGE 19

21 APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS Enterprise Market % of 2 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price / Company Ticker Value Capitalization Week High Performance Performance LTM NTM Margin LTM Rev. 201E Rev. LTM EBITDA Earnings SOFTWARE BELLWETHERS Google Inc. GOOGL $304,121 $361,8 88.7% (7.6%) 86.2% 6.9% 12.6% 32.0% 4.4x 4.1x 11.6x 23.9x Microsoft Corporation MSFT 294,791 38, %.9% 44.3% 13.7% 7.7% 3.% 3.1x 3.2x 9.1x 17.9x IBM Corporation IBM 190, , % (10.3%) (16.8%) (7.3%) (10.0%) 26.2% 2.2x 2.3x 7.8x 13.4x Oracle Corporation ORCL 162, , % (0.6%) 3.7% (0.1%) 1.1% 42.0% 4.3x 4.3x 8.7x 17.6x Cisco Systems, Inc. CSCO 106,24 139, % 10.% 9.9% 3.1% 3.9% 27.7% 2.2x 2.1x 7.4x 1.7x SAP SE SAP 89,993 83, % (9.7%) 17.9% 8.6% 1.% 32.9% 4.x 4.1x 13.0x 24.6x Hewlett-Packard Company HPQ 60,900 4, % (10.9%) 49.2% (3.2%) (6.0%) 12.0% 0.6x 0.6x 4.6x 11.6x EMC Corporation EMC 1,81 1,21 8.3% 0.2% 3.0%.4% 4.8% 22.9% 2.1x 2.0x 7.1x 19.9x Median $134,11 $149, % (4.1%) 40.0% 4.3% 4.3% 29.9% 2.6x 2.7x 8.2x 17.7x COMMUNICATION SOFTWARE Nuance Communications, Inc. NUAN $7,100 $, % (6.7%) (26.%) 2.1% (1.6%) 10.9% 3.7x 3.6x 13.6x NM NICE Systems Ltd. NICE 3,499 3, %.6% 7.4% 7.9% (1.2%) 19.% 3.4x 3.x 1.2x 32.7x NeuStar, Inc. NSR 2,060 1, % 12.3% (12.%) 7.6% 7.0% 38.6% 2.1x 2.0x 4.6x 9.1x Synchronoss Technologies, Inc. SNCR 2,016 1, % 30.8% 147.6% 33.2% 2.2% 27.1% 4.1x 3.x 13.x 47.3x BroadSoft, Inc. BSFT 93 1, % 31.0% 19.4% 2.1% 22.1% 12.7% 4.1x 3.x 19.1x 1.4x Tangoe, Inc. TNGO % (16.%) (41.0%) 10.9% 1.% 7.7% 2.1x 1.8x 13.4x 142.0x MobileIron, Inc. MOBL % (37.9%) NA 27.4% 14.3% NM 2.x 2.4x NM NM Median $2,016 $1, % 12.3% 3.4% 10.9% 14.3% 16.1% 3.4x 3.x 13.6x 47.3x ENTERPRISE SOFTWARE IBM Corporation IBM $190,343 $160, % (10.3%) (16.8%) (7.3%) (10.0%) 26.2% 2.2x 2.3x 7.8x 13.4x Oracle Corporation ORCL 162, , % (0.6%) 3.7% (0.1%) 1.1% 42.0% 4.3x 4.3x 8.7x 17.6x SAP SE SAP 89,993 83, % (9.7%) 17.9% 8.6% 1.% 32.9% 4.x 4.1x 13.0x 24.6x Adobe Systems Incorporated ADBE 38,80 40, % 12.0% 10.3% 6.0% 16.8% 21.2% 8.9x 8.0x 36.0x 110.4x Intuit Inc. INTU 26,194 27, % 2.1% 69.8% (0.9%) (2.1%) 24.7% 6.0x.6x 16.2x 86.3x Sage Group plc SGE 9,488 8, % 22.7% 76.1% 1.9% 7.3% 28.4% 4.x 4.3x 1.3x 29.x Open Text Corporation OTEX,919 4,93 6.6% (1.%) 62.4% 26.1% 11.9% 28.9% 3.2x 3.3x 9.1x 19.x TOTVS S.A. TOTS3 1,992 2, % (27.2%) (34.3%) 7.8% 6.7% 22.% 3.x 3.4x 14.4x 23.9x Progress Software Corporation PRGS 1,328 1, % 14.4% 31.8% 7.2% 26.% 22.1% 3.8x 3.2x 10.6x 4.8x Industrial & Financial Systems IFS AB IFS B % (2.7%) 106.1% 12.1% 13.2% 12.% 2.1x 1.9x 13.3x 29.4x Median $17,841 $18, % (1.6%) 49.1% 6.6% 9.6% 2.4% 4.0x 3.7x 13.1x 27.0x Software Bellwethers Communication Enterprise HCM Marketing PLM & Design SCM Energy Financial HCIT Public Sector Large-Cap SaaS Small-Cap SaaS Data & Analytics Network Management Data Storage IT Security PAGE 20

22 APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS Enterprise Market % of 2 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price / Company Ticker Value Capitalization Week High Performance Performance LTM NTM Margin LTM Rev. 201E Rev. LTM EBITDA Earnings HUMAN CAPITAL MANAGEMENT SOFTWARE Workday, Inc. WDAY $13,167 $14, % (1.0%) NA 63.7% 4.3% NM 1.0x 11.x NM NM The Ultimate Software Group, Inc. ULTI 4,84 4, % 18.9% 84.8% 22.2% 21.8% 13.4% 8.7x 7.4x 37.8x 111.8x Paycom Software, Inc. PAYC 1,984 1, % 134.1% NA 44.6% 36.1% 17.6% 11.7x 9.6x 80.x 188.1x Cornerstone OnDemand, Inc. CSOD 1,884 1, % (24.4%) 46.2% 36.7% 29.0% NM 6.7x.x NM NM Paylocity Holding Corporation PCTY 1,722 1, % 6.7% NA 40.9% 38.9% NM 12.3x 10.1x NM NM Xactly Corporation XTLY % NA NA NA NA NM 3.9x NM NM NM Halogen Software Inc. HGN % 13.0% NA 18.2% 16.4% NM 2.x 2.2x NM NM Median $1,884 $1, % 16.0% 6.% 36.7% 29.0% 1.% 8.7x 8.x 9.2x 149.9x MARKETING SOFTWARE salesforce.com, inc. CRM $46,666 $4, % 19.9% 101.4% 28.4% 21.9% 4.3% 8.2x 7.1x 2.4x NM HubSpot, Inc. HUBS 1,04 1, % NA NA 2.7% 44.1% NM 11.6x 9.0x NM NM Marketo, Inc. MKTO 1,088 1, % (3.%) NA 0.9% 39.% NM 6.6x.2x NM NM Callidus Software Inc. CALD % 30.% 212.9% 23.4% 21.7% NM.3x 4.6x NM NM Constant Contact, Inc. CTCT % (10.4%) 61.0% 1.9% 13.0% 11.8% 2.2x 2.0x 12.3x 4.3x Bazaarv oice, Inc. BV % (2.3%) (67.6%) 13.7% 7.7% NM 2.2x 2.1x NM NM MaxPoint Interactiv e, Inc. MXPT % NA NA 70.2% NA NM 1.4x 1.9x NM NM Median $771 $ % (3.%) 81.2% 28.4% 21.7% 8.0%.3x 4.6x 32.4x 4.3x PLM & DESIGN SOFTWARE Dassault Systemes SA DSY $17,078 $18, % 13.0%.1% 17.3% 19.7% 2.4% 6.4x.6x 20.x.x Autodesk, Inc. ADSK 10,316 11, % (11.2%) 43.1% 11.8% 3.1% 9.7% 4.0x 4.0x 23.4x 17.0x Ansys, Inc. ANSS 7,430 8, % 20.3% 44.6% 6.8% 2.1% 46.0% 7.9x 7.7x 1.9x 32.2x Synopsys Inc. SNPS 7,070 7,8 99.3% 30.% 72.1% 8.8% 8.2% 19.3% 3.3x 3.1x 10.4x 31.6x Cadence Design Systems Inc. CDNS,416,74 9.9% 12.4% 78.9% 8.7% 7.8% 21.4% 3.4x 3.2x 11.2x 3.x PTC Inc. PTC 4,980 4, %.7% 9.7% 2.2% (.%) 20.3% 3.7x 3.9x 13.8x 41.9x Mentor Graphics Corp. MENT 3,073 3, % 22.% 76.2% 6.9% 3.0% 21.6% 2.4x 2.4x 10.3x 22.0x Median $7,070 $7,8 96.0% 13.0% 72.1% 8.7% 3.1% 21.4% 3.7x 3.9x 13.8x 3.x Software Bellwethers Communication Enterprise HCM Marketing PLM & Design SCM Energy Financial HCIT Public Sector Large-Cap SaaS Small-Cap SaaS Data & Analytics Network Management Data Storage IT Security PAGE 21

23 APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS Enterprise Market % of 2 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price / Company Ticker Value Capitalization Week High Performance Performance LTM NTM Margin LTM Rev. 201E Rev. LTM EBITDA Earnings SUPPLY CHAIN MANAGEMENT Manhattan Associates, Inc. MANH $4,294 $4, % 73.3% 422.0% 18.7% 11.1% 27.% 8.4x 7.9x 30.1x 0.9x Aspen Technology, Inc. AZPN 3,673 3, % (1.8%) 96.8% 14.6% 12.0% 40.7% 8.6x 8.0x 20.7x 34.0x Fleetmatics Group PLC FLTX 1,649 1, % 44.8% NA 28.% 21.9% 2.9% 6.7x.8x 23.3x 0.x The Descartes Systems Group Inc TSX: DSG 1,088 1, % 12.1% 89.1% 10.3% 8.1% 30.0% 6.2x.9x 21.3x 74.6x SPS Commerce, Inc. SPSC 94 1, % 4.1% 116.6% 24.1% 22.9% 10.2% 7.0x 6.1x.0x 372.8x SciQuest, Inc. SQI % (16.3%) (17.%) 7.9% 6.3% 4.6% 2.7x 2.6x 14.6x NM American Software, Inc. AMSW.A % (3.8%) 19.% 2.3% 8.6% 11.% 2.0x 1.9x 12.1x 33.0x Amber Road, Inc. AMBR % (6.%) NA 16.3% 12.3% NM 2.7x 2.4x NM NM Speed Commerce, Inc. SPDC % (92.%) (82.4%) 12.1% 36.9% NM 1.1x 0.8x NM NM Median $94 $1, % (1.8%) 89.1% 14.6% 12.0% 2.9% 6.2x.8x 21.3x 0.7x ENERGY SOFTWARE AVEVA Group plc AVV $1,64 $1, % (18.4%) 4.3% (12.1%) 3.1% 27.8%.1x 4.9x 1.8x 29.4x Silv er Spring Networks, Inc. SSNI % (6.9%) NA (8.4%) 2.2% NM 1.7x 1.8x NM NM OPOWER, Inc. OPWR % (38.9%) NA 3.7% 14.% NM 3.4x 3.1x NM NM EnerNOC, Inc. ENOC % (48.8%) 34.0% 16.6% (10.2%) 7.6% 0.6x 0.7x 3.9x NM PSI Aktiengesellschaft PSAN % (3.2%) (42.4%) 1.9% 6.0%.0% 0.8x 0.8x 10.x 39.0x Median $460 $87 7.0% (3.2%) 4.3% 1.9% 3.1% 7.6% 1.7x 1.8x 10.x 34.2x FINANCIAL SOFTWARE Fiserv, Inc. FISV $23,169 $19, % 37.3% 129.4% 4.3%.0% 30.3% 4.x 4.4x 14.0x 2.7x Solera Holdings Inc. SLH,304 2, % (33.6%) 6.6% 18.% 14.7% 36.9% 4.8x 4.6x 11.8x 4.7x Jack Henry & Associates Inc. JKHY,26, % 8.9% 87.4% 9.1% 4.1% 34.4% 4.3x 4.1x 12.1x 2.8x Black Knight Financial Serv ices, Inc. BKFS 4,748 2, % NA NA NA NA 33.6%.4x.1x NM NM Oracle Financial Serv ices Software Ltd ,467, % 14.0% 29.% 4.4% 21.% 39.8% 7.3x 6.3x 18.9x 26.4x DH Corporation DH 4,224 3, % 9.9% 88.4% 2.3% 27.0% 24.9% 4.7x 3.7x 1.x 33.3x Env estnet, Inc. ENV 1,364 1, % (17.4%) 236.9% 33.6% 20.0% 11.6% 3.7x 3.3x 24.7x 104.2x Bottomline Technologies (de), Inc. EPAY 1,09 1, % (7.1%) 4.1% 1.2% 10.% 13.% 3.4x 3.1x 13.x NM Q2 Holdings, Inc. QTWO 931 1, % 98.1% NA 42.0% 34.1% NM 10.8x 8.8x NM NM Median $4,467 $2, % 9.4% 87.4% 1.2% 14.7% 32.0% 4.7x 4.4x 14.0x 29.8x Software Bellwethers Communication Enterprise HCM Marketing PLM & Design SCM Energy Financial HCIT Public Sector Large-Cap SaaS Small-Cap SaaS Data & Analytics Network Management Data Storage IT Security PAGE 22

24 APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS Enterprise Market % of 2 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price / Company Ticker Value Capitalization Week High Performance Performance LTM NTM Margin LTM Rev. 201E Rev. LTM EBITDA Earnings HEALTHCARE IT Cerner Corporation CERN $23,704 $23, % 33.9% 67.1% 20.0% 38.6% 28.4% 6.7x.0x 20.8x 46.0x athenahealth, Inc. ATHN 4,623 4, % (8.4%) 44.7% 2.9% 21.9% 7.8%.8x.0x 33.2x NM Inov alon Holdings, Inc. INOV 3,622 4, % NA NA 22.% 21.0% 3.% 9.8x 8.3x 27.2x 63.8x Veev a Systems Inc. VEEV 3,264 3, % 10.1% NA 43.7% 26.7% 24.2% 9.7x 8.2x 37.4x 80.0x Allscripts Healthcare Solutions, Inc. MDRX 3,060 2, % (14.8%) 2.2% 0.4% 1.7% 4.6% 2.2x 2.2x 1.1x NM Medidata Solutions, Inc. MDSO 2,949 3, % 26.9% 232.% 20.9% 20.2% 11.3% 8.4x 7.3x 39.3x 372.3x MedAssets, Inc. MDAS 2,189 1, % (3.4%) 64.0% 8.3%.% 29.1% 3.0x 2.9x 9.4x NM Press Ganey Holdings, Inc. PGND 1,901 1, % NA NA NA NA 32.2% 6.x 6.0x NM 82.0x HMS Holdings Corp. HMSY 1,84 1,20 72.% (1.9%) (48.%) (6.%).4% 19.7% 3.x 3.4x 14.2x 107.7x Quality Systems Inc. QSII % 3.2% (39.8%) 10.2% 7.1% 10.4% 1.8x 1.7x 12.3x 36.6x Median $3,004 $2, % (0.1%) 44.7% 1.1% 13.7% 22.0% 6.2x.0x 20.8x 80.0x PUBLIC SECTOR SOFTWARE Constellation Software Inc. TSX: CSU $8,68 $8, %.9% 337.3% 2.8% 10.1% 16.1%.0x 4.7x 24.2x 66.2x Tyler Technologies, Inc. TYL 4,162 4, % 41.8% 220.6% 18.9% 16.3% 22.3% 8.1x 7.3x 33.3x 67.7x Blackbaud Inc. BLKB 2,897 2, % 9.3% 121.9% 13.2% 12.9% 16.2%.0x 4.x 24.1x 91.2x 2U, Inc. TWOU 1,248 1, % 91.% NA 31.2% 33.4% NM 10.x 8.x NM NM NIC Inc. EGOV 1,106 1, % 1.3% 43.9% 9.3% 7.6% 2.% 4.0x 3.8x 14.4x 31.0x K12, Inc. LRN % (47.4%) (4.7%) 6.1% 2.7% 7.9% 0.4x 0.4x 3.x 13.9x Median $2,072 $1, % 48.9% 121.9% 16.0% 11.% 16.2%.0x 4.6x 24.1x 66.2x LARGE-CAP SAAS salesforce.com, inc. CRM $46,666 $4, % 19.9% 101.4% 28.4% 21.9% 4.3% 8.2x 7.1x 2.4x NM Workday, Inc. WDAY 13,167 14, % (1.0%) NA 63.7% 4.3% NM 1.0x 11.x NM NM NetSuite Inc. N 7,031 7, %.6% 67.% 34.2% 31.8% NM 11.8x 9.6x NM NM Solera Holdings Inc. SLH,304 2, % (33.6%) 6.6% 18.% 14.7% 36.9% 4.8x 4.6x 11.8x 4.7x athenahealth, Inc. ATHN 4,623 4, % (8.4%) 44.7% 2.9% 21.9% 7.8%.8x.0x 33.2x NM The Ultimate Software Group, Inc. ULTI 4,84 4, % 18.9% 84.8% 22.2% 21.8% 13.4% 8.7x 7.4x 37.8x 111.8x Dealertrack Technologies, Inc. TRAK 4,263 3, % 38.% 108.% 78.% 28.4% 12.1% 4.x 3.9x 22.3x NM Veev a Systems Inc. VEEV 3,264 3, % 10.1% NA 43.7% 26.7% 24.2% 9.7x 8.2x 37.4x 80.0x Guidewire Software, Inc. GWRE 3,184 3, % 30.2% 88.2% 13.3% 7.6% 6.8% 8.x 8.2x 42.1x 210.4x Medidata Solutions, Inc. MDSO 2,949 3, % 26.9% 232.% 20.9% 20.2% 11.3% 8.4x 7.3x 39.3x 372.3x Proofpoint, Inc. PFPT 2,481 2, % 70.0% 27.6% 40.6% 29.1% NM 11.8x 9.8x NM NM Demandware, Inc. DWRE 2,471 2, % 2.% 200.0% 0.2% 4.6% NM 13.9x 10.6x NM NM Median $4,424 $3, % 14.% 94.8% 31.3% 24.3% 11.7% 8.6x 7.8x 37.6x 111.8x Software Bellwethers Communication Enterprise HCM Marketing PLM & Design SCM Energy Financial HCIT Public Sector Large-Cap SaaS Small-Cap SaaS Data & Analytics Network Management Data Storage IT Security PAGE 23

25 APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS Enterprise Market % of 2 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price / Company Ticker Value Capitalization Week High Performance Performance LTM NTM Margin LTM Rev. 201E Rev. LTM EBITDA Earnings SMALL-CAP SAAS Paycom Software, Inc. PAYC $1,984 $1, % 134.1% NA 44.6% 36.1% 17.6% 11.7x 9.6x 80.x 188.1x Cornerstone OnDemand, Inc. CSOD 1,884 1, % (24.4%) 46.2% 36.7% 29.0% NM 6.7x.x NM NM Fleetmatics Group PLC FLTX 1,649 1, % 44.8% NA 28.% 21.9% 2.9% 6.7x.8x 23.3x 0.x Zendesk, Inc. ZEN 1,609 1, % 27.8% NA 73.3% 2.7% NM 11.2x 8.3x NM NM RealPage, Inc. RP 1,0 1,17 82.% (1.2%) (17.7%) 6.7% 14.2%.9% 3.6x 3.3x 22.4x NM HubSpot, Inc. HUBS 1,04 1, % NA NA 2.7% 44.1% NM 11.6x 9.0x NM NM Xero Limited. XRO 1,471 1, % (46.2%) 204.7% 77.7% 68.9% NM 18.6x 12.1x NM NM LogMeIn, Inc. LOGM 1,36 1, % 38.3% 111.3% 31.6% 18.9% 9.7%.8x.1x 28.0x 216.9x Qualys, Inc. QLYS 1,227 1, % 7.2% NA 24.0% 24.1% 19.0% 8.7x 7.4x 43.9x 40.7x Benefitfocus, Inc. BNFT 1,191 1, % (.1%) NA 33.9% 27.0% NM 8.0x 6.8x NM NM RingCentral, Inc. RNG 1,164 1, % 22.2% NA 36.8% 30.1% NM 4.9x 4.1x NM NM Marketo, Inc. MKTO 1,088 1, % (3.%) NA 0.9% 39.% NM 6.6x.2x NM NM SPS Commerce, Inc. SPSC 94 1, % 4.1% 116.6% 24.1% 22.9% 10.2% 7.0x 6.1x.0x 372.8x Q2 Holdings, Inc. QTWO 931 1, % 98.1% NA 42.0% 34.1% NM 10.8x 8.8x NM NM Cv ent, Inc. CVT 89 1, % (11.4%) NA 28.6% 28.3% 1.%.9x 4.9x 3.0x NM Callidus Software Inc. CALD % 30.% 212.9% 23.4% 21.7% NM.3x 4.6x NM NM MINDBODY, Inc. MB % NA NA NA NA NM 9.2x NM NM NM Alarm.Com Holdings, Inc. ALRM % NA NA 26.9% NA 12.9% 3.7x NM NM 6.2x Castlight Health, Inc. CSLT % (46.4%) NA 173.% 66.8% NM 10.9x 7.6x NM NM incontact, Inc. SAAS % 7.4% 97.0% 37.4% 23.2% NM 3.1x 2.7x NM NM OPOWER, Inc. OPWR % (38.9%) NA 3.7% 14.% NM 3.4x 3.1x NM NM AppFolio, Inc. APPF % NA NA NA NA NM 8.4x NM NM NM Bazaarv oice, Inc. BV % (2.3%) (67.6%) 13.7% 7.7% NM 2.2x 2.1x NM NM SciQuest, Inc. SQI % (16.3%) (17.%) 7.9% 6.3% 4.6% 2.7x 2.6x 14.6x NM Connecture, Inc. CNXR % NA NA 37.8% 20.7% 1.% 2.9x 2.6x 18.9x NM Xactly Corporation XTLY % NA NA NA NA NM 3.9x NM NM NM Fiv e9, Inc. FIVN % (27.4%) NA 22.2% 18.3% NM 2.2x 1.9x NM NM Amber Road, Inc. AMBR % (6.%) NA 16.3% 12.3% NM 2.7x 2.4x NM NM Upland Software, Inc. UPLD % NA NA 38.1% 10.4% 1.8% 2.1x 1.9x 43.7x NM Median $89 $1, % (4.3%) 97.0% 31.6% 21.9% 9.7%.9x.1x 43.8x 122.2x Software Bellwethers Communication Enterprise HCM Marketing PLM & Design SCM Energy Financial HCIT Public Sector Large-Cap SaaS Small-Cap SaaS Data & Analytics Network Management Data Storage IT Security PAGE 24

26 APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS Enterprise Market % of 2 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price / Company Ticker Value Capitalization Week High Performance Performance LTM NTM Margin LTM Rev. 201E Rev. LTM EBITDA Earnings DATA & ANALYTICS Splunk, Inc. SPLK $7,887 $8, % 2.8% 147.8% 48.1% 36.7% NM 16.1x 12.8x NM NM Tableau Software, Inc. DATA 7,488 8, % 61.6% NA 7.4% 0.1% 2.2% 16.0x 12.1x 19.9x NM Teradata Corporation TDC,201, % (8.0%) (48.6%) (1.7%) (2.6%) 20.1% 1.9x 2.0x 7.0x 16.6x Verint Systems Inc. VRNT 4,08 3, % 23.8% 10.8% 18.8%.7% 14.3% 3.6x 3.3x 14.6x NM Inov alon Holdings, Inc. INOV 3,622 4, % NA NA 22.% 21.0% 3.% 9.8x 8.3x 27.2x 63.8x Qlik Technologies, Inc. QLIK 2,912 3, % 4.6% 8.0% 16.7% 9.3% 0.%.1x 4.8x 70.x NM MicroStrategy Inc. MSTR 1,3 1, % 21.0% 31.0% (3.1%) (6.8%) 12.4% 2.7x 2.8x 3.0x 60.2x Pegasystems Inc. PEGA 1,27 1,72 9.0% 8.4% 38.8% 13.2% 11.% 12.0% 2.x 2.3x 18.x 9.x PROS Holdings, Inc. PRO % (20.2%) 2.% 24.0% (3.1%) NM 3.1x 3.2x NM NM Median $3,622 $3, % 22.4% 38.8% 18.8% 9.3% 12.4% 3.6x 3.3x 27.2x 62.0x NETWORK MANAGEMENT VMware, Inc. VMW $30,620 $36, % (11.4%) (.8%) 1.1% 10.2% 2.1% 4.9x 4.6x 14.2x 41.2x Red Hat, Inc. RHT 13,467 13, % 37.4% 34.4% 1.8% 12.7% 18.9% 7.3x 6.9x 29.6x 73.1x Citrix Systems, Inc. CTXS 11,68 11, % 12.2% (16.4%).2% 2.8% 21.4% 3.7x 3.6x 14.0x 0.1x CA, Inc. CA 11,70 12, % 1.9% 8.1% (3.4%) (6.6%) 32.3% 2.7x 2.9x 6.6x 1.3x F Networks, Inc. FFIV 7,991 8, % 8.0% 20.9% 1.6% 10.9% 31.6% 4.3x 4.1x 11.6x 24.9x SolarWinds, Inc. SWI 3,284 3, % 19.3%.9% 22.2% 18.1% 32.3% 7.0x 6.3x 16.2x 40.3x Progress Software Corporation PRGS 1,328 1, % 14.4% 31.8% 7.2% 26.% 22.1% 3.8x 3.2x 10.6x 4.8x NetScout Systems, Inc. NTCT 1,288 1, % (17.3%) 69.8% 14.4% 10.9% 27.% 2.8x 2.7x 9.3x 24.4x Infoblox Inc. BLOX 1,190 1,09 93.% 99.3% 14.3% 14.3% 19.7% NM 4.2x 3.6x NM NM Radware Ltd. RDWR 948 1, % 31.6% 16.0% 14.7% 11.% 19.1% 4.2x 3.8x 23.x 37.x Median $,637 $6, % 13.3% 1.1% 14.% 11.2% 2.1% 4.2x 3.7x 14.0x 40.3x Software Bellwethers Communication Enterprise HCM Marketing PLM & Design SCM Energy Financial HCIT Public Sector Large-Cap SaaS Small-Cap SaaS Data & Analytics Network Management Data Storage IT Security PAGE 2

27 APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS Enterprise Market % of 2 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price / Company Ticker Value Capitalization Week High Performance Performance LTM NTM Margin LTM Rev. 201E Rev. LTM EBITDA Earnings DATA STORAGE EMC Corporation EMC $1,81 $1,21 8.3% 0.2% 3.0%.4% 4.8% 22.9% 2.1x 2.0x 7.1x 19.9x Iron Mountain Incorporated IRM 11,147 6, % (12.6%) (.9%) 1.6% (1.1%) 30.0% 6.0x 3.6x 11.9x 20.1x NetApp, Inc. NTAP,786 9, % (13.6%) (0.8%) (3.2%) (.3%) 14.3% 0.9x 1.0x 4.0x 17.2x Brocade Communications Systems, Inc. BRCD 4,3 4, % 29.1% 141.0% 1.6% 1.7% 26.0% 2.0x 1.9x 6.8x 14.7x Box, Inc. BOX 2,003 2, % NA NA 62.0% 33.8% NM 8.x 6.9x NM NM Nimble Storage, Inc. NMBL 1,984 2, % (8.7%) NA 68.1% 46.9% NM 7.9x.9x NM NM Barracuda Networks, Inc. CUDA 1,921 2, % 27.7% NA 18.7% 17.4% 2.2% 6.6x 6.1x 26.3x NM CommVault Systems, Inc. CVLT 1,31 1,918 7.% (13.7%) (14.4%) 3.6%.% 8.4% 2.x 2.x 11.6x 74.8x Carbonite, Inc. CARB % (1.3%) 32.1% 13.1% 12.3% NM 2.0x 1.9x NM NM Median $2,003 $2, % (.0%) 1.1%.4%.% 18.6% 2.x 2.x 9.3x 19.9x IT SECURITY Symantec Corporation SYMC $14,032 $1, % 1.% 9.1% (2.%) (3.6%) 28.3% 2.2x 2.3x 6.6x 18.0x Check Point Software Technologies Ltd. CHKP 13,109 14, % 18.7% 60.4% 8.0% 8.6% 4.0% 8.6x 8.1x 1.0x 21.6x FireEye, Inc. FEYE 7,248 7, % 20.6% NA 130.3% 48.3% NM 1.2x 11.x NM NM VeriSign, Inc. VRSN 7,200 7, % 26.4% 41.7% 4.3% 4.3% 62.0% 7.1x 6.8x 10.6x 20.6x Fortinet Inc. FTNT 6,204 7, % 64.% 78.0% 2.6% 22.% 9.0% 7.6x 6.6x 44.0x 378.6x Trend Micro Inc. TSE: ,697 4, % 4.0% 17.1% 6.8% 7.1% 34.4% 3.9x 3.7x 11.8x 2.6x Proofpoint, Inc. PFPT 2,481 2, % 70.0% 27.6% 40.6% 29.1% NM 11.8x 9.8x NM NM Imperv a Inc. IMPV 1,829 2, % 18.6% 134.9% 26.0% 26.0% NM 10.3x 8.9x NM NM AVG Technologies N.V. AVG 1,14 1, % 3.2% 109.1% (3.2%) 1.7% 31.0% 3.9x 3.x 10.9x 29.1x Qualys, Inc. QLYS 1,227 1, % 7.2% NA 24.0% 24.1% 19.0% 8.7x 7.4x 43.9x 40.7x Median $4,91 $, % 30.8% 69.2% 16.0% 19.1% 31.0% 8.1x 7.1x 11.8x 2.6x Software Bellwethers Communication Enterprise HCM Marketing PLM & Design SCM Energy Financial HCIT Public Sector Large-Cap SaaS Small-Cap SaaS Data & Analytics Network Management Data Storage IT Security PAGE 26

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