Tech M&A Update. February since 1987 INDEPENDENT INVESTMENT BANKING FOR MEDIA, INFORMATION, MARKETING & TECHNOLOGY

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1 since 1987 February 2014 INDEPENDENT INVESTMENT BANKING FOR MEDIA, INFORMATION, MARKETING & TECHNOLOGY Tech M&A Update This month s letter is written by Amir Akhavan, Managing Direcr (see bio below) M&A is coming back! We had an active January with 65 tech deals announced, though no multi-billion dollar deals. The trend has been higher volume in the mid-market, and we are seeing nice acceleration overall. Corporates have solidified their 2014 strategic plans and are on the prowl we expect see a lot of tech M&A activity this year. A continuing theme in the market is the rush wards smarter technology that brings gether scale, intelligence and action. For example, INFOR acquired PeopleAnswers, which offers software applications that use industrial psychology principles extract the behavioral DNA from job applicants and provide insight in their capabilities just the sound of it makes the $200 million price tag feel justifiable. Meanwhile, Pinterest acquired two-man start-up VisualGraph, an image recognition/search platform. These acquisitions are about smarter analytics at scale. The key facrs at play in these intelligence tech acquisitions are 1) accuracy vs. human coding; 2) real-time speed; and 3) aumation of recommended actions and the integration in the workflow. The higher the accuracy, the more value (in our view, the 90% accurate threshold offers market differentiation), and the more aumated the recommendation and associated action, the more scalable. The next wave of smart tech M&A will focus on bringing sophisticated action intelligent platforms that are tiered based on the use case aumated, semi-aumated and manual interaction built in the workflow of users. This is why IBM is betting so big on Watson as a business line it offers intelligent action at massive scale and manages risk with consistent accuracy. 1

2 As companies ponder the implications of this scalable intelligence trend, some are joining the expensive horizontal software arms race, provide end--end capabilities in social, for example, going from engagement and ads analytics, insights and intelligence. Case in point: HootSuite acquired ubervu, a social analytics platform, expand their skill set and enhance their ability compete by providing better insights for its SMB engagement platform an important step, as it builds out additional analytics capabilities that lead recommended actions. Meanwhile, at the other end of the deal size spectrum, Verint made a $514 million bet on KANA Software, offer an end--end suite for delivering actionable intelligence optimize the workforce, improve enterprise processes and manage cusmer interactions. The software giants are actively looking acquire full-service, integrated platforms that can be scaled in multibillion dollar businesses. Oracle was aggressive with the Responsys acquisition, and all eyes are on SAP for their CMO marketing stack foundation think Marke. As such, we re expecting a nice mix of mega and mid-market deals in the coming months. These are our brief highlights for February. Stay tuned for the next issue, and please don t hesitate reach out us discuss any pics related the JEGI Tech Coverage or your company s M&A strategy. Amir Akhavan Managing Direcr Office: (212) Cell: (310) amira@jegi.com Daniel Avrutsky Managing Direcr/Global Head of Technology Office: (212) Cell: (646) daniel@jegi.com January M&A Transactions in JEGI Tech Coverage Buyer Seller Target Description Deals with s (by size) Zynga NaturalMotion Produces mobile video games and animation technology. $527 Verint Systems INFOR (Golden Gate Capital) Verizon Communications KANA Software (Accel-KKR) PeopleAnswers Intel Media (Intel Corporation) Develops cusmer relationship software solutions. $514 Offers web-based software applications extract behavioral DNA from job applicants provide insight in their capabilities. $200 Provides streaming TV services. <$200 TiVo Digitalsmiths Develops video search and recommendation solutions. $135 Microsoft Dynamics Parature SaaS-based social and cusmer engagement solutions. $100 AOL Gravity Provides personalization services for users discover content on the Internet. $83 2

3 Buyer Seller Target Description Brightcove Group M (WPP) Becn, Dickinson and Company Unicorn Media plista Alverix (Safeguard Scientifics) Operates as a mobile monetization technology company that provides Internet video solutions. Offers preference-based ads, recommendation ads, and personalized ad spaces. Designs instrument and connectivity platforms for diagnostic point-of-care testing applications. $51.3 $41 $40 ServiceSource Scout Analytics Provides cloud-based revenue management solutions. $32 Yahoo Tomfoolery Develops and builds applications for smartphones. $16 Facebook Little Eye Labs Builds mobile application analysis ols for application developers and testers. $14.5 Superior Global Solutions (Petra) Hirschl & Asssociates Coding, billing compliance and revenue integrity services for the healthcare industry. $4.5 Mobivity SmartReceipt A mobile management ol launch campaigns that work with various point-of-sale, cash register and thermal printers. $2 HomeFinder.com Open Home Pro Offers an application that allows realrs run their open houses via the ipad and collect leads. $1 Deals without Announced s (alphabetical by buyer) ABRY Partners Apple Brightree Cardon Outreach (Fifth Street Capital/Serent) Cegedim comscore Confirmit Connections Education (Pearson) Inmar (New Mountain Capital) SnappyLabs Strategic AR Solutions VIA Health (Managed Care Reimbursement) Kadrige Arbitron Audience Measurement (Nielsen) Integrasco Advanced Academics (DeVry) Operates intelligent commerce networks, connecting offline and online transactions in real time. A pho technology company that develops the iphone camera app SnappyCam. Provides web-based patient billing and collecting services for the home medical equipment industry. Financial software solutions for medical offices. Provides software solutions and services for the pharmaceutical industry. Cross-platform audience measurement services, including TV and radio data collected through the Portable People Meter. Provides social media moniring and analytics services the telecommunications industry. Provides online learning solutions schools and districts in the US. Corridor Group Daymarck Home healthcare coding and auditing services. Decision Resources Group (Piramal) Relay Technology Management LIfe sciences trend analytics and asset comparison software provider. EBSCO Plum Analytics Provides altmetrics and research impact measurement services. Etransmedia Technology (Praesidian Capital) EVIDERA (Symphony Technology Group) Firespring Medigistics Archimedes (Kaiser Permanente) Cost Effective Technologies (Nelnet) Multi-specialty medical billing and accounts receivable management solutions. A healthcare modeling and analytics organization. Offers office productivity, document management, content management, web conferencing, and more. 3

4 Buyer Seller Target Description General Electric API Healthcare (Francisco Partners) Provides healthcare specific workforce management solutions. Google Bitspin A mobile alarm application with advanced sleep technology. Google Gores Group Grocery Shopping Network Healthsparq (Cambia Health) HireVue HootSuite Media InSequent (OPENAIR Equity Partners) IQNavigar (GTCR) LiveOps Michigan Health Connect Millenium Laboraries (TA) Physio-Control (Bain Capital) Impermium Zmags PlaceWise Media ClarusHealth Solutions Reschedge ubervu Intelligent SEO ProcureStaff Technologies (Volt) UserEvents Great Lakes Health Information Exchange RxAnte Sansio Provides subscription-based social content cleaning services defend websites against fake users, inappropriate language, etc. A provider of ecommerce-enabled digital catalogs and other ecommerce SaaS solutions. Provides location-based online and mobile shopping applications for consumers. Develops decision making and user behavior analytics software for the healthcare industry. A scheduling engine for interviews that enables scheduling back-back and panel interviews. A social analytics platform that provides deeper insights on campaigns across sites such as Facebook, Twitter and LinkedIn. Develops a search engine optimization solution that enables companeis and agencies manage their offline presence. A vendor management system that allows business enterprises manage various categories of services spend. A contextual routing engine that can aggregate and process events on any social, web, mobile or voice channel in real time. Offers exchange of patient health information through a webbased environment. Provides an analytics platform predict medication adherence for individual patients and monir over time. Web-based remote dtat collection and centralized data management software solutions for the healthcare market. Pinterest VisualGraph Provides a cloud-based image recognition/visual search platform. PopSugar PICT A tech platform that turns phos in shoppable images. Responsys Push IO Develops mobile cloud services platform for mobile devices. Room 214 RuffaloCODY (North Bridge/Summit) SalesFUSION SNL Financial Webligo Developments ScaleFunder LoopFuse (Nearstream) ipartners Provides social network and community software for affinity groups, startups, brands and fans. A crowdfunding platform for seamless brand integration, payment processing, CRM integration and lead generation. Provides a B2B marketing aumation platform that enables marketers generate and track demand. Develops and operates a platform collect, analyze and use data make decisions. Sterling Partners Q-Centrix Provides outsourced core measure and registry abstracting services. Strategic Link Partners Surgical Information Systems (Golub) DigaForce Amkai Develops a social media intelligence platform for demographic information based on unfiltered social content. Information management solutions for outpatient surgery providers, ambulary surgical centers and other practices. 4

5 Buyer Seller Target Description Trusted Team Touch22 Systems Provides SaaS-based referral software. Viggle Vocera Communications Voxsup (Jump Capital) Wolters Kluwer Financial Services Xumanii International Yahoo Dijit Media mvisum Echo System Corp. Financial Tools GiddyUp Aviate (HCP China) Developer of the NextGuide mobile app for creating personalized TV viewing guides. A mobile software publishing company for the healthcare industry. Provides engagement ols, analytical platforms, and insights and support for ecommerce websites. Provides financial analysis and credit risk management software. Operates as a mobile application that allows users coordinate and plan meet ups and events with friends in real time. Provides contextual app search and organization for mobile phone users. Yahoo Cloud Party Develops a browser-baed game creation engine. Yahoo Yahoo YP Intellectual Property Incredible Labs Sparq Sense Networks Developer of personal assistant app Donna that was designed anticipate users needs, especially around scheduling. A mobile platform used for linking from a specific website or an exact spot in an app, rather than the app s landing page. Provides location data analytics and information solutions. About Amir Akhavan Amir Akhavan, Managing Direcr with JEGI, advises tech, marketing services, interactive and information companies in mergers, acquisitions and divestitures. He is known for delivering high-value strategic advice entrepreneurs, PE firms, VCs and strategics, as they evaluate and seek stay at the forefront of rapidly changing markets. Mr. Akhavan is especially passionate about working with entrepreneurs, as they develop market disrupting businesses. His domain expertise extends social media and technology across the marketing stack; he recently wrote The Social Media Ecosystem - Rise of Users, Intelligence and Operating Systems, published by the Interactive Advertising Bureau. Mr. Akhavan is also a member of JEGI Capital, the firm s PE fund - successful exits included Aprimo (board observer, acquired by Teradata) and I-Behavior (acquired by WPP). Prior joining JEGI in 2005, he was at Deloitte Corporate Finance in the media and entertainment M&A investment banking group and also worked with Deloitte Consulting on strategy engagements. Previously, Mr. Akhavan worked in EY s Assurance and Advisory Business Services practice, focusing on Technology, Media and Telecom. Mr. Akhavan earned his Master s from the University of Virginia as an Ernst & Young YMP scholar and his Bachelors in Corporate Finance from the University of Southern California (USC). He is a member of the USC Board of Governors and received the USC Alumni Association s Presidents Award. Mr. Akhavan is a CPA and a Big Brothers Big Sisters of New York menr. 5

6 About Daniel Avrutsky Daniel Avrutsky, Managing Direcr and Global Head of Technology at JEGI, joined the firm in February 2013 lead its M&A advisory practice in technology and software, focused on the US, Europe and Israel. Mr. Avrutsky has 17 years of experience in global technology M&A. Prior joining JEGI, he was Founder and Managing Partner of Avrika Group, where he provided cross-border advisory services US-based and European clients seeking technology investments and M&A opportunities in Eastern Europe. Mr. Avrutsky continues be an independent member of the Grant Committee of the Skolkovo Foundation, Russia s largest technology development agency. For the prior five years, Mr. Avrutsky was with Perella Weinberg Partners in New York, most recently as a Managing Direcr in the firm s technology practice. He started his career at JP Morgan and held various positions at Salomon Brothers, Bank of America and Warburg Pincus. Mr. Avrutsky holds a BA with cum laude in Mathematics and Economics from Duke University and an MBA from Stanford University Graduate School of Business. He also studied Mathematical Economics and Computer Science at Moscow State University. About The Jordan, Edmisn Group, Inc. The Jordan, Edmisn Group, Inc. (JEGI) of New York has been the leading independent investment bank for the media, information, marketing and technology secrs for more than 26 years. The firm has completed over 500 high-profile M&A transactions for global corporations; middle-market and emerging companies; entrepreneurial owners; and private equity and venture capital firms. For more information, visit Select Recent JEGI Technology Transactions a full service competitive advertising tracking firm a portfolio company of a leading provider of shopping and shopper marketing software and services has received a significant investment from a portfolio company of has sold the leading provider of sales enablement and business intelligence SaaS solutions SaaS-based applications for the consumer products licensing industry a global leader in digital engagement specializing in promotions and loyalty campaigns across mobile, social and web & Ocber 2013 May 2013 Ocber 2012 Ocber 2012 August 2012 a SaaS marketing platform (CRM) for real-time, multi-stage, and multi-channel marketing including social media, , and mobile the leading SaaS platform for retail transaction optimization solutions the leading provider of consumer shopping predictive targeting data a divison of a leading marketing technology company providing interactive video communications an online behavioral targeting network May 2012 Ocber 2011 November 2010 September 2010 for approximately $95,000,000 Wilma Jordan Founder & CEO wilmaj@jegi.com Scott Peters Co-President scottp@jegi.com Tolman Geffs Co-President lmang@jegi.com Richard Mead Managing Direcr richardm@jegi.com David Clark Managing Direcr davidc@jegi.com Daniel Avrutsky Managing Direcr daniel@jegi.com Chris Caln Managing Direcr chrisc@jegi.com Amir Akhavan Managing Direcr amira@jegi.com Tom Pecht Managing Direcr mp@jegi.com Bill Hitzig COO billh@jegi.com Adam Gross CMO adamg@jegi.com Tom Creaser EVP mc@jegi.com Sam Barthelme Direcr samb@jegi.com East 52nd Street, 18th Floor New York, NY