Technology, Software, and Information & Business Services Industries

Transcription

1 1H13 Deal Notes M&A and Investments Review Technology, Software, and Information & Business Services Industries 1H13 Review of M&A and Investment Activity in the Technology, Software, and Information & Business Services Industries: 1,283 Totaling a $50.3 Billion Marketing Technology was the Most Active Segment in 1H13 with 421 Information & Business Services was the Highest Segment with $18.6 Billion in Deal Overview 1 Segment Analysis Marketing Technology 5 Technology & Communications 6 Software 7 Information & Business Services 8 Recent 9 About Petsky Prunier 10 During the first half of 2013, Petsky Prunier tracked 1,283 M&A and investment transactions for a tal of $50.3 billion across four broad segments: Marketing Technology, Technology & Communications, Software, and Information & Business Services. Marketing Technology was the most active segment in 1H13, accounting for one-third of tal volume during the first six months of the year, with 421 transactions announced. Of those, 276 were worth $8.9 billion in aggregate reported value. Information & Business Services was the highest reported value segment in 1H13 with $18.6 billion, including Fidelity National Services $3.9 billion acquisition of Lender Processing Services, a provider of integrated technology, data, and services the mortgage lending industry. Software was also a high-value segment due in large part the announced $6.9 billion take-private of enterprise software company BMC Software from a consortium of private invesrs led by Bain Capital and Golden Gate Capital. [continued on page 2] Technology, Software, and Information & Business Services Industries MARKETING, MEDIA, TECHNOLOGY AND SERVICE INDUSTRIES! Technology, MARKETING, Software, MEDIA, and TECHNOLOGY Information & AND BusinessServices SERVICE INDUSTRIES! Industries M&A 2Q12-2Q13 1H12 AND M&A INVESTMENT AND M&A INVESTMENT and ACTIVITY: Investment ACTIVITY! 1Q11 Activity - 2Q12! ($ ($ in in Millions)! Billions)! ($ in Billions) ($ in Billions) 2Q12 2Q13 M&A and Investment Activity Technology, Software, and Information & Business Services Industries 1H13 M&A and Investment Activity ($ in Millions) Technology, MARKETING, Software, MEDIA, and TECHNOLOGY Information & AND Business SERVICE Services INDUSTRIES Industries 2Q12 1H13 M&A M&A AND and INVESTMENT Investment Activity ACTIVITY ($ ($ in in Millions) Millions) DOLLAR VALUE Information & Business Services $18,617 $29.4 $36.2 Software $13,285 $23.7 $19.0 $14.0 DEAL VOLUME Q12 3Q12 4Q12 1Q13 2Q13 Technology & Communications $9,495 Marketing Technology $8,862 Securities offered through Petsky Prunier Securities, LLC 1

2 Deal Notes First Half 2013 M&A Activity Acquisitions accounted for 47 percent of tal transactions and 84 percent of reported value in 1H13. Information & Business Services was the highest value M&A segment with 181 acquisitions announced, of which 36 were reported for $17.5 billion in value. IT Consulting/ Systems Integration was the most active Information & Business Services subsegment, with 48 acquisitions announced, of which nine were worth $2.4 billion in aggregate reported value. The three largest acquisitions announced in the Information & Business Services segment were: BC Partners $4.4 billion buyout of Germany-based Springer Science+Business Media, which publishes academic and professional books, journals, and periodicals IHS $1.4 billion agreement acquire R. L. Polk, a provider of aumotive intelligence and marketing solutions Thomas H. Lee Partners $1.1 billion buyout of IT outsourcing specialist CompuCom Systems, from Court Square Capital Partners Software was the second-highest value M&A segment during the first half of the year with 180 acquisitions announced, of which 36 were reported at $10.7 billion in aggregate value. The Infrastructure Software subsegment accounted for 67 percent of the segment s acquisition value, largely due the $6.9 billion take-private of BMC Software. The nextlargest Infrastructure Software acquisition was SolarWind s $120 million purchase of Canada-based N-able Technologies, a provider of network moniring and remote systems management solutions. Security Software was the second-highest value subsegment, accounting for 15 percent of tal acquisition value in the segment. Other notable acquisitions announced in the Security Software subsegment included: Vista Equity Partners announced take-private of Websense, a provider of network security solutions, valued at more than $900 million McAfee s $378 million acquisition of Snesoft, a Finland-based provider of network firewall products, at 7x revenue A tal of 147 acquisitions were announced in the Marketing Technology segment, of which 30 were reported at $6.7 billion in aggregate value. Analytics/Reporting was the most active subsegment with 21 control deals announced, up from 10 in 2H12, followed by Content Management with 16. There were 26 acquisitions announced by cloud-based marketing technology companies, including: Salesforce.com s $2.5 billion acquisition of marketing execution company ExactTarget, which provides cross-channel, digital marketing SaaS solutions, valuing the company at 7.4x revenue SAP s acquisition of Germany-based Hybris, a vendor of cloud-based, multi-channel communication and commerce software solutions, reportedly valued at $1.5 billion Adobe s $600 million acquisition of NeoLane, which offers solutions that help companies manage their marketing across channels There were 91 acquisitions announced in the Technology & Communications segments, of which 31 were reported at $7.5 billion in value. Reflecting an influx of advanced mobile and in-sre payment technologies, Financial Technology was the most active subsegment, accounting for 20 percent of acquisitions in the segment (triple the level of activity in 2H12). Of the 18 Financial Technology acquisitions announced, seven were reported at $1.2 billion in aggregate value. M&A activity in the Cloud Computing subsegment was also strong, with a 25 percent increase in volume and a 62 percent increase in reported value from 2H12. Ten acquisitions were announced in the Networking Equipment subsegment, of which five were worth $771 million in aggregate reported value. Notable acquisitions in the Technology & Communications segment included: IBM s $2 billion acquisition of SoftLayer Technologies, which operates a unified cloud infrastructure platform Avista Capital Partners $253 million acquisition of Telular, which develops cellular electronics products that utilize wireless networks provide data and voice connectivity among people and machines Fidelity National Information Services $120 million purchase of mfoundry, a provider of mobile banking and payment solutions for financial institutions and retailers 1H13 Most Active Strategic Buyers by Buyer Representative Targets Cisco 6 Cognitive Security, Intucell, JouleX, SolveDirect Service Management, Ubiquisys IHS 6 Energy Publishing, Fekete Associates, Intellichem, PFC Energy, R.L. Polk Salesforce.com 4 EdgeSpring, EntropySoft, ExactTarget, Pasona Tquila Reed Elsevier 4 Aureus Sciences, Knovel, Knowledge Mosaic, Mendeley SAP 4 Camilion, Hybris, SmartOps, Ticket-Web Twitter 4 Bluefin labs, Crashlytics, Lucky Sort, Ubalo IMS Health Vantage, Appature, Semantelli Google 3 Behavio, Channel Intelligence, Wavii Oracle 3 Acme Packet, Nimbula, Tekelec Facebook 3 Atlas Advertiser Suite, Parse, Spaceport.io 2

3 Deal Notes First Half 2013 Investment Activity There were 684 investments announced during 1H13, of which 606 were worth $7.8 billion in aggregate reported value. Marketing Technology was the most active investment segment, accounting for 40 percent of volume and 27 percent of reported value. A tal of 274 investments were announced in the Marketing Technology segment, of which 246 reported $2.1 billion in value. Activity in the segment was led by the Analytics & Reporting and Social Technology subsegments, which gether accounted for nearly 30 percent of both investment volume and reported value during the first half of the year. Of the 79 investments announced in these subsegments, 22 were among companies extending the value of traditional analytics by integrating big data analytics solutions. Investments included: Goldman Sachs $100 million investment in Applied Predictive Technologies, a provider of cloud-based big data predictive analytics software A $38 million investment in MarketShare Partners, a cross-media analytics provider leveraging big data technology provide a combination of technology, data, modeling, and business intelligence solutions, led by FTV Capital The $24 million Index Ventures-led investment in Elasticsearch, a Netherlands-based big data start-up developing real-time search and data analytics solutions Software was the highest reported value investment segment, with 187 investments announced, of which 165 were reported at $2.6 billion. The most active subsegments were Security Software and Healthcare Software, with 39 and 29 investments announced, respectively, for a combined $715 million in reported value. The Application Management Software and Software Development Tools subsegments gether accounted for 22 percent of investment value in the segment. Of the tal 42 deals announced across the two subsegments, 18 involved cloud computing technologies. Notable investments in the Software segment included: The $150 million investment in Precision for Medicine, a provider of services and infrastructure support life science companies, raised from Oak Investment Partners and J.H. Whitney General Electric s $105 million investment in Pivotal One, a spin-out from EMC and VMware that has developed an enterprise Platformas-a-Service for the creation and management of consumer-grade applications, reportedly valuing the company at more than $1 billion The Technology & Communications segment accounted for 22 percent of investments during 1H13, with 153 investments announced, of which 143 were worth $2 billion in aggregate reported value. Leading subsegments were Financial Technology, Big Data Technology, and Cloud Computing Technology, in which there were a tal of 71 investments announced. Activity across these subsegments increased 92 percent from 2H12. Enterprise Mobility was the highest value subsegment, in addition being the most active Communications subsegment. Of its 15 investments announced, 12 were reported at $292 million in aggregate value. The largest investments announced in 1H13 across the Enterprise Mobility, Big Data, and Financial Technology subsegments included: The $200 million Insight Venture Partners-led investment in AirWatch, a company that specializes in helping large companies manage and secure the mobile devices their employees use The $50 million investment in Hornworks, a provider of opensource software used for managing massive amounts of data, led by Tenaya Capital and Dragoneer Investment Group The $30 million investment in MapR Technologies, a developer of software manage and analyze big data, led by Mayfield Fund 1H13 Most Active Invesrs by Invesr Representative Targets Andreessen Horowitz 15 Balanced, Crowdtilt, Cumulus Networks, DataGravity, Dwolla, Illumio, Pindrop Security Bessemer Venture Partners 11 Adaptive Planning, Affirmed Networks, Convertro, Dekko, Intigua, Simply Measured Intel Capital 9 500friends, Apperian, Big Switch Networks, Expect Labs, Fortumo, Movable, Nexmo 500 Startups 8 15Five, Clip, Hedgeye Risk Management, Lagoa, PayrollHero, Soldsie, ToutApp Battery Ventures 8 Catchpoint Systems, Diable Technolgies, Entelo, Gainsight, Panaya, Q2ebanking Atlas Venture 7 clypd, DataXu, Discoverly, Gizmox, Hstreaming, Skillz Kleiner Perkins Caufield & Byers 7 EdgeSpring, Good Technology, Ionic Security, PernixData, Shape Security, Workspot Redpoint Ventures 7 Curious.com, ERPLY, Inadco, Infer, Lastline, Moogsoft, Twilio Insight Venture Partners 7 BrightEdge, Card Scanning Solutions, Kaseya International, New Relic, Pluralsight Sequoia Capital 6 MadeiraCloud, MarkLogic, Pyramid Analytics, Skyhigh Networks, ThousandEyes Accel Partners 6 AirWatch, GoCardless, HasOffers, Lynda.com, RelateIQ, ScaleArc Bain Capital 6 AppNeta, Booker Software, BTI Systems, Novus Partners, Perado, SevOne True Ventures 6 Concurrent, MobileSpan, Namely, Orchestrate.io, Runscope, TripleLift 3

4 Deal Notes First Half 2013 Buyer & Invesr Activity Strategic buyers accounted for 91 percent of all control transactions in 1H13. Thirty percent of strategic deal activity and 12 percent of reported value were announced in the Software segment, in which 162 control transactions were announced. Of those, 30 were reported at $2.7 billion in aggregate value. There were 159 strategic acquisitions announced in the Information & Business Services segment, a 37 percent increase in deal activity compared 1H12. Of these, 26 were worth $8.5 billion in aggregate reported value. Buyout firms announced 54 deals during the first six months of the year, of which 22 were reported at $19.4 billion in value. The Information & Business Services segment accounted for 47 percent of that value (largely due the Springer Science+Business Media acquisition) and was followed by the Software segment s $8 billion in reported value. Notable buyout transactions included: Advent International and Goldman Sachs Capital Partners $3 billion buyout of TransUnion, a provider of credit information and information management services both businesses and consumers Veritas Capital s $1.3 billion buyout of Thomson Reuters Healthcare Business, which offers data, analytics, and performance benchmarking services the healthcare industry Venture and growth capital invesr volume and value increased 14 percent and 13 percent, respectively, from 2H12. The largest increase in activity occurred in the Information & Business Services segment, in which 70 deals were announced 20 more than the previous half-year period. Andreessen Horowitz, Bessemer Venture Partners, and Intel Capital were the most active invesrs, with 15, 11, and nine investments announced, respectively, during 1H13. 2Q13 M&A and Investment Summary In 2Q13, Petsky Prunier tracked 676 M&A and investment transactions, of which 385 were reported at $36.2 billion in value. Compared 1Q13, reported volume and value increased 11 percent and 158 percent, respectively. Marketing Technology was the most active segment with 226 deals announced. Of these, 145 were reported at $6.4 billion in aggregate value, up 166 percent from 1Q13. Activity in the segment reflected the utilization of multichannel consumer data optimize marketing effectiveness, as underscored by Salesforce.com s acquisitions of ExactTarget for $2.5 million, along with its acquisition of EdgeSpring, SAP s $1.5 billion acquisition of Hybris, Google s $1.1 billion acquisition of Waze, Adobe s $600 million purchase of Neolane, and the $50 million Tenaya Capital-led investment in Hornworks, among others. Acquisitions accounted for 47 percent of deal activity, with strategic buyers making up 92 percent of announced control transactions. The Information & Business Services segment accounted for 32 percent of acquisitions announced, while quarter-over-quarter value in the segment increased 262 percent. There were 356 investments announced during the quarter, of which 318 were reported at $4.4 billion in value. Marketing Technology was the most active segment among invesrs, with 151 investments announced, of which 132 were worth $1.2 billion in aggregate reported value. Of the 26 buyout transactions announced, 11 were in the Information & Business Services segment. Technology, MARKETING, Software, MEDIA, and TECHNOLOGY Information AND & Business SERVICE INDUSTRIES Services Industries Technology, Software, and Information & Business Services Industries 2Q12 2Q13 M&A M&A AND and INVESTMENT Investment Activity ACTIVITY 2Q13 M&A and Investment ($ in Millions) Activity ($ in Millions) ($ in Millions) Information & Business Services $14,319 IPO Activity Fifteen companies completed their IPOs across the Technology, Software, and Information & Business Services segments during 1H13. Marin Software, Rally Software Development, and Texture all had successful IPOs pricing at the high-end or above their respective initial filing ranges and closing the period trading above their respective first-day closing sck prices. Within the Information & Business Services segment, BPO company Quintiles Transnational closed 1H13 trading flat from its first-day closing sck price. Professional Diversity Network, an HR information provider, closed the period down 47 percent. Within the Technology & Communications segment, Blackhawk Network, Cyan, Gigamon, and Xoom completed their IPOs. Each priced at the middle or high-end of their initial filing ranges, but closed the period trading below their respective first-day closing prices. Also notable was the IPO of big data technology company Tableau Software, which priced its shares above its initial filing range and closed 1H13 trading above its first-day closing price. Software $11,014 Technology & Communications $4,448 Marketing Technology $6,442 4

5 Marketing Technology Deal Notes First Half 2013 M&A and Investment Activity With 226 deals announced for $6.4 billion, M&A and investment volume and reported value in the Marketing Technology segment increased 16 percent and 385 percent, respectively, from the previous quarter. Cloud-based marketing ols were the main drivers of M&A and investment activity within the Marketing Technology segment during 2Q13. By moving marketing aumation and management solutions the cloud, both on- and offline marketers have been better-equipped engage cusmers through the use of real-time targeting analytics. In addition the acquisitions of EdgeSpring, ExactTarget, Hybris, and SoundBite Communications, transactions involving cloud-based marketing solutions included: Answers.com s $37 million acquisition of WebCollage, a cloud-based software firm enabling manufacturing companies update marketing materials directly from retail shops websites The $15 million Starvest Partners-led investment in Most RetailNext, Active Technology a provider & of Communications cloud-based applied s big data analytics solutions for brick-and-mortar retailers NetSuite s acquisition of OrderMotion, which provides cloud-based order management and analytics solutions for ecommerce and direct-consumer businesses Together, Financial Technology investments in the Analytics & Reporting 23 and 1,266 Social Technology 32 subsegments 182 accounted 244% for nearly one-quarter 246% of investment 71 volume 1,866 in the Cloud Computing Technology ,121 13% 54% 51 3,825 segment and 28 percent of accompanying value in 2Q13. In addition the 11 investments in big data analytics providers, venture and growth capital Data Center Technology % 44% firms Big Data also Technology sought out investments in social 10marketing technology 120 companies, 10 including: % (0%) Networking AEA s $68 Equipment million investment in Brand Networks, 10 a leading 529 provider of 7 social software 325 solutions (67%) and digital marketing (78%) services for 69 some of the 4,717 world s Communications Software (42%) (73%) 38 3,279 Enterprise largest brands Mobility (note, Petsky Prunier advised 14 Brand Networks 212 on its investment) % (27%) Infrastructure Technology NM NM The $18 million investment in Skytree, a big data analytics company offering software capable of performing machine learning and other advanced Subtal 105 3, ,980 11% (29%) ,227 Other analytics methods on massive amounts of 14data, led by 1,890 U.S. Venture Partners (65%) (29%) 115 5,671 Total The $10 million Fairhaven Capital-led investment 119 in 5,047 SocialFlow, which 125 offers ols 4,448 that allow cusmers (12%) measure (29%) the effectiveness 521 of their 22,898 tweets "Other" and Facebook includes Internet posts Service Providers, Messaging & Mediation Software, Satellite & Microwave Equipment, Telephone Equipment, Video Communications Software, VoIP Equipment Software, and Web Most Active Marketing Technology s Mobile Infrastructure % (60%) Cloud Srage % (62%) Conferencing Software Most Active Marketing Technology s Analytics & Reporting % 163% Content Management (38%) (63%) Mobile Technology % 154% BI Tools % (21%) CRM % 410% Social Technology % (28%) Commerce Management ,523 (24%) 821% 44 1,866 SFA/Lead Management (12%) (91%) 32 1,049 MRM/Workflow Management (14%) (44%) Online Targeting/Optimization (30%) 258% SEM/SEO Tools % (53%) /Messaging Software ,538 (25%) 2,212% 21 2,648 Subtal 150 1, ,174 7% 112% ,773 Other 45 1, % 230% 141 2,011 Total 195 2, ,442 9% 126% ,785 "Other" includes Ad Serving, Content Delivery Network, Creative Production Platform, /Messaging Platform, Market Research Software, Marketing Asset Management, Media Management System, Product/Price Software, Search & Discovery, Segmentation/Data Mining, SEM/SEO Tools, Teleservices/eServices, Web Print, and Website Creation/Hosting Buyers Most Active Software s Most Active Technology & Communicationss 1Q13 2Q13 1H13 vs 2H12 LTM Invesrs continued make up the majority of activity in the Marketing Technology segment in 2Q13, accounting for 67 percent of deals announced and Number (% of Change) 19 percent of reported value in the segment. Number of Strategic buyers ($MM) accounted Number for of 96 percent of ($MM) control activity Number of with 72 acquisitions ($MM) announced, while private ($MM) Security ,582 43% 247% 107 2,479 equity buyers announced three. The Mobile Technology subsegment accounted for 13 percent of strategic buyer activity and 13 percent of venture/growth Healthcare Strategic , , (35%) 0% (47%) ,070 2,503 capital Software Private Equity invesr Development - Buyout activity, Tools reflecting buyers 3interest 8 in mobile monetization 322platforms in 648 response 367 continued (60%) 67% mobile 280% device 24% and mobile app penetration. 2, Infrastructure Private Equity - VC/Growth Capital ,001 7,144 17% (10%) 168% ,082 3,809 Application Total Management , , (12%) 18% (29%) 170% , HR (10%) (93%) 57 2,085 Financial (9%) (17%) 42 1,398 ERP (17%) (92%) 64 4,348 Marketing Technology by Type of Buyer/Invesr Credit/Risk 4 Most 149 Active Marketing 8 Technology 24 s200% (43%) Engineering 8 1Q Q % 1H13 vs 2H12 (88%) 24 LTM 455 Subtal 145 1, ,357 14% (5%) ,059 Other (25%) 26% 114 1,912 Total 170 2,270 ($MM) ,014 ($MM) 6% (3%) ,971 ($MM) "Other" Strategic includes Collaboration, Data Management, Geo-Demo, 67 Legal, and 702 Software Platform 72 5,201 (1%) 199% 280 7,874 Private Equity - Buyout % 716% Private Equity - VC/Growth Capital ,233 14% 16% 514 3,994 Total 195 2, ,442 9% 126% ,785 Most Active Software s 5

6 Technology & Communications Deal Notes First Half 2013 M&A and Investment Activity There were 94 technology and 31 communications transactions announced in 2Q13, worth $3.0 billion and $1.4 billion in reported value, respectively. Total quarter-over-quarter activity in the Technology & Communications segment increased five percent, while reported value fell 12 percent. The most active subsegment, Financial Technology, in which 32 deals were announced with 25 reported at $182 million in value, was led by activity among mobile payment solution providers. The 11 mobile financial technology transactions announced focused on solutions that enable consumers make in-sre or online payments, including: The $25 million investment in Clinkle, a mobile payments technology company, from a consortium of invesrs A $17 million investment in Dwolla, an online payment system and mobile payments network provider, led by Andreessen Horowitz The $14 million investment in payment technology start-up Marqeta, which helps consumers keep and redeem rewards from multiple retailers on a payment card or mobile app, from 23 invesrs that included Greylock Partners, Granite Ventures, and Commerce Ventures There were 10 deals announced in the Big Data Technology subsegment, of which seven were reported at $130 million in value. Notable transactions included: The $25 million investment in MarkLogic, which sells databases built handle unstructured data, led by Sequoia Capital and Tenaya Capital A $10 million angel investment in Deep Information Sciences, which has developed a multi-purpose database built handle big data by indexing data in real time and embedding statistical information needed run analytics The $9 million investment in Guavus, which makes software deal with massive data sets produced by telecommunications networks, from the venture arm of Goldman Sachs and TransLink Capital Most Active Technology & Communications s Most Active Technology & Communications s Financial Technology 23 1, % 246% 71 1,866 Cloud Computing Technology ,121 13% 54% 51 3,825 Data Center Technology % 44% Big Data Technology % (0%) Mobile Infrastructure % (60%) Cloud Srage % (62%) Networking Equipment (67%) (78%) 69 4,717 Communications Software (42%) (73%) 38 3,279 Enterprise Mobility % (27%) Infrastructure Technology NM NM Subtal 105 3, ,980 11% (29%) ,227 Other 14 1, (65%) (29%) 115 5,671 Total 119 5, ,448 (12%) (29%) ,898 "Other" includes Internet Service Providers, Messaging & Mediation Software, Satellite & Microwave Equipment, Telephone Equipment, Video Communications Software, VoIP Equipment Software, and Web Conferencing Software Buyers Most Active Marketing Technology s Strategic buyers announced 40 transactions during the quarter, ($MM) 32 percent of all deals announced. Of those, 12 were ($MM) reported at $2.8 billion in value. ($MM) The Analytics largest & Reporting strategic deal during the period 33was IBM s $2 253billion purchase 32 of SoftLayer 199Technologies. 55% Thoma Bravo s 163% $395 million 107 acquisition of 624 Content Management (38%) (63%) Keynote Mobile Technology Systems, Avista Capital Partners acquisition 8 of 179 Telular, and Perephone 28 Capital 211 Partners purchase 57% of Global 154% Relief Technology 59 were the 543 only BI Tools % (21%) buyout CRM transactions announced during the 12quarter. Venture 93 and growth 19capital invesr 414 activity increased 158% 15 percent, 410% while value 43 was flat from 607 1Q13. Social Technology % (28%) Of the 82 investments announced, 25 were in the Financial Technology subsegment. Commerce Management ,523 (24%) 821% 44 1,866 SFA/Lead Management (12%) (91%) 32 1,049 MRM/Workflow Management (14%) (44%) Online Targeting/Optimization (30%) 258% SEM/SEO Tools % (53%) Technology & Communications by Type of Buyer/Invesr /Messaging Software ,538 (25%) Most Active Technology & Communicationss 2,212% 21 2,648 Subtal 150 1, ,174 7% 112% ,773 Other 45 1, % 230% 141 2,011 Total 195 2, ,442 9% 126% ,785 "Other" includes Ad Serving, Content Delivery Network, Creative Production Platform, /Messaging Platform, Market Research Software, Marketing Asset Management, Media Management System, Product/Price Strategic Software, Search & Discovery, Segmentation/Data 45 Mining, 3,122 SEM/SEO Tools, Teleservices/eServices, 40 2,799 Web Print, and Website (35%) Creation/Hosting(47%) ,070 Private Equity - Buyout (60%) 280% 21 2,019 Private Equity - VC/Growth Capital ,001 17% 8% 284 3,809 Total 119 5, ,448 Most Active Software s (12%) (29%) ,898 Most Active Marketing Technology s 1Q13 2Q13 Number 1H13 of vs 2H12 LTM 6

7 Financial Technology 23 1, % 246% 71 1,866 Cloud Computing Technology ,121 13% 54% 51 3,825 Data Center Technology % 44% Big Data Technology % (0%) Mobile Infrastructure % (60%) Cloud Srage % (62%) Networking Equipment (67%) (78%) 69 4,717 Software Communications Software (42%) (73%) 38 3,279 Enterprise Mobility % (27%) Infrastructure Technology NM NM Subtal 105 3, ,980 11% (29%) ,227 Other 14 1, (65%) (29%) 115 5,671 Total 119 5, ,448 (12%) (29%) ,898 M&A and Investment Activity Deal Notes First Half 2013 "Other" includes Internet Service Providers, Messaging & Mediation Software, Satellite & Microwave Equipment, Telephone Equipment, Video Communications Software, VoIP Equipment Software, and Web A Conferencing tal of 197 Software Software transactions, including 98 minority investments, were announced in 2Q13. Of these, 107 were reported at $11 billion in value. Software Development Tools, driven by the continuing adoption of cloud computing among enterprises, was an active subsegment during the quarter, with 22 deals announced, of which 11 were reported at Most $367 Active million Marketing value. Technology Activity s in the subsegment increased 175 percent from the previous quarter, and there was an additional $347 million 1Q13 in deal value reported. Notable 2Q13 deals in the Software 1H13 Development vs 2H12 Tools subsegment LTM included: Intel s $180 million acquisition of Mashery, a cloud-based manager application of programming Number interfaces of that enable developers Number of work with different cloud services and software Facebook s $85 million acquisition of Parse, which offers paid ols and services for developing mobile apps A $70 million investment in Twilio, which provides Web-service infrastructure application programming interfaces enabling developers move voice and messaging applications the cloud Analytics & Reporting % 163% Content Management (38%) (63%) Mobile Technology % 154% BI Tools % (21%) CRM % 410% Social Technology % (28%) Commerce Management ,523 (24%) 821% 44 1,866 SFA/Lead Management (12%) (91%) 32 1,049 Activity MRM/Workflow in the Management Infrastructure Software subsegment 10 also increased 9 in 2Q13, 8 with 18 transactions 36 announced (14%) (11 acquisitions (44%) and seven 39 investments), 125 Online Targeting/Optimization (30%) 258% up SEM/SEO from Tools eight announced in the previous quarter. 1 In addition 2 the announced 7 $ billion take-private 0% of BMC (53%) Software, notable 16 transactions 149 /Messaging Software ,538 (25%) 2,212% 21 2,648 announced in the subsegment during 2Q13 included: Subtal 150 1, ,174 7% 112% ,773 Other 45 1, % 230% 141 2,011 Total 195 2, ,442 9% 126% ,785 Yahoo s acquisition of PlayerScale, a start-up that makes software infrastructure technology for cross-platform gaming Twitter s acquisition of Ubalo, a developer of scalable computing technology Most Active Software s Buyers There were 90 strategic acquisitions and 98 transactions by venture/growth capital invesrs ($MM) announced in 2Q13. Private ($MM) equity buyers announced nine Strategic ,201 (1%) 199% 280 7,874 acquisitions taling $7.8 billion in reported value. Software by Type of Buyer/Invesr Most Active Software s "Other" includes Ad Serving, Content Delivery Network, Creative Production Platform, /Messaging Platform, Market Research Software, Marketing Asset Management, Media Management System, Product/Price Software, Search & Discovery, Segmentation/Data Mining, SEM/SEO Tools, Teleservices/eServices, Web Print, and Website Creation/Hosting Security ,582 43% 247% 107 2,479 Healthcare % (47%) 124 2,503 Software Development Tools % 24% Infrastructure ,144 (10%) 168% 55 10,082 Application Management 15 Most Active 200 Technology 18& Communicationss % 170% HR (10%) (93%) 57 2,085 Financial (9%) (17%) 42 1,398 ERP (17%) (92%) 64 4,348 Credit/Risk Number 8of 24 Number 200% of (43%) Number 16 of 478 Engineering % (88%) ($MM) Subtal Strategic ,122 1, ,799 10,357 (35%) 14% (47%) (5%) ,070 25,059 Other Private Equity - Buyout (60%) (25%) 280% 26% ,019 1,912 Total Private Equity - VC/Growth Capital , ,001 11,014 17% 6% (3%) 8% ,971 3,809 "Other" Total includes Collaboration, Data Management, Geo-Demo, 119 Legal, and 5,047 Software Platform 125 4,448 (12%) (29%) ,898 Most Active Marketing Technology s Private Equity - Buyout % 716% Private Equity - VC/Growth Capital ,233 14% 16% 514 3,994 Total 195 2, ,442 9% 126% ,785 Most Active Software s Strategic 72 1, ,617 12% (70%) ,849 Private Equity - Buyout ,843 (5%) 199% 37 10,623 Private Equity - VC/Growth Capital 89 1, ,555 3% 38% 368 4,498 Total 170 2, ,014 6% (3%) ,971 Most Active Information & Business Services s Strategic 67 1, ,945 37% 33% ,844 Private Equity - Buyout 11 2, ,763 0% 128% 44 12,979 Private Equity - VC/Growth Capital % (19%) 120 2,512 Total 123 4, ,319 34% 59% ,335 7

8 Information & Business Services Deal Notes First Half 2013 M&A and Investment Activity The Information & Business Services segment remained active in 2Q13 with 128 transactions announced, of which 41 were reported at $14.3 billion in value. An increase in IT budgets and industry demand drove M&A and investment activity in the IT Consulting/Systems Integration subsegment during the quarter, accounting for 30 percent of deals announced and 16 percent of reported value. The majority of value in the subsegment was a result of Thomas H. Lee s $1.1 billion buyout of CompuCom Systems and OMERS Private Equity s $608 million acquisition of Civica Group. Additional transactions announced included: Tata Consultancy Services $98 million acquisition of Alti, a France-based IT consulting and engineering company Perficient s $19 million acquisition of TriTek Solutions, an IBM-focused enterprise content management and business process management consulting firm, and its $8 million acquisition of Clear Task, which provides revenue consulting services based on the Salesforce.com product suite There were 15 transactions (13 acquisitions and two investments) announced in the BPO subsegment during the quarter, of which seven reported $5.7 billion in value. Largely due Fidelity National Services $3.9 billion acquisition of Lender Processing Services, the BPO subsegment accounted for 40 percent of reported value in the segment. A tal of eight BPO transactions announced in 2Q13 were of healthcare and biopharmaceutical outsourcing companies, which included: Roper Industries $1 billion acquisition of Managed Health Care Associates, a provider of services and solutions support the needs of alternate-site healthcare providers Frazier Healthcare Venture s $308 million acquisition of AndersonBrecon (fka: Anderson Packaging), which provides pharmaceutical commercial packaging solutions and clinical trial services for pharmaceutical and biotechnology companies United Drug subsidiary Ashfield In2Focus acquisition of Germany-based Pharmexx, a provider of sales and marketing outsourcing solutions the healthcare industry Most Active Information & Business Services s Most Active Information & Business Services s Most Active Technology & Communicationss 1Q13 1Q13 2Q13 2Q13 1H13 vs 2H12 1H13 vs 2H12 LTM LTM Number of Number of Number of ($MM) ($MM) IT Consulting/Systems Integration ,259 19% 130% 114 3,678 BPO Strategic , ,799 5,724 (35%) 243% (47%) 257% ,070 7,759 Market Private Research Equity - Buyout (60%) (21%) 280% (98%) ,019 2,919 Financial Private Equity Information - VC/Growth Capital , % 80% (95%) 8% ,809 2,486 Credit/Risk Total Management Information ,047 1, , (12%) 700% 47,298% (29%) ,898 1,900 Marketing Data ,461 0% 2,043% 18 1,792 Staffing % 19% 23 1,530 Engineering/Scientific/Tech Information , % NM 11 4,437 Healthcare Information 7 Most 235 Active Marketing 4 Technology s 0 120% 250% Management Consulting 4 1Q Q % 1H13 vs 2H12 NM 10 LTM 8 Subtal 82 3, ,272 54% 102% ,811 Other Number 41 of 639 Number 21of 47 Number (5%) of (76%) Number 127 of 3,524 Total 123 4,298 ($MM) ,319 ($MM) 34% 59% ,335 ($MM) "Other" Strategic includes Contact Center, Corporate Training, Credit/Risk 67 Consulting, 702Data Processing/Enhancement,Engineering 72 5,201 Consulting, Financial (1%) Consulting, Fulfillment, 199% Geo-Demo Consulting, 280 Geo-Demo 7,874 Information, Private Equity Healthcare - Buyout Consulting, HR Consulting, HR 5Information, IT Information, 808 Legal Consulting, 3 Legal Information, 8 Logistics, Printing 100% Services, and Product/Price 716% Information Private Equity - VC/Growth Capital ,233 14% 16% 514 3,994 Total 195 2, ,442 9% 126% ,785 Buyers Most Active Software s Strategic buyers made up the majority of activity in the segment during 2Q13, accounting for 72 percent of deals announced and nearly half the reported value. Venture and growth capital investment activity slowed during the quarter, with only 25 transactions announced, down from 45 in the previous Strategic quarter. Private equity buyers announced ,096 acquisitions, four 90 of which were 1,617 in the IT Consulting/Systems 12% (70%) Integration 307 subsegment. 11,849 Of the Private Equity - Buyout ,843 (5%) 199% 37 10,623 buyouts announced, six were worth $6.8 billion in aggregate reported value. Private Equity - VC/Growth Capital 89 1, ,555 3% 38% 368 4,498 Total 170 2, ,014 6% (3%) ,971 Information & Business Services by Type of Buyer/Invesr Most Active Information & Business Services s Strategic 67 1, ,945 37% 33% ,844 Private Equity - Buyout 11 2, ,763 0% 128% 44 12,979 Private Equity - VC/Growth Capital % (19%) 120 2,512 Total 123 4, ,319 34% 59% ,335 8

9 Recent Deal Notes First Half 2013 a leading provider of social software solutions and digital marketing services for some of the world s largest brands, one of just 13 Facebook Strategic Preferred Marketing Developers (spmd) has received a $68M minority investment from the largest provider of cloud-based SaaS ols for printing signs, labels, and tags, and publishing digital displays for retailers a unit of a leading multiplatform travel and lifestyle media company a subsidiary of a provider of online travel guides for p destinations around the world along with digital subsidiary specializing in retail, digital, shopper marketing, and consumer services (NYSE: LXK) (NYSE: GCI ) a leading digital advertising monetization and shopper marketing partner for ecommerce retailers a portfolio company of a leading provider of in-sre and shopper marketing signage major North American retailers a real-time behavioral advertising company a leading provider of digital production services brands and agencies a dynamic display media and retargeting company with financing from (NYSE: AOL) (NYSE: ACN) (JASDAQ: 4755) a leading provider of transportation-based digital media networks has received a mezzanine debt investment from a leading digital direct marketing company utilizing a proprietary database provide cusmer acquisition solutions for major brands has received an equity investment from a leader in technology and global in-app advertising for Facebook, Apple (ios), and Android developers has received a $66M investment from a provider of a cloud-based integration platform for the digital marketing industry has received $15M financing led by a leader in multichannel retail, ecommerce and loyalty marketing services with debt financing from a leader in global healthcare, primary market research and influence network mapping a portfolio company of the p independent direct--consumer marketer of dental savings plans and a leading provider of services for domain name registration, acquisition, brokerage, and sales a leading data management and audience optimization platform (DMP) company a global digital marketing agency a unit of a leading provider of taxi-based outdoor media (NYSE: PAY) a leading provider of integrated data, technology, and analytics solutions has acquired a pioneer in measuring the impact of promotion on physician prescribing behavior a premier provider of affinity programs for universities and colleges a leading advertising i technology company (Xetra: DPW.DE) (TSX: PTO) a leading shopper marketing execution company a portfolio company of Vestar Capital Partners has merged with and one of North America s largest mobile marketing and gateway solution providers the leader in attribution management and online advertising analytics a rapidly growing provider of online and offline performance-based cusmer acquisition solutions a number of the largest suppliers of home services in the U.S. has received a majority investment from a portfolio company of a portfolio company of Parthenon Capital Partners KRG Capital Partners (Nasdaq: GSIC) 9

10 Deal Notes First Half 2013 About Petsky Prunier LLC Petsky Prunier is one of the leading investment banks in the technology, media, marketing, ecommerce, and healthcare industries. Our firm s mergers and acquisitions and private placements advisory services reflect a unique blend of product specialization and industry expertise. Together with strategic consulting firm Winterberry Group, a Petsky Prunier company, our organization represents one of the largest industry-specific advisors providing strategic and transactional services. In addition, we offer international reach through our partnership with Altium. Established for more than 20 years and privately owned, Altium is an international investment bank operating from nine offices across Europe. Securities transactions are processed through Petsky Prunier Securities LLC. Expertise. Commitment. Results. New York Palo Al Las Vegas Chicago Tampa Michael Petsky Partner [email protected] Sanjay Chadda Partner & [email protected] John Prunier Partner [email protected] Norm Colbert Partner & [email protected] Chrispher French [email protected] Amy LaBan, CFA [email protected] Jed Laird [email protected] Seth Rosenfield [email protected] John Sternfield [email protected] Scott Wiggins [email protected] Matthew Kratter Senior Vice President [email protected] Securities offered through Petsky Prunier Securities, LLC, member FINRA/SIPC 10