European Technology Update Member FINRA/SIPC European Technology Update 22 June 2011 Thierry Monjauze Thierry Monjauze Managing Director 63 Brook Street London W1K 4HS United Kingdom Phone: +44 20 7518 8900 [email protected]Francois Morin Director 63 Brook Street www.harriswilliams.com This report has been prepared by Harris Williams & Co. Ltd and approved by Sturgeon Ventures LLP in accordance with Conduct Of Business rules COBS 4 of the FSA Handbook. Harris Williams & Co. Ltd is an authorised representative of Sturgeon Ventures LLP which is Authorised and Regulated by the Financial Services Authority. This report is being made by Harris Williams & Co. Ltd. Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business in the U.S. and Europe, respectively. 63 Brook Street London W1K 4HS United Kingdom Phone: +44 20 7518 8900 [email protected]
www.harriswilliams.comThis report has been prepared by Harris Williams & Co. Ltd and approved by Sturgeon Ventures LLP in accordance with Conduct Of Business rules COBS 4 of the FSA Handbook.
Harris Williams & Co. Ltd is an authorised representative of Sturgeon Ventures LLP which is Authorised and Regulated by the Financial Services Authority. This report is being made by Harris Williams & Co. Ltd. Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris
Williams & Co. Ltd. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business in the U.S. and Europe, respectively.
Ericsson acquired Telcordia, a provider of mobile, broadband and enterprise communications software and services, for $1.15 billionSagemCom, a provider of network equipment, is in discussions with Carlyle for a c.€500 million buyoutDigital advertising company MediaMind Technologies was acquired by DG FastChannel for $517 millionGoogle acquired Admeld, a US-based advertising platform for publishers, for an estimated $400 millionApax entered into exclusive talks with Capgemini for the sale of its portfolio company Prosodie for €382 millionCiti Venture Capital acquired Ness Technologies, an Israeli provider of IT solutions, for $307 million
Company Specific
News
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KDDI will conduct a $250 million tender offer to acquire WebMoney, an electronic money settlement service firmVentizz sold its portfolio company Exceet, an electronic security solutions company, to Helikos for €110 millionVisa acquired the mobile financial services technology company Fundamo for $110 millionTelefonica acquired the Spanish cloud computing company Acens Technologies for an estimated $117 millionConcur acquired GlobalExpense, a UK-based provider of web-based expense management systems, for £14 millionTransics acquired European activities of CarrierWeb, a provider of fleet management systems, for €6 millionGarmin acquired Navigon, the Germany-based provider of navigation systems, software and applicationsQuest Software acquired the virtual directory management software provider SymlabsUS advertising technology company YuMe bought Appealing Media, a UK-based mobile advertising businessGFT acquired Asymo a Swiss IT consulting company specialising in solutions for the banking sectorGFT acquired Asymo, a Swiss IT consulting company specialising in solutions for the banking sectorFacebook acquired the Amsterdam-based software design firm SofauSwitch.com acquired Top10.com, a broadband and mobile phone comparison websiteCoupons.com raised a $200 million round of financing at a $1 billion valuationSpotify raised $100 million from DST, Kleiner Perkins and Accel in advance of its upcoming US launchWimdu, a peer-to-peer online apartment rental marketplace, raised $90 million from Kinnevik and Rocket InternetSpectrum Equity invested $50 million for a minority stake in the food delivery website SeamlessWebIntel Capital invested $13 million in Aldebaran Robotics, a manufacturer of humanoid robotsSapato.ru, a Russian online shoe retailer, raised $12 million from Intel Capital and existing shareholdersRussian geolocation service AlterGeo raised $10 million from Intel Capital and Almaz CapitalP i V d N i I i d $10 illi i S i 2M di id f bil l iPrime Ventures and Newion Investment invested $10 million in Service2Media, a provider of mobile app solutionsTaykey, a mobile advertising technology company, raised $9 million from Cresecent Point, Softbank and SequoiaFuel cell technology startup ACAL Energy raised £6.1 million from CT Investment Partners and existing investorsSelf-checkout technology company AisleBuyer raised $7.5 million in a round led by Old Willow PartnersEagle Eye Solutions raised £1.5 million from various individual investors for its mobile coupon technology Spanish restaurant reservations site Restalo.es raised €1 million from Active Venture PartnersAlmaz Capital Partners led a new round of financing into Flirtic.com, an online dating websitePandora raised $235 million from its NYSE IPO, which saw its share price rise 9% on the first dayFusion-io raised $234 million from its NYSE IPO, which saw its share price increase 34% on the first dayConsumer banking and personal finance website Bankrate raised $188 million from its NASDAQ IPO
Global revenue from mobile advertising is forecast to be $20.6 billion by 2015 according to GartnerOnline video advertising is expected to become a $2.2 billion market in the US this year, according to ComScore
g p $ QSopra spun-off a 74% stake in Axway on the Paris Exchange at a price of €18.61 and market cap of €300 millionHomeAway, a vacation-rental website, set the price for its IPO at $24 to $27 per share, looking to raise $216 millionEPAM Systems, a Russian provider of software engineering services, filed for a $100 million US IPOFacebook is reportedly planning its IPO, which could value the company as high as $100 billion, for early 2012 Chinese online-only apparel brand and retailer Vancl plans to raise $1 billion in a US IPOResearch In Motion reported a drop in earnings and cut its EPS forecast for the year down to $5.25-6.00 from $7.50
Industry Trends eMarketer estimates nearly 80 million US internet users will tune into internet radio stations per week in 2011
Citi analysts estimate the sales of Kindle devices and e-books will account for 10% of Amazon’s sales in 2012Digital games accounted for 24% of game sales in 2010, generating $5.9 billion in the US, according to ESAJuniper estimates NFC payments to reach $50 billion worldwide by 2014 Global smartphone shipments are expected to near 1 billion by 2015, more than double the projected 472 million to be shipped this year, according to IDC Growth in global PC sales is expected to slow to 9.3% in 2011, peaking at 385 million units, according GartnerFacebook lost 6 million users in May, bringing its total active user base to 149.4 million in the USSmartphones have captured 22% of the installed mobile phone base in the UK, making it the leading market for smartphone uptake in Europe according to IHS Screen Digest
Trends
smartphone uptake in Europe, according to IHS Screen DigestUS mobile TV ad spend is expected to reach $1.4 billion in 2015, up from $370 million in 2010, according to PWCOnly 20% of online daily deals customers make full-price purchases in shops, according to Rice UniversityThe VoIP market is expected to reach $40 billion globally, according to Point TopiceMarketer expects US online advertising spend to reach $31 billion in 2012, representing a 20% increase over 2010
Source: Industry news sources. 1
Public Market Trading Statistics
Stock Performance
Last 30 Days
g
5%
10%
(15%)
(10%)
(5%)
0%
16 May 23 May 30 May 06 Jun 13 Jun
DJ Stoxx 600 Technology Nasdaq Composite Software and IT Services Communications Internet and Digital Media
(5.4% )(6.9% )(7.5% )
(11.1% )(14.5% )
Last Twelve Months
10%
20%
30%
40%
50%
60%
32.5%25.1%19.5%14.6%10.8%
Comparable Trading
Sources: Capital IQ, 17 June 2011; Brokers’ reports.
10%Global Internet Leaders (9.3% )Interactive Entertainment (9.7% )Online Classifieds (16.4% )Online Travel (22.5% )Chinese Internet Leaders (29.3% )
(30%)
(25%)
(20%)
(15%)
18 May 24 May 30 May 05 Jun 11 JunGl b l I t t L d E
140%
Last Twelve Months Performance
Global Internet Leaders EcommerceOnline Travel Online MarketingContent Providers / Communities Intermediation and ComparisonOnline Classifieds Chinese Internet LeadersOnline Gambling Interactive Entertainment
120% Online Marketing 33.7%Chinese Internet Leaders 32.5%Intermediation and Comparison 31.3%Content Providers / Communities 23.0%Global Internet Leaders 18.6%Interactive Entertainment 5.2%Online Gambling (30.9% )
(40%)
(20%)
0%
20%
Jun 2010 Sep 2010 Dec 2010 Mar 2011 Jun 2011Global Internet Leaders EcommerceOnline Travel Online MarketingC t t P id / C iti I t di ti d C iContent Providers / Communities Intermediation and ComparisonOnline Classifieds Chinese Internet LeadersOnline Gambling Interactive Entertainment
10Sources: Capital IQ, 17 June 2011; Brokers’ reports.
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