www.harriswilliams.com Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Christopher Williams, Mr. Ned Valentine, Mr. Paul Poggi and Mr. Thierry Monjauze, authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins. EUROPEAN TECHNOLOGY INDUSTRY UPDATE │ JUNE 2015
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www.harriswilliams.com
Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered withthe Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Christopher Williams, Mr. Ned Valentine, Mr. Paul Poggi and Mr. Thierry Monjauze,authorised and regulated by the Financial Conduct Authority.
Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main,Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative(Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.
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www.harriswilliams.comwww.harriswilliams.de
RECENT DEVELOPMENTS
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COMPANY SPECIFIC NEWS
Equinix has agreed to acquire the TelecityGroup, the UK-based provider of data centres in Europe, valuing the business £2.7bn
Cox Automotive has agreed to acquire Dealertrack Technologies, the US-based provider of on-demand software and data solutions for the automotive retail industry, valuing the business at $4.2bn
EMC has agreed to acquire Virtustream, the US-based provider of enterprise-class cloud software and services, valuing the business at $1.2bn
CA has agreed to acquire Rally Software Development, the US-based provider of software for lifecycle management solutions, valuing the business at $433m
Keysight Technologies has made an offer to acquire Anite, the UK-based provider of network testing services, valuing the business at £342m
Daisy Group has agreed to acquire Phoenix IT Group, the UK-based provider of IT infrastructure services, from Aberforth Partners and Schroder Investment Management, valuing the business at £191m
ProSiebenSat has agreed to acquire Verivox, the Germany-based online website providing price comparison services for energy and telecom services, valuing the business at approximately €260m
Insight Ventures has agreed to acquire Fourth, the UK-based provider of cloud-based cost control solutions to the hospitality industry, valuing the business at approximately £170m
Comverse has agreed to acquire Acision, the UK-based provider of secure mobile messaging and payments solutions to service providers and telecom operators, from International Investment and Underwriting, Atlantic Bridge Capital and Access Industries, valuing the business at approximately $400m
Microsoft has acquired 6 Wunderkinder, the Germany-based cloudcross-platform productivity application, from Sequoia Capita, Atomico, EarlybirdVenture Capital and e42, valuing the business at a minimum of $100m
Axcel Industriinvestor has agreed to acquire Conscia, the Denmark-based provider of IT network and security solutions, from Via Venture Partners, valuing the business at c.DKK 625m
Gracenote has acquired Infostrada Statistics and SportsDirect, the Netherlands and Canada-based providers, respectively, of sports data and statistics, valuing the businesses at $54m
TiVo has acquired Cubiware, the Poland-based provider of software solutions for digital TV devices and system, valuing the business at $48m
Hotspring Ventures has acquired Treatwell, the Netherlands-based owner and operator of a site for online health and beauty bookings, from Piton Capital and Project A Ventures, valuing the business at €34m
Sophos Group, the UK-based provider of antivirus software, firewall hardwareand other security products for networks, individual users and servers, hasannounced plans to raise £80m through an IPO, valuing the business atapproximately £1bn
Home24, the Germany-based online furniture retailer, has raised €120m from afinancing round from Baillie Gifford & Co along with its existing Shareholders
Delivery Hero, the operator of an online and mobile food ordering service, hasraised $110m from a pre-IPO investment from Putnam, valuing the business at$3.1bn
Trustpilot, the Denmark-based online customer review platform for customers toreview companies, has raised $74m from a financing round from VitruvianPartners
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ JUNE 2015
CONTENTS
RECENT DEVELOPMENTS
PUBLIC MARKET TRADING
SOFTWARE
IT SERVICES
COMMUNICATIONS
INTERNET AND DIGITAL MEDIA
TMT GROUP OVERVIEW
Our Technology, Media & Telecom (TMT) Group is dedicated to providing superior merger & acquisition and capital markets advisory services to market leading companies. Our extensive industry knowledge and transaction leadership experience spans the software, digital media, IT services and communications sectors. Our professionals in London, Boston and San Francisco have global relationships with leading technology companies and financial investors. Thoughtful advice, deep experience and technology expertise, creativity and attention to detail from our senior technology bankers have resulted in a track record of consistently exceeding our clients' expectations.
According to a March 2015 study by comScore, smartphones (41%) and tablets (15%) accounted for 56% of time spent using the internet, with social media usage accounting for over 31% of users’ time in the UK
During 2015, the amount of time UK adults spend online using mobile devices will surpass that spent online via desktop and laptop computers, according to eMarketer
According to IDC, total cloud IT infrastructure spending will grow by 21% to $32bn in 2015, accounting for approximately 33% of all IT infrastructure spending, and will reach $52bn by 2019, representing a CAGR of 12.9%
According to Gartner’s latest research, mobile phone sales to end users will increase by 3.3% in 2015 to 1.9bn units and will reach 2.1bn units by 2019, representing a CAGR of 2.5%
According to IDC, the worldwide Internet of Things (“IoT”) market will grow from $656bn in 2014 to $1.7tn by 2020, representing a CAGR of 17.2%.
The value of the global messaging market will decline from €100.5bn in 2014 to €99.9bn in 2019, despite messaging traffic being expected to double over the same period, according to Juniper Research. The increase in traffic will be driven by over-the-top (“OTT”) messaging applications such as WhatsApp and LINE, which are expecting increased messaging traffic of 300% from 31.1tn in 2014 to 100.1tn by 2019
Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities.Our clients benefit from our deep-sector experience, integrated industry intelligence andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website at www.harriswilliams.com/industries
Capital IQ as of 25th June 2015, broker reports and various industry news outlets
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SOURCES
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ JUNE 2015
Harris Williams & Co. (www.harriswilliams.com and www.harriswilliams.de) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.
Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Christopher Williams, Mr. Ned Valentine, Mr. Paul Poggi and Mr. Thierry Monjauze, authorised and regulated by the Financial Conduct Authority.
Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.
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Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.
