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EUROPEAN TECHNOLOGY
0
INDUSTRY UPDATE │ DECEMBER 2015
PAGE |
www.harriswilliams.com
RECENT DEVELOPMENTS
1
COMPANY SPECIFIC NEWS
Aveva, the UK-based developer of industrial software solutions, has called off the£1.3bn reverse takeover by Schneider Electric, citing that “significant integrationchallenges were identified that could not be overcome without considerableadditional risk and cost”
Diebold has agreed to acquire Wincor Nixdorf, the Germany-based provider of ITsolutions and services to banks and the retail sector, for c.€1.7bn
Hellman & Friedman has acquired a controlling stake in TeamSystem, the Italy-based provider of business software applications, valuing the business at €1.2bn
Motorola Solutions has agreed to acquire Airwave Solutions, the UK-basedoperator of a digital radio network that provides voice and data solutions toemergency services and public safety organisations, valuing the business at£753m
EQT Partners has acquired a 63% stake in Industrial & Financial Systems, theSweden-based provider of business software, valuing the business at c.SEK9.0bn
Cisco Systems has agreed to acquire Acano, the UK-based provider ofcollaboration infrastructure and conferencing software, for $700m
Mannai Corporation has agreed to acquire a 51% stake in GFI Informatique, theFrance-based provider of information technology services specialised in systemsintegration, engineering, consulting, software implementation and maintenance,valuing the business at c.€630m
Intercontinental Exchange has agreed to acquire Trayport, the UK-based providerof electronic trading software for brokers, exchanges and traders in thecommodities, fixed income, currencies and equities markets, valuing the businessat c.$640m
Sabre Corporation has agreed to acquire the Trust Group of Companies, whichcomprises Trust International, InnLink and Nexus World Services, who providereservation, service management and marketing technology solutions for thehotel industry, for total consideration of $154m
NCC Group has agreed to acquire Fox-IT, the Netherlands-based developer ofcyber security solutions, valuing the business at €133m
Wipro Limited has agreed to acquire cellent, the Germany-based provider of ITconsulting and system integration services, valuing the business at €74m
Exponent Private Equity has acquired a 70% stake in Wowcher, the UK-based e-commerce marketplace operator connecting merchants to consumers, valuingthe business at £71m and LivingSocial, the UK-based social discovery andcataloguing network, to form a combined group
Duerr has agreed to acquire iTAC Software, the Germany-based developer ofMES software solutions, for an undisclosed consideration and with a minimumestimated value of €30m
Sophos has agreed to acquire SurfRight, the Netherlands-based developer ofcomputer security software, valuing the business at $32m
Tracsis has agreed to acquire Ontrac Technology, the UK-based softwaredevelopment and IT solutions business in the rail and transportation sectors,valuing the business at up to £20m
Hancom has agreed to acquire iText, the Belgium-based open source library forcreating and manipulating PDF files in Java, valuing the business at KRW 34.1bn
Summit Partners has made a minority investment in Signavio, the Germany-basedprovider of SaaS business process and decision management technology, for€31m
HgCapital has agreed to acquire EidosMedia, the Italy-based provider of editorialand publishing solutions, through an MBO
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ DECEMBER 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.
CONTACTS
EUROPE
Thierry MonjauzeManaging [email protected]+44 (0) 20 7518 8901
Jonathan OrganVice [email protected]+44 (0) 20 7518 8909
UNITED STATES
Jeff BistrongManaging [email protected]+1 (617) 482-7501
Michael WilkinsManaging [email protected]+1 (415) 288-4260
Sam HendlerManaging [email protected]+1 (617) 654-2117
PAGE |
(20%)
(15%)
(10%)
(5%)
0%
5%
10%
15%
20%
25%
30%
Dec 2014 Mar 2015 Jun 2015 Sep 2015 Dec 2015
Communications DJ Stoxx 600 Technology
Internet and Digital Media IT Services
Nasdaq Composite Software
According to eMarketer’s latest global mobile phone messaging app usage research, nearly 93m people in Central and Eastern Europe will use such apps at least monthly, an increase of 49% over 2014
Juniper Research predicts nearly 40% of US households and 20% of European households will adopt wireless charging by 2020. In addition, the market for wireless power transmitters and receivers is expected to increase at a CAGR of 43% from 55m units to more than 2bn units from 2014 to 2024, according to IHS Technology
According to Gartner, IoT will support total services spending of $235bn in 2016, up 22% from 2015, and by 2020 21bn things will be connected, representing a CAGR of 17% from 2015
According to the latest IDC Spending Guide, worldwide spending on IoT will grow at a 17.0% CAGR from $699bn in 2015 to nearly $1tn in 2019
Combined online display and social media advertising spend is expected to grow from €14bn to €29bn between 2015 and 2020, according to Forrester, representing a CAGR of 15%
INDUSTRY TRENDS
RECENT DEVELOPMENTS
2
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ DECEMBER 2015
LAST TWELVE MONTHS
Stock Performance
LAST 30 DAYS
PUBLIC MARKET TRADING STATISTICS
Source: Various industry news outlets
18.6%
10.9%
8.5%
7.5%
5.1%
(19.9%)
(6%)
(4%)
(2%)
0%
2%
4%
6%
8%
16 Nov 23 Nov 30 Nov 07 Dec 14 Dec
Communications DJ Stoxx 600 Technology
Internet and Digital Media IT Services
Software Nasdaq Composite
2.3%
1.4%
0.6%
0.5%
(1.6%)
(4.5%)
PAGE |
PUBLIC MARKET TRADING STATISTICS
3
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ DECEMBER 2015
COMPARABLE TRADING SUMMARY
Rev. Growth EBITDA Margin CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E
Software
European Large Cap. Software 6.6% 34.1% 5.4x 5.0x 15.8x 14.4x 24.6x 22.1x
Application Software 7.1% 26.1% 4.6x 4.1x 15.8x 16.0x 22.1x 23.6x
Infrastructure Software 11.9% 30.0% 3.3x 3.0x 11.4x 10.3x 17.1x 17.4x
Large Cap. SaaS 32.5% 10.8% 8.4x 6.6x 30.2x 26.7x 34.8x 39.0x
Small Cap. SaaS 23.3% 5.7% 4.9x 4.0x 31.6x 27.1x NM 40.6x
HCM/WFM 25.3% 8.2% 7.3x 5.8x 30.9x 23.3x 6.2x 15.7x
FinTech 15.1% 27.5% 5.6x 4.8x 17.5x 16.4x 25.4x 23.2x
Healthcare IT 10.1% 12.0% 3.5x 3.1x 15.6x 13.3x 25.6x 24.0x
Data and Data Analytics 12.6% 24.7% 4.9x 4.2x 11.0x 10.3x 18.2x 16.8x
Security Software 19.3% 21.8% 5.6x 4.7x 13.0x 14.2x 19.8x 25.9x
CAx/PLM 7.1% 26.7% 4.9x 4.7x 20.1x 14.4x 27.3x 24.4x
IT Services
IT Services 7.3% 12.5% 1.1x 1.1x 9.5x 8.1x 18.9x 15.6x
Offshore IT Services 16.8% 24.0% 3.2x 2.8x 13.1x 11.6x 19.2x 18.0x
Managed Services, Colocation and Hosting 14.4% 27.0% 2.8x 2.5x 10.2x 8.9x 22.0x 20.2x
Data Centres 9.8% 52.3% 8.2x 7.3x 15.8x 13.8x 29.7x 31.5x
PaaS/IaaS 13.6% 24.8% 3.7x 3.1x 9.6x 8.2x 16.0x 23.0x
Communications
Digital Broadband 5.3% 10.6% 1.1x 1.0x 11.0x 8.5x 19.3x 18.5x
Diversified Communication Equipment 3.8% 11.1% 1.0x 1.0x 12.2x 8.4x 21.4x 14.8x
Mobile Content/Solutions Providers 24.5% 12.6% 1.7x 1.5x 14.8x 9.3x NM 27.0x
Mobile Infrastructure Software 0.0% 23.5% 2.6x 2.4x 11.1x 8.2x 18.1x 17.1x
Internet and Digital Media
Global Internet Leaders 10.4% 34.6% 6.8x 5.7x 20.4x 16.8x 24.0x 22.1x
Chinese Internet Leaders 44.1% 0.8% 6.5x 4.4x 24.8x 15.8x 30.2x 29.7x
Online Classifieds 16.0% 31.2% 6.2x 5.2x 16.0x 13.1x 23.2x 25.5x
Content Providers/Communities 22.1% 17.1% 4.6x 3.7x 23.9x 18.6x 22.7x 30.7x
Ecommerce 16.1% 18.6% 4.5x 3.8x 18.5x 16.2x 25.6x 25.9x
Interactive Entertainment 0.6% 25.4% 3.4x 3.1x 12.0x 10.9x 25.2x 20.4x
Intermediation and Comparison 24.5% 17.1% 3.1x 2.9x 18.0x 13.6x 21.4x 21.8x
Online Gambling 10.4% 25.0% 3.9x 3.4x 15.2x 14.1x 21.5x 24.4x
Digital Marketing 23.1% 12.1% 2.7x 2.1x 9.4x 10.3x 20.6x 16.9x
Online Travel 10.9% 21.6% 5.3x 4.6x 16.8x 17.8x 26.8x 26.2x
Educational Technology (2.5%) 1.6% 2.2x 1.8x 5.3x 11.1x 24.7x 30.5x
Internet Services 41.6% 15.5% 4.3x 3.1x 12.4x 18.2x 16.2x 13.7x
P / EEV / Revenue EV / EBITDACY2015E
PAGE |
(10%)
(8%)
(6%)
(4%)
(2%)
0%
2%
4%
6%
8%
10%
16 Nov 23 Nov 30 Nov 07 Dec 14 Dec
Application Software CAx/PLM Data and Data Analytics European Large Cap. Software
Fintech HCM/WFM Healthcare IT Infrastructure Software
Large Cap. SaaS Security Software Small Cap. SaaS
SOFTWARE
4
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ DECEMBER 2015
LAST 30 DAYS PERFORMANCE
LAST TWELVE MONTHS PERFORMANCE
(40%)
(30%)
(20%)
(10%)
0%
10%
20%
30%
40%
Dec 2014 Mar 2015 Jun 2015 Sep 2015 Dec 2015
Application Software CAx/PLM Data and Data Analytics European Large Cap. Software
Fintech HCM/WFM Healthcare IT Infrastructure Software
Large Cap. SaaS Security Software Small Cap. SaaS
European Large Cap. Software 20.2%
Large Cap. SaaS 20.1%
Fintech 18.2%
Small Cap. SaaS 18.0%
Data and Data Analytics 14.8%
Application Software 10.9%
HCM/WFM 10.0%
Security Software 7.7%
Healthcare IT (0.1%)
CAx/PLM (3.6%)
Infrastructure Software (36.4%)
Infrastructure Software 3.7%
Healthcare IT 3.5%
Security Software 2.4%
European Large Cap. Software 1.5%
Application Software 1.4%
Large Cap. SaaS (0.9%)
CAx/PLM (1.7%)
Fintech (2.1%)
Data and Data Analytics (2.4%)
HCM/WFM (3.5%)
Small Cap. SaaS (8.3%)
(1) Infrastructure Software index has been normalised to reflect Hewlett-Packard’s split into two independent businesses
(1)
(1)
PAGE |
SOFTWARE
5
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ DECEMBER 2015
(1) CY2014 adjusted to reflect pro forma revenue growth due to Attachmate Group acquisition
(2) EQT Partners entered into an agreement to acquire a 63% stake in IFS, share price as at 27 November 2015
(1)
(2)
Market Enterprise CY2015E
Cap ($m) Value ($m) EBITDA Margin Rev. Growth CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E
European Large Cap. Software
SAP 93,935 100,162 34.6% 17.2% 4.5x 4.3x 12.9x 12.1x 19.4x 17.8x
Dassault Systemes 20,515 19,179 33.7% 21.8% 6.2x 5.7x 18.3x 16.4x 33.6x 29.9x
Sage 9,545 10,017 30.8% 5.9% 4.8x 4.5x 15.5x 15.2x 23.4x 22.6x
Micro Focus 5,016 6,409 40.4% (11.0%) 5.3x 5.2x 13.1x 11.7x 17.5x 15.0x
Temenos 3,394 3,785 35.0% 11.5% 7.0x 6.4x 20.1x 16.8x 29.6x 25.7x
Aveva 1,487 1,370 29.9% (6.1%) 4.4x 4.2x 14.9x 14.2x 24.2x 21.7x
Mean 34.1% 6.6% 5.4x 5.0x 15.8x 14.4x 24.6x 22.1x
Median 34.2% 8.7% 5.0x 4.8x 15.2x 14.7x 23.8x 22.2x
Application Software
Microsoft 440,933 380,428 26.8% (2.7%) 4.2x 4.0x 15.6x 11.2x 21.1x 19.0x
Oracle 162,951 149,512 46.2% (3.1%) 4.0x 3.9x 8.6x 8.3x 15.0x 13.9x
SAP 93,935 100,162 34.6% 17.2% 4.5x 4.3x 12.9x 12.1x 19.4x 17.8x
Intuit 25,867 26,243 33.4% (1.4%) 5.8x 5.5x 17.4x 14.7x 31.8x 26.5x
Sage 9,545 10,017 30.8% 5.9% 4.8x 4.5x 15.5x 15.2x 23.4x 22.6x
Constellation Software 8,892 9,105 25.0% 9.2% 5.0x 4.2x 20.0x 16.8x 25.2x 21.3x
Tyler Technologies 5,949 5,701 26.4% 18.2% 9.8x 7.4x 37.0x 25.7x NM 49.8x
Guidewire Software 4,279 3,742 18.4% 6.6% 9.6x 8.7x NM 47.6x NM NM
IFS 1,045 1,022 17.9% 12.7% 2.6x 2.4x 14.5x 12.0x 36.3x 24.6x
SDL 532 519 9.5% 5.1% 1.3x 1.2x 13.3x 10.9x 22.6x 18.3x
Cegid 516 578 27.2% 6.0% 1.9x 1.7x 6.9x 6.3x 19.4x 17.1x
American Software 293 232 17.5% 12.0% 2.0x 1.9x 11.6x 10.8x 28.3x 28.3x
Mean 26.1% 7.1% 4.6x 4.1x 15.8x 16.0x 22.1x 23.6x
Median 26.6% 6.3% 4.3x 4.1x 14.5x 12.0x 22.6x 21.3x
Infrastructure Software
Hewlett-Packard Enterpise Co. 26,182 25,061 15.5% (3.7%) 0.5x 0.5x 3.1x 3.1x 7.9x 7.6x
VMware 24,419 18,702 35.6% 10.0% 2.8x 2.6x 7.9x 7.9x 14.3x 13.7x
Red Hat 14,270 13,822 26.7% 14.5% 7.0x 6.1x 26.2x 22.5x NM 37.7x
Citrix Systems 12,052 12,296 33.0% 3.6% 3.8x 3.7x 11.5x 11.7x 20.2x 17.5x
CA Technologies 11,722 11,060 39.9% (8.0%) 2.8x 2.7x 6.9x 6.2x 12.0x 11.1x
F5 Networks 7,020 6,246 39.6% 8.4% 3.2x 3.0x 8.1x 9.5x 14.9x 13.8x
Solarwinds 4,099 3,996 39.8% 18.6% 7.9x 6.7x 19.8x 14.7x 26.9x 24.0x
Brocade 3,622 2,977 29.7% 1.4% 1.3x 1.3x 4.5x 4.8x 8.8x 8.6x
Netscout Systems 2,959 2,890 32.7% 77.3% 3.7x 2.2x 11.2x 7.9x 15.9x 13.5x
Software AG 2,238 2,241 29.8% (0.4%) 2.4x 2.3x 8.0x 8.1x 12.6x 12.6x
Pegasystems 2,125 1,901 16.7% 12.2% 2.8x 2.5x 17.0x 14.6x 35.3x 31.5x
Progress Software 1,143 1,069 33.9% 22.7% 2.6x 2.5x 7.8x 7.7x 14.9x 14.6x
Radware 689 597 17.6% (1.7%) 2.7x 2.6x 15.6x 15.7x 21.0x 20.5x
Mean 30.0% 11.9% 3.3x 3.0x 11.4x 10.3x 17.1x 17.4x
Median 32.7% 8.4% 2.8x 2.6x 8.1x 8.1x 14.9x 13.8x
Large Cap. SaaS
Salesforce 51,374 52,080 17.9% 23.8% 7.8x 6.4x 43.7x 32.2x NM NM
Workday 15,320 13,932 6.6% 47.7% 12.0x 9.0x NM NM NM NM
NetSuite 6,480 6,390 7.1% 33.5% 8.6x 6.7x NM NM NM NM
Athenahealth 6,023 6,205 19.4% 23.8% 6.7x 5.6x 34.5x 27.0x NM NM
The Ultimate Software Group 5,593 5,472 24.1% 21.9% 8.9x 7.2x 36.9x 29.3x NM NM
Guidewire Software 4,279 3,742 18.4% 6.6% 9.6x 8.7x NM 47.6x NM NM
Veeva Systems 3,641 3,302 28.5% 30.1% 8.1x 6.5x 28.5x 21.8x NM 47.8x
Medidata Solutions 2,476 2,438 22.9% 18.3% 6.1x 5.1x 26.7x 20.9x NM 41.4x
Paylocity 2,067 1,988 7.2% 44.3% 11.0x 8.2x NM NM NM NM
Fleetmatics 1,968 1,806 32.3% 22.9% 6.3x 5.3x 19.7x 15.8x 34.8x 29.0x
Cornerstone OnDemand 1,885 1,902 1.4% 31.1% 5.6x 4.3x NM NM NM NM
LogMeIn 1,696 1,451 25.1% 22.3% 5.4x 4.5x 21.4x 18.6x NM 38.0x
Xero 1,571 1,481 (33.8%) 67.7% 11.7x 7.4x NM NM NM NM
Cvent 1,442 1,283 12.8% 31.9% 6.9x 5.6x NM NM NM NM
Mean 10.8% 32.5% 8.4x 6.6x 30.2x 26.7x 34.8x 39.0x
Median 15.4% 30.6% 8.0x 6.5x 28.5x 24.4x 34.8x 39.7x
EV / Revenue EV / EBITDA P / E
(1)
(2)
PAGE |
SOFTWARE
6
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ DECEMBER 2015
Market Enterprise CY2015E
Cap ($m) Value ($m) EBITDA Margin Rev. Growth CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E
Small Cap. SaaS
SPS Commerce 1,171 1,048 13.8% 24.5% 6.6x 5.5x 47.9x 38.3x NM NM
Callidus 1,135 1,039 10.5% 28.7% 6.0x 4.9x NM 42.3x NM NM
Benefitfocus 1,020 986 (19.4%) 34.6% 5.4x 4.3x NM NM NM NM
Textura 565 491 11.0% 38.0% 5.7x 4.3x NM 23.6x NM 44.4x
SciQuest 363 227 18.8% 2.1% 2.2x 2.0x 11.5x 10.0x NM 39.3x
Channel Advisors 358 302 (3.2%) 15.2% 3.1x 2.7x NM NM NM NM
JIVE 348 241 3.1% 9.7% 1.2x 1.2x 39.7x 24.5x NM NM
Marin Software 133 103 (10.4%) 8.7% 1.0x 0.9x NM NM NM NM
Mean 5.7% 23.3% 4.9x 4.0x 31.6x 27.1x NM 40.6x
Median 10.8% 28.7% 5.7x 4.3x 30.2x 24.5x NM 39.5x
HCM/WFM
Workday 15,320 13,932 6.6% 47.7% 12.0x 9.0x NM NM NM NM
The Ultimate Software Group 5,593 5,472 24.1% 21.9% 8.9x 7.2x 36.9x 29.3x NM NM
Paylocity 2,067 1,988 7.2% 44.3% 11.0x 8.2x NM NM NM NM
Cornerstone OnDemand 1,885 1,902 1.4% 31.1% 5.6x 4.3x NM NM NM NM
Benefitfocus 1,020 986 (19.4%) 34.6% 5.4x 4.3x NM NM NM NM
ATOSS Software 300 273 26.1% 15.9% 5.6x 5.1x 21.6x 19.1x 6.2x 5.6x
Halogen 117 79 (5.8%) 16.1% 1.2x 1.1x NM NM NM NM
Invision Software 111 113 25.1% (9.4%) 8.6x 7.5x 34.3x 21.6x NM 25.9x
Mean 8.2% 25.3% 7.3x 5.8x 30.9x 23.3x 6.2x 15.7x
Median 6.9% 26.5% 7.1x 6.2x 34.3x 21.6x 6.2x 15.7x
Healthcare IT
McKesson 43,065 48,589 2.7% 10.7% 0.3x 0.2x 9.5x 8.8x 14.9x 13.5x
Cerner 20,670 20,836 32.1% 30.9% 4.7x 4.2x 14.7x 12.4x 29.2x 25.7x
Sysmex 12,315 12,089 26.0% 20.2% 5.9x 5.2x 22.6x 19.3x NM 38.7x
Allscripts Healthcare Solutions 2,779 3,353 17.6% 0.0% 2.4x 2.3x 13.6x 11.6x 31.7x 25.2x
CompuGroup 1,814 2,193 20.7% 5.2% 3.7x 3.4x 17.7x 14.8x 23.5x 20.2x
EMIS 1,008 1,018 31.5% 17.4% 4.2x 3.9x 13.4x 12.4x 23.8x 21.4x
Computer Programs & Systems 548 509 17.9% (12.2%) 2.8x 2.6x 15.4x 11.6x 25.1x 19.9x
Sectra Aktiebolag 519 513 18.1% 6.5% 4.2x 3.8x 23.4x 18.8x 25.9x 32.5x
Cegedim 504 681 18.2% (43.6%) 1.2x 1.2x 6.7x 6.3x NM 14.8x
Castlight Health 378 230 (83.9%) 69.3% 3.1x 2.3x NM NM NM NM
Craneware 322 282 31.7% 7.1% 5.9x 5.4x 18.7x 17.3x 30.6x 28.3x
Mean 12.0% 10.1% 3.5x 3.1x 15.6x 13.3x 25.6x 24.0x
Median 18.2% 7.1% 3.7x 3.4x 15.1x 12.4x 25.5x 23.3x
Security Software
Palo Alto Networks 15,958 15,689 18.4% 56.2% 13.8x 10.2x NM 41.1x NM NM
Check Point 15,729 14,430 57.6% 9.3% 8.9x 8.2x 15.4x 14.4x 21.1x 19.1x
Symantec 13,632 12,015 32.3% (18.8%) 2.2x 3.3x 6.9x 9.2x 13.4x 18.5x
Verisign 10,032 10,003 67.4% 4.5% 9.5x 8.8x 14.0x 12.9x 29.4x 26.0x
Trend Micro 5,772 4,961 33.8% 8.6% 4.9x 4.2x 14.4x 12.6x 32.1x 31.6x
Fortinet 5,270 4,361 16.4% 33.5% 4.3x 3.5x 26.4x 20.6x NM 44.9x
Gemalto 5,122 5,654 17.4% 24.6% 1.7x 1.5x 9.6x 8.3x 15.2x 12.7x
FireEye 3,407 2,935 (32.0%) 47.4% 4.7x 3.6x NM NM NM NM
Proofpoint 2,617 2,542 1.5% 37.5% 9.6x 7.4x NM NM NM NM
Imperva 2,106 1,852 3.3% 41.5% 8.1x 6.4x NM NM NM NM
Qualys 1,214 1,040 33.0% 23.7% 6.3x 5.1x 19.2x 15.7x NM 43.8x
AVG Technologies 995 1,116 36.0% 15.6% 2.6x 2.5x 7.3x 7.0x 10.6x 9.7x
Barracuda Networks 937 724 23.7% 16.5% 2.3x 2.0x 9.9x 7.7x NM 40.0x
Vasco Data Security 669 485 24.8% 24.8% 2.0x 2.1x 8.1x 9.8x 13.4x 15.8x
F-Secure 466 367 19.4% (5.4%) 2.3x 2.2x 11.8x 11.4x 23.4x 23.3x
Intercede 109 100 (3.4%) (10.6%) 6.1x 4.7x NM NM NM NM
Mean 21.8% 19.3% 5.6x 4.7x 13.0x 14.2x 19.8x 25.9x
Median 21.6% 20.1% 4.8x 3.9x 11.8x 12.0x 18.1x 23.3x
EV / Revenue EV / EBITDA P / E
PAGE |
Market Enterprise CY2015E
Cap ($m) Value ($m) EBITDA Margin Rev. Growth CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E
Fintech
Intuit 25,867 26,214 33.4% (1.4%) 5.8x 5.5x 17.4x 14.7x 31.8x 26.4x
Fiserv 21,467 25,160 34.0% 4.6% 4.8x 4.5x 14.0x 13.1x 24.1x 21.5x
Fidelity Information Services 20,112 24,149 30.7% 2.3% 3.7x 2.7x 12.0x 8.8x 18.6x 15.6x
Paychex 19,137 18,697 42.5% 8.7% 6.6x 6.1x 15.5x 14.4x 25.6x 25.2x
MSCI 7,221 7,864 44.4% 7.1% 7.3x 6.8x 16.5x 14.8x 31.5x 26.1x
SS&C Technologies 6,865 9,329 43.9% 33.9% 9.1x 6.3x 20.7x 14.7x 26.1x 21.3x
Jack Henry 6,245 6,089 34.9% 3.3% 4.7x 4.4x 13.5x 12.4x 28.8x 26.2x
Guidewire 4,279 3,685 18.4% 6.6% 9.4x 8.5x NM 46.9x NM NM
Temenos 3,353 3,715 35.0% 11.5% 6.9x 6.2x 19.7x 16.5x 29.0x 25.2x
Fair Isaac 2,844 3,409 23.2% 6.2% 4.0x 3.9x 17.3x 14.3x 17.6x 14.3x
Paycom 2,285 2,218 21.6% 49.8% 10.1x 7.7x 46.6x 36.2x NM NM
SimCorp 2,233 2,211 28.3% 17.2% 7.3x 6.7x 25.8x 22.8x 37.2x 32.0x
Ellie Mae 1,832 1,837 26.3% 59.8% 7.3x 6.0x 27.9x 22.0x NM 36.9x
Bottomline Technologies 1,095 1,148 22.8% 4.4% 3.4x 3.0x 15.0x 13.7x 21.3x NM
Fidessa 1,093 1,002 21.3% 4.4% 2.3x 2.3x 10.9x 10.3x 25.0x 23.7x
Ebix 1,088 1,276 37.0% 26.9% 4.9x 4.6x 13.2x 12.3x 15.3x 14.7x
Q2 Holdings 1,067 950 (7.5%) 37.4% 8.8x 6.6x NM NM NM NM
Iress 1,058 1,200 30.5% 6.1% 4.8x 4.3x 15.7x 13.8x 23.6x 20.4x
Envestnet 1,049 1,018 18.0% 19.9% 2.4x 1.7x 13.5x 9.2x 32.3x 25.0x
Linedata 256 287 24.9% 8.0% 1.6x 1.5x 6.2x 6.1x 13.0x 12.4x
StatPro 77 74 13.1% (0.4%) 1.6x 1.5x 12.1x 10.8x 30.8x 27.0x
Mean 27.5% 15.1% 5.6x 4.8x 17.5x 16.4x 25.4x 23.2x
Median 28.3% 7.1% 4.9x 4.6x 15.5x 14.1x 25.6x 25.0x
Data and Data Analytics
Nielsen 16,776 23,798 30.1% (2.4%) 3.9x 3.7x 12.8x 12.1x 17.5x 15.9x
Experian 16,587 20,040 38.5% (4.9%) 4.3x 4.3x 11.2x 12.5x 19.1x 18.6x
Verisk 13,078 15,750 47.6% 19.1% 7.6x 6.7x 16.0x 14.3x 25.0x 23.3x
Equifax 12,942 14,252 34.7% 9.5% 5.4x 5.0x 15.4x 14.0x 24.5x 22.2x
Splunk 6,982 6,014 5.8% 47.8% 9.2x 7.0x NM NM NM NM
Tableau Software 6,479 5,672 11.3% 66.1% 8.7x 6.5x NM NM NM NM
Convergys 2,563 2,600 12.6% 3.5% 0.9x 0.9x 7.0x 6.4x 14.7x 13.4x
Microstrategy 2,034 1,540 29.7% (11.9%) 2.9x 2.7x 9.8x 8.9x 19.3x 17.9x
Neustar 1,343 1,740 45.4% 8.4% 1.7x 1.4x 3.7x 3.2x 5.3x 4.8x
PROS 663 618 (8.4%) (9.8%) 3.6x 3.8x NM NM NM NM
Mean 24.7% 12.6% 4.8x 4.2x 10.8x 10.2x 17.9x 16.6x
Median 29.9% 6.0% 4.1x 4.0x 11.2x 12.1x 19.1x 17.9x
CAx/PLM
Dassault Systems 20,515 19,179 33.7% 21.8% 6.2x 5.7x 18.3x 16.4x 33.6x 29.9x
Autodesk 13,765 12,968 12.8% (0.5%) 5.2x 6.1x 40.8x NM NM NM
Ansys 8,096 7,319 50.7% 1.6% 7.7x 7.1x 15.2x 13.7x 26.8x 24.7x
PTC 3,920 4,315 27.2% (9.4%) 3.5x 3.0x 13.0x 9.6x 15.8x 14.7x
Nemetschek 1,857 1,832 24.4% 29.6% 6.0x 5.3x 24.4x 21.1x NM 35.4x
Aveva 1,487 1,370 29.9% (6.1%) 4.4x 4.2x 14.9x 14.2x 24.2x 21.7x
Mensch und Maschine 165 194 8.1% 12.4% 1.1x 1.0x 13.8x 11.4x 36.0x 19.8x
Mean 26.7% 7.1% 4.9x 4.7x 20.1x 14.4x 27.3x 24.4x
Median 27.2% 1.6% 5.2x 5.3x 15.2x 13.9x 26.8x 23.2x
EV / Revenue EV / EBITDA P / E
SOFTWARE
7
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ DECEMBER 2015
PAGE |
(30%)
(20%)
(10%)
0%
10%
20%
30%
40%
50%
Dec 2014 Mar 2015 Jun 2015 Sep 2015 Dec 2015
Data Centres IT Services Managed Services, Colocation and Hosting Offshore IT Services PaaS/IaaS
(10%)
(8%)
(6%)
(4%)
(2%)
0%
2%
4%
6%
16 Nov 23 Nov 30 Nov 07 Dec 14 Dec
Data Centres IT Services Managed Services, Colocation and Hosting Offshore IT Services PaaS/IaaS
IT SERVICES
8
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ DECEMBER 2015
LAST 30 DAYS PERFORMANCE
LAST TWELVE MONTHS PERFORMANCE
IT Services 23.2%
Data Centres 15.8%
Offshore IT Services 10.5%
PaaS/IaaS (8.7%)
Managed Services, Colocation and Hosting (10.4%)
Managed Services, Colocation and Hosting 0.4%
Data Centres (1.4%)
PaaS/IaaS (1.7%)
IT Services (2.7%)
Offshore IT Services (7.5%)
PAGE |
Market Enterprise CY2015E
Cap ($m) Value ($m) EBITDA Margin Rev. Growth CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E
IT Services
Accenture 67,011 63,189 16.5% 2.4% 2.0x 1.9x 12.3x 11.7x 22.0x 20.0x
KDDI 59,452 69,536 29.5% 1.5% 1.9x 1.8x 6.3x 6.0x 15.5x 14.1x
Capgemini 16,251 14,585 11.7% 13.4% 1.1x 1.0x 9.6x 8.1x 19.7x 16.5x
NTT Group 13,449 15,869 16.1% 8.1% 1.2x 1.2x 7.6x 7.2x 39.7x 26.3x
CGI 12,788 14,106 18.5% (1.1%) 1.9x 1.8x 10.1x 9.4x 17.8x 16.3x
Capita 11,391 14,493 15.2% 11.7% 2.0x 1.8x 13.1x 12.1x 16.5x 15.4x
Fujitsu 10,747 17,265 6.9% 0.6% 0.4x 0.4x 6.3x 5.8x 13.5x 10.8x
Atos Origin 8,963 8,695 11.0% 19.6% 0.7x 0.7x 6.7x 6.0x 14.2x 12.3x
NEC 8,087 11,578 6.9% (1.4%) 0.5x 0.5x 7.0x 6.4x 24.6x 12.3x
Computer Sciences 4,207 5,028 17.2% (20.1%) 0.5x 0.7x 2.9x 3.7x 7.0x 10.5x
Sopra 2,313 3,038 7.9% 57.9% 0.8x 0.7x 9.9x 8.4x 17.5x 13.8x
Bechtle 2,036 1,962 5.3% 11.0% 0.6x 0.6x 11.8x 10.8x 20.9x 18.4x
Tieto 1,930 2,007 13.2% (4.1%) 1.3x 1.2x 9.5x 8.5x 19.8x 16.3x
Indra Sistemas 1,739 2,669 4.1% 0.4% 0.8x 0.8x 20.6x 9.5x NM 15.7x
GFI Informatique 502 600 7.5% 10.1% 0.6x 0.6x 8.3x 7.8x 16.6x 15.7x
Mean 12.5% 7.3% 1.1x 1.1x 9.5x 8.1x 18.9x 15.6x
Median 11.7% 2.4% 0.8x 0.8x 9.5x 8.1x 17.6x 15.7x
Offshore IT Services
Tata 70,144 68,021 28.7% 28.0% 4.3x 3.9x 15.1x 13.6x 22.8x 20.2x
Infosys 36,902 32,955 26.7% 11.8% 3.7x 3.4x 13.9x 12.3x 21.0x 19.4x
Cognizant 36,794 33,694 20.1% 22.0% 2.7x 2.4x 13.5x 11.7x 20.0x 17.5x
Wipro 20,551 17,681 22.4% 7.0% 2.4x 2.1x 10.6x 9.6x 15.2x 15.6x
HCL 17,845 16,400 21.9% 15.1% 2.8x 2.4x 12.6x 10.9x 16.8x 17.2x
Mean 24.0% 16.8% 3.2x 2.8x 13.1x 11.6x 19.2x 18.0x
Median 22.4% 15.1% 2.8x 2.4x 13.5x 11.7x 20.0x 17.5x
Managed Services, Colocation and Hosting
Level 3 18,191 28,513 31.5% 21.2% 3.5x 3.2x 11.0x 10.0x 28.6x 22.1x
United Internet 11,335 12,812 20.7% 22.1% 3.1x 2.9x 15.2x 13.3x 27.3x 22.3x
Rackspace 3,331 3,451 33.6% 11.4% 1.7x 1.6x 5.1x 4.6x 28.1x 25.2x
GoDaddy 2,138 3,120 20.9% 15.7% 1.9x 1.7x 9.3x 7.7x 25.8x 20.9x
Interxion 2,061 2,610 44.9% 11.7% 6.2x 5.6x 13.8x 12.3x NM 40.0x
Endurance 1,755 2,825 35.8% 18.7% 3.8x 3.4x 10.6x 9.6x 10.4x 9.5x
Windstream 604 11,420 28.7% (1.3%) 2.0x 2.0x 6.9x 7.6x NM NM
iomart 417 451 42.7% 17.0% 4.0x 3.6x 9.5x 8.3x 18.8x 15.5x
Redcentric 414 444 22.1% 19.9% 2.9x 2.5x 13.1x 10.7x 22.3x 17.4x
Internap 349 708 25.2% (4.3%) 2.2x 2.1x 8.8x 7.6x NM NM
Melbourne IT 143 156 12.1% 19.1% 1.4x 1.2x 11.8x 7.7x 21.8x 16.9x
Proact 141 153 0.1x 21.2% 0.5x 0.4x 7.6x 7.3x 15.0x 12.6x
Mean 27.0% 14.4% 2.8x 2.5x 10.2x 8.9x 22.0x 20.2x
Median 26.9% 17.8% 2.6x 2.3x 10.0x 8.0x 22.3x 19.1x
Data Centres
Equinix 17,972 22,273 47.0% 11.0% 8.2x 7.3x 17.5x 15.4x NM 28.3x
Digital Realty Trust 10,329 16,384 56.4% 8.5% 9.3x 8.0x 16.5x 14.2x NM NM
Telecity 3,703 4,191 46.0% 2.8% 7.8x 7.1x 16.9x 15.0x 31.8x 27.3x
DuPont Fabros 2,073 3,968 61.7% 7.1% 8.9x 8.2x 14.4x 13.0x 27.6x 23.0x
Coresite 1,478 2,210 50.7% 19.8% 6.8x 5.8x 13.4x 11.4x NM 47.3x
Mean 52.3% 9.8% 8.2x 7.3x 15.8x 13.8x 29.7x 31.5x
Median 50.7% 8.5% 8.2x 7.3x 16.5x 14.2x 29.7x 27.8x
PaaS/IaaS
EMC 53,623 51,529 25.0% 1.7% 2.1x 2.0x 8.3x 7.6x 14.2x 13.2x
ServiceNow 13,610 13,348 15.3% 47.7% 13.3x 9.7x NM NM NM NM
Akamai 9,209 9,161 40.5% 12.0% 4.2x 3.8x 10.3x 9.4x 21.3x 19.2x
Netapp 8,352 5,027 17.9% (8.3%) 0.9x 0.9x 4.9x 4.2x 12.8x 10.7x
Commvault Systems 1,792 1,392 11.6% (5.7%) 2.4x 2.3x 20.7x 15.4x NM 40.0x
Synchronoss 1,633 1,666 34.6% 26.7% 2.9x 2.5x 8.3x 7.1x 16.9x 14.7x
Progress Software 1,143 1,069 33.9% 22.7% 2.6x 2.5x 7.8x 7.7x 14.9x 14.6x
Carbonite 247 185 19.3% 11.9% 1.3x 1.2x 7.0x 6.2x NM 48.8x
Mean 24.8% 13.6% 3.7x 3.1x 9.6x 8.2x 16.0x 23.0x
Median 22.1% 11.9% 2.5x 2.4x 8.3x 7.6x 14.9x 14.7x
EV / Revenue P / EEV / EBITDA
IT SERVICES
9
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ DECEMBER 2015
(1) Endurance has entered into an agreement to acquire Constant Contact
(2) Equinix has entered into an agreement to acquire Telecity
(3) Dell has entered into an agreement to acquire EMC, share price as at 9 October 2015
(1)
(2)
(2)
(3)
PAGE |
(30%)
(20%)
(10%)
0%
10%
20%
30%
40%
50%
Dec 2014 Mar 2015 Jun 2015 Sep 2015 Dec 2015
Digital Broadband Diversified Communication Equipment Mobile Content / Solutions Providers Mobile Infrastructure Software
COMMUNICATIONS
10
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ DECEMBER 2015
LAST 30 DAYS PERFORMANCE
LAST TWELVE MONTHS PERFORMANCE
Digital Broadband 37.4%
Mobile Content / Solutions Providers 3.4%
Diversified Communication Equipment (14.3%)
Mobile Infrastructure Software (25.7%)
(8%)
(6%)
(4%)
(2%)
0%
2%
4%
6%
8%
10%
12%
16 Nov 23 Nov 30 Nov 07 Dec 14 Dec
Digital Broadband Diversified Communication Equipment Mobile Content / Solutions Providers Mobile Infrastructure Software
Digital Broadband 4.5%
Mobile Content / Solutions Providers (0.8%)
Diversified Communication Equipment (5.2%)
Mobile Infrastructure Software (6.8%)
PAGE |
Market Enterprise CY2015E
Cap ($m) Value ($m) EBITDA Margin Rev. Growth CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E
Digital Broadband
Technicolor 3,223 3,834 16.5% 5.9% 1.0x 0.8x 6.1x 5.9x 11.2x 12.4x
TomTom 2,823 2,706 12.0% 6.1% 2.5x 2.3x 20.5x 15.1x NM 32.6x
Logitech 2,415 2,052 8.5% (1.1%) 1.0x 1.0x 11.5x 9.8x 35.2x 19.3x
Pace 2,033 2,005 10.8% 0.4% 0.8x 0.7x 7.2x 7.0x 10.6x 10.0x
Kudelski 744 998 13.6% 2.6% 1.1x 1.0x 7.8x 7.9x 16.7x 13.7x
Extreme Networks 406 390 7.2% (7.9%) 0.7x 0.7x 10.2x 6.3x 22.7x 16.9x
Parrot 302 250 5.3% 30.8% 0.7x 0.7x 13.5x 7.2x NM 24.1x
Mean 10.6% 5.3% 1.1x 1.0x 11.0x 8.5x 19.3x 18.5x
Median 10.8% 2.6% 1.0x 0.8x 10.2x 7.2x 16.7x 16.9x
Diversified Communication Equipment
LM Ericsson Telephone 29,229 26,849 12.6% 6.1% 0.9x 0.9x 7.4x 6.4x 14.5x 12.0x
Alcatel-Lucent 10,668 11,763 11.1% 6.2% 0.8x 0.7x 6.9x 6.2x 20.8x 13.7x
CIENA 2,624 2,972 16.4% 7.7% 1.2x 1.1x 7.3x 7.3x 15.1x 12.2x
ADTRAN 815 718 4.4% (4.6%) 1.2x 1.2x 27.1x 13.7x 35.2x 21.3x
Mean 11.1% 3.8% 1.0x 1.0x 12.2x 8.4x 21.4x 14.8x
Median 11.9% 6.1% 1.1x 1.0x 7.3x 6.8x 17.9x 12.9x
Mobile Infrastructure Software
QUALCOMM 72,179 65,820 37.2% (11.0%) 2.8x 2.8x 7.4x 7.0x 11.5x 10.6x
VeriSign 10,032 10,003 67.4% 4.5% 9.5x 8.8x 14.0x 12.9x 29.4x 26.0x
Amdocs 8,352 7,219 20.8% 1.5% 2.0x 1.9x 9.5x 9.1x 16.5x 15.3x
Synchronoss Technologies 1,633 1,666 34.6% 26.7% 2.9x 2.5x 8.3x 7.1x 16.9x 14.7x
Sonus Networks 345 235 4.5% (16.9%) 1.0x 0.9x 21.0x 7.9x NM 28.3x
TeleCommunication Systems 312 404 11.0% 4.7% 1.1x 1.0x 9.6x 8.0x 16.4x 12.6x
Redknee Solutions 235 238 14.0% (16.3%) 1.1x 1.0x 7.7x 5.4x NM 12.1x
Smith Micro Software 33 20 (1.4%) 6.8% 0.5x 0.5x NM 8.2x NM NM
Mean 23.5% 0.0% 2.6x 2.4x 11.1x 8.2x 18.1x 17.1x
Median 17.4% 3.0% 1.5x 1.5x 9.5x 7.9x 16.5x 14.7x
Mobile Content / Solutions Providers
Opera Software 832 922 16.4% 35.1% 1.6x 1.3x 9.6x 7.2x 26.5x 18.8x
GameLoft 550 506 8.9% 13.9% 1.8x 1.6x 20.0x 11.5x NM 35.3x
Mean 12.6% 24.5% 1.7x 1.5x 14.8x 9.3x NM 27.0x
Median 12.6% 24.5% 1.7x 1.5x 14.8x 9.3x NM 27.0x
EV / EBITDA P / EEV / Revenue
COMMUNICATIONS
11
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ DECEMBER 2015
(1) Vivendi has entered into discussions to merge with Gameloft
(1)
PAGE |
(40%)
(20%)
0%
20%
40%
60%
80%
100%
Dec 2014 Mar 2015 Jun 2015 Sep 2015 Dec 2015
Chinese Internet Leaders Content Providers / Communities Digital Marketing eCommerce
Global Internet Leaders Interactive Entertainment Intermediation and Comparison Online Classifieds
Online Travel Online Gambling Internet Services Educational Technology
INTERNET AND DIGITAL MEDIA
12
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ DECEMBER 2015
LAST 30 DAYS PERFORMANCE
LAST TWELVE MONTHS PERFORMANCE
(10%)
(5%)
0%
5%
10%
15%
20%
16 Nov 23 Nov 30 Nov 07 Dec 14 Dec
Chinese Internet Leaders Content Providers / Communities Digital Marketing Ecommerce
Global Internet Leaders Interactive Entertainment Intermediation and Comparison Online Travel
Online Classifieds Online Gambling Internet Services Educational Technology
Online Gambling 10.1%
Chinese Internet Leaders 3.6%
Online Travel 2.9%
Ecommerce 1.7%
Global Internet Leaders 0.8%
Interactive Entertainment 0.5%
Internet Services 0.1%
Online Classifieds (0.9%)
Digital Marketing (1.0%)
Intermediation and Comparison (2.8%)
Educational Technology (3.7%)
Content Providers / Communities (3.9%)
Online Gambling 74.6%
Interactive Entertainment 45.8%
Online Travel 24.7%
Ecommerce 18.7%
Chinese Internet Leaders 18.3%
Global Internet Leaders 11.6%
Educational Technology 3.1%
Online Classifieds 2.5%
Digital Marketing (1.0%)
Intermediation and Comparison (6.6%)
Content Providers / Communities (14.8%)
Internet Services (19.7%)
(1)
(1)
(1) Education Technology index has been normalised to reflect Graham Holdings’ spin-off of its cable segment
PAGE |
INTERNET AND DIGITAL MEDIA
13
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ DECEMBER 2015
(1)
Market Enterprise CY2015E
Cap ($m) Value ($m) EBITDA Margin Rev. Growth CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E
Global Internet Leaders
Apple 616,018 638,498 35.1% 22.5% 2.7x 2.6x 7.7x 7.7x 11.8x 11.0x
Google 516,967 454,552 40.2% 11.0% 6.2x 5.3x 15.3x 13.0x 26.5x 22.4x
Microsoft 440,933 380,428 26.8% (2.7%) 4.2x 4.0x 15.6x 11.2x 21.1x 19.0x
Amazon 308,745 312,904 10.0% 20.1% 2.9x 2.4x 29.3x 21.4x NM NM
Facebook 295,667 279,959 62.0% 40.5% 16.1x 11.7x 25.9x 19.0x NM 36.7x
Alibaba 207,250 203,904 51.6% 25.4% 13.9x 10.8x 27.0x 21.6x 32.6x 26.6x
Baidu 68,825 64,239 22.4% 31.5% 6.2x 4.9x 27.5x 20.8x 35.7x 27.5x
eBay 33,991 36,129 40.3% (52.1%) 4.2x 4.0x 10.4x 9.9x 15.7x 14.3x
Yahoo! 31,192 26,561 22.9% (8.2%) 6.6x 6.9x 28.7x 30.5x NM NM
Yandex 4,822 4,640 34.5% 15.7% 5.6x 4.7x 16.2x 13.0x 24.7x 19.6x
Mean 34.6% 10.4% 6.8x 5.7x 20.4x 16.8x 24.0x 22.1x
Median 34.8% 17.9% 5.9x 4.8x 21.0x 16.0x 24.7x 21.0x
Ecommerce
Amazon 308,745 312,904 10.0% 20.1% 2.9x 2.4x 29.3x 21.4x NM NM
Alibaba 207,250 203,904 51.6% 25.4% 13.9x 10.8x 27.0x 21.6x 32.6x 26.6x
Naspers 57,732 60,711 8.9% 13.8% 11.6x 9.8x NM NM NM 34.9x
Netflix 50,688 50,500 7.2% 23.3% 7.4x 5.8x NM NM NM NM
JD.com 43,202 40,357 0.6% 57.6% 1.5x 1.0x NM NM NM NM
eBay 33,991 36,129 40.3% (52.1%) 4.2x 4.0x 10.4x 9.9x 15.7x 14.3x
IAC 5,422 5,626 14.9% 5.5% 1.7x 1.7x 11.7x 9.7x 18.9x 18.0x
Mercadolibre 5,230 5,186 28.9% 18.1% 8.1x 7.1x 27.9x 24.8x NM 38.0x
JUST EAT 4,591 4,463 23.3% 59.8% 12.2x 9.1x NM 32.7x NM NM
Mail.ru 4,402 4,672 47.3% 20.2% 8.4x 7.5x 17.7x 15.4x 28.2x 23.6x
Asos 4,319 3,871 5.7% 18.7% 2.1x 1.8x 37.0x 27.7x NM NM
Ocado 2,935 3,097 7.4% 16.1% 1.9x 1.6x 25.1x 20.8x NM NM
Cimpress 2,667 3,444 14.8% 14.1% 2.2x 2.0x 14.7x 12.8x 23.8x 24.5x
GrubHub 2,038 1,743 28.3% 44.0% 4.8x 3.9x 17.1x 13.9x 38.6x 32.9x
Groupon 1,910 1,203 7.9% (3.9%) 0.4x 0.4x 5.0x 11.4x 30.2x NM
Shutterfly 1,542 1,792 18.4% 15.4% 1.7x 1.5x 9.2x 7.7x NM NM
Shutterstock 1,135 853 19.6% 29.9% 2.0x 1.7x 10.2x 8.4x 27.0x 21.8x
Coupons.com 576 386 5.5% 1.0% 1.7x 1.5x 31.0x 16.3x NM NM
RetailMeNot 533 337 27.8% (8.2%) 1.4x 1.4x 5.0x 4.7x 15.0x 15.0x
Blue Nile 419 386 4.6% 2.9% 0.8x 0.7x 17.1x 15.6x NM 35.2x
Overstock 322 240 NA NA NA NA NA NA NA NA
Mean 18.6% 16.1% 4.5x 3.8x 18.5x 16.2x 25.6x 25.9x
Median 14.8% 17.1% 2.1x 1.9x 17.1x 15.4x 27.0x 24.5x
Online Travel
The Priceline Group 65,901 68,291 40.1% 9.5% 7.4x 6.4x 18.5x 15.7x 22.9x 19.3x
Ctrip 20,945 22,132 11.0% 43.6% 13.0x 9.1x NM 49.5x 36.4x NM
Amadeus 18,579 20,429 37.2% 13.9% 4.8x 4.5x 13.0x 12.0x 23.2x 21.3x
Expedia 16,910 18,527 17.2% 15.5% 2.8x 2.2x 16.1x 11.6x 31.7x 21.3x
Tripadvisor 12,387 11,989 31.2% 19.3% 8.1x 7.0x 25.9x 22.3x NM 37.9x
Sabre Corporation 7,918 10,923 31.7% 6.0% 3.7x 3.2x 11.6x 10.0x 26.4x 20.7x
Travelport 1,724 4,116 24.0% 2.6% 1.9x 1.7x 7.7x 7.2x NM 38.4x
MakeMyTrip 751 644 (7.9%) 7.5% 3.7x 4.2x NM NM NM NM
Hostelworld Group 330 662 27.4% (4.6%) 7.2x 6.6x 26.4x 23.4x NM 24.8x
Travelzoo 115 85 4.1% (4.4%) 0.6x 0.6x 14.9x 8.2x 20.0x 26.2x
Mean 21.6% 10.9% 5.3x 4.6x 16.8x 17.8x 26.8x 26.2x
Median 25.7% 8.5% 4.3x 4.3x 15.5x 12.0x 24.8x 23.1x
EV / Revenue P / EEV / EBITDA
PAGE |
INTERNET AND DIGITAL MEDIA
14
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ DECEMBER 2015
(1) Endurance has agreed to acquire Constant Contact
(1)
(2)
Market Enterprise CY2015E
Cap ($m) Value ($m) EBITDA Margin Rev. Growth CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E
Digital Marketing
Criteo 2,423 2,125 26.1% 59.2% 4.1x 3.1x 15.7x 11.3x 35.6x 24.3x
Cvent 1,442 1,283 12.8% 31.9% 6.9x 5.6x NM NM NM NM
Callidus Software 1,135 1,039 10.5% 28.7% 6.0x 4.9x NM 42.3x NM NM
Marketo 1,125 1,019 (8.7%) 41.2% 4.9x 3.7x NM NM NM NM
Constant Contact 1,020 839 19.7% 11.3% 2.3x 2.0x 11.6x 9.1x 24.5x 18.7x
The Rubicon Project 671 591 17.7% 101.2% 2.4x 1.7x 13.5x 10.8x 22.6x 21.3x
Bazaarvoice 387 334 (2.3%) 6.1% 1.7x 1.6x NM NM NM NM
TechTarget 264 243 21.8% 7.8% 2.2x 1.9x 9.9x 7.9x 22.7x 17.5x
Harte-Hanks 198 249 8.2% (10.9%) 0.5x 0.5x 6.1x 4.7x 21.5x 10.1x
Dotdigital 194 178 28.7% 31.0% 4.8x 2.9x 16.8x 8.1x 27.3x 14.3x
Marchex 172 63 10.0% (18.0%) 0.4x 0.4x 4.3x 5.7x 20.5x 37.2x
Marin Software 133 103 (10.4%) 8.7% 1.0x 0.9x NM NM NM NM
Matomy Media 133 153 9.5% 15.8% 0.6x 0.4x 5.9x 4.0x 8.4x 5.9x
1000mercis 127 113 21.7% 10.0% 2.0x 1.7x 9.1x 7.9x 19.3x 17.1x
InternetQ 30 39 15.6% 22.4% 0.2x 0.2x 1.4x 1.1x 3.5x 2.4x
Mean 12.1% 23.1% 2.7x 2.1x 9.4x 10.3x 20.6x 16.9x
Median 12.8% 15.8% 2.2x 1.7x 9.5x 7.9x 22.0x 17.3x
Content Providers / Communities
LinkedIn 30,049 28,101 25.1% 36.4% 9.4x 7.2x 37.4x 27.1x NM NM
Twitter 16,357 14,469 24.3% 60.9% 6.5x 4.6x 26.8x 17.8x NM 43.3x
JustEat 4,591 4,463 23.3% 59.8% 12.2x 9.1x NM 32.7x NM NM
Pandora Media 2,787 2,424 4.7% 26.5% 2.1x 1.7x 44.5x 23.8x NM NM
GoPro 2,463 1,950 15.4% 26.3% 1.2x 1.0x 7.5x 7.2x 15.1x 14.1x
WebMD Health 1,734 1,924 29.5% 9.1% 3.0x 2.8x 10.3x 9.0x 30.2x 27.1x
XING 1,058 966 30.8% 21.6% 7.4x 6.1x 23.9x 18.3x NM 37.4x
XO Group 425 339 19.3% (0.8%) 2.4x 2.2x 12.6x 10.3x NM 31.8x
Brightcove 214 192 5.0% 7.6% 1.4x 1.3x 28.5x 21.3x NM NM
Demand Media 108 70 (6.9%) (26.1%) 0.6x 0.5x NM NM NM NM
Mean 17.1% 22.1% 4.6x 3.7x 23.9x 18.6x 22.7x 30.7x
Median 21.3% 23.9% 2.7x 2.5x 25.4x 18.3x 22.7x 31.8x
Intermediation and Comparison
Zillow 4,649 4,342 14.3% 101.9% 6.6x 5.5x 46.4x 29.8x NM NM
Moneysupermarket 2,833 2,870 40.3% 11.7% 6.9x 6.4x 17.2x 15.7x 25.0x 23.2x
Bankrate 1,376 1,530 28.1% 0.4% 2.8x 3.4x 9.9x 10.4x 19.0x 20.0x
Angie's List 541 542 8.2% 10.0% 1.6x 1.5x 19.2x 13.7x NM 30.0x
Gruppo MutuiOnline 308 331 17.8% 74.8% 2.7x 2.5x 15.0x 12.8x 15.3x 14.8x
Liquidity Services 206 110 4.7% (28.5%) 0.3x 0.2x 6.8x 4.4x 27.8x 22.0x
eHealth 189 127 6.2% 1.4% 0.7x 0.7x 11.2x 8.6x 19.8x 21.0x
Mean 17.1% 24.5% 3.1x 2.9x 18.0x 13.6x 21.4x 21.8x
Median 14.3% 10.0% 2.7x 2.5x 15.0x 12.8x 19.8x 21.5x
Online Classifieds
Rightmove 5,642 5,696 74.2% 16.9% 19.9x 17.9x 26.8x 24.0x 35.0x 30.5x
SEEK 3,473 4,406 38.3% 19.5% 6.6x 5.9x 17.1x 15.7x 25.8x 23.2x
SouFun 3,214 3,266 (1.2%) 26.3% 3.8x 2.7x NM NM NM 43.2x
Yelp 2,022 1,653 13.4% 45.8% 3.0x 2.4x 22.5x 15.1x NM 42.1x
51job 1,714 1,142 31.7% 10.0% 3.5x 3.2x 11.2x 9.5x 17.3x 16.4x
Zoopla 1,459 1,592 47.9% 23.7% 9.9x 6.1x 20.7x 15.6x 25.7x 20.3x
Monster 522 696 16.1% (12.0%) 1.0x 1.0x 6.3x 5.2x 14.9x 10.2x
Dice 478 544 28.8% (2.3%) 2.1x 2.1x 7.3x 7.0x 20.7x 17.7x
Mean 31.2% 16.0% 6.2x 5.2x 16.0x 13.1x 23.2x 25.5x
Median 30.2% 18.2% 3.6x 2.9x 17.1x 15.1x 23.2x 21.7x
P / EEV / Revenue EV / EBITDA
(1)
PAGE |
INTERNET AND DIGITAL MEDIA
15
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ DECEMBER 2015
(1) bwin.party digital entertainment is in takeover talks to be acquired by GVC Holdings
(2) Activision has entered into an agreement to acquire King Digital Media
(1)
(2)
Market Enterprise CY2015E
Cap ($m) Value ($m) EBITDA Margin Rev. Growth CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E
Internet Services
LendingClub 4,708 3,661 15.7% 100.5% 8.7x 5.1x NM 28.4x NM NM
LifeLock 1,360 1,033 12.3% 23.3% 1.8x 1.5x 14.4x 11.0x 23.0x 19.0x
Web.com 1,162 1,589 27.6% (1.8%) 2.8x 2.8x 10.3x 9.5x 9.4x 8.5x
Wix.com 907 826 6.6% 44.4% 4.1x 3.1x NM 23.9x NM NM
Mean 15.5% 41.6% 4.3x 3.1x 12.4x 18.2x 16.2x 13.7x
Median 14.0% 33.9% 3.5x 2.9x 12.4x 17.4x 16.2x 13.7x
Educational Technology
Graham 2,902 2,039 10.4% (29.8%) 0.8x 0.8x 7.8x 6.5x 30.9x 20.5x
2U 1,258 1,104 (5.1%) 35.9% 7.4x 5.6x NM NM NM NM
Chegg 627 545 0.9% (0.0%) 1.8x 1.9x NM 24.2x NM 45.4x
K12 361 252 9.6% (2.1%) 0.3x 0.3x 2.9x 2.7x 18.4x 25.7x
Cambium Learning Group 229 338 NA NA NA NA NA NA NA NA
Rosetta Stone 148 120 (7.9%) (16.7%) 0.5x 0.6x NM NM NM NM
Mean 1.6% (2.5%) 2.2x 1.8x 5.3x 11.1x 24.7x 30.5x
Median 0.9% (2.1%) 0.8x 0.8x 5.3x 6.5x 24.7x 25.7x
Chinese Internet Leaders
Tencent 177,145 179,733 43.7% 28.0% 11.6x 9.1x 26.5x 21.2x 38.1x 29.2x
Baidu 68,825 64,239 22.4% 31.5% 6.2x 4.9x 27.5x 20.8x 35.7x 27.5x
Netease 23,617 20,656 33.5% 86.4% 6.0x 4.2x 17.8x 14.4x 21.9x 18.1x
58.com 9,188 9,447 (36.2%) 170.1% 13.4x 7.9x NM NM NM NM
Youku Tudou 5,285 4,376 (20.3%) 55.1% 4.4x 3.1x NM NM NM NM
Weibo Corporation 3,833 3,560 14.9% 43.5% 7.5x 5.6x 50.0x 27.8x NM 35.0x
Autohome 3,736 3,333 38.3% 61.0% 6.3x 4.8x 16.5x 14.2x 25.1x 21.1x
Sina 3,367 2,616 9.9% 14.0% 3.0x 2.5x 30.4x 16.3x NM 33.7x
SouFun 3,214 3,266 (1.2%) 26.3% 3.8x 2.7x NM NM NM 43.2x
Sohu 1,976 1,450 14.8% 15.7% 0.8x 0.7x 5.1x 4.9x NM NM
Renren 1,224 1,055 (110.1%) (22.4%) 15.0x 7.2x NM NM NM NM
Dangdang 583 315 (0.6%) 20.2% 0.2x 0.2x NM 7.1x NM NM
Mean 0.8% 44.1% 6.5x 4.4x 24.8x 15.8x 30.2x 29.7x
Median 12.4% 29.8% 6.1x 4.5x 26.5x 15.3x 30.4x 29.2x
Online Gambling
Betfair 5,243 5,034 25.9% 10.8% 6.6x 5.7x 25.6x 23.4x NM 36.5x
Playtech 3,825 3,301 39.8% 38.7% 4.8x 4.1x 12.2x 10.2x 16.9x 15.3x
bwin.party digital entertainment 1,452 1,384 17.0% (6.5%) 2.1x 2.1x 12.5x 12.8x 28.0x 27.8x
888 975 829 17.2% (1.3%) 1.8x 1.7x 10.7x 9.9x 19.7x 18.1x
Mean 25.0% 10.4% 3.9x 3.4x 15.2x 14.1x 21.5x 24.4x
Median 21.5% 4.7% 3.5x 3.1x 12.3x 11.5x 19.7x 23.0x
Interactive Entertainment
Activision 28,304 28,229 34.5% (2.8%) 6.0x 5.4x 17.4x 14.6x 28.8x 23.7x
Electronic Arts 22,481 20,238 32.2% 8.2% 4.5x 4.2x 13.9x 12.3x 24.0x 21.5x
Ubisoft Entertainment 3,239 3,372 40.8% (31.5%) 3.0x 2.6x 7.4x 5.0x NM 11.4x
Take-Two Interactive Software 3,046 2,489 16.5% 20.8% 1.6x 1.5x 9.5x 8.4x 22.7x 25.1x
Zynga 2,398 1,347 3.0% 8.2% 1.8x 1.7x NM 13.9x NM NM
Mean 25.4% 0.6% 3.4x 3.1x 12.0x 10.9x 25.2x 20.4x
Median 32.2% 8.2% 3.0x 2.6x 11.7x 12.3x 24.0x 22.6x
P / EEV / Revenue EV / EBITDA
(1)
(2)
Energy, Power& Infrastructure
IndustrialsHealthcare & Life Sciences
Transportation & Logistics
Aerospace, Defense & Government
Services
Business Services
Building Products & Materials
Technology, Media & Telecom
Specialty Distribution
Consumer
PAGE |
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EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ DECEMBER 2015
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HARRIS WILLIAMS & CO.
Capital IQ as of 15th December 2015, broker reports and various industry news outlets
17
SOURCES
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ DECEMBER 2015
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