TECHNOLOGY, MEDIA, & TELECOM€¦ · Pending Onex Corporation PowerSchool Group / PeopleAdmin...

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limited company incorporated under English law with its registered officeat 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority.Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan.

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Harris Williams is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

www.harriswilliams.com

TECHNOLOGY, MEDIA, & TELECOMQUARTERLY SOFTWARE SECTOR REVIEW │ 2Q 2018

PAGE |

TECHNOLOGY, MEDIA, & TELECOM

QUARTERLY SOFTWARE SECTOR REVIEW │ 2Q 2018

has been acquired byhas merged with has acquiredpending acquisition by has been acquired by has been acquired by has been acquired by has been acquired by

&

has received an

investment from

a wholly-owned

affiliate of

has been acquired by

has invested in

CONTENTS

DEAL SPOTLIGHT

M&A TRANSACTIONS – 2Q 2018

SOFTWARE M&A ACTIVITY

SOFTWARE SECTOR OVERVIEWS

SOFTWARE PRIVATE PLACEMENTS

SOFTWARE PUBLIC COMPARABLES

TECHNOLOGY IPOS

DEBT MARKETS

APPENDIX: PUBLIC COMPARABLES DETAIL

TMT CONTACTS

UNITED STATES

Jeff BistrongManaging [email protected]

Tyler DewingManaging [email protected]

Sam HendlerManaging [email protected]

Mike WilkinsManaging [email protected]

EUROPE

Thierry MonjauzeManaging [email protected]

TO SUBSCRIBE PLEASE EMAIL:*[email protected]

HARRIS WILLIAMS & CO. OVERVIEW

HARRIS WILLIAMS & CO. (“HW&CO.”) GLOBAL ADVISORY PLATFORM

SOFTWARE / SAAS

Enterprise Software

Data and Analytics

Infrastructure Software

IT and Tech-Enabled

Services

Telecom and Data Center

Solutions

INTERNET & DIGITAL MEDIA

AdTech and Marketing

Solutions

Consumer Internet

Digital Media, Content, and

Gaming

eCommerce

Mobile

HW&CO. TECHNOLOGY, MEDIA & TELECOM (“TMT”) GROUP FOCUS AREAS

SELECT RECENT HW&CO. TMT TRANSACTIONS

TMT VERTICAL FOCUS AREAS

25+ year history with over 130closed transactions in the last 24 months

Approximately 270 professionals across eight offices in the U.S. and Europe

Strategic relationships in India and China

10 industry groups

KEY FACTS

1

Education

Energy Technology

Fintech

Healthcare IT

Public Sector

Supply Chain and Logistics

HW&Co. Office

Network Office

has been acquired by

&

mailto:[email protected]





mailto:*[email protected]

PAGE |



CASE STUDY: DRILLINGINFO

2

Jeff Bistrong

Managing Director

[email protected]

617-654-2102

Tyler Dewing

Managing Director

[email protected]

617-654-2133

Luke Semple

Managing Director

[email protected]

804-915-0158

Scott Reinig

Vice President

[email protected]

617-654-2113

ABOUT DRILLINGINFO

Drillinginfo is a leading provider of integrated software, data, andanalytics solutions to the global energy, power, and commoditiesmarkets.

The Company provides a fully integrated, SaaS platformdelivering actionable intelligence over mobile, web, and desktopplatforms to analyze and reduce risk, conduct competitivebenchmarking, and uncover market insights.

Following the acquisition, Genstar will support DI’s continueddevelopment through organic and inorganic initiatives toconsolidate data onto its existing platform, broaden its productmix, expand its geographic footprint, and accelerate entry intoadjacent market segments.

HW&Co.’s TMT Group announces that it is advising Drillinginfo (“DI”), a portfolio company of InsightVenture Partners, on its pending sale to Genstar Capital (“Genstar”).

HW&CO. DEAL CONTACTS

Founded in 1999, Drillinginfo delivers business critical insights to the energy, power, and commodities markets. The Company combinesits best-in-class SaaS platform with industry-leading data and energy analytics to provide actionable intelligence in real-time toexploration and production (“E&P”), oilfield services, midstream, utilities, trading and risk, and capital markets companies to be morecollaborative, efficient, and competitive. The Company offers a suite of products and services that provide the predictive tools andtechnology needed to drive exploration decisions, evaluate rapidly evolving opportunities, and achieve better, faster results for its3,500 customers.

a portfolio company of

pending acquisition by

RELEVANT SECTORS:

SaaS

Energy Software

Data and Analytics

https://www.harriswilliams.com/person/jeffery-bistrong


https://www.harriswilliams.com/person/tyler-dewing


https://www.harriswilliams.com/person/luke-semple


https://www.harriswilliams.com/person/scott-reinig


PAGE |



Francisco Partners’ acquisition of Renaissance Learning

Renaissance Learning provides cloud-based assessment, analytics, and learning solutions to educators and administrators in

more than one-third of U.S. schools and over 70 countries.

The Company’s solutions help educators analyze, customize, and plan personalized learning paths for students, creating

energizing learning experiences and enhanced educational outcomes.

Following the acquisition, Francisco Partners will support Renaissance in evolving its solution suite and expanding its global

presence.

Ent. Value: NARevenue: NA

EV / Revenue: NAEV / EBITDA: NA

Closed: May 31, 2018

Dassault Systèmes’ pending acquisition of Centric Software

Centric Software provides product lifecycle management (“PLM”) software solutions to more than 600 globally recognized

brands in the fashion, apparel, luxury, and retail sectors.

The Company’s PLM software enables customers to rapidly respond to evolving consumer trends by digitizing the production

process, resulting in increased efficiency, compressed time to market, and streamlined operations across the supply chain.

Following the acquisition, the two companies will leverage their deep industry expertise to accelerate the digital

transformation of companies looking to optimize their production process and enhance operational efficiencies.


Announced: June 14, 2018

EV / Revenue: NA EV / EBITDA: NA

Trimble’s acquisition of Viewpoint

Viewpoint provides construction management software to over 8,000 clients in the global construction and capital project

markets.

The Company’s software allows its clients to integrate operational and data workflows across locations, resulting in more

informed decision making, delivering increased project profitability.

The acquisition of Viewpoint will extend Trimble’s client base into general, specialty, and heavy civil contractors while

providing their workflow solutions to clients across the construction lifecycle.

Ent. Value: $1,200M Revenue: $200M

EV / Revenue: 6.0xEV / EBITDA: 24.0x

Closed: July 2, 2018

SELECT SOFTWARE M&A TRANSACTIONS – 2Q 2018

3

Accel-KKR’s acquisition of Sageworks

Sageworks provides web-based lending, credit, and portfolio risk management software to financial institutions and

accounting firms.

The Company’s software suite enables banks and credit unions to accurately manage credit portfolios to reduce potential

credit and regulatory risk.

Post acquisition, Accel-KKR will support Sageworks’ software platform, while combining it with its existing portfolio company

Banker’s Toolbox, to deliver increasing value to its financial institution client base.

Closed: May 17, 2018


EV / Revenue: NAEV / EBITDA: NA

Roper Technologies’ acquisition of PowerPlan

PowerPlan provides software and solutions for asset-centric companies to optimize their financial performance and achieve

regulatory compliance.

The Company’s software platform integrates highly detailed financial and operational data to help enhance operational

efficiency, minimize tax obligations, improve cash flow, and mitigate compliance risk.

Following the acquisition, Roper will support PowerPlan’s management team to continue growing their innovative product

suite, loyal customer base, and strong cash profile.

Ent. Value: $1,100MRevenue: $150M

EV / Revenue: 7.3xEV / EBITDA: NA

Closed: June 4, 2018

PAGE | 4



340309

402454 437 434

406

341 358 351 348 328381 402 395 381

3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18

SOFTWARE ACQUISITION ACTIVITY – STRATEGIC ACQUIRERS

MOST ACTIVE STRATEGIC ACQUIRERS OF SOFTWARE ASSETS BY VOLUME1

GLOBAL STRATEGIC ACQUIRER SOFTWARE M&A ACTIVITY BY VOLUME1

The 10 most active strategic software acquirers registered 40 acquisitions through 1H 2018. Activity among large strategic acquirers is on pace with 2017 levels.

Microsoft has been the most active strategic acquirer through 1H 2018, completing 10 acquisitions. The recent acquisitions of Semantic Machines and Bonsai AI highlights Microsoft’s focus on next-generation artificial intelligence and machine learning tools for developers.

Globally, strategic software M&A registered 381 acquisitions in 2Q 2018, remaining in line with the prior four quarters.

Strategic acquirers remain highly active as management teams continue to view inorganic growth initiatives as a viable value-creation strategy. Many diversified software companies are pursuing vertical specific software acquisitions as they look to expand into new end-markets.

(# of Transactions)

(# of Transactions)

Note: Includes control investments only.

18

12 1310

36

4 3 31

9

15 14

7

8

9

3 46

4

1012

4

7

4

2

9

32

2

10 5

3

4

53

3

3

4

1H 2018

2017

2016

2015

PAGE | 5



6 75

3

7

35

2 2 2

13

4 78

3

5

5

4 4 3

14

6 5 7

6

6 2

13

2

3

6 5 35

13

42

3

1H 2018

2017

2016

2015

SOFTWARE ACQUISITION ACTIVITY – PRIVATE EQUITY

MOST ACTIVE PRIVATE EQUITY BUYERS OF NEW SOFTWARE PLATFORMS BY VOLUME1

GLOBAL NEW PLATFORM PRIVATE EQUITY SOFTWARE M&A ACTIVITY BY VOLUME1

The 10 most active software investors completed 35 new platform investments in 1H 2018.

Francisco Partners was the most active software private equity firm through 1H 2018, completing six platform acquisitions and three add-on acquisitions.

Notable private equity platform acquisitions include Vista Equity Partners’ acquisition of LogicMonitor and Thoma Bravo’s acquisition of Nintex Global.

Globally, private equity buyers registered 102 new software platform investments in 2Q 2018, a 13% increase from 1Q 2018.

Private equity investment across the software sector continues to exhibit strong momentum as dry powder remains at all-time highs and fundraising activity for technology funds continues.

(# of Platform Transactions)

(# of Platform Transactions)

Note: Includes control new platform investments only. Excludes add-on acquisitions.

48 47 4454 56

47 5061

7382

73

9180 83

90102

3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18

PAGE | 6



Application Software

Pending Dassault Systèmes Centric Software Provider of PLM services for the apparel, footwear, and accessories industries. NA NA

Pending Onex Corporation PowerSchool Group / PeopleAdmin Provider of student information management and reporting platform. $6,000 21.4x

Pending Partners Group Holding GlobalLogic Provider of software product development services. $2,000 4.0x

Pending Siemens PLM Software Austemper Design Systems Provider of electronic design automation tools. NA NA

Pending Adobe Systems Magento Commerce Provider of open-source ecommerce and cloud commerce services. $1,680 11.2x

Pending Veraction Trax Technologies, Inc. Provider of freight audit and data analytics solutions to diverse industries. NA NA

7/02/2018 Trimble V iewpoint Provider of ERP and collaboration software to the construction industry. $1,200 6.0x

6/20/2018 Bentley Systems Synchro Software Provider of digital construction software. NA NA

6/14/2018 V isiativ Innova Systems Provider of product development management software. NA NA

6/12/2018 CBRE Group FacilitySource Provider of real-time facility support software services. $290 NA

6/05/2018 Showpad LearnCore Provider of HR cloud software and services. $50 NA

6/04/2018 Roper Technologies PowerPlan Provider of a financial data and analytics software platform to enable asset visibility. $1,100 7.3x

6/01/2018 Royal Bank of Scotland Group FreeAgent Holdings Provider of accounting software designed for small businesses. $65 5.7x

5/31/2018 Francisco Partners Renaissance Learning Provider of assessment, teaching, and learning software solutions. NA NA

5/31/2018 Clanwilliam Investments BMJ Informatica Provider of performance management software designed for healthcare providers. NA NA

5/24/2018 United Computer Group Contract Guardian Provider of automated contract management software for healthcare organizations. NA NA

5/21/2018 GTCR and Sycamore Partners CommerceHub, Inc. Provider of supply chain and related solutions. $973 8.8x

4/04/2018 HG Access Group Provider of ERP, CRM, document management and BI software. $1,420 12.3x

$1,150 8.0x

HW&CO. CONFIDENTIAL

2.1x

2.3x2.3x

1.4x

2.5x

2.3x

2.5x2.4x

2.5x

2.3x

2.7x

2.3x

2.4x

2.7x

2.5x 2.4x

2.8x

282 271

289

272

319 320 316 314

281

298 307

291 288

337 346

366 373

APPLICATION SOFTWARE – M&A MARKET SUMMARY

APPLICATION SOFTWARE M&A VOLUME1 (GLOBAL)

NOTABLE APPLICATION SOFTWARE M&A TRANSACTIONS1,5

Application Software M&A registered 373 transactions in 2Q 2018, representing a 30% year-over-year increase and a slight increase from the prior quarter.

Median reported Application Software M&A transaction multiples increased to 2.8x, the highest quarter in the last four years.

MEDIAN M&A REVENUE MULTIPLES1 (REPORTED)

In 2Q 2018, strategic buyers were highly active pursuing application software targets, as vertical-specific software companies remain highly-sought after.

Notable vertical-specific software transactions include Dassault’s pending acquisition of Centric Software (manufacturing), Onex’s pending acquisition of PowerSchool Group and PeopleAdmin (education), and Trimble’s acquisition of Viewpoint (construction).

MEDIAN

DATE

CLOSED ACQUIRER TARGET DESCRIPTION

ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

4Q '1

7

1Q '1

8

2Q '1

8

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

4Q '1

7

1Q '1

8

2Q '1

8

PAGE | 7



SaaS

Pending PayPal Holdings Simility Cloud-based fraud prevention platform for small and medium-sized enterprises. $124 NA

Pending Tecnos Global Co. of America Lirik Cloud-based electronic health record (EHR) and practice management software platform. $4 0.7x

Pending ResMed HEALTHCAREfirst Cloud-based financial analytics software to financial, healthcare, and government sectors. NA NA

Pending Infibeam Unicommerce eSolutions Cloud-based software platform for management, booking and marketing services. $18 NA

Pending Google Velostrata Cloud-based workload mobility platform designed to move enterprise data to the cloud. NA NA

Pending V isma Raet SaaS-based provider of HR cloud software and services. $726 3.9x

Pending Pareteum Artilium SaaS-based provider of advanced telecommunications software. $105 9.2x

6/22/2018 Illuminate Education IO Education SaaS-based assessment and data analytics solutions for educational providers. $123 3.8x

6/13/2018 Tableau Software Empirical Systems, Inc. Cloud-based transaction management system. NA NA

6/05/2018 SAP coresystems Cloud-based field service and workforce management software. NA NA

5/30/2018 Marlin Equity Partners Fronstream Web-based fundraising platform designed for managing donor and data information. NA NA

5/04/2018 Wärtsilä Oyj Abp Transas Marine Cloud-based software for marine fleet management systems. $257 1.6x

4/30/2018 Tyler Technologies Socrata Cloud-based data platform offering data-driven innovation for government programs. $150 6.0x

4/30/2018 Oracle Vocado SaaS-based financial aid management platform. $139 NA

4/30/2018 TA Associates Datix Cloud-based patient safety software provider. NA NA

4/10/2018 Silver Lake Capital Management ExactBid Web-based workflow management software for the real estate industry. $52 NA

4/05/2018 SAP Callidus Software Cloud-based performance management platform designed for the sales cycle. $2,400 9.5x

$124 3.9x

HW&CO. CONFIDENTIAL

HW&CO. CONFIDENTIAL

5.7x

4.4x

3.5x

3.9x

4.4x4.2x

4.6x

4.9x

5.6x5.4x

4.8x4.6x

4.7x4.8x

4.5x

4.8x

5.0x

60

54 53

65

68 70

55

52 51 52 54

48

43

55 57

55

52

NOTABLE SAAS M&A TRANSACTIONS1,5

SAAS – M&A MARKET SUMMARY

SAAS M&A VOLUME1 (GLOBAL)

SaaS M&A registered 52 transactions in 2Q 2018, a slight decrease from the previous quarter, but a 21% increase over 2Q 2017 levels.

2Q 2018 median reported SaaS transaction multiples increased to 5.0x revenue, slightly above trailing four-year averages.

Demand for cloud-based delivery models remains strong, resulting in continued robust M&A activity by both strategic and private equity buyers.

Notable 2Q 2018 SaaS transactions include SAP’s acquisition of CallidusSoftware and Visma’s pending acquisition of Raet.


MEDIAN

DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

4Q '1

7

1Q '1

8

2Q '1

8

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

4Q '1

7

1Q '1

8

2Q '1

8

PAGE | 8



1.9x

2.7x

3.3x

2.8x

2.0x

2.6x2.6x

1.9x

3.1x

2.4x2.5x

2.8x

2.5x

3.1x3.0x

2.8x2.7x

72 76

99

89

105

112

102

82 87

97 100

105 106 107 110

122

115

NOTABLE DATA AND ANALYTICS M&A TRANSACTIONS1

DATA AND ANALYTICS – M&A MARKET SUMMARY

DATA AND ANALYTICS M&A VOLUME1 (GLOBAL)

Data and Analytics M&A volumes remained robust in 2Q 2018, registering 115 transactions, an 8% increase from 2Q 2017.

In 2Q 2018, median reported sector transaction multiples decreased to 2.7x revenue, but remain in line with two-year historical averages.

Data and Analytics remains a key focus area as enterprises continue to seek opportunities to leverage advanced data for operational decision making.

Recent examples of this trend include IHS Markit’s pending acquisition of Ipreo, Genstar Capital’s pending acquisition of Drillinginfo, and Workday’s pending acquisition of Adaptive Insights.


DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

4Q '1

7

1Q '1

8

2Q '1

8

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

4Q '1

7

1Q '1

8

2Q '1

8

MEDIAN

Data and Analytics

Pending IHS Markit Ipreo Holdings Provider of market intelligence, data, and technology serv ices. $1,855 NA

Pending Platinum Equity Pitney Bowes' Production Mail Business Provider of data management software for printing companies. $361 NA

Pending AT&T AppNexus Provider of online platform enabling real-time sale and purchase of digital advertising. $1,600 NA

Pending Health Catalyst, Inc. Medicity, Inc. Provider of a data exchange platform to the healthcare industry. NA NA

Pending NICE Systems Mattersight Provider of behavioral analytics software solutions. $102 2.1x

Pending Costa Asset Management OnFarm Systems Provider of data management platform designed to collate agricultural data. NA NA

Pending Workday Adaptive Insights Provider of business planning software to improve financial performance. $1,585 13.9x

Pending HCL Technologies Actian Provider of enterprise-class database software connecting operational and analytical business data. $330 3.1x

Pending Genstar Capital Drillinginfo Provider of SaaS and data analytics for the oil and gas industry. $1,120 7.1x

7/02/2018 Fortive The Gordian Group Provider of construction cost data, software and serv ices for the construction lifecycle. $775 6.0x

7/02/2018 Gannett WordStream Provider of online marketing software solutions generating data-driven insights. $150 4.6x

6/20/2018 Medidata Solutions Shyft Analytics Provider of cloud platform transforming healthcare data into clinical and commercial insight. $195 NA

6/14/2018 TA Associates Global Software, Inc. Provide of data analytics processes such as automation based reporting software and ERP platforms. NA NA

6/06/2018 TIBCO Software, Inc. Scribe Software Corp. Provider of cloud-based integration platform for customer relationship management. NA NA

6/01/2018 REA Group Hometrack Australia Provider of property data analytics to the financial sector. $98 9.0x

5/17/2018 Accel-KKR Sageworks Provider of financial analysis and risk management software. NA NA

5/10/2018 Cisco Systems Accompany Provider of relationship intelligence platform designed to offer CRM databases for companies. $270 NA

$346 6.0x

HW&CO. CONFIDENTIAL

PAGE | 9



2.9x

2.4x

2.7x

3.0x

3.2x3.3x

2.6x

2.9x

2.6x2.7x

3.1x

2.6x

2.4x

3.0x 3.0x

3.2x

2.8x

48

56

47 45

50

36

52

44

57

60

75

63 62

76

71

67

70

MEDIAN

NOTABLE INFRASTRUCTURE SOFTWARE M&A TRANSACTIONS1

INFRASTRUCTURE SOFTWARE – M&A MARKET SUMMARY

INFRASTRUCTURE SOFTWARE M&A VOLUME1 (GLOBAL)

Infrastructure Software M&A registered 70 transactions in 2Q 2018, reflecting the heightened demand for infrastructure assets over the past year.

Median reported Infrastructure Software transaction multiples decreased to 2.8x revenue, but remained in line with historical averages.

Private equity investors remain highly active buyers of infrastructure and security assets as they look to compete with established strategic acquirers in a large, but fragmented market.

Noteworthy private equity transactions in 2Q 2018 include KKR’s pending acquisition of BMC Software, Vista EquityPartners’ pending acquisition of LogicMonitor, and Francisco Partners’ acquisition of Bomgar.


DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

4Q '1

7

1Q '1

8

2Q '1

8

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

4Q '1

7

1Q '1

8

2Q '1

8

Infrastructure Software

Pending Ribbon Communications, Inc. Edgewater Networks, Inc. Provider of a web-based security platform to provide privacy for internet communications. $114 1.8x

Pending Capgemini Leidos Cyber, Inc. Provider of cyber security platforms offering threat detection and systems management. NA NA

Pending Hewlett-Packard Enterprise Plexxi, Inc. Provider of hyper converged networking systems for software-defined data centers. NA NA

Pending Vista Equity Partners LogicMonitor, Inc. Provider of SaaS-based data center monitoring software platform. NA NA

Pending Searchlight Capital Partners Mitel Networks Corp. Provider of business communications and collaboration software. $1,910 1.7x

Pending Kohlberg Kravis Roberts (KKR) BMC Software Provider of multi-cloud management software. $8,300 4.2x

6/26/2018 TPG Capital Wind River Systems Provider of security technology combatting internet threats. NA NA

6/26/2018 Cognosec AVANTIO Provider of cyber resilience software for secure payment data transactions. $15 4.3x

6/26/2018 Ping Identity Corp. Elastic Beam, Inc. Provider of an API security and compliance platform. NA NA

6/20/2018 Eurofins Digital Product Testing Insite Security BV Provider of information security software and testing serv ices. NA NA

6/13/2018 Zimperium, Inc. Mi3 Serv ices Provider of mobile risk management software for iOS and Android Applications. NA NA

6/06/2018 Reason Software, Inc. Filelock Provider of automated file encryption and protection software. NA NA

6/04/2018 Calian Group Secure Technologies International Provider of information security software to identify threats and build risk profiles. NA NA

5/11/2018 Capital One Financial Corp. Confyrm, Inc. Provider of digital identity and fraud alert software. NA NA

5/03/2018 IBM Armanta Corp. Provider of an integrated business intelligence platform analyzing enterprise infrastructure. NA NA

4/30/2018 Vector Capital KELA Group Provider of an advanced cyber intelligence software platform. $200 NA

4/20/2018 NTT Communications Corp. Secure-24 Provider of managed application hosting and comprehensive IT solutions. NA NA

4/03/2018 Francisco Partners Bomgar Provider of multi-platform remote support, access management and identity management software. $739 NA

$470 3.0x

PAGE | 10



2% 4% 2% 4% 4% 2% 4% 2% 2% 1% 2% 2% 1% 1% 2% 1% 1%

14% 24%

7%

22% 28%

16% 22%

17% 11% 8%

17% 12% 11% 14%

17% 18% 15%

26%

26%

24%

33% 26%

17%

32%

26%

25% 21%

32%

20% 12%

29% 18% 20% 17%

20%

16%

11%

22% 17%

29%

14% 39%

28%

20%

20%

20% 28%

17% 24% 19%

22%

37% 30%

55%

18% 25%

36% 28%

15%

34%

50%

29%

46% 48% 39% 39% 41% 45%

2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18 2Q-18

Seed Series A Series B Series C Series D / or later

PRIVATE PLACEMENT CAPITAL RAISED BY ROUND1,4 (AS PERCENTAGE OF TOTAL REPORTED PRIVATE PLACEMENT CAPITAL)

There were 987 private placement financings in 2Q 2018, representing a 33% increase over 2Q 2017.

Total reported capital continues to grow with $13.5 billion invested in 2Q 2018, up from $12.8 billion in 1Q 2018.

PRIVATE PLACEMENT ACTIVITY BY SOFTWARE SECTOR

In 2Q 2018, the majority of private capital invested was in late stage (C – later) rounds, with 45% of capital raised in Series D or later rounds.

Notable late stage rounds included CloudBees’ $37 million investment led by Delta-v Capital, Agari’s $40 million Series E investment led by Goldman Sachs, and BetterCloud’s $60 million Series E investment led by Bain Capital Ventures.

PRIVATE PLACEMENTS BY SOFTWARE SUB-SECTOR AND NEW CAPITAL RAISED1,4

940 952

1013 997 1033

960

756869

896

813775 791

744

850900 922

987

$0

$4,000

$8,000

$12,000

$16,000

$20,000

$24,000

$28,000

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200


$ i

n M

illio

ns

Vo

lum

e

Application Software SaaS Data & Analytics Infrastructure Software Total New Capital (Reported)

PAGE | 11



06/27/18 InfrastructureLate

Stage$37 $116

Delta-V Capital; Lightspeed Venture Partners; Verizon

Ventures; Matrix Partners

Prov ider of cloud-based continuous deliv ery tools for

application dev elopment.

06/26/18Data &

AnalyticsB $50 $78 Accel; 83North

Prov ider of data analytics and v isualiation software for

continuous process improv ement.

06/26/18 Infrastructure D $200 $243 Insight Venture Partners; Madrona Venture GroupProv ider of a product platform for application

dev elopment.


Stage$40 $88

Goldman Sachs; Battery Ventures; Greylock Partners, Norwest

Venture Partners, Alloy Ventures, First Round Capital, Scale

Ventures

Prov ider of cloud -based email security and phishing

prev ention software.

05/24/18 SaaSLate

Stage$47 $117 Salesforce Ventures; Insight Venture Partners

Prov ider of intelligent document and business process

automation software for Salesforce.

04/27/18 SaaS D $100 $302 S.F. ExpressProv ider of customs brokerage and freight forwarding

software.

04/26/18 Infrastructure C $24 $63 Salesforce Ventures; IBM Ventures; The Chamberlain Group;

Fenox Venture Capital

Prov ider of a web-based IoT networking platform for

home automation.

04/24/18 SaaS B $20 $24 TLV Partners; Magma VC; Buran VCProv ider of cloud-based property management

software for Airbnb v acation rentals.

04/23/18 SaaSLate

Stage$55 $77 JMI Equity

Prov ider of a cloud-based student financial serv ices

platform for financial aid management.

04/17/18 SaaS B $35 $44

8VC; OpenView Venture Partners; Emergence Capital

Partners; Chicago Ventures; Omidyar Technology Ventures;

Pritzker Group Venture Capital

Prov ider of a cloud-based shipping management

platform for multi-modal shipments.


Stage$60 $107

Bain Capital Ventures; Accel, Flybridge Capital Partners;

Greycroft; Tribeca Venture Partners; New Amsterdam Growth

Capital

Prov ider of a web-based application management

and security platform for SaaS applications.

04/03/18Data &

Analytics C $45 $72 Insight Venture Partners; LinkedIn; Emergence Capital

Prov ider of a cloud-based sales engagement platform

for marketing outreach and analytics.

CloudBees

Celonis

Jama Software, Inc.

Agari Data, Inc.

Conga

Flexport, Inc.

IFTTT, Inc.

Guesty, Inc.

CampusLogic, Inc.

Project44, Inc.

BetterCloud, Inc.

SalesLoft, Inc.

SELECT RECENT SOFTWARE PRIVATE PLACEMENTS1,4

Note: Financial information presented above represents reported capital raised only.

ROUND INVESTORS (CURRENT ROUND) DESCRIPTIONCOMPANYDATEROUND

SIZE ($MM)

SECTORTOTAL RAISED ($MM)

PAGE | 12



51.5x

17.7x21.4x

51.5x

36.5x

25.7x

16.0x 17.9x14.0x

64.1x

15.3x 16.5x

33.5x

21.0x

15.9x

35.0x

12.9x

52.7x

19.3x

28.3x

51.5x

34.3x

22.2x18.3x 19.9x

16.4x

34.3x

17.5x 18.3x

34.6x

17.9x 19.4x

31.0x

21.0x

2Q 2017 2Q 2018

7.4x

6.4x5.9x

6.9x

8.4x

4.9x5.2x 5.1x

3.8x 3.9x

5.4x5.0x

3.1x4.0x

3.4x

2.4x

1.5x

9.8x

8.4x8.1x

7.6x7.2x

6.6x

6.3x 6.1x

5.3x 5.2x 5.1x4.8x 4.7x

3.7x

2.9x 2.8x

1.6x

2Q 2017 2Q 2018

44.5%

32.9%

30.0%

27.6%

15.2%

35.7%

35.3%

30.5%

38.0%

40.7%

21.5%

21.2%

60.1%

8.1%

4.2%

21.6%

16.3%

100.3%

77.2%

90.3%

56.6%

37.2%

51.2%

77.3%

10.9%

69.4%

46.2%

78.9%

69.6%

60.5%

25.4%

20.1%

70.6%

77.1%

1 Yr - Index Change 3 Yr - Index Change

Large-Cap SaaS

Financial

PLM & Engineering

HCM

SCM & Logistics

IT Security

EdTech / Non-Profit

Data & Analytics

IT Operations Mgmt.

Small-Cap SaaS

Bellwethers

Enterprise

Data Storage

HCIT

Communication

Marketing

Energy

PUBLIC SOFTWARE VALUATION MULTIPLES BY SECTOR1

EBITDA MULTIPLE COMPARISON 2Q 2017 VS. 2Q 2018

REVENUE MULTIPLE COMPARISON 2Q 2017 VS. 2Q 2018STOCK PERFORMANCE (1- & 3-YEAR)

PAGE | 13



`

KEY METRICS BY SECTOR – COMPARABLE PUBLIC SOFTWARE COMPANIES1

EV / LTM REVENUE MULTIPLE NTM REVENUE GROWTH LTM EBITDA MARGINNTM EBITDA GROWTH NTM REVENUE GROWTH LTM EBITDA MARGINNTM EBITDA GROWTH

COMPARABLE COMPANY SET MEDIANS CORRELATION WITH EV / REVENUE MULTIPLE

9.8x

8.4x

8.1x

7.6x

7.2x

6.6x

6.3x

6.1x

5.3x

5.2x

5.1x

4.8x

4.7x

3.7x

2.9x

2.8x

1.6x

Large-Cap SaaS

Financial

PLM & Engineering

HCM

SCM & Logistics

IT Security

EdTech / Non-Profit

Data & Analytics

IT Operat ions Mgmt.

Small-Cap SaaS

Bellwethers

Enterprise

Data Storage

HCIT

Communication

Marketing

Energy

28% 146% 13% 59% 54% -

11% 18% 36% - 24% 36%

14% 28% 26% 65% 11% 58%

16% 121% 21% 90% 49% -

14% 50% 23% 81% 33% 67%

20% 47% 25% 41% 21% 34%

15% 21% 25% 83% 66% 42%

15% 90% 13% 52% - 80%

11% 43% 30% 39% - -

21% 50% 17% 66% 96% 44%

5% 27% 30% 77% 48% 27%

9% 21% 30% 71% 74% 39%

25% 278% 9% 46% - -

15% 71% 16% 16% - 34%

9% 67% 20% 93% - 100%

15% 55% 12% 73% 32% 81%

9% 54% 7% - - 100%

PAGE | 14



18

7

11

5

15

3

8

0

2

9

4

5

6

1

8

3

9


$0 - 50M $50 - 100M $100 - 250M $250M +

35%

54%

11%

< 25% 25 - 75% > 75%

33%

24%

43%

$0-50M $50-500M $500M-$1B $1B+

10%

57%

33%

$50 - 100M $100 - 250M $250M +

SUMMARY OF TECHNOLOGY IPOS

After a slow 1Q 2018, technology IPO activity rebounded in 2Q, driven by strong market performance for technology stocks and continued investor demand for high-growth companies.

Notable technology IPOs in 2Q 2018 include DocuSign, Ceridian, Pivotal Software, and Carbon Black.

MARKET CAP AT IPO (LTM) 1 REVENUE GROWTH (1YR PRIOR TO IPO) 1OFFERING SIZE AT IPO (LTM) 1

RECENT U.S. TECHNOLOGY IPO ACTIVITY (BY OFFERING SIZE) 1

(All tech IPOs over the last 12 months) (All tech IPOs over the last 12 months) (All tech IPOs over the last 12 months)

2014 Total: 47 2016 Total: 152015 Total: 31 2017 Total: 20 2018 Total: 12

PAGE | 15



IPO DATE

OFFER PRICE PER SHARE

OFFERING SIZE ($M)

OFFER TO CURRENT

MARKET CAP AT OFFER ($M)

Circle Size Denotes Revenue ($)

% R

ev

en

ue

Gro

wth

Sto

ck

Pe

rfo

rma

nc

e (

Off

er

to C

urr

en

t)

KEY PERFORMANCE METRICS FOR RECENT SOFTWARE IPOS1

(150.0%)

(100.0%)

(50.0%)

0.0%

50.0%

100.0%

150.0%

200.0%

250.0%

201.3%

244.8%

(28.4%)

55.7%

162.9%

104.5%

67.4%

123.4%

54.4%

147.3%

82.6%

50.9% 36.8%

122.4%

30.0%

9.1% 31.5% 16.7%

32.5%

6.5%

70.6%

15.6%

53.5% 31.0% 48.6% 35.9%

8.4% 36.5% 34.7%

55.9%

(150.0%)

(50.0%)

50.0%

150.0%

5/25/17 6/7/17 10/5/17 10/26/17 10/31/17 11/17/17 2/8/18 3/15/18 3/22/18 4/12/18 4/26/18 4/26/18 5/4/18 6/15/18 6/28/18

$12.00 $11.00 $17.00 $22.00 $13.00 $12.00 $13.00 $16.00 $21.00 $11.00 $29.00 $22.00 $19.00 $24.00 $21.00

$704.3 $100.2 $2,951.6 $814.3 $226.9 $1,026.6 $253.8 $1,877.3 $911.4 $1,127.6 $4,411.2 $2,999.0 $1,250.7 $1,559.5 $455.5

$75.0 $30.8 $531.3 $116.2 $156.0 $240.0 $70.2 $192.0 $756.0 $154.0 $629.3 $462.0 $152.0 $180.0 $193.2

201.3% 244.8% (28.4%) 55.7% 162.9% 104.5% 67.4% 123.4% 54.4% 147.3% 82.6% 50.9% 36.8% 122.4% 30.0%

PAGE | 16



3.4x

3.8x 3.8x

4.3x

4.7x 4.7x

5.6x

4.5x

3.3x

4.2x 4.3x4.5x

4.8x

5.3x 5.3x 5.3x 5.4x 5.4x

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H'18

FLD/EBITDA SLD/EBITDA Other Sr Debt/EBITDA Sub Debt/EBITDA

$1.2B

$1.9B$2.0B

$0.4B

$0.9B

$1.2B

$0.7B

$0.9B$1.1B

$1.8B

$2.9B

$1.1B

$1.6B$1.5B

1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18

Institutional Pro Rata

17.5%

3.4%

7.3%

11.6%

15.4%

19.7%

25.1%

Other

Food & Beverage

Home Furnishings

Buildings Materials

Services & Leasing

Healthcare

Technology

50%

57% 55%

54%

60% 58%

56%

50% 53% 53%

2009 2010 2011 2012 2013 2014 2015 2016 2017 1H'18

LBO LOAN VOLUME BY INDUSTRY2,3 MEDIAN LBO DEBT PERCENTAGES3,4

DEBT MARKET OVERVIEW

MIDDLE MARKET LBO LOAN MULTIPLES2,3 MIDDLE MARKET LBO VOLUME BY QUARTER2,3

1H 2018 New Issue LBO Loans Percentage of Total Purchase Price

Median middle market LBO loan multiples through 1H 2018 were 5.4x leverage, remaining in line with the prior four quarters

Middle market LBO loan volume decreased slightly to $1.5 billion in 2Q 2018.

The Technology sector in the middle market was the largest recipient of LBO loans through 1H 2018, representing 25.1% of new issuance.

Median LBO debt percentages increased remained flat at 53% of total purchase price through 1H 2018.

Defined as Issuers with EBITDA of $50 Million or LessDefined as Issuers with EBITDA of $50 Million or Less

PAGE | 17



acquired byacquired by

SELECT HW&CO. TMT TRANSACTIONS

acquired by

and

acquired bysignificant equity

investment fromacquired by acquired by

acquired by

and

acquired bystrategic investment

fromacquired byacquired byacquired by

minority investment

fromacquired by

minority investment

fromacquired by

acquired by

GFI Energy Group

a division of

acquired byacquired acquired by acquired bymajority

recapitalization by

recapitalized by acquired by

acquired by

and

acquired byacquired byacquired byacquired byacquired byacquired by

acquired by acquired byacquired byacquired byacquired byacquired by

a portfolio company of

recapitalized

by management

acquired byacquired byacquired byacquired bymerged withsignificant equity

investment from

strategic investment

fromacquired by

acquired by merged with acquired byminority investment

fromacquired by

majority investment

fromacquired by

acquired a majority

stake inacquired byacquired byacquired byacquired byacquired byacquired byacquired by

acquired byrecapitalized byacquired by

B2C

acquired byacquired by acquired byacquired byacquiredacquired byrecapitalized bymajority investment

fromacquired by

majority investment

fromacquired by

growth Investment

from

acquired by acquired by

Undisclosed Strategic Buyer

majority investment

fromacquiredacquired byacquired byacquired byinvestment from acquired byacquiredacquired byacquired byinvestment frommerged withacquired by

acquiredinvestment fromacquired byacquired byacquired by acquired by

&

majority investment

frominvested inpending acquired acquired by

a wholly-owned affiliate of

acquired by

&

acquired

http://www.meddatahealth.com/our_business/index.html

http://www.aderant.com/

http://www.cltsloyalty.com/

http://www.oaktreecapital.com/default.aspx

http://www.leisurepassgroup.com/

PAGE | 18



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY UNIVERSE1

SA

AS

HO

RIZ

ON

TAL

INFR

ASTR

UC

TUR

E

SO

FTW

AR

EV

ER

TIC

AL

APPLI

CA

TIO

N S

OFTW

AR

E

Software Bellwethers Microsoft Google Cisco Oracle SAP IBM Adobe Salesforce HPE

Communication Software NICE Nuance Twilio MobileIron Synchronoss

Enterprise Software Oracle SAP IBM Adobe ADP Intuit Amadeus Constellat ion OpenText Sage

Human Capital Management (HCM) ADP Paychex Workday Ult imate Paycom Paylocity Cornerstone Benefit focus

Marketing Software Adobe Salesforce HubSpot Acxiom Criteo ChannelAdvisor Marin

PLM & Engineering Software Dassault Autodesk Hexagon AB Ansys Synopsys Cadence PTC Trimble Nemetschek Altair

Supply Chain & Logist ics Software Coupa Wisetech Manhattan Descartes Kinaxis SPS American Amber Road Park City

Energy Software AspenTech Itron PSI

Financial Software Fiserv Square MSCI SS&C Jack Henry Black Knight Oracle FSS Envestnet Q2 Holdings Blackline

Healthcare IT (HCIT) Cerner Veeva athenahealth Medidata Allscripts HMS Evolent Health Quality Systems Inovalon Model N

EdTech / Non-Profit Software Constellat ion Tyler Tech Blackbaud 2U Instructure NIC K12 Cambium

Large-Cap SaaS (≥ $2Bn Mkt Cap) Salesforce ServiceNow Workday Check Point Veeva Ult imate Guidewire Atlassian athenahealth Paycom

Large-Cap SaaS (cont'd) Proofpoint ZenDesk LogMeIn RealPage HubSpot Medidata RingCentral Xero Coupa Box

Large-Cap SaaS (cont'd) Qualys Cornerstone Q2 Holdings Ebix Mimecast CyberArk Five9

Small-Cap SaaS (≤ $2Bn Mkt Cap) Alarm.Com Yext MINDBODY Apptio Instructure Hortonworks Rapid7 SPS Benefit focus AppFolio

Small-Cap SaaS (cont'd) Workiva Model N Cast light Health Amber Road

Data & Analyt ics Verisk Splunk Tableau Teradata Pegasystems Verint Talend MicroStrategy PROS Holdings Inovalon

IT Operations Management ServiceNow Red Hat Arista VMware CA Citrix F5 Networks Micro Focus New Relic Software AG

IT Operations Management (cont'd) NetScout Progress Apptio Radware

Data Storage NetApp Iron Mountain Nutanix Pure Storage Box CommVault Dropbox Carbonite

IT Security Cisco Palo Alto VeriSign Check Point Symantec Fort inet Trend Micro Proofpoint Qualys FireEye

IT Security (cont'd) Mimecast CyberArk SailPoint Varonis ForeScout Rapid7 Cheetah Mobile SecureWorks

PAGE | 19



NICE Systems Ltd. NICE-IL $6,457 $6,429 92.4% 28.7% 59.8% 24.4% 8.5% 22.9% 4.7x 4.4x 20.7x 14.6x 43.0x

Nuance Communications, Inc. NUAN 5,773 4,183 74.1% (20.2%) (19.6%) (0.2%) 6.5% 16.2% 2.9x 2.8x 18.2x 9.4x NM

Twilio, Inc. TWLO 4,996 4,085 89.9% NM NM 44.3% 37.3% NM 11.3x 8.3x NM NM NM

MobileIron, Inc. MOBL 340 463 67.9% NM NM 5.8% 12.7% NM 1.9x 1.7x NM NM NM

Synchronoss Technologies, Inc. SNCR 393 325 36.1% NM NM (17.6%) (2.9%) NM 0.8x 0.8x NM NM NM

Median $4,996 $4,085 74.1% 4.2% 20.1% 5.8% 8.5% 19.5% 2.9x 2.8x 19.4x 12.0x 43.0x

Microsoft Corporation MSFT $717,784 $768,397 96.0% 43.1% 121.9% 19.2% 16.8% 39.6% 6.9x 6.0x 17.5x 14.1x 54.1x

Alphabet Inc. GOOGL 698,647 734,527 94.0% 21.5% 107.8% 25.2% 0.4% 31.7% 5.9x 5.9x 18.7x 12.7x 44.2x

Cisco Systems, Inc. CSCO 182,078 201,330 92.8% 37.5% 57.3% 0.2% 4.1% 30.4% 3.7x 3.6x 12.3x 10.3x NM

Oracle Corporation ORCL 180,582 178,953 82.4% (12.1%) 9.5% 5.6% 2.6% 42.9% 4.5x 4.4x 10.6x 9.4x 46.8x

SAP SE SAP 140,953 140,162 94.8% 10.5% 64.4% 11.1% 8.9% 26.2% 5.1x 4.7x 19.5x 14.4x 28.7x

IBM Corporation IBM 162,634 128,387 81.6% (9.2%) (15.1%) 0.8% 1.0% 19.0% 2.0x 2.0x 10.7x 8.4x 22.6x

Adobe Systems Incorporated ADBE 117,019 119,115 94.2% 72.4% 201.2% 25.2% 22.0% 35.8% 14.4x 11.8x 40.2x 26.5x 55.0x

salesforce.com, inc. CRM 99,159 104,263 96.0% 57.5% 93.4% 25.2% 27.8% 10.9% 8.9x 7.0x 82.1x 30.4x NM

Hewlett Packard Enterprise Co. HPE 29,986 22,407 75.0% 13.5% NA (26.3%) 5.2% 16.4% 1.0x 1.0x 6.2x 5.6x 7.5x

Median $162,634 $140,162 94.0% 21.5% 78.9% 11.1% 5.2% 30.4% 5.1x 4.7x 17.5x 12.7x 44.2x

Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price /

Company Ticker Value ($mm) Cap ($mm) Week High Performance Performance LTM NTM Margin LTM Rev. NTM Rev. LTM EBITDA NTM EBITDA Earnings

APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS1

SOFTWARE BELLWETHERS

COMMUNICATION SOFTWARE

ENTERPRISE SOFTWARE

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

Oracle Corporation ORCL $180,582 $178,953 82.4% (12.1%) 9.5% 5.6% 2.6% 42.9% 4.5x 4.4x 10.6x 9.4x 46.8x

SAP SE SAP 140,953 140,162 94.8% 10.5% 64.4% 11.1% 8.9% 26.2% 5.1x 4.7x 19.5x 14.4x 28.7x

IBM Corporation IBM 162,634 128,387 81.6% (9.2%) (15.1%) 0.8% 1.0% 19.0% 2.0x 2.0x 10.7x 8.4x 22.6x

Adobe Systems Incorporated ADBE 117,019 119,115 94.2% 72.4% 201.2% 25.2% 22.0% 35.8% 14.4x 11.8x 40.2x 26.5x 55.0x

Automatic Data Processing, Inc. ADP 59,186 59,409 94.8% 30.9% 65.8% 7.0% 8.9% 21.5% 4.5x 4.2x 21.1x 18.1x 33.4x

Intuit Inc. INTU 52,042 52,713 94.3% 53.8% 101.0% 14.3% 11.4% 31.3% 8.9x 8.0x 28.6x 21.8x 44.4x

Amadeus IT Group AMS-ES 36,382 34,175 93.1% 32.2% 96.1% 10.6% 10.6% 38.7% 6.6x 6.0x 17.2x 14.9x 30.2x

Constellat ion Software Inc. CSU-CA 16,348 16,373 94.4% 48.4% 96.1% 20.5% 24.6% 25.5% 6.2x 5.0x 24.2x 19.4x 62.0x

Open Text Corporation OTEX 11,482 9,378 87.3% 11.6% 73.3% 27.6% 6.0% 34.6% 4.2x 4.0x 12.1x 10.8x 40.5x

Sage Group plc SGE-GB 9,916 8,718 71.7% (7.1%) 2.1% 9.0% 9.3% 28.6% 4.2x 3.8x 14.7x 13.3x 25.6x

Median $55,614 $56,061 93.6% 21.2% 69.6% 10.8% 9.1% 29.9% 4.8x 4.6x 18.3x 14.7x 37.0x

PAGE | 20



Automatic Data Processing, Inc. ADP $59,186 $59,409 94.8% 30.9% 65.8% 7.0% 8.9% 21.5% 4.5x 4.2x 21.1x 18.1x 33.4x

Paychex, Inc. PAYX 24,284 24,426 93.5% 20.0% 44.5% 7.3% 7.0% 42.2% 7.2x 6.7x 17.0x 16.2x 26.2x

Workday, Inc. WDAY 23,949 18,166 86.5% 24.9% 59.6% 34.0% 29.2% NM 10.5x 8.1x NM 42.0x NM

Ult imate Software Group, Inc. ULTI 7,865 7,952 91.1% 22.5% 53.7% 20.2% 22.9% 10.0% 8.0x 6.5x 79.6x 25.5x NM

Paycom Software, Inc. PAYC 5,772 5,980 83.4% 44.5% 186.6% 30.4% 30.4% 24.0% 12.3x 9.5x 51.5x 23.3x 72.7x

Paylocity Holding Corp. PCTY 3,110 3,180 91.7% 30.3% 65.4% 25.8% 27.4% 12.5% 8.7x 6.8x 69.6x 30.2x 87.6x

Cornerstone Ondemand, Inc. CSOD 2,643 2,768 88.2% 32.7% 36.4% 15.6% 6.0% NM 5.2x 5.0x NM 25.6x NM

Benefitfocus, Inc. BNFT 1,121 1,080 90.9% (7.6%) (18.0%) 5.0% 6.1% NM 4.4x 4.1x NM 76.0x NM

Median $6,819 $6,966 91.0% 27.6% 56.6% 17.9% 15.9% 21.5% 7.6x 6.6x 51.5x 25.6x 53.0x

APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS (CONT’D) 1

HUMAN CAPITAL MANAGEMENT SOFTWARE

MARKETING SOFTWARE

PLM & ENGINEERING SOFTWARE

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit



Adobe Systems Incorporated ADBE $117,019 $119,115 94.2% 72.4% 201.2% 25.2% 22.0% 35.8% 14.4x 11.8x 40.2x 26.5x 55.0x

salesforce.com, inc. CRM 99,159 104,263 96.0% 57.5% 93.4% 25.2% 27.8% 10.9% 8.9x 7.0x 82.1x 30.4x NM

HubSpot, Inc. HUBS 4,512 4,920 87.7% 90.7% 155.1% 38.6% 35.0% NM 11.1x 8.2x NM 81.9x NM

Acxiom Corporation ACXM-US 2,529 2,637 91.0% 15.3% 70.6% 4.2% 6.6% 12.7% 2.8x 2.6x 21.7x 13.7x 112.3x

Criteo SA CRTO 1,754 2,161 61.1% (33.0%) (34.4%) 25.3% (54.2%) 10.9% 0.7x 1.6x 6.8x 5.3x 21.7x

Channeladvisor Corporation ECOM 321 381 89.9% 21.6% 21.4% 9.1% 7.7% NM 2.6x 2.4x NM 34.3x NM

Marin Software, Inc. MRIN-US 13 33 37.5% (36.3%) (87.7%) (24.7%) NA NM 0.2x NA NM NA NM

Median $2,529 $2,637 89.9% 21.6% 70.6% 25.2% 14.9% 11.8% 2.8x 4.8x 31.0x 28.4x 55.0x

Dassault Systemes SA DSY-FR $34,422 $36,063 94.9% 56.5% 88.8% 7.7% 14.1% 30.3% 9.5x 8.3x 31.2x 24.3x 61.6x

Autodesk, Inc. ADSK 28,950 28,905 91.7% 30.0% 160.2% 6.4% 30.7% NM 13.6x 10.4x NM 46.7x NM

Hexagon AB HEXA.B-SE 22,617 19,191 89.7% 17.6% 51.9% 17.0% 8.2% 30.5% 5.5x 5.1x 18.0x 15.8x 22.8x

ANSYS, Inc. ANSS 14,116 14,787 94.2% 43.1% 90.3% 10.7% 13.9% 41.8% 12.6x 11.0x 30.0x 23.6x 52.8x

Synopsys, Inc. SNPS 13,064 12,875 90.3% 17.3% 70.3% 13.4% 9.2% 21.9% 4.4x 4.1x 20.3x 16.7x 134.9x

Cadence Design Systems, Inc. CDNS 12,135 12,339 94.2% 29.3% 122.2% 7.5% 7.4% 23.0% 6.1x 5.7x 26.6x 19.2x 59.1x

PTC Inc. PTC 11,381 10,863 93.1% 70.2% 127.4% 6.2% 11.1% 13.3% 9.4x 8.4x 70.4x 34.4x NM

Trimble Inc. TRMB 9,163 8,100 71.9% (7.9%) 39.9% 16.3% 15.3% 17.2% 3.3x 2.9x 19.1x 13.6x 62.7x

Nemetschek SE NEM-DE 4,580 4,527 91.0% 61.9% 255.5% 20.3% 20.2% 29.0% 9.8x 8.1x 33.6x 30.7x 50.8x

Altair Engineering Inc. ALTR-US 2,414 1,125 90.5% NA NA 10.4% 13.7% NM 6.9x 6.1x NM 56.7x NM

Median $12,600 $12,607 91.3% 30.0% 90.3% 10.6% 13.8% 26.0% 8.1x 7.1x 28.3x 24.0x 59.1x

PAGE | 21




SUPPLY CHAIN AND LOGISTICS SOFTWARE

FINANCIAL SOFTWARE

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

ENERGY SOFTWARE



Coupa Software, Inc. COUP $3,213 $3,556 95.8% 114.8% NA 38.6% 28.0% NM 15.9x 12.4x NM NM NM

Wisetech Global Ltd. WTC-AU 3,340 3,470 88.3% 118.0% NA 44.8% 55.3% 35.4% 24.7x 15.9x 69.8x 43.3x 137.0x

Manhattan Associates, Inc. MANH 3,065 3,168 86.7% (2.2%) (21.9%) (2.8%) (6.0%) 31.6% 5.3x 5.6x 16.7x 22.7x 28.6x

Descartes Systems Group Inc. DSG-CA 2,543 2,490 99.7% 34.0% 103.7% 19.4% 13.8% 31.7% 10.2x 8.9x 32.1x 25.7x 92.3x

Kinaxis, Inc. KXS-CA 1,639 1,727 96.6% 8.2% 203.1% 13.3% 24.8% 23.3% 11.9x 9.5x 51.1x 33.9x 79.5x

SPS Commerce, Inc. SPSC 1,106 1,318 93.5% 15.2% 9.8% 14.1% 11.9% 14.2% 4.9x 4.3x 34.3x 22.8x NM

American Software, Inc. AMSWA 365 423 88.6% 41.6% 52.7% 6.0% 11.4% 17.3% 3.2x 2.9x 18.7x 15.3x 35.1x

Amber Road, Inc. AMBR 273 260 91.4% 9.8% 37.2% 7.8% 11.1% NM 3.4x 3.0x NM 85.9x NM

Park City Group, Inc. PCYG 151 158 52.7% (35.0%) (39.0%) 19.1% 35.8% 18.0% 7.2x 5.3x 40.1x 20.4x 52.3x

Median $1,639 $1,727 91.4% 15.2% 37.2% 14.1% 13.8% 23.3% 7.2x 5.6x 34.3x 24.3x 65.9x

Aspen Technology, Inc. AZPN $6,838 $6,763 92.9% 67.8% 102.9% 5.1% 5.7% 43.1% 13.8x 13.0x 31.9x 27.0x 41.0x

Itron, Inc. ITRI 3,337 2,376 75.1% (11.4%) 77.1% 7.8% 14.8% 7.4% 1.6x 1.4x 21.0x 10.8x NM

PSI Aktiengesellschaft PSAN-DE 243 292 72.9% 16.3% 57.3% 12.3% 8.9% 7.3% 1.1x 1.0x 15.1x 9.8x 26.1x

Median $3,337 $2,376 75.1% 16.3% 77.1% 7.8% 8.9% 7.4% 1.6x 1.4x 21.0x 10.8x 33.5x

Fiserv, Inc. FISV $35,458 $30,601 96.2% 21.1% 76.2% 3.1% 4.2% 34.7% 6.2x 5.9x 17.8x 15.9x 21.7x

Square, Inc. SQ 23,803 18,308 88.8% 162.7% NA 35.2% (30.2%) 2.1% 9.8x 14.1x NM 69.1x NM

MSCI Inc. MSCI 16,546 14,879 95.0% 60.6% 165.9% 12.9% 13.4% 52.5% 12.5x 11.0x 23.8x 19.9x 43.0x

SS&C Technologies Holdings, Inc. SSNC 13,208 12,452 93.9% 35.1% 66.4% 8.0% 123.5% 37.5% 7.8x 3.5x 20.8x 10.5x 37.5x

Jack Henry & Associates, Inc. JKHY 10,156 10,095 97.7% 25.5% 98.5% 6.3% 8.1% 35.0% 6.8x 6.3x 19.3x 18.1x 28.4x

Black Knight Financial Services, Inc. BKFS 9,482 8,023 98.0% 30.8% 78.2% 2.1% 9.4% 46.1% 8.9x 8.1x 19.3x 16.7x 37.7x

Oracle Financial Services Software Ltd. 532466-IN 4,672 5,031 86.3% 6.5% (1.8%) 6.4% 3.7% 40.0% 6.7x 6.4x 16.6x 15.1x 26.2x

Envestnet, Inc. ENV 2,968 2,523 91.2% 38.8% 32.1% 19.8% 20.6% 11.8% 4.1x 3.4x 34.7x 17.6x 140.5x

Q2 Holdings, Inc. QTWO 2,285 2,459 89.8% 54.4% 107.2% 26.9% 29.8% NM 11.2x 8.6x NM 78.3x NM

BlackLine, Inc. BL 2,194 2,375 86.3% 21.5% NA 40.3% 32.8% NM 11.6x 8.7x NM 124.0x NM

Median $9,819 $9,059 92.6% 32.9% 77.2% 10.4% 11.4% 36.2% 8.4x 7.3x 19.3x 17.9x 37.5x

PAGE | 22




HEALTHCARE IT

EDTECH / NON-PROFIT SOFTWARE

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit



Cerner Corporation CERN $19,646 $20,294 81.0% (10.0%) (13.8%) 5.2% 8.1% 29.2% 3.8x 3.5x 13.0x 11.4x 23.8x

Veeva Systems Inc VEEV 10,990 9,433 90.4% 25.4% 172.0% 24.2% 22.8% 23.7% 15.2x 12.4x 64.2x 37.5x 62.8x

athenahealth, Inc. ATHN 6,652 6,466 97.1% 13.2% 39.1% 13.7% 12.2% 22.4% 5.3x 4.7x 23.5x 16.8x 75.5x

Medidata Solut ions, Inc. MDSO 4,698 4,878 93.8% 3.0% 47.8% 16.9% 23.1% 15.5% 8.3x 6.7x 53.3x 26.5x 107.9x

Allscripts Healthcare Solut ions, Inc. MDRX 4,226 2,150 74.4% (6.0%) (11.6%) 17.9% 17.2% 13.6% 2.2x 1.9x 16.3x 9.4x NM

HMS Holdings Corp. HMSY 2,009 1,863 91.5% 16.9% 29.1% 13.5% 7.9% 22.6% 3.7x 3.4x 16.2x 14.3x 41.4x

Evolent Health Inc. EVH 1,486 1,665 77.5% (17.0%) 7.3% 84.3% 33.6% 1.2% 3.2x 2.4x NM 47.0x NM

Quality Systems, Inc. QSII 1,243 1,277 94.7% 13.3% 21.8% 4.2% 3.1% 12.5% 2.3x 2.3x 18.7x 14.7x NM

Inovalon Holdings, Inc. INOV 1,175 724 55.8% (24.5%) (62.5%) 0.1% 38.8% 15.9% 2.7x 2.0x 17.1x 6.5x 51.7x

Model N, Inc. MODN 560 562 94.9% 39.8% 55.3% 25.8% 5.6% NM 3.8x 3.6x NM 44.7x NM

Median $3,117 $2,006 91.0% 8.1% 25.4% 15.3% 14.7% 15.9% 3.7x 3.5x 17.9x 15.8x 57.3x

Constellat ion Software Inc. CSU-CA $16,348 $16,373 94.4% 48.4% 96.1% 20.5% 24.6% 25.5% 6.2x 5.0x 24.2x 19.4x 62.0x

Tyler Technologies, Inc. TYL 8,571 8,664 92.4% 26.4% 70.9% 11.1% 15.4% 25.3% 9.9x 8.6x 39.2x 28.7x 51.1x

Blackbaud, Inc. BLKB 5,190 5,067 88.3% 19.5% 77.3% 8.5% 13.9% 18.9% 6.4x 5.6x 34.0x 22.7x 70.2x

2U, Inc. TWOU 4,224 4,860 84.8% 78.1% 171.0% 40.7% 51.0% NM 13.4x 8.9x NM 186.5x NM

Instructure, Inc. INST 1,241 1,479 90.6% 44.2% NA 42.2% 35.5% NM 7.2x 5.3x NM NM NM

NIC Inc. EGOV 869 1,048 78.8% (17.9%) (14.8%) 5.4% (2.4%) 25.1% 2.6x 2.6x 10.2x 10.9x 19.9x

K12 Inc. LRN 467 688 87.1% (8.6%) 26.6% 0.1% 4.7% 11.9% 0.5x 0.5x 4.4x 3.7x 58.4x

Cambium Learning Group, Inc. ABCD 584 532 81.0% 119.9% 161.7% 2.7% 4.0% 29.8% 3.7x 3.5x 12.3x 11.6x 11.8x

Median $2,732 $3,170 87.7% 35.3% 77.3% 9.8% 14.6% 25.2% 6.3x 5.1x 18.3x 19.4x 54.8x

PAGE | 23




LARGE-CAP SAAS (Market Cap > $2Bn)

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit



salesforce.com, inc. CRM $99,159 $104,263 96.0% 57.5% 93.4% 25.2% 27.8% 10.9% 8.9x 7.0x 82.1x 30.4x NM

Serv iceNow, Inc. NOW 32,081 31,378 91.5% 62.7% 133.4% 40.2% 40.8% 2.1% 15.2x 10.8x NM 40.5x NM

Workday, Inc. WDAY 23,949 18,166 86.5% 24.9% 59.6% 34.0% 29.2% NM 10.5x 8.1x NM 42.0x NM

Check Point Software Technologies Ltd. CHKP 14,286 15,799 81.9% (10.5%) 21.8% 5.6% 3.3% 50.4% 7.6x 7.4x 15.1x 13.8x 19.6x

Veev a Systems Inc VEEV 10,990 9,433 90.4% 25.4% 172.0% 24.2% 22.8% 23.7% 15.2x 12.4x 64.2x 37.5x 62.8x

Ultimate Software Group, Inc. ULTI 7,865 7,952 91.1% 22.5% 53.7% 20.2% 22.9% 10.0% 8.0x 6.5x 79.6x 25.5x NM

Guidewire Software, Inc. GWRE 6,302 7,160 92.3% 29.2% 66.8% 25.1% 29.5% 3.1% 10.6x 8.2x NM 42.7x NM

Atlassian Corp. Plc TEAM 13,755 6,503 90.9% 77.7% NA 45.1% 33.5% 0.6% 16.5x 12.4x NM 47.1x NM

athenahealth, Inc. ATHN 6,652 6,466 97.1% 13.2% 39.1% 13.7% 12.2% 22.4% 5.3x 4.7x 23.5x 16.8x 75.5x

Paycom Software, Inc. PAYC 5,772 5,980 83.4% 44.5% 186.6% 30.4% 30.4% 24.0% 12.3x 9.5x 51.5x 23.3x 72.7x

Proofpoint, Inc. PFPT 5,907 5,936 88.5% 32.8% 79.1% 37.8% 42.0% NM 10.5x 7.4x NM 50.5x NM

Zendesk, Inc. ZEN 5,352 5,886 90.4% 96.1% 150.8% 38.8% 39.4% NM 11.5x 8.2x NM 101.2x NM

LogMeIn, Inc. LOGM 5,150 5,433 76.6% (1.2%) 60.1% 143.7% 17.0% 29.2% 4.8x 4.1x 16.3x 10.9x 36.8x

RealPage, Inc. RP 5,109 5,156 88.9% 53.3% 187.6% 21.4% 27.0% 16.0% 7.1x 5.6x 44.3x 20.6x NM

HubSpot, Inc. HUBS 4,512 4,920 87.7% 90.7% 155.1% 38.6% 35.0% NM 11.1x 8.2x NM 81.9x NM

Medidata Solutions, Inc. MDSO 4,698 4,878 93.8% 3.0% 47.8% 16.9% 23.1% 15.5% 8.3x 6.7x 53.3x 26.5x 107.9x

RingCentral, Inc. RNG 5,313 4,780 86.6% 92.5% 288.2% 33.4% 32.7% NM 9.8x 7.4x NM 60.5x NM

Xero Limited XRO-AU 4,516 4,617 94.3% 79.2% 168.6% 38.7% 35.8% 6.6% 15.5x 11.4x NM 71.7x NM

Coupa Software, Inc. COUP 3,213 3,556 95.8% 114.8% NA 38.6% 28.0% NM 15.9x 12.4x NM NM NM

Box, Inc. BOX 3,335 3,368 83.9% 37.0% 33.2% 24.4% 24.6% NM 6.3x 5.1x NM 111.6x NM

Qualys, Inc. QLYS 3,207 3,348 86.2% 106.6% 110.5% 18.5% 24.8% 25.1% 13.2x 10.6x 52.7x 28.6x 121.1x

Cornerstone Ondemand, Inc. CSOD 2,643 2,768 88.2% 32.7% 36.4% 15.6% 6.0% NM 5.2x 5.0x NM 25.6x NM

Q2 Holdings, Inc. QTWO 2,285 2,459 89.8% 54.4% 107.2% 26.9% 29.8% NM 11.2x 8.6x NM NM NM

Ebix, Inc. EBIX 2,747 2,458 87.1% 41.5% 124.8% 28.3% 22.1% 42.4% 7.0x 5.7x 16.5x 15.4x 24.5x

Mimecast Limited MIME 2,296 2,436 87.9% 53.9% NA 40.4% 33.7% 5.6% 8.8x 6.6x 157.8x 41.7x NM

CyberArk Software Ltd. CYBR 1,970 2,310 93.1% 26.0% 1.1% 20.0% 26.2% 9.7% 7.2x 5.7x 73.7x 25.6x 155.0x

Fiv e9, Inc. FIVN 1,916 2,037 87.4% 60.6% 551.0% 24.0% 21.3% 2.3% 9.0x 7.4x NM 55.9x NM

Median $5,150 $5,156 88.9% 44.5% 100.3% 26.9% 27.8% 13.2% 9.8x 7.4x 52.7x 37.5x 72.7x

PAGE | 24




SMALL-CAP SAAS (Market Cap < $2Bn)

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit



Alarm.com Holdings, Inc. ALRM $1,963 $1,947 81.6% 7.3% 156.9% 29.4% 13.3% 17.4% 5.5x 4.8x 31.5x 21.9x 54.4x

Yext, Inc. YEXT-US 1,712 1,893 97.7% 45.1% NA 48.2% 38.7% NM 9.3x 6.7x NM NM NM

MINDBODY, Inc. MB 1,615 1,738 84.8% 41.9% 185.9% 30.2% 44.3% NM 8.3x 5.8x NM NM NM

Apptio, Inc. APTI 1,409 1,578 94.4% 108.6% NA 18.5% 24.6% NM 7.1x 5.7x NM 117.2x NM

Instructure, Inc. INST 1,241 1,479 90.6% 44.2% NA 42.2% 35.5% NM 7.2x 5.3x NM NM NM

Hortonworks, Inc. HDP 1,298 1,467 82.8% 41.5% (26.5%) 43.1% 29.3% NM 4.6x 3.5x NM NM NM

Rapid7 Inc. RPD 1,147 1,320 83.2% 67.7% NA 25.2% 22.1% NM 5.5x 4.5x NM NM NM

SPS Commerce, Inc. SPSC 1,106 1,318 93.5% 15.2% 9.8% 14.1% 11.9% 14.2% 4.9x 4.3x 34.3x 22.8x NM

Benefitfocus, Inc. BNFT 1,121 1,080 90.9% (7.6%) (18.0%) 5.0% 6.1% NM 4.4x 4.1x NM NM NM

AppFolio Inc APPF 2,113 948 89.3% 87.6% 336.8% 34.5% 31.7% 17.0% 13.7x 10.4x 80.9x 47.0x 70.9x

Workiva, Inc. WK 984 804 88.4% 28.1% 80.6% 16.1% 16.8% NM 4.6x 3.9x NM NM NM

Model N, Inc. MODN 560 562 94.9% 39.8% 55.3% 25.8% 5.6% NM 3.8x 3.6x NM NM NM

Castlight Health, Inc. CSLT 281 353 89.5% 2.4% (46.5%) 31.3% 19.3% NM 2.0x 1.7x NM NM NM

Amber Road, Inc. AMBR 273 260 91.4% 9.8% 37.2% 7.8% 11.1% NM 3.4x 3.0x NM NM NM

Median $1,194 $1,319 90.1% 40.7% 46.2% 27.6% 20.7% 17.0% 5.2x 4.4x 34.3x 34.9x 62.6x

PAGE | 25




DATA & ANALYTICS

IT OPERATIONS MANAGEMENT

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit



Verisk Analyt ics Inc VRSK $20,771 $17,869 97.6% 27.6% 47.6% 10.9% 10.9% 48.1% 9.3x 8.4x 19.4x 17.6x 30.8x

Splunk Inc. SPLK 13,277 14,603 81.5% 74.2% 42.7% 33.1% 35.4% NM 9.9x 7.3x NM 47.5x NM

Tableau Software, Inc. DATA 7,056 6,782 92.4% 59.5% (16.4%) 8.0% 13.4% NM 7.6x 6.7x NM 141.0x NM

Teradata Corporation TDC 4,459 4,959 90.7% 36.1% 10.9% (4.3%) 1.5% 10.0% 2.1x 2.0x 20.5x 11.4x NM

Pegasystems Inc. PEGA 4,299 4,333 80.6% (6.1%) 139.9% 7.3% 18.2% 4.7% 5.0x 4.3x 107.1x 28.0x NM

Verint Systems Inc. VRNT 3,198 2,877 95.5% 9.0% (27.0%) 8.0% 8.4% 13.2% 2.7x 2.5x 20.8x 10.4x NM

Talend SA TLND 1,745 1,830 96.5% 79.1% NA 43.2% 40.8% NM 10.6x 7.5x NM NM NM

MicroStrategy Incorporated MSTR 771 1,220 65.1% (33.3%) (24.9%) (1.3%) 1.7% 13.7% 1.5x 1.5x 11.1x 17.1x NM

PROS Holdings, Inc. PRO 1,252 1,207 95.3% 33.5% 76.7% 13.6% 16.9% NM 7.1x 6.1x NM NM NM

Inovalon Holdings, Inc. INOV 1,175 724 55.8% (24.5%) (62.5%) 0.1% 38.8% 15.9% 2.7x 2.0x 17.1x 6.5x 51.7x

Median $3,749 $3,605 91.6% 30.5% 10.9% 8.0% 15.2% 13.5% 6.1x 5.2x 19.9x 17.3x 41.3x

ServiceNow, Inc. NOW $32,081 $31,378 91.5% 62.7% 133.4% 40.2% 40.8% 2.1% 15.2x 10.8x NM 40.5x NM

Red Hat, Inc. RHT 24,280 24,179 75.6% 40.3% 73.3% 21.3% 16.8% 19.7% 7.9x 6.8x 40.4x 25.3x 80.9x

Arista Networks, Inc. ANET 19,084 19,443 82.6% 71.9% 214.6% 45.9% 31.4% 31.2% 10.7x 8.1x 34.3x 23.0x 40.2x

VMware, Inc. VMW 51,977 17,314 89.1% 68.1% 73.2% 13.2% 10.8% 27.8% 6.3x 5.7x 22.8x 15.1x 13.5x

CA, Inc. CA 14,310 15,061 95.4% 3.4% 20.8% 4.9% 1.1% 36.0% 3.4x 3.3x 9.4x 9.0x 32.0x

Citrix Systems, Inc. CTXS 16,020 14,463 95.8% 31.7% 89.8% (12.2%) 3.3% 30.0% 5.6x 5.4x 18.7x 15.5x 150.8x

F5 Networks, Inc. FFIV 9,677 10,663 94.1% 35.7% 43.4% 2.7% 4.6% 30.5% 4.6x 4.4x 15.0x 11.3x 24.7x

Micro Focus International plc MCRO-GB 9,516 7,694 43.5% (40.8%) (18.1%) 45.7% 95.1% 44.5% 4.9x 2.5x 11.1x 6.5x 44.3x

New Relic, Inc. NEWR 5,266 5,744 90.1% 133.9% 177.6% 34.8% 37.0% NM 14.8x 10.8x NM NM NM

Software AG SOW-DE 3,305 3,394 76.5% 6.5% 69.4% 4.7% 4.2% 30.5% 3.3x 3.2x 10.8x 9.9x 20.4x

NetScout Systems, Inc. NTCT 2,773 2,412 80.7% (13.7%) (18.9%) (15.9%) 1.7% 15.8% 2.8x 2.8x 17.8x 12.9x 30.2x

Progress Software Corporation PRGS 1,764 1,761 72.4% 25.7% 37.9% (0.1%) 0.5% 35.4% 4.4x 4.4x 12.4x 9.9x 31.5x

Apptio, Inc. APTI 1,409 1,578 94.4% 108.6% NA 18.5% 24.6% NM 7.1x 5.7x NM NM NM

Radware Ltd. RDWR 925 1,132 98.5% 44.1% 15.2% 10.1% 11.6% 0.1% 4.3x 3.8x NM 31.8x NM

Median $9,597 $9,179 89.6% 38.0% 69.4% 11.6% 11.2% 30.2% 5.3x 4.9x 16.4x 14.0x 31.8x

PAGE | 26




DATA STORAGE

IT SECURITY

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit



NetApp, Inc. NTAP $18,203 $20,862 98.5% 96.1% 148.6% 7.2% 6.0% 18.7% 3.1x 2.9x 16.5x 12.4x NM

Iron Mountain, Inc. IRM 17,811 9,979 84.3% 1.9% 11.2% 6.7% 9.0% 33.2% 4.5x 4.1x 13.6x 11.8x 56.9x

Nutanix, Inc. NTNX 8,103 6,931 79.5% 155.9% NA 58.4% 24.5% NM 7.5x 6.0x NM NM NM

Pure Storage, Inc. PSTG 4,676 4,171 93.2% 86.4% NA 42.3% 36.8% NM 4.3x 3.1x NM 31.3x NM

Box, Inc. BOX 3,335 3,368 83.9% 37.0% 33.2% 24.4% 24.6% NM 6.3x 5.1x NM NM NM

CommVault Systems, Inc. CVLT 2,517 3,047 90.6% 16.7% 60.5% 7.5% 12.3% 1.5% 3.6x 3.2x NM 20.7x NM

Dropbox DBX 6,417 2,421 74.5% NA NA 31.0% 32.7% 6.1% 5.8x 4.4x 95.1x 19.5x NM

Carbonite, Inc. CARB 1,181 1,023 84.6% 60.1% 191.3% 14.1% 32.5% 9.1% 4.8x 3.6x 52.8x 14.0x NM

Median $5,547 $3,769 84.5% 60.1% 60.5% 19.2% 24.6% 9.1% 4.7x 3.9x 34.6x 16.7x 56.9x

Cisco Systems, Inc. CSCO $182,078 $201,330 92.8% 37.5% 57.3% 0.2% 4.1% 30.4% 3.7x 3.6x 12.3x 10.3x NM

Palo Alto Networks, Inc. PANW 17,833 19,453 94.5% 53.6% 16.7% 28.5% 25.8% NM 8.4x 6.7x NM NM NM

VeriSign, Inc. VRSN 17,030 17,259 94.4% 47.8% 117.1% 2.3% 5.4% 65.2% 14.5x 13.7x 22.2x 19.3x 36.3x

Check Point Software Ltd. CHKP 14,286 15,799 81.9% (10.5%) 21.8% 5.6% 3.3% 50.4% 7.6x 7.4x 15.1x 13.8x 19.6x

Symantec Corporation SYMC 16,658 12,984 60.4% (26.9%) (11.0%) 20.6% 0.9% 24.6% 3.4x 3.4x 14.0x 8.5x 11.3x

Fortinet, Inc. FTNT 9,422 10,746 94.1% 66.7% 51.2% 16.7% 18.2% 13.8% 6.1x 5.1x 43.9x 20.9x 172.5x

Trend Micro Incorporated 4704-JP 6,592 8,005 93.4% 10.7% 68.0% 8.1% 11.4% 34.3% 4.8x 4.3x 14.1x 13.2x 33.1x

Proofpoint, Inc. PFPT 5,907 5,936 88.5% 32.8% 79.1% 37.8% 42.0% NM 10.5x 7.4x NM NM NM

Qualys, Inc. QLYS 3,207 3,348 86.2% 106.6% 110.5% 18.5% 24.8% 25.1% 13.2x 10.6x 52.7x 28.6x 121.1x

FireEye, Inc. FEYE 2,772 3,021 79.5% 1.2% (68.3%) 7.9% 10.3% NM 3.6x 3.2x NM 27.5x NM

Mimecast Limited MIME 2,296 2,436 87.9% 53.9% NA 40.4% 33.7% 5.6% 8.8x 6.6x 157.8x 41.7x NM

CyberArk Software Ltd. CYBR 1,970 2,310 93.1% 26.0% 1.1% 20.0% 26.2% 9.7% 7.2x 5.7x 73.7x 25.6x 155.0x

SailPoint Technologies SAIL-US 2,041 2,179 84.8% NA NA 42.6% 26.4% 7.9% 10.2x 8.1x 129.0x 87.8x NM

Varonis Systems, Inc. VRNS 1,959 2,171 89.7% 100.3% 233.9% 32.2% 26.4% NM 8.5x 6.7x NM NM NM

ForeScout Technologies, Inc. FSCT-US 1,110 1,418 90.6% NA NA 32.9% 28.6% NM 4.7x 3.7x NM NM NM

Rapid7 Inc. RPD 1,147 1,320 83.2% 67.7% NA 25.2% 22.1% NM 5.5x 4.5x NM NM NM

Cheetah Mobile, Inc. CMCM 995 433 52.6% (11.3%) (64.9%) 8.1% 4.8% 13.5% 1.3x 1.3x 9.9x 13.3x 2.2x

SecureWorks Corp. SCWX 925 140 93.0% 34.0% NA 8.4% 11.9% NM 1.9x 1.7x NM NM NM

Median $2,989 $3,185 89.1% 35.7% 51.2% 19.2% 20.2% 24.6% 6.6x 5.4x 22.2x 20.1x 34.7x

Healthcare & Life Sciences

IndustrialsEnergy, Power & Infrastructure

Industrials

PAGE |

Harris Williams & Co. has a broad range of industry expertise, which create powerful opportunities. Our clients benefit form our deep-sector experience,integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information,visit our website at www.harriswilliams.com/industries.

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Technology, Media & Telecom

OUR FIRM

27

PAGE | 28



Harris Williams (www.harriswilliams.com) 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 provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limited company incorporatedunder English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). HarrisWilliams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan.

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, underregistration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the BranchNiederlassung: Mr. Jeffery H. Perkins.

Harris Williams is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATIONPROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THISREPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIALINFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US.

The information and views contained in this report were prepared by Harris Williams (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. 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.

Copyright© 2018 Harris Williams & Co., all rights reserved.

HARRIS WILLIAMS & CO.

1. FactSet.

2. PNC Capital Markets.

3. S&P LCD stats.

4. PitchBook.

5. HW&Co. proprietary transaction information.

SOURCES

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http://www.harriswilliams.com/

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