T E C H N O L O G Y , M E D I A & T E L E C O M PAGE | 0
CLOUD MANAGED SERVICES AND HOSTING SECTOR REVIEW | Q1 2020
Technology, Media & Telecom
Cloud Managed Services and Hosting| Q2 2020
• Application Software
• Cloud Managed Services and Hosting Solutions
• Compliance Solutions
• CRM and Marketing Automation
• Human Capital Management
• Infrastructure and Security Software
• IT and Tech-Enabled Services
• Marketing, Research, and Insights Software
• Architecture, Engineering, and Construction Software
• Education Technology and Services
• Energy Technology
• Facilities and Real Estate Software
• Financial Technology and Payments
• Government Technology
• Healthcare IT
• Industrial and Supply Chain Technology
• Internet and eCommerce
• Retail Technology
HW Cloud Managed Services and Hosting Solutions Introduction
SELECT CLOUD AND MANAGED SERVICES HOSTING
EXPERIENCE
1
HW TECHNOLOGY, MEDIA & TELECOM (“TMT”) GROUPHARRIS WILLIAMS (“HW”)
• 25+ years and more than 1,000 closed transactions
• 350+ professionals across eight office globally
• 170+ closed transactions in the last 24 months
• 10 industry groups
• 35+ dedicated TMT professionals
• TMT offices include Boston, San Francisco, and London
FOCUSED ADVISORY SERVICES
• Mergers and acquisitions (M&A)
• Capital raises
• Corporate divestitures
VERTICAL FOCUS SECTORSHORIZONTAL FOCUS SECTORS
KEY TMT THEMES
✓SaaS / Cloud ✓Data & Analytics ✓Digital Transformation ✓A.I. / Machine Learning
CONSISTENT RECOGNITION FOR QUALITY
Thierry MonjauzeManaging Director
[email protected] Office: +44 20 7518 8901
Anthony BasmajianDirector
[email protected]: +1 (804) 887-6030
HW CLOUD MANAGED SERVICES AND HOSTING SOLUTIONS TEAM
Sylvain NobletDirector
[email protected] Office: +44 20 7518 8917
OTHER TMT GROUP LEADERSHIP
Erik SzyndlarManaging Director
[email protected]: +1 (415) 217-3418
Tyler DewingManaging Director
[email protected] Office: +1 (617) 654-2133
Mike WilkinsManaging Director
[email protected] Office: +1 (415) 217-3411
Sam HendlerManaging Director
[email protected]: +1 (617) 654-2117
has been acquired by has made a significant investment in
has acquired has been acquired by
&
has been acquired by has been acquired by has been acquired by
Priyanka NaithaniDirector
[email protected]: +1 (617) 654-2115
HW Current Market Observations and Insights
LATEST HW MARKET INSIGHTS
For access to HW’s latest insight and perspective, email us at [email protected] or visit www.harriswilliams.com/news-insights
M&A Learnings from Past Economic Disruptions
COVID-19 and M&A: Insights from Asia
Recent Publications
For access to HW’s TMT content, email us at [email protected]
Deep Sector Expertise Across Key TMT Focus Areas
• Architecture, Engineering and Construction
• Education Technology and Services
• Financial Technology and Payments
• Healthcare IT
• Industrial and Supply Chain Technology
• and more
2
Global Consumer Businesses Consider Emergence from COVID-19
Buyer Sentiment
• The desire to invest remains – buyers are actively seeking to deploy capital
• Private equity firms and strategic acquirers have focused on meeting near-term operational needs and assessing the medium- to long-term impact of COVID-19
• Despite economic uncertainty, financial sponsors have record levels of capital to deploy, and many are communicating that they are “open for business” while acknowledging high-quality deal flow will be limited
• Investors have expressed greater flexibility in investment interest including minority, growth equity and merger transactions as a way to put capital to work
Economic Outlook
• Volatility in the public markets will likely remain as investors, businesses and policymakers evaluate rapidly evolving COVID-19 developments
• Economists and industry analysts expect a meaningful decline in GDP in 2Q’20 and 3Q’20 while they debate the shape and timing of the recovery
Debt Markets
• In contrast to the first half of 1Q’20, debt markets have shifted to a risk-off mentality. Recent activity levels / discussions suggest lender support for M&A is starting to return
• Concerns over liquidity and funding availability contribute to uncertainty regarding the duration of the COVID-19 risk mitigation focus
M&A Valuations
• COVID-19 has pushed timelines for many transactions, but select deals are still closing successfully. Sectors benefitting from COVID (i.e., distance learning, eCommerce, etc.) have seen valuations hold at pre-COVID levels
• For new processes, sellers are deploying a “match making” strategy by engaging with a smaller universe of most likely buyers and communicating expectations (value and terms) early on in the process
CURRENT MARKET OBSERVATIONS
has been acquired byhas been acquired by
&
have been acquired byhas acquiredhas made a significant
investment in
Cloud Managed Services and Hosting Taxonomy
S E L E C T E D H W C L O U D M A N A G E D S E R V I C E S A N D H O S T I N G T R A N S A C T I O N S
SELECTED MARKET PARTICIPANTS SELECTED MARKET PARTICIPANTS SELECTED MARKET PARTICIPANTS
WEB HOSTING MANAGED SERVICES IT OUTSOURCING
Refers to a service in which a vendor offers the housing of business-to-business or business-to-
consumer eCommerce websites via vendor-owned shared or dedicated servers and applications for enterprises at the provider-controlled facilities
Refers to the use of external service providers to effectively deliver IT-enabled business process, application service and infrastructure solutions
for business outcomes
Refers to the delivery of network, application, system and e-management services across a network to
multiple enterprises, using a “pay as you go” pricing model
3
has been acquired by
Provider of SME-focused hosting and cloud solutions,
including domain and website hosting, email for
smaller customers, and managed servers and applications for larger
customers
Provider of managed technology services with
national scale in the US and the capability to design,
deploy and support technology solutions from
cable to cloud
Provider of web domains, shared web hosting and
value-added services with leading positions in Sweden and the Czech Republic, and presence in Central Europe
and the UK
Provider of services allowing SMEs to move
their IT infrastructure and operations into the cloud, as well as providing end
user support and consulting as part of a full-service IT
offering
Provider of mass hosting services for SMEs, including
web hosting, domains, eCommerce and
application solutions in the Benelux, Nordic countries
and Switzerland
Provider of a post-warranty alternative for storage, server
and networking hardware maintenance for IT data
centers
Registry business
MA
NA
GED
SE
RV
ICES
1.2x 13.8x 9.0x
Enterprise Value /
LTM Rev. LTM EBITDA 2020E EBITDA
Market Observations
*Group weighted average stock price performance over the past year based on market capitalizations** Based on BCE methodology, which counts each expansion within a building as a separate data center
Key Public Comparables Indexed stock price performance1 Market Observations2Transaction Spotlight
May 7, 2020 The global Cloud Managed Services (“CMS”) market is projected to reach $116bn by 2025, a 13.3% CAGR, primarily driven by businesses looking to avoid significant infrastructural capital
investments and shift into operational costs by adopting CMS
Enterprise Value /
LTM Rev. LTM EBITDA 2020E EBITDA
2.5x 11.2x 9.6x
Key Public Comparables Indexed stock price performance1 Market Observations3
GLO
BA
L IT
SE
RV
ICES
Transaction Spotlight
June 24, 2020 IT Services spending is expected to decline 7.7% to $950bn in 2020 as organizations prioritize spending on mission-critical
technology and services over those aimed at growth or transformation in light of COVID-19 and the effects of the
global recessionEnterprise Value /
LTM Rev. LTM EBITDA 2020E EBITDA
2.0x 10.5x 8.7x60
80
100
120
Jun-19 Sep-19 Dec-19 Mar-20 Jun-20
Key Public Comparables Indexed stock price performance1 Market Observations4
LOC
AL
IT S
ERV
ICES Transaction Spotlight
June 3, 2020 Across the Nordics, IT outsourcing is predicted to continue at a similar or higher pre-COVID-19 pace over the next two
years, with businesses citing more scalability being the key driver alongside cost optimization
Key Public Comparables Indexed stock price performance1 Market Observations6
DA
TA C
ENTE
RS
/ C
OLO
CA
TIO
N
Transaction Spotlight
June 1, 2020 The data center industry is set to see rising demand in the near-term as it supports the increasing digitalization to
online services for businesses, schools and not-for-profits brought on by the COVID-19 pandemic
Enterprise Value /
LTM Rev. LTM EBITDA 2020E EBITDA
11.3x 22.4x 20.8x
Key Public Comparables Indexed stock price performance1 Market Observations5
WEB
HO
STIN
G
Transaction Spotlight
April 7, 2020
Enterprise Value /
LTM Rev. LTM EBITDA 2020E EBITDA
3.3x 14.2x 15.4x
With physical retail stores having shut, consumer buying patterns have likely changed permanently as a result of
COVID-19, which will serve as a catalyst for growth in the web hosting services market as the pace of eCommerce
adoption dramatically increases
4
60
80
100
120
Jun-19 Sep-19 Dec-19 Mar-20 Jun-20
40
80
120
160
Jun-19 Sep-19 Dec-19 Mar-20 Jun-20
60
120
180
240
Jun-19 Sep-19 Dec-19 Mar-20 Jun-20
80
100
120
140
Jun-19 Sep-19 Dec-19 Mar-20 Jun-20
Portfolio of 25**
data centers from
In the NewsArq Group rebrands again, remaining business emerges as
Webcentral Group
In the NewsWipro names Thierry Delaporte as CEO
In the NewsBechtle expands cloud portfolio with Pickit
In the NewsWalmart partners with Shopify to expand its online marketplace
In the NewsEquinix and GIC enter into $1bn+ data center
joint venture in Japan
Acquired an additional 45% stake, bringing total
shareholding to 75%
Impact of COVID-19 on Cloud Managed Services and Hosting
The global COVID-19 pandemic represents a pivotal moment for Cloud Managed Services and Hosting as consumer, business and government behaviors change dramatically, with significant short- and long-term implications
*Group weighted average stock price performance for the year-to-date period ended June 30, 2020, based on market capitalizations
Y E A R - T O - D AT E P U B L I C E Q U I T Y P E R F O R M A N C E 1
S T R O N G E S T S U B - S E C T O R P E R F O R M E R S ( Y T D ) 1
Whilst managed services providers in select end-markets such ashospitality and travel have been materially impacted by the pandemic, thebroader Managed Services market has faired fairly well, with manycompanies accelerating ongoing cloud migration as workforces for bothsmall and large enterprises shift to working-from-home. In turn, this shift,which is expected to persist post-COVID-19, has driven significant demandfor remote-centric solutions, particularly security services
MANAGED SERVICES
IT Services are likely to continue to underperform other sub-sectors asbusinesses shift away from large new projects and focus on costoptimization in the current environment; however, a growing need forcloud-enabled solutions brought on by rapid digitalization in the currentenvironment poses a significant opportunity
IT SERVICES
Overall, the sub-sector has experienced strong performance driven byCOVID-19 related demand for services such as cloud platforms and videostreaming. Similar to managed services, data centers have benefitted fromcloud adoption with companies shifting away from on-premise solutions, atrend that has been greatly accelerated in the current environment
DATA CENTERS / COLOCATION
Web hosting providers have seen a significant increase in the volume ofcustomers and overall user base resulting from lockdown restrictions andits effects on bricks-and-mortars, which has positively impacted financialsand valuations in the near-term. The sub-sector is likely to be a structuralwinner post-COVID-19 as its impact has accelerated eCommerce adoptionand has likely shifted consumer buying patterns permanently, both ofwhich will serve as catalysts for growth
WEB HOSTING
1.4%
(2.2%)
10.7%
102.8%
9.6%
Managed
Services
Global
IT Services
Local
IT Services
Web
Hosting
Data Centers /
Colocation
S&P 500 Index
Managed Services 21.9%
Redcentric continues to see strong demand in light of COVID-19,with recurring revenue orders in Q1-FY21 marginally ahead ofQ1-FY20 and significantly ahead of the Board’s expectations
Global IT Services 2.1%
Atos has outperformed the broader sub-sector due to its largelyresilient revenue profile, of which two-thirds is based on multi-year contracts
Local IT Services 37.2%
Primarily exposed to the public sector, Netcompany is wellpositioned to benefit from government stimulus and accelerateddigitalization plans brought on by COVID-19
WebHosting 138.7%
Shopify has significantly outperformed the broader sector withdemand surging as businesses shift to eCommerce during thepandemic, a trend that is driving short- and long-term valuations
Data Centers / Colocation 20.3%
Equinix is well positioned to continue benefiting from severalsecular trends, principally accelerated cloud option, as a resultof its unique interconnection-focused data centers
5
(4.0%)
Atos’ acquisition of Paladion7
Netrics merges with Waterland-backed Tineo and nexellent7
• A portfolio of 25* data center facilities across 8 Canadian cities, adding 1.2 million gross square feet of data center space and400,000 square feet of colocation space to Platform Equinix
• The transaction will add more than 500 net new customers across various sectors and segments, including enterprise, cloud and IT, government and financial services
• The acquisition will transform Equinix into a data center and interconnection services market leader in Canada while also serving as a platform for future expansion
Select Cloud Managed Services and Hosting M&A Transactions
Loopia Group’s double acquisition of Hostingpalvelu and Domainhotelli7
• Hostingpalvelu and Domainhotelli are Finnish providers of SME-focused web hosting and domain services
• Combined, Hostingpalvelu and Domainhotelli have over 40,000 customers and will enable the Loopia Group to continue executing its growth strategy in the Nordics and Central Eastern Europe
• After the transaction, the Loopia Group will have 600,000 customers across Europe supported by a workforce of 300 employees
Announced April 10, 2020
Equinix’s acquisition of 25* data centers from BCE7Announced June 1, 2020
Team.Blue’s acquisition of Natro7
• Founded in 1999, Natro is a Turkish hosting provider
• The company primarily provides domain services, web hosting solutions and security solutions to over 120,000 customers acrossmultiple market segments
• The transaction will enable Team.Blue to expand its footprint to the fast-growing Turkish market as well as serve as a platform for consolidation in the region
Announced June 19, 2020
• Founded in 2002, Netrics is a Swiss IT services provider to SMEs and large enterprises operating across various verticals
• Netrics is particularly focused on digitalization using cloud solutions as well as modern workplace services
• The merger combines Netrics’ cloud expertise with Tineo and nexellent’s IT infrastructure solutions and colocation services, creating a group with a broad service offering and a nationwide geographic presence
Announced June 24, 2020
• Paladion is a US provider of managed security services with more than 800 employees and cybersecurity experts globally
• The company provides cloud-native managed detection and response (“MDR”) services to over 400 clients across 12 countries via a network of security delivery centers in the US, Middle East and India
• The acquisition builds on Atos’ broader strategy to expand its cybersecurity and cloud solutions by adding MDR capabilities to its portfolio and enhancing its Prescriptive Security Operations Center offering
Announced June 24, 2020
Local IT Services
Web Hosting
Managed Services
6
Web Hosting
Portfolio of 25* data centers from
Data Centers / Colocation
* Based on BCE methodology, which counts each expansion within a building as a separate data center
IT & Tech-Enabled Services – Trading Comparables
VALUATION1
As of June 30, 2020 ($ in millions)
M A N A G E D S E R V I C E S
iomart $544 $473 85.6% 8.0% 14.2% 4.6% 4.5% 37.1% 3.8x 3.6x 10.3x 9.6x
Redcentric $277 $227 92.5% 52.5% 51.1% 1.9% 5.2% 26.0% 2.5x 2.4x 9.6x 9.0x
Proact IT $204 $172 69.9% (25.1%) (14.5%) (0.1%) 7.5% 8.7% 0.6x 0.5x 6.4x 5.7x
Managed Services Median $277 $227 85.6% 8.0% 14.2% 1.9% 5.2% 26.0% 2.5x 2.4x 9.6x 9.0x
G L O B A L I T S E R V I C E SAccenture $134,139 $136,604 98.5% 16.2% 73.6% 3.4% 5.6% 17.8% 3.0x 2.8x 16.7x 16.2x
Tata Consultancy Services $99,866 $103,431 90.7% (6.5%) 76.3% 2.3% 7.4% 26.3% 4.8x 4.4x 18.2x 16.6x
Infosys $38,879 $41,318 86.9% (8.3%) 34.6% (1.0%) 6.1% 24.0% 3.1x 3.0x 13.0x 12.0x
Capgemini $21,245 $19,413 84.3% (6.8%) 12.7% 11.6% 8.5% 14.4% 1.2x 1.1x 8.3x 7.4x
HCL Technologies $19,542 $20,004 89.3% (4.6%) 12.0% 1.7% 6.1% 23.6% 2.0x 1.9x 8.5x 7.9x
CGI $19,054 $16,220 74.7% (15.0%) 29.1% 0.9% 3.8% 19.5% 2.1x 2.0x 10.9x 10.4x
Wipro $13,439 $16,554 77.0% (21.6%) 13.2% 0.5% 3.3% 19.2% 1.7x 1.6x 8.7x 8.3x
Atos $12,704 $9,304 92.0% 3.2% (38.2%) (2.5%) 1.0% 13.9% 1.0x 1.0x 7.2x 6.7x
Indra Sistemas $2,128 $1,388 61.5% (21.3%) (44.6%) (3.9%) 3.3% 9.7% 0.6x 0.6x 6.2x 5.3x
Global IT Services Median $19,542 $19,413 86.9% (6.8%) 13.2% 0.9% 5.6% 19.2% 2.0x 1.9x 8.7x 8.3x
L O C A L I T S E R V I C E SBechtle $7,713 $7,421 94.9% 55.4% 179.1% 6.1% 9.8% 6.0% 1.2x 1.1x 20.1x 18.3x
TietoEVRY $4,407 $3,236 77.5% (6.8%) (10.3%) 0.0% 2.6% 15.5% 1.4x 1.4x 9.1x 8.2x
Netcompany $3,352 $3,224 98.6% 64.5% NM 16.6% 19.5% 28.6% 7.8x 6.5x 27.1x 22.2x
Capita $2,739 $904 23.8% (58.2%) (93.6%) (8.8%) 3.9% 12.2% 0.7x 0.6x 5.4x 4.7x
Atea $1,265 $1,055 67.6% (20.2%) (17.3%) 8.1% 4.9% 3.5% 0.3x 0.3x 8.9x 7.0x
NNIT $516 $436 89.6% (7.3%) (40.9%) (6.6%) 1.2% 15.6% 1.2x 1.2x 7.7x 7.4x
Local IT Services Median $3,045 $2,139 83.6% (7.0%) (17.3%) 3.0% 4.4% 13.8% 1.2x 1.1x 9.0x 7.8x
Hosting and Managed Services Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth 2020E EBITDA Enterprise Value /
Company Value Capitalization Week High Performance Performance 2020E 2021P Margin '20E Rev. '21P Rev. '20E EBITDA '21P EBITDA
7
IT & Tech-Enabled Services – Trading Comparables
W E B H O S T I N GShopify $111,083 $113,303 99.0% 216.2% 992.3% 37.5% 35.4% 2.6% NM 37.8x NM NM
VeriSign $24,551 $23,897 93.3% (1.1%) 122.5% 2.1% 3.8% 71.0% 19.5x 18.8x 27.5x 25.9x
GoDaddy $13,952 $12,119 86.8% 4.5% 72.9% 8.9% 10.1% 25.0% 4.3x 3.9x 17.2x 14.5x
Wix.com $12,924 $13,202 99.7% 80.3% 268.1% 25.8% 24.1% 16.1% 13.5x 10.9x NM NM
United Internet $9,966 $7,946 98.2% 30.2% (21.7%) 2.1% 3.0% 23.9% 1.7x 1.6x 7.0x 6.8x
Endurance $2,228 $566 65.1% (16.0%) (51.7%) (2.4%) 1.7% 26.6% 2.1x 2.0x 7.7x 7.4x
Tucows $718 $606 85.1% (6.1%) 7.1% (2.6%) (2.6%) 14.2% 2.2x 2.2x 15.4x 15.8x
Web Hosting Median $12,924 $12,119 93.3% 4.5% 72.9% 2.1% 3.8% 23.9% 3.2x 3.9x 15.4x 14.5x
D A T A C E N T E R S / C O L O C A T I O NKDDI $85,561 $68,995 93.7% 17.9% 8.7% 1.4% 2.4% 33.1% 1.7x 1.7x 5.3x 5.2x
Equinix $74,072 $62,164 97.8% 39.3% 63.6% 8.3% 9.3% 47.5% 12.5x 11.4x 26.2x 23.6x
Digital Realty Trust $53,757 $38,130 89.7% 20.6% 25.8% 17.2% 12.1% 54.9% 14.3x 12.7x 25.9x 22.8x
CenturyLink $45,786 $11,008 65.6% (14.7%) (58.0%) (8.2%) (3.0%) 42.4% 2.2x 2.3x 5.2x 5.4x
CyrusOne $11,650 $8,381 91.2% 26.0% 30.5% 4.9% 10.7% 52.5% 11.3x 10.2x 21.6x 19.2x
CoreSite Realty $6,412 $4,589 94.2% 5.1% 16.9% 5.7% 8.3% 52.9% 10.6x 9.8x 20.0x 18.5x
QTS Realty Trust $6,275 $4,153 92.9% 38.8% 22.5% 10.9% 12.2% 52.8% 11.8x 10.5x 22.4x 19.7x
Switch $3,114 $1,838 91.1% 36.1% NM 12.1% 11.3% 49.6% 6.0x 5.4x 12.1x 10.8x
Data Centers / Colocation Median $28,718 $9,694 92.1% 23.3% 22.5% 7.0% 10.0% 51.1% 11.0x 10.0x 20.8x 18.8x
VALUATION1
As of June 30, 2020 ($ in millions)
Hosting and Managed Services Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth 2020E EBITDA Enterprise Value /
Company Value Capitalization Week High Performance Performance 2020E 2021P Margin '20E Rev. '21P Rev. '20E EBITDA '21P EBITDA
8
04/02/2020 Yes ler Accenture US-based provider of B2B marketing and bus iness support services , including digi ta l marketing, managed services and s trategic resourcing solutions
04/06/2020 IKOR Ufenau Capita l Germany-based technology consultancy and integration specia l i s t
04/07/2020 Neustar's regis try bus iness GoDaddy US-based regis try bus iness of Neustar
04/07/2020 alphaQuest Fami ly Trust Investor Germany-based IT services provider specia l i zing in data analytics , bus iness analytics and software engineering
04/07/2020 Acora Pa latine Private EquityUK-based managed IT services provider offering a range of IT support and cloud solutions to help mid-market organizations modernize their infrastructure and
operate in the digi ta l economy
04/07/2020 Vantage Data Centers Next Generation Data UK-based Tier I I I data center faci l i ty offering customers low latency between Wales and London
04/07/2020 Revolutionary Securi ty AccentureUS-based provider of enterprise cybersecuri ty for IT and operational technology environments with a service offering that includes the des igning and bui lding
of securi ty programs and functions
04/10/2020 Suomen Hostingpalvelu Loopia Group Finland-based hosting services provider
04/10/2020 Domainhotel l i Loopia Group Finland-based hosting services provider
04/10/2020 GleSYS Stockholm Internet eXchange Sweden-based technology company
04/20/2020 Gekko Accenture France-based Amazon Web Services (AWS) cloud services company
04/22/2020 Miner & Kasch Atos US-based arti ficia l intel l igence and data science consulting fi rm
04/30/2020 NIKE Group Accenture Ita ly-based consulting fi rm that provides regulatory technology services and solutions to financia l services fi rms
05/05/2020 Cal l i s to Integration AccentureUS-based provider of consulting and digi ta l manufacturing services , including des ign and implementation of manufacturing execution systems, IoT systems
and shop-floor control systems
05/05/2020 Finavis ta Cegeka Netherlands-based IT consulting fi rm with operations in the field of data migration, data governance, data qual i ty and data analys is
05/06/2020 Kates Kes ler Accenture US-based organizational des ign consultancy focused on helping companies des ign and activate new organizational s tructures
05/07/2020UKFast
(incremental 45% stake)Inflexion UK-based cloud hosting provider
05/13/2020 Project Informatica HIG Capita l Ita ly-based provider of IT securi ty, system integration and cloud computing services for private and publ ic companies
05/18/2020 Byte Prophecy Accenture India-based automated ins ights and big data analytics company
05/19/2020 PLM Systems Accenture Ita ly-based boutique systems integrator, specia l i zed in des igning and bui lding information systems for product l i fecycle management
05/27/2020 Weiss IT Solutions BayBG Germany-based provider of IT services to more than 85,000 users at over 30 locations in Germany
05/29/2020Cisco’s Sel f-Optimizing Network
technologyHCL Technologies
US-based Cisco Systems’ Sel f-Optimizing Network technology, a powerful platform us ing machine learning and a set of appl ications to automate the Radio
Access Network
06/01/2020 25 BCE data centers Equinix 25 Canada-based data centers at 13 s i tes
06/02/2020Internap's Houston data center
faci l i tiesNetra l i ty Properties US-based data center faci l i ty
06/02/2020 SIAB KPMG Austria-based IT consulting services provider, specia l i zed in SAP consulting services
06/03/2020 Suomen Konehuone NetNordic Finland-based IT company focused on modern hyperconverged solutions for data centers and associated profess ional services
06/05/2020 Privo Navis i te US-based consulting partner in the Amazon Web Series Partner Network
06/10/2020 Infradax BB Capita l Netherlands-based IT service provider
IT & Tech-Enabled Services – Transaction Activity
SELECT RECENT M&A TRANSACTIONS7
9
Announced date Target / Issuer Buyer Description
IT & Tech-Enabled Services – Transaction Activity
SELECT RECENT M&A TRANSACTIONS7
10
06/11/2020 CloudKnox Securi ty Wipro US-based cloud securi ty platform
06/15/2020 DataCenter Frys lân Penta Infra Netherlands-based operator of two high qual i ty and wel l connected data center faci l i ties in the Fries land region
06/15/2020 Sentel is Accenture France-based independent data consulting and engineering company, focused on industria l i zing AI and big data technologies
06/17/2020 Productora de Software Perficient Colombia-based provider of custom appl ication and software development services specia l i zing in the development and deployment of agi le software
06/19/2020 Natro team.blue Turkey-based hosting provider with a product range that includes domain names, web hosting solutions , emai l , vi rtual servers and various securi ty solutions
06/22/2020 Technogroup Evernex Germany-based hardware maintenance fi rm providing data center maintenance and va lue-add services for data centers
06/23/2020 Stel la Telecom Celeste Bulgaria-based suppl ier of global telecom solutions , internet, fibre, VPN, securi ty, fixed and mobi le telephony and cloud services
06/24/2020 Paladion Atos US-based provider of Managed Securi ty Services
06/24/2020 Al ia Consulting Atos France-based IT consulting company specia l i zed in SAP appl ications for the uti l i ties sector and S/4HANA transformation
06/24/2020 netrics Tineo and Nexel lent Switzerland-based cloud pioneer and managed services provider
06/25/2020 matrix technology Ufenau Capita l Partners Germany-based IT services provider, specia l i zed in IT services and IT consulting as wel l as IT outsourcing operations
06/26/2020 Felton Cloud Securi ty Group Netherlands-based IT managed services provider
06/30/2020Chris tiaens
(50% stake)Sofindev
Belgium-based ful l service IT services provider, focused on implementing ERP software from Microsoft Dynamics 365 Bus iness Centra l and related software
solutions
Announced date Target / Issuer Buyer Description
Shared HostingColocation / DedicatedData Centers
Managed Services
Managed Hosting Managed Applications
Diversified Comms.
Cloud Consultancies and VARs
IT Outsourcing / Diversified System Integration
Domain Registrars
IT & Tech-Enabled Services – Representative LandscapeRepresentative IT & Tech-Enabled Services providers
11
Harris Williams Capabilities and Locations
12
Harris Williams has a broad range of industry expertise, which create powerful opportunities. Our clients benefit from 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.
Healthcare & Life Sciences
Energy, Power & Infrastructure
IndustrialsAerospace, Defense & Government Services
Building Products & Materials
Business Services
Consumer Specialty Distribution
Technology, Media & Telecom
Transportation & Logistics
HARRIS WILLIAMS OFFICE LOCATIONS
U N I T E D S T A T E S E U R O P E
BostonOne International PlaceSuite 2620Boston, Massachusetts 02110Phone: +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland, Ohio 44114Phone: +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis, Minnesota 55402Phone: +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond, Virginia 23219Phone: +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco, California 94105Phone: +1 (415) 288-4260
Washington, D.C. 800 17th St. NW2nd FloorWashington, D.C. 20006Phone: +1 202-207-2300
FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone: +49 069 3650638 00
London63 Brook StreetLondon W1K 4HS, EnglandPhone: +44 (0) 20 7518 8900
Sources and Disclosures
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The information and views contained in this report were prepared by Harris Williams LLC (“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 securities or 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 securities and 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.
Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 8th Floor, 20 Farringdon Street, London EC4A 4AB, 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. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: [email protected]). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. DE321666994). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.
1. CapIQ; market data as of June 30, 2020.
2. Businesswire.
3. Gartner.
4. Whitelane Research.
5. RBC Capital Markets.
6. Data Center Frontier.
7. Mergermarket.
Disclosures
Sources