Technology m&a report
- 1. HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising John Hill Senior Managing Director [email protected] Technology (813) 383-0205 John McDonald M&A Report Senior Managing Director [email protected] Q4 2011 (813) 383-0206 Keith Hodgdon Senior Vice President [email protected] (813) 383-0208 Jeffrey Bridge Vice President [email protected] (813) 383-0204 Michael Mariani Associate [email protected] (813) 597-2649 Hyde Park Capital Advisors, LLC 701 N. Franklin Street Tampa, FL 33602 Tel: 813-383-0202 www.hydeparkcapital.com Member FINRA/SIPC
- 2. Capital Markets Overview Commentary Select Initial Public Offerings – Technology (Q4 2011) ($ in millions) Transaction As of December 31, 2011, major market indices, including the S&P Offer Date Issuer Industry Sector Value 500, Nasdaq and S&P Global Information Technology index shown Pending Cantor Entertainment Technology, Inc. Software $100 below, remained relatively flat over the 12-month period. Pending ExactTarget, Inc. Internet $100 However, each index upticked during the recently completed 4th quarter. Pending Yelp, Inc. Internet $100 Pending Vantiv, LLC IT Services $100 As detailed in the table on the right, the equity markets displayed overall strength and investor demand across the Technology 12/15/11 Zynga, Inc. Software $1,000 industry as several initial public offerings were announced and 12/12/11 Jive Software, Inc. Software $161 successfully completed in Q4 2011. 11/16/11 Angie's List, Inc. Internet $114 From a valuation perspective, the Enterprise Software, 11/15/11 InvenSense, Inc. Technology Hardware $75 Infrastructure Software and Software-as-a-Service (SaaS) sectors 11/08/11 Imperva, Inc. Software $90 were all trading at relatively strong multiples of revenue and EBITDA. 10/13/11 Ubiquiti Networks, Inc. Technology Hardware $106 Public Market Performance (LTM) Public Company Market Performance by Sector 120% Median Change in Stock Price Enterprise Value / LTM 110% 0.0% Industry Sector 3 Months 12 months Revenue EBITDA Enterprise Software 1.3% (8.1%) 4.2x 14.5x 100% 2.2% Software-as-a-Service (SaaS) 12.2% (4.3%) 6.1x 36.8x 90% Infastructure Software 1.8% (8.1%) 2.8x 12.9x 4.5% Informatics & Data Services 14.4% (9.1%) 2.3x 8.4x 80% Internet 9.6% (1.2%) 2.3x 12.9x 70% IT Services 7.9% (7.2%) 1.3x 8.3x Technology Hardware 12.0% 6.0% 0.9x 5.9x 60% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Nasdaq S&P 500 S&P Global Information Technology Index Source: Capital IQ HYDE PARK CAPITAL 2 Investment Banking | Mergers & Acquisitions | Capital Raising
- 3. Annual Middle Market M&A Activity – Technology Commentary Middle Market Purchase Multiples As detailed in the charts below, overall U.S. middle market M&A activity, or deal volume, in the Technology industry declined slightly in 2011 to 305 closed transactions, a 9% decrease from 2010. Deal activity in the Internet sector, however, increased significantly in Enterprise Value / Revenue Enterprise Value / EBITDA 2011. Despite the decrease in deal volume, the total value of completed M&A transactions in the Technology industry in 2011 climbed 3% to $39.7 billion, up from $38.5 billion in the prior year period. Transaction pricing or purchase multiples, defined as Enterprise Value over Revenue and Enterprise Value over EBITDA, continued to improve from a historical perspective to an average of 2.6x and 21.7x, respectively, for 2011 completed middle market transactions across the Technology industry. U.S. Middle Market M&A Activity – Annual Trends: VOLUME U.S. Middle Market M&A Activity – Annual Trends: VALUE Total Transaction Value ($ in billions) Total Transaction Volume Less than $100M $100 - $499M $500 - $1,000M Less than $100M $100 - $499M $500 - $1,000M Source: Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion) HYDE PARK CAPITAL 3 Investment Banking | Mergers & Acquisitions | Capital Raising
- 4. Quarterly Middle Market M&A Activity – Technology Commentary Middle Market M&A Transactions by Deal Size – Technology As detailed in the table on the right, Technology M&A transaction ($ in billions) volume and transaction value decreased year-over-year across most segments of the middle market during the 4th quarter of 2011. Q4 2010 Q4 2011 % Change However, deals with transaction values between $500 million and Deal Size Volume Value Volume Value Volume Value $1 billion posted volume and value gains over Q4 2010. Less than $100M 80 $3.2 38 $1.5 (53%) (54%) $100 - $499M 31 $7.1 15 $3.0 (52%) (58%) $500 - $1,000M 4 $2.9 5 $3.3 25% 16% The total volume of completed middle market Technology deals Total Middle Market 115 $13.2 58 $7.8 (50%) (41%) declined 50% in Q4 2011 versus the prior year period. Despite the presence of several large transactions, total middle market deal % of Total Market value fell 41% to $7.8 billion during the quarter. Less than $100M 70% 24% 66% 19% $100 - $499M 27% 54% 26% 38% $500 - $1,000M 3% 22% 9% 43% Transactions valued at less than $100 million represented Total Middle Market 100% 100% 100% 100% approximately 66% of the total number of closed deals in Q4 2011, a slight decline from 70% in the prior year. U.S. Middle Market M&A Activity – Quarterly Trends: VOLUME U.S. Middle Market M&A Activity – Quarterly Trends: VALUE Total Transaction Value ($ in billions) Total Transaction Volume Less than $100M $100 - $499M $500 - $1,000M Less than $100M $100 - $499M $500 - $1,000M Source: Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion) HYDE PARK CAPITAL 4 Investment Banking | Mergers & Acquisitions | Capital Raising
- 5. Recent M&A Activity – Technology Select Announced M&A Transactions (Q4 2011) Enterprise EV / EV / Announced Date Target Industry Sector Buyer Value ($mm) Revenue EBITDA 12/28/2011 Quorus, Inc. Internet Amazon.com, Inc. NA NA NA 12/28/2011 Campfire Labs, Inc. Internet Groupon, Inc. NA NA NA 12/27/2011 De Novo Legal, LLC Internet Epiq Systems Holdings, LLC $106.5 NA NA 12/23/2011 Henggeler Computer Consultants, Inc. IT Services Raytheon Co. NA NA NA 12/22/2011 Cotendo, Inc. Internet Akamai Technologies, Inc. $268.0 NA NA 12/20/2011 Dust Networks, Inc. Technology Hardware Linear Technology Corp. $24.8 NA NA 12/19/2011 Webs, Inc. Internet VistaPrint USA, Inc. $117.5 NA NA 12/19/2011 BiTKOO, LLC Software Quest Software, Inc. NA NA NA 12/16/2011 NextG Networks, Inc. Technology Hardware Crown Castle International Corp. $1,000.0 NA NA 12/16/2011 GlobalServe, Inc. IT Services Avnet, Inc. NA NA NA 12/15/2011 DameWare Development, LLC Software SolarWinds Worldwide, LLC $40.0 NA NA 12/15/2011 Emptoris, Inc. Software International Business Machines Corp. NA NA NA 12/13/2011 Clever Sense, Inc. Software Google, Inc. NA NA NA 12/12/2011 Ironworks Consulting, LLC IT Services ICF Consulting Group, Inc. $100.0 1.8x NA 12/12/2011 Hartford Computer Group, Inc. IT Services Avnet International (Canada), Ltd $35.5 NA NA 12/12/2011 ViaTrack Systems, LLC Software Quality Systems, Inc. NA NA NA 12/09/2011 Blue Coat Systems, Inc. Technology Hardware Thoma Bravo $896.9 1.9x 13.3x 12/08/2011 DemandTec, Inc. Software International Business Machines Corp. $426.9 4.8x NM 12/05/2011 SkyBitz, Inc. Software Telular Corp. $42.0 NA NA 12/05/2011 TappIn, Inc. Internet GlobalSCAPE, Inc. $17.0 NA NA 12/03/2011 SuccessFactors, Inc. Software SAP America, Inc. $3,516.0 12.0x NM 12/01/2011 Pixtronix, Inc. Technology Hardware QUALCOMM, Inc. NA NA NA 11/30/2011 Magma Design Automation, Inc. Software Synopsys, Inc. $498.6 3.4x 28.4x 11/30/2011 Efficient Frontier, Inc. Internet Adobe Systems, Inc. NA NA NA 11/30/2011 Horizontal Systems, Inc. Internet Autodesk, Inc. NA NA NA 11/28/2011 ConsumerismCommentary.com Internet QuinStreet, Inc. NA NA NA 11/23/2011 Merrick Systems, Inc. Software HitecVision AS $21.0 1.5x 6.8x 11/23/2011 WhoGlue, LLC Software Facebook, Inc. NA NA NA 11/22/2011 Accu-Sort Systems, Inc. Technology Hardware Datalogic SpA $135.0 1.5x 7.6x 11/22/2011 VideoSurf, Inc. Internet Microsoft Corp. NA NA NA 11/21/2011 Simena, LLC Technology Hardware NetScout Systems, Inc. NA NA NA 11/21/2011 Hunch, Inc. Software eBay, Inc. NA NA NA 11/17/2011 Avenda Systems, Inc. Software Aruba Networks, Inc. $33.0 NA NA 11/16/2011 IBFX Holdings, LLC Internet TradeStation Group, Inc. $17.0 0.6x NA 11/16/2011 HealthConnect Systems, Inc. Internet Ebix, Inc. NA NA NA 11/16/2011 VKernel Corp. Software Quest Software, Inc. NA NA NA 11/15/2011 SecureInfo Corp. IT Services Kratos Defense & Security Solutions, Inc. $19.5 NA NA 11/14/2011 Tri-Star Electronics International, Inc. Technology Hardware Carlisle Interconnect Technologies, Inc. $285.0 3.0x NA 11/14/2011 Model Metrics, Inc. IT Services Salesforce.com $57.6 NA NA 11/10/2011 RTP, LLC Software The Active Network, Inc. $21.5 NA NA 11/10/2011 Pinnacle Data Systems, Inc. Technology Hardware Avnet Integrated Resources $19.0 0.7x 11.8x 11/10/2011 Apture, Inc. Internet Google, Inc. NA NA NA 11/09/2011 Prime Visibility Media Group, Corp. Internet Blinkx plc $36.0 1.2x NA 11/07/2011 Tekelec Technology Hardware Comvest Investment Partners $507.1 1.3x 11.4x 11/07/2011 mindSHIFT Technologies, Inc. IT Services Best Buy Co., Inc. $167.0 NA NA Source: Capital IQ HYDE PARK CAPITAL 5 Investment Banking | Mergers & Acquisitions | Capital Raising
- 6. Recent M&A Activity – Technology Select Announced M&A Transactions (Q4 2011) Enterprise EV / EV / Announced Date Target Industry Sector Buyer Value ($mm) Revenue EBITDA 11/07/2011 Digital Staircase, Inc. Software Facebook, Inc. NA NA NA 11/01/2011 INX, Inc. IT Services Presidio Networked Solutions, Inc. $148.1 0.4x NM 10/31/2011 Monitise Americas, LLC Internet Monitise plc $25.9 NA NA 10/31/2011 BluePhoenix Solutions, AppBuilder Business Software Magic Software Enterprises, Ltd. $17.0 NA NA 10/31/2011 Auditude, Inc. Internet Adobe Systems, Inc. NA NA NA 10/27/2011 Worldwide Information Network Systems, Inc. IT Services ManTech's Mission, Cyber and Technology Group $90.0 NA NA 10/26/2011 Virtual Premise, Inc. Internet CoStar Group, Inc. $17.0 NA NA 10/24/2011 Rightnow Technologies, Inc. Internet Oracle Corp. $1,521.4 7.0x 19.3x 10/24/2011 DANTOM Systems, Inc. IT Services Compass Partners $40.5 NA NA 10/20/2011 Switchcraft, Inc. Technology Hardware HEICO Electronic Technologies Corp. $143.0 NA NA 10/20/2011 BNI Video Internet Cisco Systems, Inc. NA NA NA 10/18/2011 Endeca Technologies, Inc. Software Oracle Corp. NA NA NA 10/17/2011 Vertro, Inc. Internet Inuvo, Inc. $15.3 0.5x NM 10/17/2011 ViVu, Inc. Internet Polycom, Inc. NA NA NA 10/14/2011 Windsor Management Group, LLC Software Tyler Technologies, Inc. $16.3 1.4x NA 10/13/2011 novel labs, Inc. Software Citrix Systems, Inc. NA NA NA 10/12/2011 Genesys Telecommunications Laboratories, Inc. Software Permira Advisers, Ltd. $1,500.0 3.0x NA 10/11/2011 BigBand Networks, Inc. Technology Hardware Arris Group, Inc. $41.9 0.5x NM 10/11/2011 IndexTank, Inc. Internet LinkedIn Corp. NA NA NA 10/10/2011 Mobile Complete, Inc. Software Keynote Systems, Inc. $89.8 4.5x NM 10/10/2011 InsWeb Corp. Internet Bankrate, Inc. $56.1 1.1x 19.3x 10/10/2011 Qumu, Inc. Software Rimage Corp. $52.8 3.9x NM 10/10/2011 SocialGrapple Internet Google, Inc. NA NA NA 10/07/2011 Swype, Inc. Software Nuance Communications, Inc. $109.0 NM NM 10/06/2011 Digitronics Inventioneering Corp. Technology Hardware Red Lion Controls, Inc. $72.0 NA NA 10/05/2011 Connected HQ Software LinkedIn Corp. NA NA NA 10/05/2011 StreamStep, Inc. Software BMC Software, Inc. NA NA NA 10/04/2011 Q1 Labs, Inc. Software International Business Machines Corp. NA NA NA 10/04/2011 NitroSecurity, Inc. Technology Hardware McAfee, Inc. NA NA NA 10/04/2011 Gluster, Inc. Software Red Hat, Inc. NA NA NA 10/03/2011 Midwave Corp. IT Services Datalink Corp. $20.1 0.3x 6.9x 10/03/2011 ServiceU Corp. Internet The Active Network, Inc. $11.1 NA NA 10/03/2011 Typekit, Inc. Internet Adobe Systems, Inc. NA NA NA 10/02/2011 Zettapoint, Inc. Software EMC Corp. NA NA NA Average $297.4 2.8x 14.5x Median $54.5 1.6x 13.3x Source: Capital IQ HYDE PARK CAPITAL 6 Investment Banking | Mergers & Acquisitions | Capital Raising
- 7. M&A Activity by Technology Sector U.S. Middle Market M&A Activity by Technology Sector: VOLUME % Change 16% 82% 51% 10% 2010 2011 U.S. Middle Market M&A Activity by Technology Sector: VALUE % Change ($ in millions) 22% 9% 25% 11% 2010 2011 Source: Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion) HYDE PARK CAPITAL 7 Investment Banking | Mergers & Acquisitions | Capital Raising
- 8. Private Equity Activity – Technology Commentary Select Private Equity Transactions – Technology (Q4 2011) ($ in millions) Transaction With financing markets cooperating, financial sponsors remained Announced Date Target Buyer Industry Value active investors across all sectors of the Technology industry in the 12/23/11 Innovative Aftermarket Systems, LP Genstar Capital Software NA 4th quarter of 2011, as shown in the table on the right. 12/21/11 Telestream, Inc. Thoma Bravo Software NA 12/14/11 MarketTools, Inc. TPG Growth Internet NA Several notable private equity backed transactions were 12/09/11 Blue Coat Systems, Inc. Thoma Bravo Technology Equipment $1,258 announced during the 4th quarter including Premira Advisers 12/05/11 Stratix Corp. Grey Mountain Partners Software NA acquisition of Genesys Telecommunications Laboratories, Inc., a 11/29/11 Tranzact Information Services, LLC Halyard Capital Internet NA leading provider of contact center solutions, for nearly $1.5 billion; 11/09/11 LexisNexis Insurance Software Solutions Genstar Capital Software NA and ComVest Investment Partners buyout of Tekelec, a mobile 11/07/11 Tekelec ComVest Investment Partners Technology Equipment $778 broadband company, for approximately $778 million (as detailed 11/07/11 Eastman Kodak Co. (Image Sensor Solutions Business) Platinum Equity Technology Equipment NA on this page). 10/24/11 DANTOM Systems, Inc. Compass Partners IT Services $41 10/13/11 CoSentry.net, LLC TA Associates Internet NA During 2011, financial sponsors participated in approximately 1 of 10/12/11 Genesys Telecommunications Laboratories, Inc. Permira Advisers Software $1,500 10 completed deals. 10/04/11 Emergency Communications Network, Inc. The Riverside Co. Technology Equipment NA 10/03/11 Coupons.com Inc. Greylock Partners Interent $30 Financial Sponsors vs. Strategic Buyers Profiled Private Equity Transaction Tekelec (NasdaqGS:TKLC) acquired by ComVest Investment Partners Announced Date: November 7, 2011 Closed Date: January 27, 2012 Total Transaction Value ($ in billions) Financial Profile Transaction Analysis ($ in millions) Total Transaction Volume LTM Income Statement 9/30/11 Purchase Price (Equity) $777.6 Revenue $400.9 Net Assumed Liabilities ($270.5) EBITDA $44.6 Net Income ($29.7) Implied Enterprise Value $507.1 As of Balance Sheet 9/30/11 Implied Purchase Multiples Cash $270.5 Revenue 1.3x Financial Sponsor Strategic Buyer Financial Sponsor Strategic Buyer Debt $0.0 EBITDA 11.4x Net Debt ($270.5) Net Income NM Source: Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion) HYDE PARK CAPITAL 8 Investment Banking | Mergers & Acquisitions | Capital Raising
- 9. Industry Sector Overview – Recent Stock Price Performance Commentary Enterprise Software The charts included on the following pages detail the recent stock 140% price performance by sector for the leading public companies 130% within the Technology industry for the 12-month period ended December 31st, 2011. The shaded section is the most recent 3- 120% month period (Q4) for each sector index and relative to the S&P 110% 500. 0.0% 100% During Q4, all of the sector indices of the Technology industry 90% 8.1% increased. The Informatics & Data Services sector delivered the strongest gains for the three month period ending December 31st, 80% 2011, up more than 14%. However, for the 12-month period all of the Technology indices, except Technology Hardware, declined. 70% 60% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 S&P 500 Enterprise Software Software-as-a-Service (SaaS) Infrastructure Software 140% 140% 130% 130% 120% 120% 110% 110% 0.0% 0.0% 100% 100% 5.9% 90% 90% 8.1% 80% 80% 70% 70% 60% 60% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 S&P 500 Software-as-a-Service (SaaS) S&P 500 Infastructure Software Source: Capital IQ HYDE PARK CAPITAL 9 Investment Banking | Mergers & Acquisitions | Capital Raising
- 10. Industry Sector Overview – Recent Stock Price Performance Informatics & Data Services Internet 140% 140% 130% 130% 120% 120% 110% 110% 0.0% 0.0% 100% 100% 1.2% 90% 9.1% 90% 80% 80% 70% 70% 60% 60% Dec-10 Mar-11 Jun-11 Sep-11 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 S&P 500 Inormatics & Data Services S&P 500 Internet IT Services Technology Hardware 140% 140% 130% 130% 120% 120% 110% 110% 0.0% 6.0% 100% 100% 0.0% 7.2% 90% 90% 80% 80% 70% 70% 60% 60% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 S&P 500 IT Services S&P 500 Tehnology Hardware Source: Capital IQ HYDE PARK CAPITAL 10 Investment Banking | Mergers & Acquisitions | Capital Raising
- 11. Industry Sector Overview – Public Company Analysis Enterprise Software ($ in millions, except per share) Enterprise Resource Planning Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Oracle Corp. ORCL $25.65 70.3% $132,008 $133,500 $36,704 $28,581 $15,402 77.9% 42.0% 3.6x 8.7x SAP AG DB:SAP $53.16 88.7% $63,247 $63,253 $18,545 $13,147 $6,873 70.9% 37.1% 3.4x 9.2x Sage Group plc LSE:SGE $4.58 96.5% $6,077 $6,095 $2,086 $1,952 $615 93.6% 29.5% 2.9x 9.9x NetSuite, Inc. N $40.55 84.4% $2,676 $2,554 $224 $157 ($16) 70.0% (7.3%) 11.4x* NM Deltek, Inc PROJ $9.82 96.1% $642 $763 $339 $210 $38 61.8% 11.2% 2.2x 20.1x Exact Holding NV ENXTAM:EXACT $20.79 66.8% $474 $416 $323 $131 $72 40.7% 22.3% 1.3x 5.8x Average 83.8% $34,187 $34,430 $9,704 $7,363 $3,831 69.1% 22.5% 2.7x 10.7x Median 86.6% $4,376 $4,324 $1,213 $1,081 $344 70.4% 25.9% 2.9x 9.2x Supply/Demand Chain Management Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Ariba, Inc. ARBA $28.08 75.6% $2,561 $2,365 $444 $294 $32 66.3% 7.2% 5.3x NM JDA Software Group, Inc. JDAS $32.39 92.5% $1,380 $1,364 $666 $399 $170 59.9% 25.5% 2.0x 8.0x Manhattan Associates, Inc. MANH $40.48 86.8% $884 $790 $317 $181 $60 57.0% 18.8% 2.5x 13.3x SciQuest, Inc. SQI $14.27 77.3% $309 $281 $50 $38 $7 75.9% 14.0% 5.6x 40.0x DemandTec, Inc. DMAN $13.17 93.5% $427 $409 $89 $57 ($8) 63.9% (8.8%) 4.6x NM Average 85.2% $1,113 $1,042 $313 $194 $52 64.6% 11.3% 4.0x 20.4x Median 86.8% $884 $790 $317 $181 $32 63.9% 14.0% 4.6x 13.3x Customer Relationship Management Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Salesforce.com CRM $101.46 63.4% $13,845 $13,885 $2,091 $1,647 $91 78.7% 4.3% 6.6x NM Amdocs, Ltd. DOX $28.53 89.2% $5,323 $4,743 $3,178 $1,108 $586 34.9% 18.4% 1.5x 8.1x Comverse Technology, Inc. CMVT $6.86 85.9% $1,411 $1,591 $1,620 $872 $150 53.8% 9.2% 1.0x 10.6x Average 79.5% $6,860 $6,740 $2,296 $1,209 $276 55.8% 10.7% 3.0x 9.4x Median 85.9% $5,323 $4,743 $2,091 $1,108 $150 53.8% 9.2% 1.5x 9.4x *Excluded from average and median calculation. Source: Capital IQ HYDE PARK CAPITAL 11 Investment Banking | Mergers & Acquisitions | Capital Raising
- 12. Industry Sector Overview – Public Company Analysis Enterprise Software ($ in millions, except per share) Human Capital Management Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA SuccessFactors, Inc. SFSF $39.87 98.6% $3,151 $3,056 $292 $197 ($27) 67.6% (9.3%) 10.5x NM Concur Technologies, Inc. CNQR $50.79 87.3% $2,715 $2,585 $349 $251 $46 71.9% 13.1% 7.4x 56.3x Ultimate Software Group, Inc. ULTI $65.12 90.5% $1,806 $1,769 $257 $145 $24 56.3% 9.2% 6.9x NM Taleo Corp. TLEO $38.69 90.4% $1,577 $1,466 $298 $199 $34 66.8% 11.3% 4.9x 43.7x Kenexa Corp. KNXA $26.70 80.4% $653 $627 $266 $164 $21 61.8% 7.8% 2.4x 30.3x Cornerstone OnDemand CSOD $18.24 77.6% $552 $491 $62 $43 ($19) 69.2% (30.9%) 7.9x NM Vocus, Inc. VOCS $22.09 65.5% $409 $309 $110 $89 $1 81.0% 1.3% 2.8x NM Average 84.3% $1,552 $1,472 $233 $155 $11 67.8% 0.3% 6.1x 43.4x Median 87.3% $1,577 $1,466 $266 $164 $21 67.6% 7.8% 6.9x 43.7x Content Management Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Adobe Systems, Inc. ADBE $28.27 78.5% $14,246 $14,771 $4,216 $3,778 $1,460 89.6% 34.6% 3.5x 10.1x Open Text Corp. OTEX $51.14 70.7% $2,988 $3,213 $1,104 $808 $304 73.2% 27.6% 2.9x 10.6x Synchronoss Technologies, Inc. SNCR $30.21 84.2% $1,143 $1,003 $216 $114 $38 52.9% 17.7% 4.6x 26.2x LogMeIn, Inc. LOGM $38.55 77.9% $968 $873 $118 $108 $18 91.5% 15.3% 7.4x 48.5x Average 77.8% $4,836 $4,965 $1,414 $1,202 $455 76.8% 23.8% 4.6x 23.8x Median 78.2% $2,065 $2,108 $660 $461 $171 81.4% 22.6% 4.1x 18.4x Business Intelligence/Analytics Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Teradata Corp. TDC $48.51 77.4% $8,339 $7,941 $2,237 $1,224 $503 54.7% 22.5% 3.5x 15.8x TIBCO Software, Inc. TIBX $23.91 76.0% $4,143 $3,903 $920 $673 $197 73.1% 21.5% 4.2x 19.8x Informatica Corp. INFA $36.93 59.2% $4,150 $3,901 $755 $635 $186 84.2% 24.7% 5.2x 20.9x Qlik Technologies, Inc. QLIK $24.20 67.9% $1,985 $1,815 $294 $262 $13 89.0% 4.6% 6.2x NM MicroStrategy, Inc. MSTR $108.32 60.7% $1,202 $1,015 $541 $404 $34 74.6% 6.3% 1.9x NM Average 68.2% $3,964 $3,715 $949 $640 $187 75.1% 15.9% 4.2x 18.8x Median 67.9% $4,143 $3,901 $755 $635 $186 74.6% 21.5% 4.2x 19.8x Source: Capital IQ HYDE PARK CAPITAL 12 Investment Banking | Mergers & Acquisitions | Capital Raising
- 13. Industry Sector Overview – Public Company Analysis Software-as-a-Service (SaaS) ($ in millions, except per share) Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Salesforce.com CRM $101.46 63.4% $13,845 $13,885 $2,091 $1,647 $91 78.7% 4.3% 6.6x NM SuccessFactors, Inc. SFSF $39.87 98.6% $3,151 $3,056 $292 $197 ($27) 67.6% (9.3%) 10.5x NM NetSuite, Inc. N $40.55 84.4% $2,676 $2,554 $224 $157 ($16) 70.0% (7.3%) 11.4x NM Ultimate Software Group, Inc. ULTI $65.12 90.5% $1,806 $1,769 $257 $145 $24 56.3% 9.2% 6.9x NM athenahealth, Inc. ATHN $49.12 67.6% $1,756 $1,690 $301 $189 $52 62.6% 17.1% 5.6x 32.8x Taleo Corp. TLEO $38.69 90.4% $1,577 $1,466 $298 $199 $34 66.8% 11.3% 4.9x 43.7x Blackbaud, Inc. BLKB $27.70 91.1% $1,219 $1,167 $363 $212 $70 58.4% 19.4% 3.2x 16.6x Synchronoss Technologies, Inc. SNCR $30.21 84.2% $1,143 $1,003 $216 $114 $38 52.9% 17.7% 4.6x 26.2x OpenTable, Inc. OPEN $39.13 33.0% $958 $899 $133 $95 $37 71.6% 28.1% 6.8x 24.1x LogMeIn, Inc. LOGM $38.55 77.9% $968 $873 $118 $108 $18 91.5% 15.3% 7.4x 48.5x Constant Contact, Inc. CTCT $23.21 63.9% $710 $674 $204 $145 $18 71.0% 9.0% 3.3x 36.8x LoopNet, Inc. LOOP $18.28 96.5% $786 $673 $85 $71 $18 84.3% 21.0% 8.0x 37.9x Cornerstone OnDemand, Inc. CSOD $18.24 77.6% $552 $491 $62 $43 ($19) 69.2% (30.9%) 7.9x NM DemandTec, Inc. DMAN $13.17 93.5% $427 $409 $89 $57 ($8) 63.9% (8.8%) 4.6x NM Vocus, Inc. VOCS $22.09 65.5% $409 $309 $110 $89 $1 81.0% 1.3% 2.8x NM SciQuest, Inc. SQI $14.27 77.3% $309 $281 $50 $38 $7 75.9% 14.0% 5.6x 40.0x Average 78.5% $2,018 $1,950 $306 $219 $21 70.1% 7.0% 6.3x 34.1x Median 81.0% $1,055 $951 $210 $129 $18 69.6% 10.2% 6.1x 36.8x Source: Capital IQ HYDE PARK CAPITAL 13 Investment Banking | Mergers & Acquisitions | Capital Raising
- 14. Industry Sector Overview – Public Company Analysis Infrastructure Software ($ in millions, except per share) Enterprise IT Management Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA VMware, Inc. VMW $83.19 74.7% $35,844 $34,744 $3,542 $2,947 $867 83.2% 24.5% 9.8x 40.1x Citrix Systems, Inc. CTXS $60.72 68.6% $11,618 $11,305 $2,117 $1,903 $553 89.9% 26.1% 5.3x 20.5x CA Technologies CA $20.22 78.7% $10,138 $9,306 $4,635 $4,019 $1,643 86.7% 35.4% 2.0x 5.7x Red Hat, Inc. RHT $41.29 77.3% $8,131 $7,605 $1,081 $905 $242 83.7% 22.4% 7.0x 31.4x BMC Software, Inc. BMC $32.78 58.0% $5,932 $4,831 $2,161 $1,627 $705 75.3% 32.6% 2.2x 6.9x TIBCO Software, Inc. TIBX $23.91 76.0% $4,143 $3,903 $920 $673 $197 73.1% 21.5% 4.2x 19.8x Compuware Corp. CPWR $8.32 67.9% $1,868 $1,930 $987 $663 $202 67.2% 20.5% 2.0x 9.6x Quest Software, Inc. QSFT $18.60 65.3% $1,704 $1,543 $828 $733 $128 88.4% 15.4% 1.9x 12.1x Pegasystems, Inc. PEGA $29.40 61.8% $1,130 $1,078 $391 $232 $22 59.5% 5.7% 2.8x NM Progress Software Corp. PRGS $19.35 61.5% $1,307 $1,045 $534 $446 $152 83.6% 28.5% 2.0x 6.9x Average 69.0% $8,181 $7,729 $1,720 $1,415 $471 79.1% 23.3% 3.9x 17.0x Median 68.3% $5,037 $4,367 $1,034 $819 $222 83.4% 23.4% 2.5x 12.1x Data Storage Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA EMC Corp. EMC $21.54 75.0% $48,069 $48,369 $19,322 $11,678 $4,464 60.4% 23.1% 2.5x 10.8x NetApp, Inc. NTAP $36.27 59.4% $14,421 $13,328 $5,683 $3,584 $976 63.1% 17.2% 2.3x 13.7x Iron Mountain, Inc. IRM $30.80 86.1% $6,171 $9,010 $3,231 $1,931 $930 59.8% 28.8% 2.8x 9.7x Teradata Corp. TDC $48.51 77.4% $8,339 $7,941 $2,237 $1,224 $503 54.7% 22.5% 3.5x 15.8x CommVault Systems, Inc. CVLT $42.72 83.9% $2,003 $1,786 $362 $315 $50 87.0% 13.9% 4.9x 35.6x Average 76.4% $15,800 $16,087 $6,167 $3,747 $1,385 65.0% 21.1% 3.2x 17.1x Median 77.4% $8,339 $9,010 $3,231 $1,931 $930 60.4% 22.5% 2.8x 13.7x Source: Capital IQ HYDE PARK CAPITAL 14 Investment Banking | Mergers & Acquisitions | Capital Raising
- 15. Industry Sector Overview – Public Company Analysis Infrastructure Software ($ in millions, except per share) Security Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Symantec Corp. SYMC $15.65 76.3% $11,855 $11,553 $6,722 $5,747 $1,846 85.5% 27.5% 1.7x 6.3x Check Point Software Technologies, Ltd. CHKP $52.54 85.3% $11,312 $10,892 $1,209 $1,068 $665 88.4% 55.0% 9.0x 16.4x VeriSign, Inc. VRSN $35.72 94.7% $6,086 $5,469 $747 $586 $375 78.4% 50.2% 7.3x 14.6x Trend Micro, Inc. TSE:4704 $29.91 79.6% $3,967 $3,078 $1,252 $1,024 $434 81.8% 34.6% 2.5x 7.1x Fortinet, Inc. FTNT $21.81 76.4% $3,579 $3,512 $406 $301 $88 74.1% 21.7% 8.6x 39.8x Sourcefire, Inc. FIRE $32.38 90.2% $949 $898 $150 $118 $13 78.2% 8.5% 6.0x NM Websense, Inc. WBSN $18.73 67.0% $779 $778 $358 $299 $68 83.5% 19.1% 2.2x 11.4x Average 81.4% $5,504 $5,169 $1,549 $1,306 $498 81.4% 30.9% 5.3x 15.9x Median 79.6% $3,967 $3,512 $747 $586 $375 81.8% 27.5% 6.0x 13.0x Source: Capital IQ HYDE PARK CAPITAL 15 Investment Banking | Mergers & Acquisitions | Capital Raising
- 16. Industry Sector Overview – Public Company Analysis Informatics & Data Services ($ in millions, except per share) Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Thomson Reuters Corp. TSX:TRI $26.79 65.4% $22,451 $29,759 $13,688 $4,273 $3,244 31.2% 23.7% 2.2x 9.2x Experian plc LSE:EXPN $13.63 100.0% $13,839 $15,669 $4,527 $1,927 $1,443 42.6% 31.9% 3.5x 10.9x Wolters Kluwer NV ENXTAM:WKL $17.35 74.5% $5,252 $8,494 $5,183 $3,334 $1,183 64.3% 22.8% 1.6x 7.2x Moody's Corp. NYSE:MCO $33.68 80.3% $7,807 $8,197 $2,278 $1,595 $989 70.0% 43.4% 3.6x 8.3x IHS, Inc. IHS $86.16 95.7% $5,662 $6,234 $1,326 $767 $270 57.9% 20.4% 4.7x 23.1x Equifax, Inc. EFX $38.74 97.1% $4,816 $5,750 $1,932 $1,165 $621 60.3% 32.1% 3.0x 9.3x Informa plc LSE:INF $5.62 77.3% $3,380 $4,790 $1,987 $731 $529 36.8% 26.6% 2.4x 9.1x Dun & Bradstreet Corp. DNB $74.83 85.9% $3,721 $4,525 $1,742 $1,148 $513 65.9% 29.4% 2.6x 8.8x FactSet Research Systems, Inc. FDS $87.28 77.7% $4,103 $3,909 $750 $495 $282 66.0% 37.6% 5.2x 13.9x Gartner, Inc. IT $34.77 80.1% $3,468 $3,532 $1,423 $830 $224 58.3% 15.8% 2.5x 15.8x Aegis Group plc LSE:AGS $2.25 100.0% $2,473 $3,105 $2,470 $2,111 $283 85.5% 11.4% 1.3x 11.0x Morningstar, Inc. MORN $59.45 92.9% $3,033 $2,859 $624 $448 $183 71.8% 29.4% 4.6x 15.6x UBM plc LSE:UBM $7.43 65.5% $1,852 $2,626 $1,492 $319 $310 21.4% 20.8% 1.8x 8.5x NeuStar, Inc. NSR $34.17 98.4% $2,574 $2,222 $589 $452 $248 76.8% 42.1% 3.8x 9.0x CoreLogic, Inc. CLGX $12.93 61.7% $1,444 $2,216 $1,652 $564 $233 34.2% 14.1% 1.3x 9.5x Fair Isaac Corp. FICO $35.84 93.1% $1,433 $1,809 $620 $433 $164 69.9% 26.5% 2.9x 11.0x Ipsos SA ENXTPA:IPS $28.52 59.2% $985 $1,257 $1,699 $1,091 $214 64.2% 12.6% 0.7x 5.9x Acxiom Corp. ACXM $12.21 64.8% $985 $1,179 $1,187 $278 $242 23.4% 20.4% 1.0x 4.9x Forrester Research, Inc. FORR $33.94 84.9% $786 $713 $276 $172 $38 62.4% 13.9% 2.6x 18.6x Average 81.8% $4,740 $5,729 $2,392 $1,165 $590 55.9% 25.0% 2.7x 11.0x Median 80.3% $3,380 $3,532 $1,652 $767 $282 62.4% 23.7% 2.6x 9.3x Source: Capital IQ HYDE PARK CAPITAL 16 Investment Banking | Mergers & Acquisitions | Capital Raising
- 17. Industry Sector Overview – Public Company Analysis Internet ($ in millions, except per share) Online Content and Search Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Google, Inc. GOOG $645.90 99.9% $210,788 $207,417 $35,762 $23,331 $13,446 65.2% 37.6% 5.8x 15.4x Yahoo!, Inc. YHOO $16.13 85.6% $20,968 $19,543 $5,185 $3,520 $1,406 67.9% 27.1% 3.8x 13.9x Scripps Networks Interactive, Inc. SNI $42.42 79.1% $7,118 $7,788 $2,208 $1,467 $957 66.4% 43.3% 3.5x 8.1x IAC/InterActiveCorp. IACI $42.60 97.1% $3,953 $3,369 $1,914 $1,197 $240 62.5% 12.6% 1.8x 14.0x WebMD Health Corp. WBMD $37.55 64.1% $2,371 $2,070 $577 $376 $149 65.2% 25.8% 3.6x 13.9x Monster Worldwide, Inc. MWW $7.93 30.6% $979 $880 $1,045 $521 $145 49.9% 13.9% 0.8x 6.1x Average 76.1% $41,030 $40,178 $7,782 $5,069 $2,724 62.9% 26.7% 3.2x 11.9x Median 82.3% $5,536 $5,578 $2,061 $1,332 $599 65.2% 26.4% 3.6x 13.9x Software & Services Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Akamai Technologies, Inc. AKAM $32.28 61.2% $6,126 $5,770 $1,119 $776 $432 69.3% 38.6% 5.2x 13.4x Rovi Corp. ROVI $24.58 35.4% $2,814 $3,758 $691 $611 $275 88.4% 39.8% 5.4x 13.7x ValueClick, Inc. VCLK $16.29 82.6% $1,323 $1,369 $506 $352 $144 69.6% 28.4% 2.7x 9.5x Digital River, Inc. DRIV $15.02 37.7% $573 $470 $384 $319 $54 83.0% 14.0% 1.2x 8.7x Average 54.2% $2,709 $2,842 $675 $514 $226 77.6% 30.2% 3.6x 11.3x Median 49.5% $2,068 $2,563 $599 $481 $209 76.3% 33.5% 3.9x 11.4x e-Commerce Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Amazon.com, Inc. AMZN $173.10 70.2% $79,583 $76,760 $43,593 $9,819 $1,749 22.5% 4.0% 1.8x NM eBay Inc. EBAY $30.33 85.8% $39,957 $39,502 $10,767 $7,639 $3,071 70.9% 28.5% 3.7x 12.9x priceline.com, Inc. PCLN $467.71 83.2% $23,944 $24,098 $4,096 $2,834 $1,340 69.2% 32.7% 5.9x 18.0x Expedia, Inc. EXPE $29.02 44.1% $4,056 $4,248 $3,795 $3,033 $896 79.9% 23.6% 1.1x 4.7x Netflix, Inc. NFLX $69.29 22.7% $3,745 $3,821 $2,925 $1,069 $434 36.6% 14.8% 1.3x 8.8x Shutterfly, Inc. SFLY $22.76 34.1% $756 $688 $376 $201 $19 53.4% 5.1% 1.8x NM Vistaprint N.V. VPRT $30.60 54.4% $1,353 $1,192 $859 $556 $135 64.7% 15.8% 1.4x 8.8x Blue Nile, Inc. NILE $40.88 63.4% $611 $571 $350 $74 $22 21.2% 6.2% 1.6x NM Average 57.3% $19,251 $18,860 $8,345 $3,153 $958 52.3% 16.3% 2.3x 10.6x Median 58.9% $3,901 $4,034 $3,360 $1,951 $665 59.1% 15.3% 1.7x 8.8x Source: Capital IQ HYDE PARK CAPITAL 17 Investment Banking | Mergers & Acquisitions | Capital Raising
- 18. Industry Sector Overview – Public Company Analysis IT Services ($ in millions, except per share) IT Consulting & Other Services Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Accenture plc ACN $53.23 83.6% $39,328 $34,243 $28,464 $8,694 $4,227 30.5% 14.9% 1.2x 8.1x Cognizant Technology Solutions Corp. CTSH $64.31 77.0% $20,006 $18,825 $5,768 $2,442 $1,192 42.3% 20.7% 3.3x 15.8x Wipro, Ltd. WIPRO $7.51 80.3% $18,461 $18,598 $6,823 $2,038 $1,349 29.9% 19.8% 2.7x 13.8x Computer Sciences Corp. CSC $23.70 41.9% $3,669 $5,956 $16,196 $2,941 $1,902 18.2% 11.7% 0.4x 3.1x Cap Gemini S.A. ENXTPA:CAP $31.37 55.7% $6,055 $5,801 $13,419 $3,114 $1,124 23.2% 8.4% 0.4x 5.2x SAIC, Inc. SAI $12.29 69.6% $4,231 $4,620 $10,819 $1,334 $774 12.3% 7.2% 0.4x 6.0x CACI International, Inc. CACI $55.92 84.1% $1,733 $2,240 $3,668 $1,094 $331 29.8% 9.0% 0.6x 6.8x Syntel, Inc. SYNT $46.77 75.4% $1,950 $1,861 $615 $230 $145 37.4% 23.5% 3.0x 12.9x Sapient Corp. SAPE $12.60 77.5% $1,781 $1,625 $1,022 $313 $118 30.6% 11.6% 1.6x 13.7x ManTech International Corp. MANT $31.24 67.5% $1,146 $1,164 $2,886 $421 $269 14.6% 9.3% 0.4x 4.3x Unisys Corp. UIS $19.71 47.7% $859 $637 $3,913 $1,018 $406 26.0% 10.4% 0.2x 1.6x CIBER, Inc. CBR $3.86 55.3% $275 $304 $1,098 $261 $15 23.8% 1.3% 0.3x NM Computer Task Group, Inc. CTGX $14.08 93.9% $234 $222 $383 $81 $20 21.1% 5.3% 0.6x 11.0x Average 70.0% $7,671 $7,392 $7,313 $1,845 $913 26.1% 11.8% 1.2x 8.5x Median 75.4% $1,950 $2,240 $3,913 $1,094 $406 26.0% 10.4% 0.6x 7.4x Data & Transaction Processing Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Fidelity National Information Services, Inc. FIS $26.59 78.8% $8,185 $12,716 $5,648 $1,703 $1,551 30.2% 27.5% 2.3x 8.2x Fiserv, Inc. FISV $58.74 89.8% $8,576 $11,916 $4,254 $1,762 $1,293 41.4% 30.4% 2.8x 9.2x Total System Services, Inc. TSS $19.56 95.4% $3,768 $3,752 $1,777 $527 $430 29.7% 24.2% 2.1x 8.7x Global Payments Inc. GPN $47.38 88.3% $3,802 $3,548 $2,049 $1,312 $468 64.0% 22.8% 1.7x 7.6x Broadridge Financial Solutions Inc. BR $22.55 90.8% $2,877 $3,238 $2,222 $564 $368 25.4% 16.6% 1.5x 8.8x Jack Henry & Associates Inc. JKHY $33.61 97.4% $2,922 $2,971 $980 $407 $313 41.5% 32.0% 3.0x 9.5x Lender Processing Services, Inc. LPS $15.07 43.2% $1,313 $2,495 $2,263 $710 $518 31.4% 22.9% 1.1x 4.8x Heartland Payment Systems, Inc. HPY $24.36 98.5% $974 $1,028 $2,004 $206 $100 10.3% 5.0% 0.5x NM ACI Worldwide, Inc. ACIW $28.64 75.5% $976 $871 $471 $334 $103 70.9% 21.9% 1.8x 8.4x Average 84.2% $3,710 $4,726 $2,408 $836 $572 38.3% 22.6% 1.9x 8.2x Median 89.8% $2,922 $3,238 $2,049 $564 $430 31.4% 22.9% 1.8x 8.6x Source: Capital IQ HYDE PARK CAPITAL 18 Investment Banking | Mergers & Acquisitions | Capital Raising
- 19. Industry Sector Overview – Public Company Analysis Technology Hardware ($ in millions, except per share) PCs, Servers & Components Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Apple, Inc. AAPL $405.00 94.9% $379,341 $369,526 $108,249 $43,818 $35,574 40.5% 32.9% 3.4x 10.4x International Business Machines Corp. IBM $183.88 94.3% $226,389 $245,246 $106,449 $49,644 $26,380 46.6% 24.8% 2.3x 9.3x Samsung Electronics Co., Ltd. KOSE:A005930 $913.89 97.9% $118,941 $119,876 $135,102 $42,179 $22,072 31.2% 16.3% 0.9x 5.4x Hewlett-Packard Co. HPQ $25.76 52.2% $54,817 $77,408 $127,245 $30,264 $16,986 23.8% 13.3% 0.6x 4.6x Dell, Inc. DELL $14.63 83.1% $27,647 $22,620 $61,732 $13,759 $5,724 22.3% 9.3% 0.4x 4.0x Xerox Corp. XRX $7.96 67.5% $11,366 $19,776 $22,638 $7,514 $3,075 33.2% 13.6% 0.9x 6.4x Pitney Bowes, Inc. PBI $18.54 70.3% $3,780 $7,311 $5,371 $2,708 $1,086 50.4% 20.2% 1.4x 6.7x NCR Corp. NCR $16.46 78.5% $2,647 $3,368 $5,217 $1,059 $263 20.3% 5.0% 0.6x NM Lenovo Group, Ltd. SEHK:992 $0.67 85.8% $6,737 $2,940 $24,394 $2,934 $618 12.0% 2.5% 0.1x 4.8x Lexmark International, Inc. LXK $33.07 81.6% $2,627 $2,902 $4,218 $1,580 $680 37.5% 16.1% 0.7x 4.3x Diebold, Inc. DBD $30.07 81.0% $1,955 $2,402 $2,777 $712 $231 25.6% 8.3% 0.9x 10.4x ScanSource, Inc. SCSC $36.00 90.0% $986 $1,053 $2,802 $290 $129 10.3% 4.6% 0.4x 8.2x Average 81.4% $69,769 $72,869 $50,516 $16,372 $9,402 29.5% 13.9% 1.0x 6.8x Median 82.3% $9,052 $13,543 $23,516 $5,224 $2,081 28.4% 13.5% 0.8x 6.4x Electronic Manufacturing Services Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Flextronics International Ltd. FLEX $5.66 66.6% $4,306 $4,920 $30,284 $1,592 $1,154 5.3% 3.8% 0.2x 4.3x Jabil Circuit Inc. JBL $19.66 85.1% $4,303 $4,637 $16,763 $1,284 $961 7.7% 5.7% 0.3x 4.8x Molex Inc. MOLX $23.86 83.7% $4,207 $3,956 $3,626 $1,106 $694 30.5% 19.2% 1.1x 5.7x Sanmina-SCI Corp. SANM $9.31 53.8% $774 $1,410 $6,602 $510 $343 7.7% 5.2% 0.2x 4.1x TTM Technologies Inc. TTMI $10.96 55.8% $897 $1,181 $1,441 $320 $258 22.2% 17.9% 0.8x 4.6x Plexus Corp. PLXS $27.38 70.7% $1,062 $1,113 $2,231 $215 $147 9.6% 6.6% 0.5x 7.6x Celestica Inc. TSX:CLS $7.37 61.0% $1,623 $1,037 $7,336 $491 $274 6.7% 3.7% 0.1x 3.8x Benchmark Electronics Inc. BHE $13.47 66.6% $816 $574 $2,321 $160 $105 6.9% 4.5% 0.2x 5.5x Multi-Fineline Electronix Inc. MFLX $20.55 68.5% $500 $402 $832 $105 $96 12.6% 11.5% 0.5x 4.2x Average 68.0% $2,054 $2,137 $7,937 $643 $448 12.1% 8.7% 0.4x 4.9x Median 66.6% $1,062 $1,181 $3,626 $491 $274 7.7% 5.7% 0.3x 4.6x Source: Capital IQ HYDE PARK CAPITAL 19 Investment Banking | Mergers & Acquisitions | Capital Raising
- 20. Industry Sector Overview – Public Company Analysis Technology Hardware ($ in millions, except per share) Storage & Networks Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA SanDisk Corp. SNDK $49.21 91.8% $11,924 $12,432 $5,413 $2,383 $1,735 44.0% 32.1% 2.3x 7.2x Western Digital Corp. WDC $30.95 73.9% $7,304 $3,611 $9,344 $2,068 $1,566 22.1% 16.8% 0.4x 2.3x QLogic Corp. QLGC $15.00 79.7% $1,588 $1,513 $610 $404 $174 66.3% 28.5% 2.5x 8.7x Emulex Corp. ELX $6.86 52.9% $598 $487 $468 $297 $22 63.4% 4.7% 1.0x NM Average 74.6% $5,353 $4,511 $3,959 $1,288 $874 49.0% 20.5% 1.6x 6.1x Median 76.8% $4,446 $2,562 $3,011 $1,236 $870 53.7% 22.6% 1.7x 7.2x Communications Equipment Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Cisco Systems, Inc. CSCO $18.08 80.9% $99,368 $111,474 $43,724 $26,858 $11,206 61.4% 25.6% 2.5x 9.9x QUALCOMM, Inc. QCOM $54.70 91.4% $92,498 $88,201 $14,957 $10,217 $6,361 68.3% 42.5% 5.9x 13.9x LM Ericsson Telephone Co. OM:ERIC B $10.25 72.8% $33,167 $32,361 $33,042 $12,311 $5,296 37.3% 16.0% 1.0x 6.1x Juniper Networks, Inc. JNPR $20.41 45.3% $11,103 $9,379 $4,518 $2,964 $912 65.6% 20.2% 2.1x 10.3x Harris Corp. HRS $36.04 67.5% $4,477 $6,624 $5,980 $2,083 $1,187 34.8% 19.8% 1.1x 5.6x Alcatel-Lucent, S.A. ENXTPA:ALU $1.57 27.0% $3,599 $5,669 $21,922 $7,922 $1,932 36.1% 8.8% 0.3x 2.9x Polycom, Inc. PLCM $16.30 47.5% $2,949 $2,660 $1,428 $856 $229 59.9% 16.0% 1.9x 11.6x ADTRAN Inc. ADTN $30.16 63.2% $1,973 $1,987 $707 $412 $204 58.3% 28.8% 2.8x 9.7x Tellabs, Inc. TLAB $4.04 55.3% $1,474 $1,443 $1,379 $530 ($6) 38.4% (0.4%) 1.0x NM Netgear. Inc. NTGR $33.57 74.1% $1,261 $1,087 $1,130 $357 $134 31.6% 11.9% 1.0x 8.1x Average 62.5% $25,187 $26,088 $12,879 $6,451 $2,746 49.2% 18.9% 2.0x 8.7x Median 65.4% $4,038 $6,146 $5,249 $2,524 $1,049 48.3% 17.9% 1.5x 9.7x Source: Capital IQ HYDE PARK CAPITAL 20 Investment Banking | Mergers & Acquisitions | Capital Raising
- 21. HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising Recent Transactions John Hill Senior Managing Director [email protected] (813) 383-0205 has been acquired by has been recapitalized by has been acquired by has been acquired by has acquired John McDonald Senior Managing Director [email protected] ADG Acquisition (813) 383-0206 Harbert Mezzanine Partners Holdings, LLC Keith Hodgdon Senior Vice President [email protected] (813) 383-0208 Jeffrey Bridge has been acquired by has been acquired by has been acquired by has been recapitalized by has merged with Vice President [email protected] (813) 383-0204 Michael Mariani Associate [email protected] (813) 597-2649 has been recapitalized by has acquired has been recapitalized by has been acquired by has been acquired by Hyde Park Capital Advisors, LLC Sage Compliance 701 N. Franklin Street Services, Inc. Tampa, FL 33602 Tel: 813-383-0202 www.hydeparkcapital.com HYDE PARK CAPITAL Member FINRA/SIPC Investment Banking | Mergers & Acquisitions | Capital Raising