Quarterly Enterprise Software Market Review

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Shea & Company, LLC
Quarterly Enterprise Software Market Review
3Q 2011
399 Boylston Street
Floor 7
Boston, Massachusetts 02116
Michael H.M. Shea Chris Pingpank
Managing Director Principal
617.896.2255 617.896.2218
mshea@shea-co.com cpingpank@shea-co.com
Brad McCarthy Josh Weinman
Associate Analyst
617.896.2245 617.896.2246
bmccarthy@shea-co.com jweinman@shea-co.com
Copyright © 2011 Shea & Company, LLC
Please contact Josh Weinman to subscribe / unsubscribe Member FINRA & SIPC
Copyright © 2011 Shea & Company, LLC
1
Contents
3Q 2011 Software Acquisitions p. 2
3Q 2011 Software Private Financings p. 4
Publicly-Available Software M&A Transaction Data p. 7
Public Companies & Consolidation by Segment p. 16
Most Active Consolidators p. 20
Public Company Software Valuation Trends by Growth Tranche p. 29
Equity Trading Multiples by Software Segment p. 30
Equity Trading Multiples by Comparable Subset p. 34
Software IPO Data p. 35
Software IPO Pipeline p. 36
Copyright © 2011 Shea & Company, LLC
3Q 2011 Software Acquisitions
Source: Company releases, Wall Street research, Shea & Company
($ millions)
2
Announced Target Acquirer Target Segment & Description Price
09/29/11 AEP Networks Ltd.Ultra Electronics Holdings plc IT Security - Network gateways and SaaS security products $66
09/26/11 ITRS Group Carlyle Group Financial Applications - Real-time monitoring systems for the financial sector n/a
09/26/11 FoxReplay BV NetScout Systems IT Security - Session reconstruction and replay technology for security analysis n/a
09/26/11 Global Management Technologies Verint ERP & Business Applications - Workforce management and optimization for call centers $33
09/23/11 eFront Francisco Partners Financial Applications - Risk management for financial sector $56
09/23/11 Cedar HR Software Limited Capita Group plc ERP & Business Applications - Human resource management $24
09/22/11 Safend Wave Systems IT Security - Data loss prevention $13
09/22/11 GoAhead Software Oracle App. Delivery & Network Acceleration - Packaged service availability software n/a
09/22/11 Sage Software Healthcare Vista Equity Partners ERP & Business Applications - Healthcare record and practice management $320
09/21/11 Assistly Salesforce.com ERP & Business Applications - Social customer service SaaS $50
09/20/11 Crossgate AG SAP ERP & Business Applications - Business to business integration n/a
09/19/11 Fizzback NICE Systems ERP & Business Applications - Real-time customer feedback software $80
09/19/11 PropertyBridge YapStone Financial Applications - Electronic payments processor for rental housing sector n/a
09/15/11 SchemaLogic Smartlogic Semaphore Limited Business Intelligence - Content intelligence software n/a
09/14/11 Asparity Decision Solutions ADP ERP & Business Applications - Healthcare and employee benefit management n/a
09/14/11 CoFluent Design Intel Technical & Embedded Applications - Embedded semiconductor design software n/a
09/12/11 OpenLink Financial Hellman & Friedman Financial Applications - Financial trading, risk management and portfolio management software n/a
09/08/11 Irdeto (Cloakware business) Xceedium IT Security - Cloakware password management business unit n/a
09/08/11 CloudNucleus Vembu Technologies IT Security - Data backup and recovery n/a
09/08/11 Identity Networks Meru Networks IT Security - Network device access management n/a
09/08/11 IRIDAS (color grading assets) Adobe Technical & Embedded Applications - Color grading software assets for motion picture industry n/a
09/08/11 Paladyne Systems Broadridge Financial Solutions Financial Applications - Investment management solutions $77
09/08/11 Rapid Intake Callidus Software ERP & Business Applications - E-learning authoring tools n/a
09/07/11 Approva Lawson Software Financial Applications - Continuous controls monitoring for finance and IT applications n/a
09/07/11 RepliWeb Attunity Ltd.Storage Management - File replication and transfer platform $8
09/07/11 BlueArc Hitachi Data Systems Storage Management - Network attached storage $600
09/06/11 Operitel Open Text ERP & Business Applications - Learning management systems and enterprise learning portals n/a
09/06/11 4CS Solutions PTC ERP & Business Applications - Warranty and service lifecycle management n/a
09/06/11 Right Hemisphere SAP Business Intelligence - Visual navigation software for product and asset data n/a
09/02/11 nSys Design Systems Synopsys Technical & Embedded Applications - System on chip verification IP n/a
09/01/11 Algorithmics IBM Financial Applications - Risk analytics and regulatory compliance $387
08/31/11 i2 IBM Business Intelligence - Intelligence analytics for crime and fraud prevention n/a
08/30/11 Nimbus TIBCO Software ERP & Business Applications - Business process collaboration $42
08/29/11 Versly Cisco ERP & Business Applications - Social collaboration tools n/a
08/29/11 iGrafx Limerock Group Business Intelligence - Business process analysis and management n/a
08/26/11 Navajo Systems Salesforce.com IT Security - Encryption gateway systems for data storage n/a
08/26/11 PacketMotion VMware IT Security - User activity management n/a
08/25/11 CloudSwitch Verizon Platforms, Development Tools & Deployment - Cloud application integration and migration tools n/a
08/23/11 Comsecware AFORE Solutions IT Security - Application level security for cloud environments n/a
08/22/11 MYOB Ltd.Bain Capital ERP & Business Applications - Accounting, payroll and ERP software $1,200
08/18/11 Autonomy HP Content Management - Content management, customer interaction and information governance $10,889
08/16/11 Del Mar DataTrac Ellie Mae Financial Applications - Mortgage loan origination process management software $25
08/15/11 OpenCFD Silicon Graphics International Technical & Embedded Applications - Open source computational fluid dynamics simulation software n/a
08/10/11 RingCube Technologies Citrix Systems ERP & Business Applications - User personalization for virtual desktops n/a
08/08/11 Plimus Great Hill Partners ERP & Business Applications - E-commerce platform $115
Copyright © 2011 Shea & Company, LLC
3
3Q 2011 Software Acquisitions continued
($ millions)
Source: Company releases, Wall Street research, Shea & Company
Announced Target Acquirer Target Segment & Description Price
08/05/11 Dashwire HTC Platforms, Development Tools & Deployment - Cross platform content delivery for mobile devices $19
08/05/11 Oberthur Card Systems Advent International IT Security - Smart card identification and security management $1,400
08/05/11 SunGard Higher Education Datatel ERP & Business Applications - Education management software $1,775
08/05/11 Augusta Systems Intergraph Systems & Network Management - Security and building management n/a
08/04/11 Emdeon Blackstone Group Financial Applications - Healthcare revenue and payment cycle management $3,000
08/01/11 Metabit Co Ltd.NYSE Euronext Financial Applications - Financial market trading exchange n/a
07/29/11 Watchmouse B.V.CA Technologies Systems & Network Management - Cloud, mobile and web application monitoring n/a
07/28/11 GentleSecurity Software BeyondTrust IT Security - Data loss prevention n/a
07/28/11 InQuira Oracle ERP & Business Applications - Knowledge management for customer service call centers n/a
07/21/11 ActiveBase Informatica IT Security - Security software for Oracle databases $8
07/21/11 Ksplice Oracle Systems & Network Management - Zero downtime Linux update technology n/a
07/19/11 Connected Environments LogMeIn Systems & Network Management - Real-time monitoring and management of connected devices $15
07/19/11 Aptimize Limited Riverbed Technology App. Delivery & Network Acceleration - Web application performance management and acceleration $10
07/19/11 Zeus Technology Riverbed Technology App. Delivery & Network Acceleration - Load balancing and traffic management for virtual and cloud environments $125
07/19/11 Flexera Software Teachers Private Capital Systems & Network Management - Software license management and compliance n/a
07/18/11 EchoSign Adobe ERP & Business Applications - Electronic signature and signature automation n/a
07/13/11 Global 360 Open Text Business Intelligence - Process and case management $260
07/13/11 Azuro Cadence Design Technical & Embedded Applications - System on chip optimization software n/a
07/12/11 Cloud.com Citrix Systems Platforms, Development Tools & Deployment - Software infrastructure platforms for cloud deployment $159
07/07/11 Aeroprise BMC Software ERP & Business Applications - Mobility solution for the BMC Remedy IT Service Management Suite n/a
07/07/11 Accero SumTotal Systems Financial Applications - Payroll and benefits management n/a
07/07/11 CyberShift SumTotal Systems Financial Applications - Workforce and expense management n/a
07/06/11 dynaTrace software Compuware App. Delivery & Network Acceleration - Application performance management $256
07/06/11 iCentera Callidus Software Content Management - Sales and marketing content portal $7
07/05/11 GlobalExpense Concur Technologies ERP & Business Applications - Travel and expense management n/a
07/05/11 PERFMAN Allen Systems Group Systems & Network Management - IT infrastructure management n/a
07/04/11 Member Solutions Constellation Software ERP & Business Applications - Billing management software for fitness market n/a
07/01/11 Blackboard Providence Equity Partners ERP & Business Applications - Learning and communication platform for educational and corporate organizations $1,770
Copyright © 2011 Shea & Company, LLC
4
3Q 2011 Software Private Financings
($ millions)
Source: Company releases, Wall Street research, Shea & Company
Close Date Company
Participating Investors
Description Amount
09/30/11 Aternity Clal Industries & Investments, Genesis Partners, Intel, Investor Growth Capital, Vertex VC Application performance analytics and management $13
09/30/11 Benefex Ltd.Business Growth Fund PLC Employee reward and benefits portal $7
09/30/11 Black Duck Software Flagship, Focus, General Catalyst, Intel, Red Hat, SAP, Split Rock, Volition Third-party and open source code management for software development $12
09/30/11 ChangeHealthcare n/a Health and benefits expense management tools $7
09/30/11 Checkmarx Ltd.Ofer Hi-Tech, Salesforce.com Source code security analysis tools n/a
09/30/11 Cost Xpert AG T-Venture Holding GmbH IT project planning and management n/a
09/30/11 Enkata Technologies Apex Venture Partners, ComVentures, Sigma Partners Performance and talent management $4
09/30/11 Invincea n/a Security software that protects workstations from internet-based attacks $5
09/30/11 Nginx BV Capital, MSD Capital LP, Runa Capital Open source web infrastructure and server maintenance $3
09/30/11 Servhawk Center for Innovative Technology Data center management that enables energy use and productivity optimization $0
09/30/11 Vcopious Ben Franklin Technology Partners, Emerald Stage2, MAG Ventures Virtual environment platform for business intelligence and analytics n/a
09/29/11 Socialbakers Ltd.Earlybird Venture Capital GmbH & Co.Social media brand management and analytics $2
09/28/11 ClearSlide Felicis Ventures, Greylock Partners Sales communications portal, marketing data analysis and content management $11
09/28/11 NetBase Solutions In-Q-Tel Business intelligence for R&D, sales and marketing n/a
09/27/11 Deepfield Networks DFJ Mercury Cloud management and content analytics $1
09/26/11 Power Assure ABB Technology Ventures, Draper Fisher Jurvetson, Good Energies, Point Judith Capital Energy management software for data centers $14
09/23/11 Predixion Software DFJ Frontier, Miramar Venture Partners, Palomar Ventures Data mining and predictive analytics that integrate with Microsoft's business intelligence stack $6
09/22/11 FastCall411 500 Startups Call center automation and analytics platform n/a
09/22/11 Incentive Targeting Launchpad Venture Group Marketing management software for grocery and consumer product manufacturers $1
09/21/11 DataStax Crosslink Capital, Lightspeed Venture Partners Open source database for on-premise or cloud-based applications $11
09/21/11 Mintigo Ltd.Giza Venture Capital, Sequoia Capital CRM and data analytics for customer acquisition $9
09/19/11 Prestashop SA Serena Capital SAS E-commerce platform for SMBs $4
09/16/11 Hexagram 49 Draper Fisher Jurvetson Storage management for solid-state data centers $3
09/15/11 VidSys Atlanta Equity Investors, Cisco Systems, Flybridge Capital Partners, Motorola Physical security information management software n/a
09/14/11 cloudControl GmbH Creathor Venture Management GmbH, IBB GmbH Platform-as-a-service for cloud-based applications n/a
09/13/11 AI Exchange CommonAngels, Founder Collective, General Catalyst Partners, LaunchCapital Investment advisory platform for financial advisors $2
09/13/11 Oculis Labs In-Q-Tel Software to protect computer screens from eavesdropping n/a
09/13/11 Tail-f Systems AB SEB Venture Capital Network infrastructure management $4
09/12/11 VideoIQ Atlas Venture, Cisco Systems, Matrix Partners, Tenaya Capital Real-time video surveillance early warning software $8
09/11/11 MokaFive n/a Personal computing virtualization for deploying corporate Windows environments on a Mac $3
09/09/11 Karmasphere Hummer Winblad Venture Partners, Presidio Ventures, U.S. Venture Partners Business analytics software for developing, deploying and debuging large-scale data processing jobs $6
09/09/11 SpaceCurve Divergent Ventures, Musea Ventures, Reed Elsevier Ventures Real-time analytics for spatial and graph datasets $2
09/07/11 Lucierna SLNE Caixa Capital Risc SGECR, Inveready Seed Capital SCR SA Application performance analytics and management $2
09/07/11 SOS Online Backup Splashpond Investments Cloud-based data backup and disaster recovery $3
09/06/11 G2 Web Services Primus Capital Compliance and risk management software for merchants n/a
09/06/11 Morphlabs Siemer Ventures Cloud infrastructure as a service, and cloud-based application management $5
09/06/11 Symform Longworth Venture Partners, OVP Venture Partners Backup and disaster recovery for SMBs $1
09/02/11 Clean Power Finance Claremont Creek, Clean Pacific, Google, Kleiner Perkins, Sand Hill Angels Business intelligence for the solar energy sector $25
09/02/11 Inertia Beverage Group n/a Sales and marketing platform for wineries $12
09/01/11 10gen Flybridge Capital Partners, Sequoia Capital, Union Square Ventures Non-relational open source database $20
Copyright © 2011 Shea & Company, LLC
5
3Q 2011 Software Private Financings continued
($ millions)
Source: Company releases, Wall Street research, Shea & Company
Close Date Company
Participating Investors
Description Amount
09/01/11 Moxie Software Foundation Capital, Oak Investment Partners Customer interaction and support services platform $6
09/01/11 Prima Solutions SA ILOG Insurance development platform and policy management $2
08/31/11 AFS Technologies Goldman Sachs ERP and compliance software for the food and beverage sector $83
08/31/11 BonitaSoft SA Auriga Partners SA, Serena Capital SAS, Ventech SA Open source business process management software $11
08/31/11 WebLayers Ascent Venture Partners Automated IT governance and analytics $1
08/30/11 IP Commerce Intel Capital, Meritage Funds, TTV Capital, Vantive, Venrock Platform-as-a-service for multi-channel commerce applications $21
08/29/11 AlertEnterprise Kleiner Perkins Caufield & Byers, Opus Capital, Start-up Farms International Monitoring and analytics of security threats across ERP, GRC, IAM and physical security systems $19
08/29/11 Buzzient TBJ Investments Business analytics that leverage public social media applications to populate data in internal applications $1
08/29/11 Kenandy Kleiner Perkins Caufield & Byers, Salesforce.com, Wilson Sonsini Goodrich & Rosati Social manufacturing management application for the cloud $11
08/26/11 Neo Technology Conor Venture Partners, Fidelity Growth Partners Europe, Sunstone Capital A/S Open source database platform for graph-based data $11
08/25/11 Embrane Lightspeed Venture Partners, New Enterprise Associates, North Bridge Venture Partners On-demand distributed software platform for cloud infrastructure management $18
08/25/11 Platfora Andreessen Horowitz, In-Q-Tel Business intelligence for unstructured data $6
08/24/11 Taptera Salesforce.com Employee directory application for iOS $2
08/24/11 Wanova Carmel Ventures, Greylock Partners, Opus Capital Data loss prevention and endpoint security $10
08/23/11 6connect Hummer Winblad Venture Partners Data center network management for Ipv6 implementation $2
08/23/11 Alkami Technology S3 Ventures Content management for the financial sector $4
08/22/11 Tamarac n/a Account management platform for the financial services sector $2
08/19/11 AppFirst First Round Capital, FirstMark Capital, Javelin Venture Partners SaaS-based application-aware infrastructure performance monitoring solution $4
08/18/11 Decibel Music Systems Ltd.n/a Structured database for management of digital media in the music industry n/a
08/18/11 TwinStrata Avalon Ventures Cloud-based backup and disaster recovery $8
08/15/11 Zerto Ltd.Battery Ventures, Greylock Partners, U.S. Venture Partners Disaster recovery for virtual infrastructure and the cloud $15
08/12/11 Socialware n/a Middleware that delivers social media applications in the enterprise $7
08/11/11 Cedexis Advanced Technology Ventures, Madrona Venture Group Cloud-based application performance and traffic management $6
08/10/11 Couchbase Accel, DoCoMo Capital, Ignition Partners, Mayfield Fund, North Bridge Venture Partners Database and application development platform for mobile and web-based applications $15
08/09/11 Crashlytics Baseline Ventures, CommonAngels, Flybridge Capital Partners Mobile application crash reporting solution for application developers $1
08/09/11 HotLink Foundation Capital, Leapfrog Ventures Data center infrastructure management for virtual, cloud and physical deployment $10
08/09/11 Sentilla Claremont Creek Ventures, ONSET Ventures, SingTel Innov8 Pte Ltd.Energy management for data centers $8
08/08/11 BigTime Software Geneva Venture Partners, Runa Capital Time, billing and practice management for professional services firms $3
08/08/11 Greenlight Technologies Storm Ventures Governance, risk and compliance management n/a
08/08/11 Okta Andreessen Horowitz, Floodgate, Greylock Partners, Khosla Ventures Identity and access management for cloud-based and on-premise applications $17
08/05/11 uKnow iNovia Capital Custom distribution channel tools for advertisers $1
08/04/11 Centrify Accel Partners, Index Ventures, Invesco Private Capital, Mayfield Fund, Sigma Partners Identity and access management for heterogeneous systems $16
08/03/11 6Scan Ltd.YL Ventures Website vulnerability and threat management n/a
08/02/11 Appistry Stuart Mill Capital Analytics platform for cloud-based applications $12
07/31/11 Lotaris SA Credit Suisse Group, Vickers Venture Partners Mobile application management $10
07/31/11 Nimble Storage Accel, Artis Capital Management, Lightspeed Venture Partners, Sequoia Capital Disaster recovery and converged storage and backup hardware for enterprise applications $25
07/31/11 Sysfera SAS Rhone-Alpes Creation Distributed high-performance computing management $1
07/29/11 AlienVault Trident Capital Security information and event management $6
07/29/11 AppFog First Round Capital, Ignition Partners, Madrona Venture Group Platform-as-a-service for PHP applications $8
07/28/11 Apprenda High Peaks Venture Partners, Ignition Partners, New Enterprise Associates Platform-as-a-service for .NET applications $10
Copyright © 2011 Shea & Company, LLC
6
3Q 2011 Software Private Financings continued
($ millions)
Source: Company releases, Wall Street research, Shea & Company
Close Date Company
Participating Investors
Description Amount
07/28/11 NewVoiceMedia Ltd.Eden Ventures, Notion Capital Hosted cloud-based contact center solutions $4
07/27/11 Adaptivity Intel Capital, Intersouth Partners, Noro-Moseley Partners IT blueprinting software suite to help companies manage enterprise technology infrastructure $6
07/26/11 Hearsay Social New Enterprise Associates, Sequoia Capital Social media brand management and compliance $18
07/26/11 Nodeable Crosslink Capital, True Ventures Cloud-based systems and infrastructure management $2
07/26/11 WhiteHat Security Investor Growth Capital Web application vulnerability management $8
07/26/11 Workface Arthur Ventures Customer engagement platform for direct selling $1
07/25/11 BrightTag Epic Ventures, Illinois Innovation Accelerator, New World Ventures, TomorrowVentures Data rights management platform allowing publishers to control tracking tags and protect against data leakage $5
07/25/11 CloudBees Lightspeed Venture Partners, Matrix Partners Platform-as-a-service for application development in Java $11
07/25/11 INRIX August Capital, Kleiner Perkins Caufield & Byers Traffic intelligence and application development tools for vehicle fleet deployment $37
07/19/11 Reveal Design Automation Ann Arbor Spark Systems on chip and chip design verification utilities n/a
07/17/11 Silver Spring Networks GSV Capital Smart grid networking infrastructure n/a
07/14/11 activAeon Ltd.NorthStar Equity Investors Limited License management for SaaS applications $0
07/12/11 Acquia North Bridge Venture Partners, Sigma Partners, Tenaya Capital Products, services and technical support for the open source Drupal social publishing system $15
07/08/11 Knoa Software n/a End-user intelligence and analytics $1
07/08/11 Razorsight Georgian Partners, Square 1 Financial Business intelligence and compliance for financial documents $12
07/01/11 MaestroDev Siemer Ventures Software build and private cloud environment n/a
Copyright © 2011 Shea & Company, LLC
7
Publicly-Available Software M&A Transaction Data
2010 – 2011 YTD ($ millions)
Note:
Includes only transactions for which data was publicly available
P/E multiples in excess of 100x or less than 0x are considered to be not meaningful
Source: Company releases, Wall Street research, Shea & Company
Consideration Equity Enterprise EV / Revenue P/E Ratio
Date Target Acquirer % Cash % Stock value value LTM Current yr Fwd yr Current yr Fwd yr
09/29/11 AEP Networks Ltd.Ultra Electronics Holdings plc 100.0% - - $66 - - - - -
09/26/11 Global Management Technologies Verint 100.0% - - $33 - - - - -
09/23/11 Cedar HR Software Limited Capita Group plc 100.0% - - $24 - - - - -
09/23/11 eFront Francisco Partners 100.0% - $75 $56 - - - - -
09/22/11 Safend Wave Systems 8.6% 91.4% - $13 - - - - -
09/22/11 Sage Software Healthcare Vista Equity Partners 100.0% - - $320 2.8x - - - -
09/21/11 Assistly Salesforce.com 100.0% - - $50 - - - - -
09/19/11 Fizzback NICE Systems 100.0% - - $80 - - - - -
09/08/11 Paladyne Systems Broadridge Financial Solutions - - - $77 - - - - -
09/07/11 BlueArc Hitachi Data Systems - - $591 $600 6.5x - - - -
09/07/11 RepliWeb Attunity Ltd.- - - $8 - - - - -
09/01/11 Algorithmics IBM - - - $387 2.4x - - - -
08/30/11 Nimbus TIBCO Software 100.0% - - $42 - - - - -
08/22/11 MYOB Ltd.Bain Capital - - - $1,200 - - - - -
08/18/11 Autonomy HP 100.0% - $11,560 $10,889 11.7x 10.5x 9.0x 38.1x 28.9x
08/16/11 Del Mar DataTrac Ellie Mae 100.0% - - $25 - - - - -
08/08/11 Plimus Great Hill Partners - - - $115 - - - - -
08/05/11 Dashwire HTC - - - $19 - - - - -
08/05/11 Oberthur Card Systems Advent International 100.0% - - $1,400 - - - - -
08/05/11 SunGard Higher Education Datatel 100.0% - - $1,775 - - - - -
08/04/11 Emdeon Blackstone Group 100.0% - $3,812 $3,000 2.8x 2.7x 2.5x 29.9x 26.8x
07/21/11 ActiveBase Informatica 100.0% - - $8 - - - - -
07/19/11 Aptimize Limited Riverbed Technology 100.0% - - $10 - - - - -
07/19/11 Connected Environments LogMeIn 100.0% - - $15 - - - - -
07/19/11 Zeus Technology Riverbed Technology 100.0% - - $125 - - - - -
07/13/11 Global 360 Open Text - - - $260 2.9x - - - -
07/12/11 Cloud.com Citrix Systems - - - $159 - - - - -
07/06/11 dynaTrace software Compuware 100.0% - - $256 9.8x - - - -
07/06/11 iCentera Callidus Software 100.0% - - $7 - - - - -
07/01/11 Blackboard Providence Equity Partners 100.0% - $1,640 $1,770 3.7x 3.3x 2.9x 24.8x 20.0x
06/30/11 Apache Design Solutions ANSYS 100.0% - $310 $281 6.1x - - - -
06/29/11 CashEdge Fiserv - - - $465 - - - - -
06/29/11 Interactive TKO CA Technologies 100.0% - - $330 8.5x - - - -
06/28/11 Medical Present Value Experian 100.0% - - $185 - 4.1x - - -
06/27/11 Fundtech Ltd.S1 Corporation - 100.0% $326 $245 1.7x 1.6x 1.5x 19.2x 16.8x
Copyright © 2011 Shea & Company, LLC
8
Publicly-Available Software M&A Transaction Data continued
2010 – 2011 YTD ($ millions)
Note:
Includes only transactions for which data was publicly available
P/E multiples in excess of 100x or less than 0x are considered to be not meaningful
Source: Company releases, Wall Street research, Shea & Company
Consideration Equity Enterprise EV / Revenue P/E Ratio
Date Target Acquirer % Cash % Stock value value LTM Current yr Fwd yr Current yr Fwd yr
06/23/11 TriGeo SolarWinds 100.0% - - $35 3.9x - - - -
06/21/11 Jobpartners Taleo 100.0% - - $38 2.5x - - - -
06/17/11 Bridgewater Systems Amdocs - - $215 $128 - 1.5x 1.3x 22.5x 16.9x
06/16/11 SUPERAntiSpyware Support.com 100.0% - - $9 3.4x - - - -
05/23/11 AWR Corporation National Instruments - - $58 $51 - - - - -
05/20/11 Atalasoft Kofax 100.0% - - $8 2.1x - - - -
05/19/11 Clearwell Systems Symantec - - $410 $390 7.0x - - - -
05/18/11 Direct EDI SPS Commerce 100.0% - - $11 - 2.7x - - -
05/17/11 IBS AB Symphony Technology Group 100.0% - $34 $27 - 2.5x 2.2x 20.2x 15.6x
05/16/11 Iron Mountain (digital division assets) Autonomy 100.0% - - $380 - - 2.8x - -
05/12/11 Black Diamond Performance Reporting Advent Software - - - $73 - - - - -
05/10/11 Equitrac Corporation Nuance Communications 100.0% - - $157 - - 2.7x - -
05/09/11 Tekla Corporation Trimble Navigation 100.0% - $489 $451 5.5x 4.7x 4.0x 31.5x 24.3x
04/28/11 Coradiant BMC Software 100.0% - - $125 - - - - -
04/27/11 Bloodhound Technologies Verisk Analytics 100.0% - - $82 - - - - -
04/27/11 IdenTrust Polaris Software Labs - - $20 $21 2.3x 1.9x - - -
04/26/11 Lawson Software Infor Global Solutions 100.0% - $1,844 $1,775 2.3x 2.2x 2.2x 20.6x 18.0x
04/26/11 Plateau SuccessFactors 50.0% 50.0% - $290 - - - - -
04/26/11 Schoolnet Pearson 100.0% - - $230 - - - - -
04/12/11 Realm Solutions Altus Group 61.5% 38.5% - $130 - - - - -
04/07/11 MKS PTC 100.0% - $284 $308 4.5x 4.4x 3.9x 27.2x 23.4x
04/04/11 Activant Solutions Apax Partners 100.0% - $1,024 $1,452 3.9x - - - -
04/04/11 Alfa & Ariss VASCO Data Security International 100.0% - - $1 - - - - -
04/04/11 Epicor Apax Partners 100.0% - $976 $1,121 2.5x 2.3x 2.2x 17.4x 15.8x
03/30/11 Allegient Systems Bottomline Technologies 100.0% - - $48 - - - - -
03/30/11 Radian6 Salesforce.com 84.7% 15.3% - $326 - 6.9x - - -
03/24/11 ArtusLabs PerkinElmer 100.0% - - $22 - - - - -
03/24/11 CambridgeSoft PerkinElmer 100.0% - - $222 - - - - -
03/23/11 Sentrigo McAfee - - - $35 - - - - -
03/22/11 TRIRIGA IBM 100.0% - - $108 - - - - -
03/17/11 Intercim Dassault Systemes - - - $37 - - - - -
03/15/11 Dorado Network Systems CoreLogic 100.0% - - $52 - - - - -
03/14/11 Jambok SuccessFactors 58.3% 41.7% - $5 - - - - -
03/09/11 CosmoCom Enghouse Systems Limited 100.0% - - $20 1.1x - - - -
03/09/11 M-Factor DemandTec 100.0% - - $10 2.1x - - - -
Copyright © 2011 Shea & Company, LLC
9
Publicly-Available Software M&A Transaction Data continued
2010 – 2011 YTD ($ millions)
Note:
Includes only transactions for which data was publicly available
P/E multiples in excess of 100x or less than 0x are considered to be not meaningful
Source: Company releases, Wall Street research, Shea & Company
Consideration Equity Enterprise EV / Revenue P/E Ratio
Date Target Acquirer % Cash % Stock value value LTM Current yr Fwd yr Current yr Fwd yr
03/04/11 Talis Information Limited Capita Group Plc - - - $32 - - - - -
03/03/11 Amcom Software USA Mobility 100.0% - - $163 3.2x 2.7x - - -
03/03/11 Aster Data Teradata 100.0% - $296 $275 - - - - -
03/01/11 Syncova Solutions Limited Advent Software 100.0% - $25 $25 - - - - -
02/22/11 Carefx Corporation Harris Corporation 100.0% - - $155 - - - - -
02/22/11 Tollgrade Communications Golden Gate Capital 100.0% - $137 $66 1.5x 1.3x 1.2x - -
02/16/11 Bantam Networks Constant Contact 100.0% - - $15 - - - - -
02/15/11 CyberTech International NICE Systems 100.0% - - $60 - 2.4x - - -
02/15/11 Scaleform Autodesk 100.0% - - $36 - - - - -
02/09/11 LalPac Ltd IDOX plc 100.0% - $4 $3 1.2x - - - -
02/07/11 Top Layer Networks Corero 58.8% 41.2% - $15 1.5x - - - -
02/02/11 Metastorm Open Text 100.0% - - $182 2.4x - - - -
02/01/11 Cytiva Software Taleo 100.0% - $11 $11 1.9x - - - -
02/01/11 Public Interest Data Blackbaud 100.0% - - $19 - - - - -
01/31/11 Navis Cargotec Corportation - - - $190 - 2.7x - - -
01/31/11 StrategicOne Convio 100.0% - - $6 2.8x - - - -
01/19/11 Hyper9 SolarWinds 100.0% - - $30 15.0x - - - -
01/18/11 Q-go.com B.V.RightNow Technologies 100.0% - - $34 - 4.3x - - -
01/14/11 Norkom BAE Systems 100.0% - $290 $239 3.6x 3.6x 3.4x 91.3x 72.4x
01/12/11 Akorri Networks NetApp 100.0% - - $60 12.0x - - - -
01/11/11 Puffersoft Labs Pte Ltd O'Connor's Holdings Pte Ltd 100.0% - - $3 - - - - -
01/10/11 DigiNotar B.V.VASCO Data Security International 100.0% - - $13 - - - - -
01/06/11 Dimdim Salesforce.com 100.0% - - $31 - - - - -
01/05/11 Immunet Sourcefire 100.0% - - $21 - - - - -
01/04/11 Nordic Edge AB Intel - - - $37 8.2x - - - -
12/23/10 ASSET Davis + Henderson 100.0% - - $76 - - - - -
12/23/10 First Advantage Symphony Technology Group 100.0% - - $265 - - - - -
12/23/10 ForceLogix Callidus Software 100.0% - $4 $4 5.2x - - - -
12/22/10 Aprimo Teradata 100.0% - $525 $500 6.3x - - - -
12/20/10 Enwisen Lawson Software 100.0% - - $70 - - - - -
12/17/10 Netviewer AG Citrix Systems 100.0% - - $115 - - - - -
12/16/10 Cloudkick Rackspace Hosting - - $104 $100 - - - - -
12/14/10 McLaren Software Group IDOX plc 100.0% - - $2 - - - - -
12/13/10 Compellent Technologies Dell 100.0% - $960 $820 5.3x 5.3x 4.6x 97.1x 94.0x
12/13/10 Spectrum Human Resource Systems Epicor Software 100.0% - - $16 - 1.1x - - -
Copyright © 2011 Shea & Company, LLC
10
Publicly-Available Software M&A Transaction Data continued
2010 – 2011 YTD ($ millions)
Note:
Includes only transactions for which data was publicly available
P/E multiples in excess of 100x or less than 0x are considered to be not meaningful
Source: Company releases, Wall Street research, Shea & Company
Consideration Equity Enterprise EV / Revenue P/E Ratio
Date Target Acquirer % Cash % Stock value value LTM Current yr Fwd yr Current yr Fwd yr
12/09/10 Loyalty Lab TIBCO Software 100.0% - - $23 - - - - -
12/08/10 Heroku Salesforce.com 100.0% - - $212 - - - - -
12/06/10 Altor Networks Juniper Networks 100.0% - - $95 - - - - -
12/02/10 InternetSafety.com McAfee 100.0% - $11 $10 - - - - -
11/30/10 Makara Red Hat 100.0% - $32 $31 - - - - -
11/29/10 Viz Risk Management Services AS Brady plc 100.0% - - $15 - - - - -
11/29/10 Voltaire Mellanox Technologies 100.0% - $218 $176 2.5x 2.5x 2.0x nm 29.9x
11/22/10 Novell Attachmate & CPTN Holdings 100.0% - $2,200 $1,073 1.3x 1.3x 1.3x 22.7x 22.3x
11/22/10 Wireless Generation News Corporation 100.0% - - $400 - - - - -
11/18/10 Quadrem Ariba 66.7% 33.3% - $150 2.6x 2.1x - - -
11/17/10 CognoVision Intel - - - $17 17.0x - - - -
11/15/10 Isilon EMC 100.0% - $2,434 $2,250 12.8x 11.4x 8.1x nm 96.3x
11/15/10 Trapeze Networks Juniper Networks 100.0% - - $152 - - - - -
11/12/10 Sophis Misys 100.0% - $375 $598 - - - - -
11/09/10 BakBone Software Quest Software 100.0% - $61 $55 0.9x - - - -
11/04/10 Accertify American Express - - - $150 - - - - -
11/02/10 Art Technology Group Oracle 100.0% - $1,000 $817 4.2x 4.1x 3.6x 32.0x 25.0x
10/27/10 StreamServe Open Text - - - $71 - - - - -
10/18/10 YouCalc SuccessFactors 68.1% 31.9% - $5 - - - - -
10/11/10 ActivIdentity HID Global 100.0% - $162 $85 1.5x 1.5x 1.5x nm nm
10/04/10 Anakam Equifax - - - $64 - - - - -
09/30/10 INPUT Deltek 100.0% - - $60 - - - - -
09/28/10 Odyssey Group SA Temenos SA - - $81 $101 - 1.4x - - -
09/27/10 Fieldglass Madison Dearborn Partners - - - $220 - - - - -
09/26/10 Visma ASA KKR - - - $1,880 - - - - -
09/24/10 Intec Telecom Systems CSG Systems International 100.0% - $372 $270 1.1x 1.2x 1.1x 10.3x 25.8x
09/20/10 DocSite Covisint 100.0% - - $15 - - - - -
09/20/10 Netezza IBM 100.0% - $1,836 $1,700 7.6x 6.9x 5.8x 94.0x 60.5x
09/16/10 Morfik Altium - - - $3 - - - - -
09/14/10 Broadlane Group MedAssets 100.0% - - $850 - - - - -
09/13/10 ArcSight HP 100.0% - $1,651 $1,500 7.8x 6.9x 5.6x 56.3x 45.7x
09/02/10 Anacomp (assets) DocuLynx - - - $28 - - - - -
09/01/10 Learn.com Taleo 100.0% - - $125 - - - - -
09/01/10 Salary.com Kenexa 100.0% - $80 $72 1.6x 1.7x 1.7x nm -
08/31/10 Integrien VMware - - - $100 - - - - -
Copyright © 2011 Shea & Company, LLC
11
Publicly-Available Software M&A Transaction Data continued
2010 – 2011 YTD ($ millions)
Note:
Includes only transactions for which data was publicly available
P/E multiples in excess of 100x or less than 0x are considered to be not meaningful
Source: Company releases, Wall Street research, Shea & Company
Consideration Equity Enterprise EV / Revenue P/E Ratio
Date Target Acquirer % Cash % Stock value value LTM Current yr Fwd yr Current yr Fwd yr
08/30/10 Arcot Systems CA Technologies 100.0% - - $200 - - - - -
08/30/10 VMLogix Citrix Systems 100.0% - $12 $15 - - - - -
08/23/10 3PAR HP 100.0% - $2,400 $2,296 11.2x 10.2x 8.5x nm nm
08/19/10 McAfee Intel 100.0% - $7,680 $6,876 3.4x 3.3x 3.1x 19.1x 18.0x
08/17/10 Phoenix Technologies Marlin Equity Partners 100.0% - $152 $112 1.8x 2.0x 1.8x 36.6x 25.3x
08/13/10 Unica IBM 100.0% - $523 $480 4.4x 3.9x 3.4x 47.6x 34.0x
07/29/10 tenCube McAfee 100.0% - $11 $10 - - - - -
07/28/10 Day Software Adobe 100.0% - $240 $211 4.8x 4.6x - 39.8x -
07/28/10 Pulse Systems Cegedim - - - $58 - 3.6x - - -
08/19/10 McAfee Intel 100.0% - $7,680 $6,876 3.4x 3.3x 3.1x 19.1x 18.0x
08/17/10 Phoenix Technologies Marlin Equity Partners 100.0% - $152 $112 1.8x 2.0x 1.8x 36.6x 25.3x
07/26/10 iTradeNetworks Roper Industries 100.0% - - $525 - - - - -
07/23/10 Overtis Digital Barriers 100.0% - - $5 - - - - -
07/22/10 Daptiv Parallax Capital 100.0% - - $13 0.6x - - - -
07/15/10 Language Weaver SDL 100.0% - $43 $39 - - - - -
07/12/10 Völcker Informatik AG Quest Software 100.0% - - $25 - - - - -
07/09/10 Cobalt Group ADP 100.0% - - $400 - - - - -
07/07/10 Elluminate Blackboard 100.0% - $60 $58 2.5x - - - -
07/07/10 FusionOne Synchronoss 80.0% 20.0% - $58 - - - - -
07/07/10 Wimba Blackboard 100.0% - $60 $58 3.4x - - - -
07/01/10 Aspera GmbH USU Software AG 50.0% 50.0% - $7 - - - - -
07/01/10 ITA Software Google 100.0% - - $700 - - - - -
07/01/10 Nexius comScore 78.0% 22.0% - $24 - - 5.9x - -
06/29/10 Daegis Unify 79.5% 20.5% - $38 1.7x - - - -
06/22/10 Geensoft Dassault Systemes - - - $7 - - - - -
06/22/10 Proginet TIBCO Software 100.0% - $20 $19 2.0x - - - -
06/16/10 Routing International Descartes - - - $4 - - - - -
06/16/10 Terra Nova Financial Lightspeed Financial 90.4% - $28 $25 1.0x - - - -
06/10/10 eglue NICE Systems 100.0% - - $29 - - - - -
06/10/10 Phoenix Technologies (HyperSpace assets) HP 100.0% - - $12 - - - - -
06/10/10 Portrait Software plc Pitney Bowes 100.0% - $64 $58 2.5x - - - -
06/10/10 Vertafore TPG Capital - - - $1,400 - - - - -
06/10/10 Virage Logic Synopsys 100.0% - $315 $289 3.3x - - - -
06/09/10 CA Technologies (information governance assets) Autonomy - - - $19 0.9x - - - -
06/09/10 CT Summation AccessData 100.0% - - $45 - - - - -
Copyright © 2011 Shea & Company, LLC
12
Publicly-Available Software M&A Transaction Data continued
2010 – 2011 YTD ($ millions)
Note:
Includes only transactions for which data was publicly available
P/E multiples in excess of 100x or less than 0x are considered to be not meaningful
Source: Company releases, Wall Street research, Shea & Company
Consideration Equity Enterprise EV / Revenue P/E Ratio
Date Target Acquirer % Cash % Stock value value LTM Current yr Fwd yr Current yr Fwd yr
06/09/10 Eclipsys Allscripts - 100.0% $1,300 $1,181 2.3x 2.1x 1.9x 28.6x 24.4x
06/09/10 TTI Telecom TEOCO 100.0% - $58 $35 0.8x - - - -
06/08/10 Exalead Dassault Systemes - - - $162 7.4x - - - -
06/03/10 Maconomy Corporation Deltek 100.0% - $72 $62 1.7x - - - -
06/02/10 SonicWALL Thoma Bravo 100.0% - $717 $685 3.1x 3.0x 2.8x 28.7x 25.6x
05/31/10 Teta S.A.UNIT4 100.0% - $49 $56 1.6x - - - -
05/25/10 Trust Digital McAfee 100.0% - $33 $32 - - - - -
05/24/10 Sterling Commerce IBM 100.0% - - $1,400 - - - - -
05/21/10 Perceptive Software Lexmark 100.0% - - $280 - - - - -
06/03/10 Maconomy Corporation Deltek 100.0% - $72 $62 1.7x - - - -
06/02/10 SonicWALL Thoma Bravo 100.0% - $717 $685 3.1x 3.0x 2.8x 28.7x 25.6x
05/17/10 Press-sense Bitstream 100.0% - - $7 - - - - -
05/13/10 Denali Software Cadence Design 100.0% - $315 $270 - - - - -
05/13/10 Matrikon Honeywell 100.0% - $139 $130 1.6x - - - -
05/12/10 Sybase SAP 100.0% - $6,100 $5,800 4.8x 4.7x 4.4x 25.4x 22.5x
05/11/10 Medfusion Intuit 100.0% - - $91 - - - - -
05/07/10 iPay Technologies Jack Henry & Associates 100.0% - - $300 - - - - -
05/06/10 Blueslice Networks Tekelec 95.2% 4.8% - $37 - - - - -
05/06/10 Camiant Tekelec 100.0% - - $130 - - - - -
05/06/10 Dynamic Change Allocate Software 98.6% 1.4% - $11 2.2x - - - -
05/05/10 Quantitative Micro Software HIS - - - $40 - - - - -
05/05/10 Ventyx ABB 100.0% - - $1,000 4.0x - - - -
05/03/10 CubeTree SuccessFactors 60.0% 40.0% - $50 - - - - -
05/03/10 Sophos plc Apax Partners - - - $830 3.2x - - - -
04/29/10 GuardianEdge Symantec 100.0% - - $73 4.1x - - - -
04/29/10 Informance International CDC Software - 100.0% - $3 - - - - -
04/29/10 PGP Corporation Symantec 100.0% - - $300 4.0x 3.0x - - -
04/21/10 CyberSource Visa 100.0% - $2,000 $1,872 6.7x 12.2x 10.2x 31.3x 24.8x
04/19/10 DBAM Systems (assets) SonicWall 100.0% - - $4 - - - - -
04/16/10 Phase Forward Oracle 100.0% - $755 $714 3.2x 2.9x 2.6x 54.9x 41.0x
04/09/10 QNX Software Systems Research In Motion 100.0% - $200 $200 5.6x - - - -
04/08/10 Phoenix Technologies (anti-theft software assets) Absolute Software 100.0% - - $7 - - - - -
04/07/10 Bycast NetApp 100.0% - - $80 - - - - -
03/29/10 StepStone Solutions HgCapital 100.0% - $148 $148 2.2x - - - -
03/26/10 PLATO Learning Thoma Bravo 100.0% - $143 $115 1.8x - - - -
Copyright © 2011 Shea & Company, LLC
13
Publicly-Available Software M&A Transaction Data continued
2010 – 2011 YTD ($ millions)
Note:
Includes only transactions for which data was publicly available
P/E multiples in excess of 100x or less than 0x are considered to be not meaningful
Source: Company releases, Wall Street research, Shea & Company
Consideration Equity Enterprise EV / Revenue P/E Ratio
Date Target Acquirer % Cash % Stock value value LTM Current yr Fwd yr Current yr Fwd yr
03/22/10 Optiant Logality 100.0% - - $3 - - - - -
03/15/10 Chordiant Pegasystems 100.0% - $162 $109 1.4x 1.3x 1.2x 45.1x 26.9x
03/10/10 Nimsoft CA Technologies 100.0% - - $350 - - - - -
03/08/10 Blue Order Avid 100.0% - - $16 - - - - -
03/08/10 Saf-T-Net Blackboard 100.0% - - $33 - 6.0x - - -
03/05/10 DocVerse Google - - - $25 - - - - -
03/02/10 Concuity The Advisory Board Company 100.0% - - $35 - - - - -
03/01/10 Language and Computing Nuance Communications - 100.0% - $6 - - - - -
03/01/10 RiskMetrics Group MSCI 75.2% 24.8% $1,550 $1,612 5.3x 5.0x - 43.1x -
03/01/10 Strategic Analytics Verisk Analytics 100.0% - - $8 - - - - -
02/25/10 EMC (Ionix software assets) VMware 100.0% - - $200 - - - - -
02/23/10 COPAN Systems Silicon Graphics International 100.0% - - $2 - - - - -
02/22/10 Mimosa Systems Iron Mountain 100.0% - - $112 - - - - -
02/22/10 Nstein Technologies Open Text 100.0% - $33 $29 1.5x - - - -
02/12/10 SkillSoft Investor Group 100.0% - $1,200 $1,284 3.9x 4.1x 3.9x 16.8x 16.1x
02/11/10 COA Solutions Advanced Computer Software 100.0% - - $156 1.7x - - - -
02/11/10 Kace Networks Dell 100.0% - - $123 - - - - -
02/05/10 TriOptima ICAP 100.0% - $190 $171 - - - - -
02/04/10 Inform Business Impact SuccessFactors 63.0% 37.0% - $41 - - - - -
02/04/10 Iontas Verint 100.0% - - $15 - - - - -
01/28/10 Siperian Informatica 100.0% - - $130 - - - - -
01/27/10 Tek-Tools SolarWinds 74.0% 26.0% - $38 - 8.4x - - -
01/19/10 Stream57 InterCall 100.0% - - $28 - - - - -
01/12/10 InstantService Art Technology Group 100.0% - - $17 - - - - -
01/12/10 Zimbra VMware 100.0% - - $100 - - - - -
01/11/10 Oblicore CA Technologies 100.0% - - $20 - - - - -
01/11/10 Savvion Progress Software 100.0% - - $49 - 1.9x - - -
01/08/10 Foresight TIBCO Software 100.0% - - $30 - - - - -
01/07/10 Healthvision Solutions Lawson Software 100.0% - $160 $160 - 2.5x - 15.1x -
01/05/10 Peopleclick Bedford Funding (Authoria) 100.0% - - $100 - - - - -
Copyright © 2011 Shea & Company, LLC
14
Publicly-Available Software M&A Transaction Data – Summary
2010 – 2011 YTD ($ millions)
Note:
Includes only transactions for which data was publicly available
Business Applications includes: ERP & Business Applications; Financial Applications; Technical & Embedded Applications
Information Management includes: Business Intelligence; Content Management
Infrastructure includes: Application Delivery & Network Acceleration; Network Infrastructure; Platforms, Development Tools & Deployment; Storage Management; Systems & Network Management
P/E multiples in excess of 100x or less than 0x are considered to be not meaningful
Source: Company releases, Wall Street research, Shea & Company
Consideration Equity Enterprise EV / Revenue P/E Ratio
# of deals % Cash % Stock value value LTM Current yr Forwa rd yr Current yr Forward yr
Mean - all deals
240
95.0%
4.9%
$912.5
$385.4
4.0x
3.8x
3.5x
35.5x
31.4x
Median - all deals
$215.0
$72.3
2.9x
3.0x
2.8x
28.7x
25.2x
< $250
Mean
178
94.5%
5.4%
$96.5
$64.4
3.2x
2.7x
2.2x
36.3x
28.6x
Median
$68.1
$38.0
2.1x
2.4x
1.8x
36.6x
25.3x
$250 - $500
Mean
25
96.9%
3.1%
$368.2
$332.9
4.8x
4.0x
3.0x
29.1x
26.9x
Median
$315.0
$307.8
4.4x
4.1x
3.4x
29.3x
25.0x
$500 - $1000
Mean
12
100.0%
0.0%
$705.1
$693.7
4.4x
3.7x
3.3x
48.3x
42.2x
Median
$717.0
$692.7
3.7x
3.0x
2.8x
32.0x
25.6x
> $1000
Mean
25
94.3%
5.7%
$3,271.5
$2,575.3
5.3x
5.4x
4.7x
32.5x
30.5x
Median
$1,922.2
$1,700.0
3.9x
4.1x
3.5x
25.4x
22.5x
IT Security
Mean
31
94.9%
5.1%
$1,703.7
$646.9
3.6x
3.2x
3.1x
30.4x
26.6x
Median
$162.0
$37.2
3.3x
3.0x
3.0x
28.7x
25.6x
Strategic - Mean
27
94.2%
5.8%
$1,923.0
$609.3
3.7x
3.3x
3.3x
31.5x
27.3x
Financial - Mean
4
100.0%
0.0%
$717.0
$900.2
3.2x
3.0x
2.8x
28.7x
25.6x
Business Applications
Mean
130
95.5%
4.4%
$494.1
$306.4
3.0x
3.4x
3.2x
32.1x
26.7x
Median
$200.0
$100.0
2.5x
2.7x
2.7x
28.5x
24.5x
Strategic - Mean
112
94.8%
5.1%
$315.9
$208.9
3.1x
3.5x
3.4x
36.1x
30.0x
Financial - Mean
18
100.0%
0.0%
$1,207.0
$901.9
2.7x
2.9x
2.8x
21.9x
19.3x
Information Management
Mean
33
88.9%
11.1%
$2,183.6
$496.1
5.0x
5.0x
4.9x
50.1x
37.9x
Median
$295.5
$40.5
2.8x
4.4x
4.3x
39.0x
28.9x
Strategic - Mean
33
88.9%
11.1%
$2,183.6
$496.1
5.0x
5.0x
4.9x
50.1x
37.9x
Financial - Mean
0
nm
nm
nm
nm
nm
nm
nm
nm
nm
Infrastructure
Mean
46
97.9%
2.1%
$989.2
$352.9
5.9x
4.6x
3.5x
40.2x
41.6x
Median
$183.5
$73.0
4.4x
2.5x
1.9x
31.0x
25.3x
Strategic - Mean
42
97.7%
2.3%
$1,098.8
$354.1
7.2x
6.3x
4.8x
48.4x
51.9x
Financial - Mean
4
100.0%
0.0%
$660.3
$340.9
1.6x
1.6x
1.5x
32.0x
24.3x
Copyright © 2011 Shea & Company, LLC
15
Publicly-Available Software M&A Transaction Data – Analysis
By Transaction Size: 2010 – 2011 YTD
By Target Segment: 2010 – 2011 YTD
Note:
Includes only transactions for which data was publicly available
Business Applications includes: ERP & Business Applications; Financial Applications; Technical & Embedded Applications
Information Management includes: Business Intelligence; Content Management
Infrastructure includes: Application Delivery & Network Acceleration; Network Infrastructure; Platforms, Development Tools & Deployment; Storage Management; Systems & Network Management
Source: Company releases, Wall Street research, Shea & Company
$10.4
$7.7
$6.1
$47.0
$1.1
$0.6
$2.2
$17.4
$0
$10
$20
$30
$40
$50
$60
$70
< $250 $250 - $500 $500 - $1000 > $1000
Aggregate Deal Value ($ billions)
Deal Value ($ millions)
168
23
9
14
10
2
3
11
0
20
40
60
80
100
120
140
160
180
200
< $250 $250 - $500 $500 - $1000 > $1000
# of Deals
Deal Value ($ millions)
Financial
Strategic
2.9x
4.0x
4.1x
7.0x
1.8x
nm
3.0x
2.6x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
< $250 $250 - $500 $500 - $1000 > $1000
Median EV / Rev (current year)
Deal Value ($ millions)
3.3x
3.5x
5.0x
6.3x
3.0x
2.9x
nm
1.6x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
IT Security Business
Applications
Information
Management
Infrastructure
Median EV / Rev (current year)
$16.5
$23.6
$16.4
$14.9
$3.6
$16.2
$1.4
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
IT Security Business
Applications
Information
Management
Infrastructure
Aggregate Deal Value ($ billions)
27
112
33
42
4
18
4
0
20
40
60
80
100
120
140
IT Security Business
Applications
Information
Management
Infrastructure
# of Deals
Copyright © 2011 Shea & Company, LLC
16
Public Companies & Consolidation by Segment
2002 – 2011 YTD ($ millions)
Source: Company releases, Wall Street research, Shea & Company
Continued
Enterprise Value
Category
Enterprise Value
Acquirer
of Acquisitions
Global Diversified
IBM 230,092$
Microsoft 163,942
Oracle
130,435


Intel 105,868
SAP AG
58,944


Hewlett Packard
57,863


Cisco Systems 55,961
EMC
39,252


Dell 17,357
App. Delivery & Network Acceleration Total:1,485$
Citrix Systems
8,708
$

F5 Networks
4,706


Riverbed Technology 2,625
LogMeIn
668


Blue Coat Systems 332
Radware 214
Avocent
Emerson
1,215


Packeteer Blue Coat Systems 190
Motive Alcatel-Lucent 51
NetCache
Blue Coat Systems
29


Business Intelligence
Total:
31,329
$

Informatica 4,060$
Qlik Technologies
1,710


Pegasystems 1,095
MicroStrategy 1,091
PROS
287


Actuate 260
DemandTec
163


NAVTEQ
Nokia
7,700


Business Objects SAP 6,455
Cognos
IBM
4,960


Hyperion Oracle 2,706
Netezza IBM 1,700
Omniture
Adobe
1,684


Witness Systems Verint 894
SPSS IBM 859
GEAC Computer
Golden Gate Capital
815


HNC Software Fair Isaac 671
Ascential Software
IBM
655


IDS Scheer
Software AG
564


Greenfield Online Microsoft 455
Systems Union Group
Infor Global Solutions
398


Visual Sciences Omniture 394
Applix Cognos 306
SAF Simulation, Analysis & Forecasting
SAP
49


Xenos Actuate 27
Enterprise Value
Category
Enterprise Value
Acquirer
of Acquisitions
Business Intelligence (continued)
Insightful Corporation TIBCO 19
Proginet TIBCO 19
Content Management
Total:
20,110
$

Adobe
10,662
$

Open Text 3,060
IntraLinks
440


Guidance Software 138
Autonomy HP 10,889
Documentum
EMC
1,686


OnDisplay Vignette 1,500
Eclipsys
Allscripts
1,181


FileNET
IBM
1,150


Interwoven Autonomy 590
Hummingbird
Open Text
395


MapInfo Pitney Bowes 377
Stellent Oracle 354
Verity
Autonomy
308


Captiva Software EMC 307
Day Software Adobe 211
IXOS AG
Open Text
210


AMICAS Thoma Bravo 177
Vignette
Open Text
162


DataMirror
IBM
161


Mobius Allen Systems Group 144
Plumtree Software
BEA Systems
132


Captaris Open Text 109
Zi Nuance Communications 38
Nstein Technologies
Open Text
29


ERP & Business Applications
Total:
38,317
$

Salesforce.com 14,979$
Sage Group
5,410


Ariba 2,478
NetSuite 1,779
SuccessFactors
1,746


Constellation Software 1,488
Ultimate Software 1,241
Rightnow Technologies
1,086


JDA Software 1,018
Blackbaud
964


Taleo
928


Digital River 823
Synchronoss Technologies
800


Manhattan Associates 612
Deltek 540
Cornerstone OnDemand
535


Constant Contact 405
Copyright © 2011 Shea & Company, LLC
17
Public Companies & Consolidation by Segment continued
2002 – 2011 YTD ($ millions)
Source: Company releases, Wall Street research, Shea & Company
Continued
Enterprise Value
Category
Enterprise Value
Acquirer
of Acquisitions
ERP & Business Applications (continued)
Concerto Software Golden Gate Capital 145
Matrikon Honeywell 130
PLATO Learning
Thoma Bravo
115


Matrikon Honeywell 130
PLATO Learning
Thoma Bravo
115


SumTotal Vista Equity Partners 115
Chordiant Pegasystems 109
QuadraMed
Francisco Partners
107


ACCPAC International Sage Group 102
Onyx M2M Holdings 92
E.piphany
SSA Global
89


Identity Systems Informatica 85
Scala Business Solutions
Epicor Software
83


SoftBrands Infor Global Solutions 80
Salary.com Kenexa 72
Maconomy Corporation
Deltek
62


Pivotal Corporation CDC Software 62
Portrait Software plc
Pitney Bowes
58


Teta S.A.
UNIT4
56


Accelio Corporation of Canada Adobe 55
I-many
LLR Partners
55


KANA Software Accel-KKR 50
Magic Solutions BMC Software 49
MDSI Mobile Data Solutions
Vista Equity Partners
48


Extensity GEAC Computer 46
Kintera
Blackbaud
45


Porthus
Descartes Systems
44


Optio Software Bottomline Technologies 36
TTI Telecom
TEOCO
35


Artemis International Solutions Trilogy Enterprises 29
IBS AB Symphony Technology Group 27
AMICAS
Emageon
26


Pilat Media Global SintecMedia 24
Elit Group
Sage Group
20


Chalk Media
Research In Motion
17


UBS Corporation Berhad Sage Group 13
Cytiva Software
Taleo
11


Evolve Software Primavera Systems 8
Maximizer Software MSI Acquisition Corp.8
Avidyn
Fiserv
6


ForceLogix Callidus Software 4
Engage
JDA Software
4


United Systems Technology
Constellation Software
3


Financial Applications Total:16,476$
Intuit 14,153$
FIS
12,165


Fiserv 10,194
Enterprise Value
Category
Enterprise Value
Acquirer
of Acquisitions
ERP & Business Applications (continued)
Interactive Intelligence 390
Kenexa 341
Retalix
325


Vocus 239
Convio 114
CDC Software
60


Siebel Systems Oracle 3,610
Acxiom
Silver Lake Partners
3,000


Reynolds and Reynolds
Universal Computer
2,800


Lawson Software Infor (Golden Gate Capital) 1,775
Blackboard
Providence Equity Partners
1,770


Kronos Hellman & Friedman 1,721
SSA Global Technologies Infor Global Solutions 1,608
TriZetto Group
Apax Partners
1,400


J.D. Edwards PeopleSoft 1,381
Open Solutions Carlyle & Providence Equity 1,300
Navision
Microsoft
1,300


SkillSoft Investor Group 1,284
Epicor
Apax Partners
1,121


Art Technology Group
Oracle
817


Aspect Communications Concerto Software 793
Exstream Software
HP
720


Phase Forward Oracle 714
Dendrite CEGEDIM 673
MRO Software
IBM
619


Retek Oracle 588
Emdeon Practice Services
Sage Group
567


Authorize.Net
CyberSource
565


Unica IBM 480
Intentia International
Lawson Software
460


Tekla Corporation Trimble Navigation 451
i2 Technologies JDA Software 396
FreeMarkets
Ariba
357


MAPICS Infor Global Solutions 315
MatrixOne Dassault Systemes 309
Agile Software
Oracle
301


Click Commerce Illinois Tool Works 292
CODA
Unit 4 Agresso
289


NSB Retail Systems
Epicor Software
287


Niku CA Technologies 285
Mincom Limited
Francisco Partners
248


Manugistics JDA Software 247
Indus International Vista Equity Partners 203
Gemcom Software Ltd.
JMI Equity & Carlyle Group
187


Workbrain Infor Global Solutions 158
Datastream Infor Global Solutions 158
StepStone
Axel Springer AG
149


HireRight US Investigations Services 146
Copyright © 2011 Shea & Company, LLC
18
Public Companies & Consolidation by Segment continued
2002 – 2011 YTD ($ millions)
Continued
Source: Company releases, Wall Street research, Shea & Company
Enterprise Value
Category
Enterprise Value
Acquirer
of Acquisitions
Financial Applications (continued)
MSCI 4,524
Jack Henry 2,617
Concur
1,682


Misys 1,624
SS&C Technologies
1,273


Advent Software 1,133
Fair Isaac 1,092
ServiceSource
901


IRESS Market Technology 812
Fidessa 811
Bottomline Technologies
632


SimCorp 591
S1 Corporation
438


Envestnet 249
Metavante Technologies FIS 4,408
Emdeon
Blackstone Group
3,000


CyberSource Visa 1,872
RiskMetrics Group
MSCI
1,612


i-flex solutions
Oracle
1,579


Digital Insight Intuit 1,350
GL Trade
SunGard
585


Intec Telecom Systems CSG Systems International 270
Fundtech Ltd.S1 Corporation 245
Norkom
BAE Systems
239


Corillian CheckFree 216
Carreker
CheckFree
169


Portal Software
Oracle
160


Financial Models SS&C Technologies 134
Electronic Clearing House
Intuit
122


Caminus SunGard 118
NYFIX NYSE Euronext 106
Goldleaf Financial Solutions
Jack Henry & Associates
100


XRT SA Sage Group 61
eFront
Francisco Partners
56


Financial Objects
Temenos
44


Terra Nova Financial Lightspeed Financial 25
DBC
SS&C Technologies
5


SEDONA Fiserv 1
IT Security Total:24,783$
Symantec
12,003
$

Check Point
8,553


Verisign 3,955
Trend Micro
2,504


Fortinet 2,177
Websense 679
Sourcefire
642


F-Secure 381
Enterprise Value
Category
Enterprise Value
Acquirer
of Acquisitions
IT Security (continued)
Vasco Data Security 113
McAfee Intel 6,876$
CheckFree
Fiserv
4,225


NetScreen Technologies Juniper Networks 4,000
RSA Security
EMC
2,100


ArcSight
HP
1,500


Internet Security Systems IBM 1,123
SonicWALL
Thoma Bravo
685


SafeNet Vector Capital 634
Protect Data (Pointsec) Check Point Software 569
Secure Computing
McAfee
465


Intertrust Philips / Sony 453
TippingPoint
3Com
400


SurfControl
Websense
359


Cyberguard Secure Computing 295
Utimaco Safeware
Sophos
283


Aladdin Knowledge Systems Vector Capital 151
WatchGuard Technologies Francisco Partners 151
Tumbleweed Communications
Axway Software
138


Entrust Thoma Bravo 87
ActivIdentity HID Global 85
Certicom
Research In Motion
76


Citadel Security Software McAfee 60
BakBone Software
Quest Software
55


phion AG
Barracuda Networks
12


Network Infrastructure Total:13,489$
Juniper Networks 6,011$
Aruba Networks
2,161


Extreme Networks 99
Scientific-Atlanta
Cisco
6,410


3Com
HP
2,705


Starent Networks Cisco 2,510
Foundry Networks
Brocade
1,593


Voltaire Mellanox Technologies 176
Tollgrade Communications Golden Gate Capital 66
Riverstone Networks (XGS)
HP
28


Platforms, Dev. Tools & Deployment
Total:
33,018
$

Red Hat 6,893$
Software AG
2,961


TIBCO Software
3,724


Progress Software 750
Micro Focus
1,072


BEA Systems Oracle 6,852
Sybase SAP 5,800
Sun Microsystems
Oracle
5,667


Mercury HP 4,568
Copyright © 2011 Shea & Company, LLC
19
Public Companies & Consolidation by Segment continued
2002 – 2011 YTD ($ millions)
Source: Company releases, Wall Street research, Shea & Company
Enterprise Value
Category
Enterprise Value
Acquirer
of Acquisitions
Systems & Network Management (continued)
Micromuse IBM 705
Peregrine Systems HP 396
Concord Communications
CA Technologies
349


NetIQ AttachmateWRQ 305
Neoware
HP
206


Embarcadero Thoma Cressey 200
Marimba BMC Software 185
BindView
Symantec
174


Novadigm HP 139
NetSolve Cisco 129
Bridgewater Systems
Amdocs
128
IONA Technologies Progress Software 107
Quovadx
Battery Ventures
107


Visual Networks Fluke Networks 75
Extended Systems Sybase 63
NetManage
Micro Focus
48


Silicon Graphics Rackable Systems 43
Intraware
Acresso Software
27


Avantgo
Sybase
6


Technical & Embedded Applications Total:7,942$
Dassault Systemes 7,559$
Autodesk
4,874


ANSYS 4,151
Synopsys 2,527
Cadence Design
2,381


Parametric Technology 1,570
Mentor Graphics
1,156


Medidata Solutions 322
UGS Siemens 3,500
Ansoft
ANSYS
801


Wind River Systems Intel 714
Roxar Emerson 391
MKS
PTC
308


Simplex Solutions Cadence Design 306
Virage Logic
Synopsys
289


MSC.Software Symphony Technology Group 242
Verisity Cadence Design 231
Moldflow
Autodesk
226


Numerical Technologies Synopsys 210
QNX Software Systems
Research In Motion
200


Nassda Corporation
Synopsys
192


Synplicity Synopsys 188
Valor Computerized Systems
Mentor Graphics
55


inSilicon Synopsys 38
Softimage Autodesk 35
HPL Technologies
Synopsys
12


LogicVision Mentor Graphics 4
Enterprise Value
Category
Enterprise Value
Acquirer
of Acquisitions
Platforms, Dev. Tools & Deployment (continued)
Macromedia Adobe 3,293
Rational Software IBM 1,581
Serena Software
Silver Lake Partners
1,080


Novell Attachmate & CPTN Holdings 1,073
Telelogic
IBM
745


webMethods
Software AG
396


Allaire Macromedia 360
PalmSource
Access Company
324


SeeBeyond Sun Microsystems 317
Merant Serena 310
ILOG SA
IBM
264


Trolltech Nokia 133
Phoenix Technologies
Marlin Equity Partners
112


Borland Software
Micro Focus International plc
93


Jacada (application modernization business) Software AG 26
Persistence Software
Progress Software
12


Excelon Progress Software 10
Storage Management Total:23,185$
NetApp 9,229$
CommVault Systems
1,550


FalconStor Software 98
Veritas Software
Symantec
11,911


3PAR
HP
2,296


Isilon EMC 2,250
Data Domain
EMC
2,100


Legato Systems EMC 1,223
Fast Search & Transfer Microsoft 1,200
Compellent Technologies
Dell
820


McDATA Brocade 643
OTG Software
Legato Systems
310


Double-Take Software
Vision Solutions
199


Iomega EMC 148
Document Sciences
EMC
85


Systems & Network Management
Total:
6,622
$

VMware 31,233$
CA Technologies 8,159
BMC Software
5,486


Compuware 1,480
SolarWinds
1,478


Quest Software
1,122


Opnet Technologies 689
Netscout Systems
345


Keynote Systems 307
Opsware HP 1,600
Altiris
Symantec
830


BladeLogic BMC Software 800
Copyright © 2011 Shea & Company, LLC
20
Most Active Consolidators
2002 – 2011 YTD ($ millions)
Note: “Known acquired value” includes only transactions for which data was publicly available (2002 – 2011 YTD)
Consideration
Equity
Enterprise
Date
Target
% Cash
% Stock
Value
Value
Cisco (continued)
08/10/06
Nuova Systems
-
-
-
$50
07/06/06
Meetinghouse Data Communications
100.0%
-
-
$44
06/09/06
Audium
100.0%
-
-
$20
06/09/06
Metreos
100.0%
-
-
$28
03/07/06
SyPixx Networks
-
-
-
$51
11/29/05
Cybertrust (Intellishield Alert assets)
100.0%
-
-
$14
11/21/05
Digital Fairway (IP provisioning assets)
100.0%
-
-
$15
11/18/05
Scientific-Atlanta
100.0%
-
$6,900
$6,410
09/30/05
Nemo Systems
100.0%
-
-
$13
07/22/05
KiSS Technology A/S
-
-
-
$61
06/27/05
NetSift
100.0%
-
-
$30
06/14/05
M. I. Secure Corporation
100.0%
-
-
$1
05/26/05
FineGround Networks
100.0%
-
-
$70
04/26/05
Sipura Technology
100.0%
-
-
$68
04/15/05
TopSpin
100.0%
-
-
$250
02/22/05
Vihana
100.0%
-
-
$30
01/12/05
Airespace
-
-
-
$450
12/20/04
Protego Networks
100.0%
-
-
$65
12/09/04
BCN Systems
100.0%
-
-
$156
11/17/04
Jahi Networks
100.0%
-
-
$16
10/21/04
Perfigo
100.0%
-
-
$74
09/20/04
Sheer Networks
100.0%
-
-
$122
09/13/04
dynamicSoft
93.0%
7.0%
-
$55
09/09/04
NetSolve
100.0%
-
-
$129
08/24/04
P-Cube
-
-
-
$200
08/20/04
Andiamo
-
100.0%
-
$1,289
07/08/04
Parc Technologies
100.0%
-
-
$9
06/29/04
Actona Technologies
100.0%
-
-
$82
06/16/04
Procket Networks
100.0%
-
-
$89
03/22/04
Riverhead Networks
100.0%
-
-
$39
03/12/04
Twingo Systems
100.0%
-
-
$5
11/12/03
Latitude Communications
100.0%
-
$80
$62
03/20/03
Linksys Group
-
-
-
$500
03/19/03
SignalWorks
-
-
-
$14
01/27/03
Okena
-
-
-
$154
10/22/02
Psionic Software
-
-
-
$12
07/25/02
AYR Networks
-
-
-
$113
05/01/02
Hammerhead Networks
-
-
-
$173
05/01/02
Navarro Networks
-
-
-
$85
Consideration
Equity
Enterprise
Date
Target
% Cash
% Stock
Value
Value
Cisco
Known acquired value:
$23,032
08/29/11
Versly
-
-
-
-
03/29/11
newScale
-
-
-
-
02/04/11
Inlet Technologies
100.0%
-
-
$95
01/26/11
Pari Networks
-
-
-
-
12/01/10
LineSider Technologies
-
-
-
-
09/02/10
Arch Rock Corporation
-
-
-
-
08/26/10
ExtendMedia
-
-
-
-
05/20/10
CoreOptics
100.0%
-
-
$99
05/18/10
MOTO Development Group
-
-
-
-
01/05/10
Rohati Systems
-
-
-
-
11/02/09
DVN Holdings (set-top box business)
-
-
-
$45
10/27/09
ScanSafe
100.0%
-
-
$183
10/13/09
Starent Networks
100.0%
-
$2,900
$2,510
10/01/09
Tandberg
100.0%
-
$3,400
$3,400
04/09/09
Tidal Software
100.0%
-
-
$105
03/19/09
Pure Digital Technologies
-
-
-
$590
01/27/09
Richards-Zeta Building Intelligence
-
-
-
-
09/19/08
Jabber
-
-
-
-
08/27/08
PostPath
-
-
-
$215
07/23/08
Pure Networks
100.0%
-
-
$120
06/10/08
DiviTech A/S
-
-
-
-
11/01/07
Securent
-
-
-
-
10/23/07
Navini Networks
-
-
-
$330
09/27/07
Latigent
-
-
-
-
09/18/07
Cognio
-
-
-
-
07/23/07
GlooLabs
-
-
-
-
05/21/07
BroadWare Technologies
-
-
-
-
03/28/07
SpansLogic
-
-
-
-
03/15/07
WebEx
100.0%
-
$3,200
$3,145
03/13/07
NeoPath Networks
-
-
-
$60
03/05/07
Utah Street Networks (assets)
-
-
-
-
02/26/07
Qovia
-
-
-
-
02/21/07
Reactivity
100.0%
-
-
$135
02/09/07
Five Across
-
-
-
-
01/04/07
IronPort Systems
-
-
-
$830
12/15/06
Tivella
-
-
-
-
11/13/06
Greenfield Networks
-
-
-
-
10/25/06
Orative Corporation
100.0%
-
-
$31
10/10/06
Ashley Laurent (assets)
-
-
-
-
08/22/06
Arroyo Video Solutions
100.0%
-
-
$92
Copyright © 2011 Shea & Company, LLC
21
2002 – 2011 YTD ($ millions)
ContinuedNote: “Known acquired value” includes only transactions for which data was publicly available (2002 – 2011 YTD)
Most Active Consolidators continued
Consideration
Equity
Enterprise
Date
Target
% Cash
% Stock
Value
Value
Dell
Known acquired value:
$2,838
06/20/11
RNA Networks
-
-
-
-
01/04/11
SecureWorks
-
-
-
-
12/22/10
InSite One
-
-
-
-
12/13/10
Compellent Technologies
100.0%
-
$960
$820
11/02/10
Boomi
-
-
-
-
07/19/10
Ocarina Networks
-
-
-
-
07/01/10
Scalent
-
-
-
-
02/11/10
Kace Networks
100.0%
-
-
$123
02/12/08
MessageOne
100.0%
-
-
$155
02/08/08
Exanet
-
-
-
-
11/15/07
Everdream
-
-
-
-
11/05/07
EqualLogic
100.0%
-
$1,418
$1,400
08/06/07
Zing Systems
-
-
-
-
08/02/07
ASAP Software
-
-
-
$340
07/18/07
SilverBack Technologies
-
-
-
-
06/12/06
In House Software Ltd.
-
-
-
-
EMC
Known acquired value:
$11,753
04/04/11
NetWitness
-
-
-
-
11/15/10
Isilon
100.0%
-
$2,434
$2,250
07/06/10
Greenplum
100.0%
-
-
-
01/04/10
Archer Technologies
-
-
-
-
09/01/09
Kazeon Systems
-
-
-
-
08/31/09
FastScale Technology
-
-
-
-
06/01/09
Data Domain
100.0%
-
$2,378
$2,100
05/27/09
Configuresoft
-
-
-
$87
01/02/09
SourceLabs
-
-
-
-
04/08/08
Iomega
100.0%
-
$213
$148
04/07/08
WysDM Software
-
-
-
-
04/01/08
Conchango plc
100.0%
-
-
$84
03/10/08
Infra Corporation
-
-
-
-
02/21/08
Pi
100.0%
-
-
-
12/27/07
Document Sciences
100.0%
-
$87
$85
10/30/07
Voyence
-
-
-
-
10/15/07
Illuminator
-
-
-
-
10/04/07
Berkeley Data Systems
-
-
-
-
08/30/07
BusinessEdge Solutions
-
-
-
-
08/09/07
Tablus
-
-
-
-
07/19/07
X-Hive Corporation
-
-
-
-
06/04/07
Verid
-
-
-
-
Consideration
Equity
Enterprise
Date
Target
% Cash
% Stock
Value
Value
EMC (continued)
11/01/06
Avamar Technologies
100.0%
-
-
$165
09/21/06
Neartek (VTL business)
-
-
-
-
09/18/06
Network Intelligence
100.0%
-
-
$175
06/29/06
RSA Security
100.0%
-
$2,335
$2,100
06/19/06
ProActivity
-
-
-
$27
06/07/06
nLayers
100.0%
-
-
$50
05/11/06
Interlink Group
-
-
-
-
05/09/06
Kashya
100.0%
-
$153
$153
03/07/06
Authentica
-
-
-
$16
01/09/06
Internosis
-
-
-
-
01/05/06
Acxiom (information grid software)
-
-
-
$30
10/26/05
Acartus
-
-
-
-
10/21/05
Captiva Software
100.0%
-
$334
$307
08/16/05
Maranti Networks
-
-
-
$5
08/15/05
Rainfinity
-
-
$100
$90
12/21/04
SMARTS
100.0%
-
-
$260
10/22/04
Allocity
-
-
$10
$10
10/12/04
Dantz Development Corporation
-
-
$46
$45
03/16/04
Xerox (askOnce)
-
-
-
-
12/15/03
VMware
100.0%
-
-
$635
10/14/03
Documentum
-
100.0%
$1,953
$1,686
10/11/03
Sanrise (SRM software assets)
100.0%
-
-
-
07/08/03
Legato Systems
-
100.0%
$1,295
$1,223
04/15/03
Astrum Software
-
-
-
-
09/25/02
Prisa Networks
-
-
$20
$22
08/13/02
Cereva Networks (IP assets)
-
-
-
-
FIS
Known acquired value:
$9,168
02/07/11
GIFTS Software
-
-
-
-
10/19/10
Capco
-
-
-
$292
06/14/10
Compliance Coach
-
-
-
-
04/01/09
Metavante Technologies
-
100.0%
$2,950
$4,408
06/27/07
Applied Financial Technology
-
-
-
-
05/02/07
Marketing Solutions
-
-
-
-
02/27/07
Second Foundation
-
-
-
-
12/14/06
AsiaInfo (financial services and IT solutions)
100.0%
-
-
$3
11/02/06
Watterson Prime
100.0%
-
-
$9
10/05/06
Convergent (assets)
-
-
-
-
10/19/05
BravePoint (LAMPS assets)
-
-
-
-
09/16/05
Certegy
6.0%
94.0%
-
$4,036
Copyright © 2011 Shea & Company, LLC
22
2002 – 2011 YTD ($ millions)
Continued
Note: “Known acquired value” includes only transactions for which data was publicly available (2002 – 2011 YTD)
Most Active Consolidators continued
Consideration
Equity
Enterprise
Date
Target
% Cash
% Stock
Value
Value
FIS (continued)
09/09/04
InterCept
-
-
$408
$420
Fiserv
Known acquired value:
$5,639
06/29/11
CashEdge
-
-
-
$465
12/16/08
iTech Corporation
-
-
-
$40
10/15/07
BancIntelligence.com
-
-
-
-
09/21/07
WorkingRx
-
-
-
-
08/02/07
CheckFree
100.0%
-
$4,400
$4,225
03/14/07
NetEconomy
-
-
-
-
09/13/06
InsureWorx
-
-
-
-
07/17/06
Jerome Group
-
-
-
-
03/03/06
CCH Wall Street (financial training assets)
-
-
-
-
03/02/06
CT Insurance Services (securities software)
-
-
-
-
01/09/06
CareGain
-
-
-
-
11/02/05
Xcipio
-
-
-
-
07/27/05
BillMatrix
-
-
-
$350
06/13/05
Interactive Technologies
-
-
-
-
05/10/05
Emergis (eLending U.S. business)
100.0%
-
-
$14
03/31/05
Del Mar DataTrac
-
-
-
-
10/18/04
CheckAGAIN
-
-
-
-
01/19/04
RegEd
-
-
-
-
09/24/03
Insurance Management Solutions Group
-
-
-
-
09/15/03
Unisure
-
-
-
-
07/15/03
Chase Credit Systems
-
-
-
-
07/11/03
EDS (Credit Union Processing)
100.0%
-
-
$218
04/03/03
Reliaquote
-
-
-
-
03/11/03
Precision Computer Systems
-
-
-
-
01/06/03
Lenders Financial Services
-
-
-
-
11/25/02
SEDONA
-
-
-
$1
11/14/02
Electronic Data Sys. (Consumer Network)
100.0%
-
-
$320
11/04/02
Avidyn
-
-
$11
$6
05/14/02
Case Shiller Weiss
-
-
-
-
HP
Known acquired value:
$42,767
08/18/11
Autonomy
100.0%
-
$11,560
$10,889
05/24/11
Printelligent
-
-
-
-
02/14/11
Vertica
-
-
-
-
09/13/10
ArcSight
100.0%
-
$1,651
$1,500
08/26/10
Stratavia
-
-
-
-
08/23/10
3PAR
100.0%
-
$2,400
$2,296
Consideration
Equity
Enterprise
Date
Target
% Cash
% Stock
Value
Value
HP (continued)
08/17/10
Fortify Software
-
-
-
-
06/10/10
Phoenix Technologies (HyperSpace assets)
100.0%
-
-
$12
04/28/10
Palm
100.0%
-
$1,400
$1,199
11/11/09
3Com
100.0%
-
$3,131
$2,705
07/17/09
IBRIX
-
-
-
-
06/22/09
Excellerate HRO
-
-
-
-
10/01/08
LeftHand Networks
100.0%
-
-
$360
08/11/08
Colubris Networks
-
-
-
-
05/13/08
Electronic Data Systems
-
-
-
$13,900
03/31/08
Tower Software
-
-
-
$100
01/22/08
Exstream Software
-
-
-
$720
12/10/07
NUR Macroprinters
100.0%
-
-
$118
11/12/07
EYP Mission Critical Facilities
-
-
-
-
10/22/07
AOME
-
-
-
-
09/13/07
MacDermid ColorSpan
-
-
-
-
07/23/07
Neoware
100.0%
-
$328
$206
07/23/07
Opsware
100.0%
-
$1,673
$1,600
06/19/07
SPI Dynamics
-
-
-
$135
03/22/07
Tabblo
-
-
-
-
02/26/07
PolyServe
-
-
-
-
02/05/07
Bristol Technology
-
-
-
-
12/20/06
Bitfone Corporation
-
-
-
-
12/12/06
Knightsbridge Solutions Holdings Corp
-
-
-
-
09/28/06
VoodooPC
-
-
-
-
07/25/06
Mercury
100.0%
-
$5,189
$4,568
06/27/06
The Technology Partners SpA
-
-
-
-
06/06/06
Silverwire
-
-
-
-
02/07/06
OuterBay Technologies
-
-
-
$100
01/11/06
Ordina (desktop management business)
100.0%
-
-
$2
12/13/05
PIXACO
-
-
-
-
11/30/05
Trustgenix
-
-
-
$8
10/03/05
RLX Technologies
-
-
-
-
09/19/05
AppIQ
-
-
-
$230
09/19/05
Peregrine Systems
100.0%
-
$425
$396
08/11/05
Scitex Vision
100.0%
-
-
$230
03/20/05
Snapfish
-
-
-
-
03/02/05
Schlumberger Business Continuity Svcs
-
-
-
-
10/01/04
CodeArts
-
-
-
-
08/09/04
Synstar plc
87.0%
13.0%
-
$343
06/08/04
Riverstone Networks (XGS)
-
-
-
$28
Copyright © 2011 Shea & Company, LLC
23
2002 – 2011 YTD ($ millions)
Continued
Note: “Known acquired value” includes only transactions for which data was publicly available (2002 – 2011 YTD)
Most Active Consolidators continued
Consideration
Equity
Enterprise
Date
Target
% Cash
% Stock
Value
Value
HP (continued)
05/13/04
CEC Europe Service Management
-
-
-
-
05/13/04
ManageOne
-
-
-
-
03/11/04
TruLogica
-
-
-
$43
02/23/04
Triaton GmbH
66.0%
34.0%
-
$464
02/04/04
Consera Software
-
-
-
-
02/04/04
Novadigm
100.0%
-
$139
$139
11/11/03
Persist Technologies
-
-
-
$12
09/03/03
Talking Blocks
-
-
-
-
08/13/03
Extreme Logic
-
-
-
-
07/23/03
PipeBeach
-
-
-
-
07/04/03
Baltimore Technologies (SelectAccess assets)
-
-
$14
$14
11/01/02
Intria-HP
100.0%
-
-
$100
08/09/01
Trinagy
-
-
-
-
07/25/01
StorageApps
-
100.0%
-
$350
IBM
Known acquired value:
$22,740
09/01/11
Algorithmics
-
-
-
$387
08/31/11
i2
-
-
-
-
03/22/11
TRIRIGA
100.0%
-
-
$108
10/21/10
Clarity Systems Ltd.
-
-
-
-
10/14/10
PSS Systems
-
-
-
-
09/27/10
BLADE Network Technologies
-
-
-
-
09/20/10
Netezza
100.0%
-
$1,836
$1,700
09/15/10
OpenPages
-
-
-
-
08/13/10
Unica
100.0%
-
$523
$480
08/10/10
Datacap
-
-
-
-
07/29/10
Storwize
-
-
-
-
07/01/10
BigFix
-
-
-
-
06/15/10
Coremetrics
-
-
-
-
05/24/10
Sterling Commerce
100.0%
-
-
$1,400
05/03/10
Cast Iron Systems
100.0%
-
-
-
02/16/10
Intelliden
-
-
-
-
02/03/10
Initiate Systems
-
-
-
-
01/20/10
National Interest Security Company
-
-
-
-
12/16/09
Lombardi
-
-
-
-
11/30/09
Guardium
-
-
-
$225
10/05/09
Wilshire Credit Corporation
-
-
-
-
09/22/09
RedPill Solutions
-
-
-
-
07/28/09
Ounce Labs
-
-
-
-
07/25/09
SPSS
100.0%
-
$1,170
$859

Consideration
Equity
Enterprise
Date
Target
% Cash
% Stock
Value
Value
IBM (continued)
05/04/09
Exeros
100.0%
-
-
$12
01/15/09
Outblaze
-
-
-
$8
11/18/08
Transitive
-
-
-
-
07/28/08
ILOG SA
100.0%
-
$339
$264
07/02/08
Platform Solutions
-
-
-
-
04/29/08
InfoDyne
-
-
-
-
04/18/08
Diligent Technologies
-
-
-
-
04/10/08
FilesX
-
-
-
$50
03/12/08
Encentuate
-
-
-
-
01/23/08
AptSoft
-
-
-
-
01/18/08
Net Integration Technologies
-
-
-
-
01/02/08
XIV
-
-
-
$325
12/21/07
Solid Information Technology
-
-
-
-
12/06/07
Arsenal Digital Solutions
-
-
-
-
11/12/07
Cognos
100.0%
-
$5,000
$4,960
10/24/07
NovusCG
-
-
-
-
08/22/07
WebDialogs
-
-
-
-
08/03/07
Princeton Softech
-
-
-
-
07/16/07
DataMirror
100.0%
-
$179
$161
06/11/07
Telelogic
100.0%
-
$781
$745
06/06/07
Watchfire
-
-
-
-
04/26/07
Serbian Business Systems (assets)
-
-
-
-
01/30/07
DM Information Systems
-
-
-
-
01/29/07
Softek
-
-
-
-
12/05/06
Consul
-
-
-
-
11/28/06
Vallent
100.0%
-
-
-
10/20/06
Palisades Technology Partners
-
-
-
-
10/04/06
Ubiquity Software Corp (DORANA assets)
-
-
-
-
09/06/06
Global Value Solutions SA
-
-
-
-
09/01/06
Valchemy
-
-
-
-
08/23/06
Internet Security Systems
100.0%
-
$1,300
$1,123
08/10/06
FileNET
100.0%
-
$1,600
$1,150
08/03/06
MRO Software
100.0%
-
$740
$619
08/02/06
Webify
-
-
-
-
05/18/06
Rembo Technology
-
-
-
-
05/08/06
Unicom Solutions
-
-
-
-
05/02/06
BuildForge
-
-
-
-
03/16/06
Language Analysis Systems
-
-
-
-
02/08/06
Viacore
-
-
-
-
01/27/06
Inficon (Argus software)
-
-
-
-
Copyright © 2011 Shea & Company, LLC
24
2002 – 2011 YTD ($ millions)
Continued
Note: “Known acquired value” includes only transactions for which data was publicly available (2002 – 2011 YTD)
Most Active Consolidators continued
Consideration
Equity
Enterprise
Date
Target
% Cash
% Stock
Value
Value
IBM (continued)
01/25/06
CIMS Labs
-
-
-
-
01/11/06
Classic Blue
-
-
-
-
12/21/05
Micromuse
100.0%
-
$865
$705
12/20/05
Bowstreet
-
-
-
-
11/16/05
Collation
-
-
-
$45
11/08/05
Network Solutions
-
-
-
-
11/01/05
iPhrase Technologies
-
-
-
-
10/18/05
DataPower Technologies
-
-
-
-
08/02/05
DWL
-
-
-
-
07/19/05
PureEdge Solutions
-
-
-
-
06/23/05
Meiosys
-
-
-
$42
06/16/05
Isogon
-
-
-
-
05/10/05
Gluecode Software
100.0%
-
-
$25
04/26/05
Healthlink
-
-
-
-
03/14/05
Ascential Software
100.0%
-
$1,136
$655
02/03/05
Equitant
100.0%
-
-
$40
01/25/05
Corio
100.0%
-
$182
$165
01/07/05
Systems Research and Development
-
-
-
$69
01/01/05
Genelco Software Solutions
-
-
-
-
12/13/04
KeyMRO
-
-
-
-
11/24/04
Liberty Insurance Services
-
-
-
-
10/12/04
SystemCorp
-
-
-
-
08/26/04
Venetica
-
-
-
-
08/18/04
DMdata
-
-
-
-
08/17/04
Maersk Data
-
-
-
-
07/29/04
Cyanea Systems Corporation
-
-
-
-
07/14/04
AlphaBlox
-
-
-
$37
06/22/04
Cardonet
-
-
-
-
04/13/04
Schlumberger (Business Continuity Services)
100.0%
-
-
$237
04/07/04
Daksh eServices
-
-
-
-
04/01/04
Candle
100.0%
-
-
$350
03/29/04
Logicalis (assets)
-
-
-
$67
03/09/04
Trigo Technologies
-
-
-
-
12/17/03
Green Pasture Software
-
-
-
-
11/13/03
Productivity Solutions
-
-
-
-
10/14/03
CrossAccess
-
-
-
-
09/30/03
Sector7 USA
-
-
-
-
07/15/03
Aptrix
-
-
-
$11
05/14/03
Think Dynamics
-
-
-
$48
12/06/02
Rational Software
100.0%
-
$2,082
$1,581
Consideration
Equity
Enterprise
Date
Target
% Cash
% Stock
Value
Value
IBM (continued)
11/04/02
Tarian Software
-
-
-
-
10/07/02
EADS Matra Datavision
-
-
-
-
09/12/02
Holosofx
-
-
-
-
09/03/02
Access360
-
-
-
$200
08/29/02
TrelliSoft
-
-
-
-
07/30/02
PricewaterhouseCoopers (consulting assets)
-
-
-
$3,887
06/24/02
Metamerge
-
-
-
-
02/07/02
Phase Forward
-
-
-
-
Intuit
Known acquired value:
$2,761
05/11/10
Medfusion
100.0%
-
-
$91
09/14/09
Mint.com
100.0%
-
-
$170
06/02/09
PayCycle
100.0%
-
-
$170
04/17/09
BooRah
-
-
-
-
12/03/08
Entellium (CRM assets)
100.0%
-
-
$8
12/19/07
Electronic Clearing House
100.0%
-
$131
$122
11/26/07
Homestead Technologies
100.0%
-
-
$170
11/30/06
Digital Insight
100.0%
-
$1,443
$1,350
09/13/06
StepUp Commerce
100.0%
-
-
$60
11/02/05
MyCorporation Business Services
100.0%
-
-
$20
08/22/05
Teknowledge (TekPortal assets)
100.0%
-
-
$7
01/26/05
Paytrust (customer base)
-
-
-
-
09/02/03
Innovative Merchant Solutions
100.0%
-
-
$117
07/14/03
Income Dynamics
3.0%
97.0%
-
$10
08/14/02
Blue Ocean Software
100.0%
-
-
$177
06/27/02
Eclipse
100.0%
-
-
$88
06/04/02
Management Reports
100.0%
-
-
$92
05/09/02
American Fundware
11.0%
89.0%
-
$31
05/08/02
CBS Employer Services
96.0%
4.0%
-
$78
Jack Henry & Associates
Known acquired value:
$515
05/07/10
iPay Technologies
100.0%
-
-
$300
10/29/09
Pemco Technologies
-
-
-
$60
08/17/09
Goldleaf Financial Solutions
31.0%
69.0%
$61
$100
07/10/07
Gladiator Technology Services
-
-
-
-
11/06/06
US Banking Alliance
-
-
-
-
11/11/05
Profitstar
-
-
-
-
03/02/05
Tangent Analytics
-
-
-
-
01/05/05
RPM Intelligence (dba Stratika)
-
-
-
-
12/20/04
SERsynergy
-
-
-
$35
Copyright © 2011 Shea & Company, LLC
25
2002 – 2011 YTD ($ millions)
Note: “Known acquired value” includes only transactions for which data was publicly available (2002 – 2011 YTD)
Most Active Consolidators continued
Consideration
Equity
Enterprise
Date
Target
% Cash
% Stock
Value
Value
Jack Henry & Associates (continued)
11/23/04
Optinfo
-
-
-
-
10/05/04
Verinex Technologies
-
-
-
-
04/12/04
e-Classic Systems
-
-
-
-
02/09/04
Yellow Hammer Software
100.0%
-
-
$20
Microsoft
Known acquired value:
$19,652
06/07/11
Prodiance
-
-
-
-
05/10/11
Skype Global
-
-
-
$8,500
10/29/10
Canesta
-
-
-
-
10/06/10
AVIcode
-
-
-
-
12/11/09
Opalis Software
-
-
-
-
12/10/09
Sentillion
-
-
-
-
11/09/09
SourceGear (Teamprise assets)
-
-
-
-
09/22/09
Computer Generated Solutions (assets)
-
-
-
-
09/22/09
Fullscope (assets)
-
-
-
-
09/22/09
LS Retail EHF (assets)
-
-
-
-
09/22/09
To-Increase Denmark A/S (assets)
-
-
-
-
09/21/09
Interactive Supercomputing
-
-
-
-
08/06/09
Office.com
-
-
-
-
06/01/09
Rosetta Biosoftware
-
-
-
-
05/07/09
BigPark
-
-
-
-
02/21/09
3DV Systems
-
-
-
-
10/31/08
Wysiwyg Comunicacion Interactiva
-
-
-
-
08/29/08
Greenfield Online
100.0%
-
$486
$455
07/24/08
DATAllegro
-
-
-
-
07/14/08
Zoomix
-
-
-
-
07/01/08
Powerset
100.0%
-
-
-
06/26/08
MobiComp
-
-
-
-
06/18/08
Navic Networks
-
-
-
-
04/17/08
Farecast
-
-
-
-
03/31/08
90 Degree Software
-
-
-
-
03/20/08
Komoku
-
-
-
-
03/14/08
Rapt
-
-
-
-
03/12/08
Kidaro
-
-
-
$100
02/27/08
YaData
-
-
-
$25
02/11/08
Danger
100.0%
-
-
$500
02/07/08
Caligari Corporation
-
-
-
-
01/21/08
Calista Technologies
-
-
-
$125
01/08/08
Fast Search & Transfer
100.0%
-
$1,289
$1,200
12/12/07
Multimap
-
-
-
-
Consideration
Equity
Enterprise
Date
Target
% Cash
% Stock
Value
Value
Microsoft (continued)
11/30/07
Webfives
-
-
-
-
11/12/07
Musiwave
-
-
-
$50
10/29/07
GCS (assets)
-
-
-
-
10/02/07
Jellyfish.com
-
-
-
-
08/29/07
Parlano
-
-
-
-
07/26/07
AdECN
-
-
-
-
06/08/07
Stratature
-
-
-
-
06/05/07
Engyro
-
-
-
-
05/18/07
aQuantive
100.0%
-
$6,370
$6,319
05/03/07
ScreenTonic
-
-
-
-
03/28/07
devBiz Business Solutions
-
-
-
-
03/14/07
eBECS (assets)
-
-
-
-
03/14/07
Tellme Networks
-
-
-
-
02/26/07
Medstory
-
-
-
-
10/12/06
Colloquis
-
-
-
-
10/02/06
DesktopStandard
-
-
-
$110
09/26/06
Gteko
-
-
-
-
07/26/06
Azyxxi Software
-
-
-
-
07/18/06
Winternals Software
-
-
-
-
06/27/06
iView Multimedia
-
-
-
-
05/22/06
Softricity
-
-
-
-
05/18/06
Whale Communications
-
-
$75
$75
05/04/06
Massive
-
-
-
-
05/03/06
DeepMetrix
-
-
-
-
04/26/06
AssetMetrix
-
-
-
-
04/06/06
Lionhead Studios
-
-
-
-
04/03/06
ProClarity
-
-
-
-
03/17/06
Vexcel
-
-
-
-
03/07/06
Apptimum
-
-
-
-
03/07/06
Onfolio
-
-
-
-
03/03/06
String Bean Software
-
-
-
-
02/13/06
MotionBridge
-
-
-
-
01/28/06
Seadragon Software
-
-
-
-
12/16/05
UMT (assets)
-
-
-
-
12/15/05
United Management Technologies
-
-
-
-
11/03/05
Byte Taxi
-
-
-
-
11/02/05
Media-Streams.com
-
-
-
$22
09/19/05
Alacris
-
-
$11
$12
08/30/05
Teleo
-
-
-
$22
08/02/05
iWay Software (source code & adaptor IP)
-
-
-
-
Continued
Copyright © 2011 Shea & Company, LLC
26
2002 – 2011 YTD ($ millions)
Note: “Known acquired value” includes only transactions for which data was publicly available (2002 – 2011 YTD)
Most Active Consolidators continued
Consideration
Equity
Enterprise
Date
Target
% Cash
% Stock
Value
Value
Microsoft (continued)
07/20/05
FrontBridge Technologies
-
-
-
$173
05/12/05
MessageCast
-
-
-
-
03/16/05
Professional Advantage (Webhouse assets)
-
-
-
-
03/10/05
Groove Networks
-
-
-
-
02/22/05
En'tegrate Software (ERP toolkit)
-
-
-
-
02/08/05
Sybari Software
-
-
-
-
12/16/04
GIANT Company Software
-
-
-
-
11/16/04
Vintela
-
-
-
-
07/16/04
Lookout Software
-
-
-
-
04/27/04
Encore Business Solutions (non-profit assets)
-
-
-
-
04/26/04
ActiveViews
-
-
-
-
06/10/03
GeCAD Software
-
-
-
-
03/01/03
Pelican Software
-
-
$1
-
02/19/03
Connectix
-
-
-
-
01/21/03
PlaceWare
-
-
$200
$202
01/01/03
Pelican Security
100.0%
-
-
$1
10/22/02
Vicinity
100.0%
-
$96
$79
09/30/02
Liquid Audio (patent assets)
100.0%
-
-
$7
09/24/02
Rare
-
-
$375
$375
09/10/02
XDegrees
-
-
-
-
07/17/02
Rulespace
-
-
-
-
05/20/02
Sales Management Systems
-
-
-
-
05/07/02
Navision
100.0%
-
$1,335
$1,300
Oracle
Known acquired value:
$31,159
09/22/11
GoAhead Software
-
-
-
-
07/28/11
InQuira
-
-
-
-
07/21/11
Ksplice
-
-
-
-
06/30/11
Pillar Data Systems
-
-
-
-
06/21/11
FatWire Software
-
-
-
-
06/20/11
Datanomic
-
-
-
-
11/02/10
Art Technology Group
100.0%
-
$1,000
$817
10/05/10
Passlogix
-
-
-
-
05/26/10
eServGlobal (pre-paid software assets)
-
-
-
-
05/25/10
Market2Lead (intellectual property assets)
-
-
-
-
05/20/10
Secerno
-
-
-
-
04/16/10
Phase Forward
100.0%
-
$755
$714
02/10/10
Convergin
-
-
-
-
02/08/10
AmberPoint
-
-
-
-
01/04/10
Silver Creek Systems
-
-
-
-
Consideration
Equity
Enterprise
Date
Target
% Cash
% Stock
Value
Value
Oracle (continued)
10/12/09
Sophoi
-
-
-
-
09/29/09
HyperRoll
-
-
-
-
07/23/09
GoldenGate Software
-
-
-
-
06/17/09
Conformia
-
-
-
-
05/13/09
Virtual Iron
-
-
-
-
04/20/09
Sun Microsystems
100.0%
-
$7,400
$5,667
03/23/09
Relsys International
-
-
-
-
02/04/09
mValent
-
-
-
-
11/03/08
Tacit Software
-
-
-
-
10/29/08
Haley Ltd.
-
-
-
$100
10/08/08
Primavera Systems
-
-
-
-
10/01/08
Advanced Visual Technology
-
-
-
$5
09/02/08
ClearApp
-
-
-
-
07/31/08
Global Knowledge Software
-
-
-
-
06/23/08
Skywire Software
-
-
-
-
05/13/08
AdminServer
-
-
-
-
04/09/08
Auptyma
-
-
-
-
03/27/08
Empirix (e-TEST software)
-
-
-
-
01/16/08
BEA Systems
100.0%
-
$8,352
$6,852
01/16/08
Captovation
-
-
-
-
12/06/07
Moniforce
-
-
-
-
10/24/07
Interlace Systems
-
-
-
-
10/09/07
LogicalApps
-
-
-
-
09/02/07
Netsure Telecom
-
-
-
-
08/31/07
Bridgestream
-
-
-
-
07/18/07
Bharosa
-
-
-
-
05/15/07
Agile Software
100.0%
-
$495
$301
05/01/07
Revenue Technologies
-
-
-
-
04/24/07
Lodestar
-
-
-
-
04/18/07
AppForge
-
-
-
-
03/23/07
Tangosol
-
-
-
-
03/01/07
Hyperion
100.0%
-
$3,192
$2,706
11/02/06
SPL WorldGroup
-
-
-
-
11/02/06
Stellent
100.0%
-
$424
$354
10/23/06
MetaSolv Software
100.0%
-
$219
-
10/09/06
Sunopsis
-
-
-
-
08/23/06
Sigma Dynamics
-
-
-
-
06/13/06
Telephony@Work
-
-
-
-
06/01/06
Demantra
100.0%
-
-
$41
04/18/06
Net4Call
-
-
-
-
Continued
Copyright © 2011 Shea & Company, LLC
27
2002 – 2011 YTD ($ millions)
Note: “Known acquired value” includes only transactions for which data was publicly available (2002 – 2011 YTD) Continued
Most Active Consolidators continued
Consideration
Equity
Enterprise
Date
Target
% Cash
% Stock
Value
Value
Oracle (continued)
04/12/06
Portal Software
100.0%
-
$220
$160
02/15/06
HotSip AB
-
-
-
-
02/14/06
Sleepycat
-
-
-
-
01/18/06
360Commerce
-
-
-
-
12/21/05
TempoSoft
-
-
-
-
11/16/05
OctetString
-
-
-
-
11/16/05
Thor Technologies
-
-
-
-
10/07/05
Innobase OY
-
-
-
-
09/20/05
G-Log
-
-
-
$90
09/12/05
Siebel Systems
70.0%
30.0%
$5,850
$3,610
08/02/05
Context Media
-
-
-
-
08/02/05
i-flex solutions
100.0%
-
$1,490
$1,579
07/05/05
ProfitLogic
-
-
-
-
06/14/05
TripleHop
-
-
-
-
06/09/05
TimesTen
-
-
-
-
05/03/05
Covansys (PeopleSoft development center)
-
-
-
-
05/03/05
Hexaware (PeopleSoft development center)
-
-
-
-
03/21/05
Retek
100.0%
-
$630
$588
03/02/05
Oblix
-
-
-
-
06/14/04
Collaxa
-
-
$12
$12
05/20/04
Phaos Technology
-
-
$8
$8
01/22/04
SiteWork Solutions
-
-
-
-
06/11/03
FileFish
-
-
-
-
06/06/03
PeopleSoft
100.0%
-
$9,182
$7,555
07/30/02
WebGain (TopLink product)
-
-
-
-
01/16/02
NetForce
-
-
-
-
01/15/02
Indicast
-
-
-
-
SAP
Known acquired value:
$12,666
09/20/11
Crossgate AG
-
-
-
-
09/06/11
Right Hemisphere
-
-
-
-
01/12/11
SECUDE AG (IdM assets)
-
-
-
-
12/16/10
cundus AG (disclosure management assets)
-
-
-
-
05/12/10
Sybase
100.0%
-
$6,100
$5,800
04/21/10
TechniData AG
-
-
-
-
12/03/09
SOALogix
-
-
-
-
07/20/09
SAF Simulation, Analysis & Forecasting
100.0%
-
$91
$49
06/10/09
SkyData Systems
-
-
-
-
05/11/09
Clear Standards
-
-
-
-
05/06/09
Highdeal
-
-
-
-
Consideration
Equity
Enterprise
Date
Target
% Cash
% Stock
Value
Value
SAP (continued)
02/18/09
Coghead
-
-
-
-
07/10/08
Ness Technologies (SAP distribution division)
-
-
-
$21
06/17/08
Visiprise
-
-
-
-
10/17/07
YASU Technologies
-
-
-
-
10/07/07
Business Objects
100.0%
-
$6,770
$6,455
05/14/07
MaXware
-
-
-
-
05/14/07
Wicom Communications
-
-
-
-
05/08/07
OutlookSoft
-
-
-
-
02/20/07
Pilot Software
-
-
-
-
12/18/06
Factory Logic
-
-
-
-
07/10/06
Praxis Software Solutions
-
-
-
-
05/17/06
Frictionless Commerce
-
-
-
$15
04/03/06
Virsa Systems
-
-
-
-
11/22/05
Khimetrics
-
-
-
$160
11/01/05
Callixa
-
-
-
-
09/19/05
Triversity
-
-
-
$138
06/22/05
Lighthammer Software Development
-
-
-
-
02/08/05
Virtual Locality
-
-
$1
$1
02/01/05
DCS Quantum
-
-
-
-
01/19/05
TomorrowNow
-
-
-
-
01/12/05
iLytix Systems AS
-
-
-
-
07/13/04
A2i
-
-
-
$20
12/03/03
SPM Technologies Deutschland GmbH
-
-
-
-
06/01/03
Expression
-
-
-
-
06/01/03
GUI Machine
-
-
-
-
03/13/02
SAP Manage
-
-
-
-
03/13/02
TopManage Financial Solutions
-
-
-
$8
Symantec
Known acquired value:
$18,819
05/19/11
Clearwell Systems
-
-
$410
$390
05/19/10
VeriSign (identity & authentication assets)
100.0%
-
-
$1,280
04/29/10
GuardianEdge
100.0%
-
-
$73
04/29/10
PGP Corporation
100.0%
-
-
$300
01/12/10
Gideon Technology
-
-
-
-
11/01/09
SoftScan
-
-
-
-
04/21/09
Mi5 Networks
-
-
-
$18
10/08/08
MessageLabs
100.0%
-
-
$695
08/18/08
PC Tools
100.0%
-
-
$250
08/05/08
nSuite Technologies
100.0%
-
-
$20
06/06/08
SwapDrive
100.0%
-
-
$123
Copyright © 2011 Shea & Company, LLC
28
2002 – 2011 YTD ($ millions)
Note: “Known acquired value” includes only transactions for which data was publicly available (2002 – 2011 YTD) [a] Acquired by Veritas prior to Symantec acquisition
Most Active Consolidators continued
Consideration
Equity
Enterprise
Date
Target
% Cash
% Stock
Value
Value
Symantec (continued)
04/09/08
AppStream
100.0%
-
-
$52
01/02/08
Transparent Logic
100.0%
-
-
$12
11/05/07
Vontu
100.0%
-
-
$350
02/23/07
4FrontSecurity
100.0%
-
-
$7
01/29/07
Altiris
100.0%
-
$1,030
$830
11/29/06
Revivio
-
-
-
$20
11/06/06
Company-i
100.0%
-
-
$26
02/07/06
Relicore
-
-
-
$52
01/03/06
IMlogic
-
-
-
$90
10/03/05
BindView
100.0%
-
$209
$174
09/22/05
WholeSecurity
100.0%
-
-
$66
08/16/05
Sygate Technologies
100.0%
-
-
$163
05/16/05
XtreamLok
100.0%
-
-
$18
12/16/04
Veritas Software
-
100.0%
$13,550
$11,911
12/01/04
Platform Logic
100.0%
-
-
$30
09/17/04
LIRIC Associates
100.0%
-
-
$4
09/16/04
@stake
100.0%
-
-
$49
08/31/04
KVault Software
[a]
100.0%
-
-
$225
07/14/04
Invio Software
[a]
100.0%
-
-
$35
07/01/04
TurnTide
100.0%
-
-
$28
05/19/04
Brightmail
100.0%
-
$370
$343
01/07/04
Ejasent
[a]
100.0%
-
-
$59
10/27/03
OnTechnology
100.0%
-
$103
$89
10/20/03
SafeWeb
100.0%
-
-
$26
09/23/03
PowerQuest
100.0%
-
-
$150
07/01/03
Nexland
100.0%
-
-
$20
12/29/02
Jareva
[a]
100.0%
-
-
$66
12/19/02
Precise Software
[a]
100.0%
-
$540
$400
07/17/02
Recourse Technologies
100.0%
-
-
$135
07/17/02
Riptech
100.0%
-
-
$145
07/17/02
SecurityFocus
100.0%
-
-
$75
07/02/02
Mountain Wave
100.0%
-
-
$20
01/08/02
The Kernel Group
[a]
-
-
-
-
VMware
Known acquired value:
$1,013
08/26/11
PacketMotion
-
-
-
-
06/13/11
Digital Fuel Technologies
-
-
-
-
05/31/11
Socialcast
-
-
-
-
05/16/11
Shavlik Technologies
-
-
-
-
04/26/11
SlideRocket
-
-
-
-
Consideration
Equity
Enterprise
Date
Target
% Cash
% Stock
Value
Value
VMware (continued)
03/08/11
WaveMaker
-
-
-
-
08/31/10
Integrien
-
-
-
$100
08/31/10
TriCipher
-
-
-
-
05/06/10
GemStone Systems
-
-
-
-
04/13/10
Rabbit Technologies
100.0%
-
-
-
02/25/10
EMC (Ionix software assets)
100.0%
-
-
$200
02/23/10
RTO Software
-
-
-
-
01/12/10
Zimbra
100.0%
-
-
$100
08/10/09
SpringSource
86.2%
13.8%
$362
$420
11/26/08
Tungsten Graphics
-
-
-
-
11/10/08
Trango Virtual Processors
-
-
-
-
10/09/08
Blue Lane Technologies
-
-
-
-
05/28/08
B-hive Networks
-
-
-
$61
01/15/08
Thinstall
-
-
-
-
01/14/08
Foedus
-
-
-
-
10/01/07
Sciant
-
-
-
$9
09/11/07
Dunes Technologies
100.0%
-
-
$45
08/07/07
Determina
100.0%
-
-
$9
06/11/07
Propero
100.0%
-
-
$21
06/16/06
Akimbi Systems
100.0%
-
-
$47
Copyright © 2011 Shea & Company, LLC
29
Public Company Software Valuation Trends by Growth Tranche
Market Valuations of Publicly-Traded Software Companies by Growth Tranche
Forward Year Median EV / Revenue by Growth Tranche
Forward Year Median P/E by Growth Tranche
-
1x
2x
3x
4x
5x
6x
7x
3Q 2007 3Q 2008 3Q 2009 3Q 2010 3Q 2011
> 20% growth
10 - 20% growth
5 - 10% growth
< 5% growth
-
5x
10x
15x
20x
25x
30x
35x
40x
45x
3Q 2007 3Q 2008 3Q 2009 3Q 2010 3Q 2011
Revenue Mean EV/Revenue Median EV/Revenue Mean P/E Median P/E
Growth Date CY FY CY FY CY FY CY FY
< 5%
3Q 2011
1.8
x
1.7
x
1.9
x
1.8
x
11.1
x
11.1
x
11.2
x
10.4
x
2Q 2011
2.4
2.3
2.6
2.5
12.9
11.7
13.9
12.4
1Q 2011
2.2
2.2
2.5
2.4
12.5
11.5
13.2
12.4
4Q 2010
2.6
2.7
2.4
2.4
19.9
18.7
18.7
16.2
3Q 2010
2.3
2.2
2.1
2.0
17.1
16.3
14.3
13.8
2Q 2010
2.3
2.3
2.0
2.0
16.4
14.8
14.9
14.3
1Q 2010
2.1
2.1
2.3
2.2
14.6
13.4
13.2
13.3
4Q 2009
1.9
1.8
2.0
1.9
16.4
17.8
14.8
14.7
3Q 2009
1.9
1.9
1.9
1.8
17.1
16.4
14.6
14.9
2Q 2009
1.7
1.7
1.5
1.5
14.5
13.5
14.2
11.3
1Q 2009
1.3
1.2
1.0
1.0
14.8
15.1
12.3
11.1
4Q 2008
1.2
1.2
1.1
1.1
14.9
12.7
11.0
11.5
5 - 10%
3Q 2011
2.2
x
2.0
x
2.1
x
1.9
x
15.9
x
12.3
x
13.0
x
11.2
x
2Q 2011
2.6
2.4
2.4
2.2
18.0
14.3
16.3
14.6
1Q 2011
2.9
2.6
2.5
2.3
20.2
16.5
18.6
15.6
4Q 2010
2.9
2.7
2.7
2.5
17.7
14.8
17.1
14.3
3Q 2010
2.6
2.4
2.5
2.4
17.3
14.4
15.8
14.3
2Q 2010
2.4
2.2
2.3
2.2
16.7
15.0
15.9
13.7
1Q 2010
2.4
2.2
2.1
2.0
20.4
18.6
17.7
15.6
4Q 2009
2.9
2.7
2.9
2.7
23.5
22.2
19.9
17.0
3Q 2009
2.6
2.4
2.1
2.0
19.0
18.6
17.9
15.9
2Q 2009
2.2
2.0
1.8
1.7
19.7
15.6
17.0
13.7
1Q 2009
1.7
1.6
1.7
1.6
14.7
11.7
13.5
11.2
4Q 2008
1.6
1.4
1.4
1.3
13.0
14.5
13.6
11.1
10 - 20%
3Q 2011
3.1
x
2.7
x
2.5
x
2.3
x
24.5
x
18.6
x
20.7
x
16.8
x
2Q 2011
4.3
3.7
3.7
3.3
33.0
26.0
27.9
22.3
1Q 2011
4.4
3.9
3.9
3.5
32.0
27.2
27.3
22.4
4Q 2010
3.8
3.3
3.7
3.2
32.3
26.9
26.6
22.4
3Q 2010
3.7
3.3
3.3
2.9
34.4
26.6
28.0
22.0
2Q 2010
3.1
2.7
2.5
2.3
26.8
24.0
22.8
19.6
1Q 2010
3.6
3.2
3.4
3.0
27.9
23.9
25.9
20.1
4Q 2009
4.0
3.5
3.5
3.0
34.3
28.2
29.7
24.0
3Q 2009
3.4
3.0
3.3
2.9
36.8
28.6
30.1
26.0
2Q 2009
2.6
2.3
2.6
2.3
34.3
30.3
26.3
24.9
1Q 2009
2.0
1.7
1.8
1.6
26.9
22.7
21.1
17.7
4Q 2008
2.3
2.0
2.1
1.9
24.7
20.8
20.6
17.1
> 20%
3Q 2011
7.1
x
5.7
x
4.8
x
3.9
x
47.0
x
38.3
x
43.3
x
33.0
x
2Q 2011
6.6
5.4
6.7
5.5
44.7
39.1
45.2
39.1
1Q 2011
6.6
5.4
7.2
5.9
58.2
45.4
54.2
42.1
4Q 2010
7.3
5.7
7.2
6.0
52.5
42.2
52.0
37.0
3Q 2010
6.5
5.2
7.2
5.7
48.9
38.1
49.7
36.1
2Q 2010
5.0
4.0
4.9
3.8
42.5
29.6
39.7
27.7
1Q 2010
4.7
3.8
4.1
3.3
46.2
31.2
42.8
32.8
4Q 2009
5.8
4.6
5.0
4.1
42.9
32.9
37.6
33.3
3Q 2009
5.7
4.6
4.0
3.2
43.9
36.4
38.6
33.4
2Q 2009
5.6
4.4
5.2
4.1
53.4
42.7
43.3
34.8
1Q 2009
2.5
2.0
2.2
1.7
34.0
23.0
29.3
19.5
4Q 2008
3.1
2.4
2.8
2.2
29.3
31.7
24.0
25.6
Copyright © 2011 Shea & Company, LLC
30
Equity Trading Multiples by Segment
($ millions)
Notes:
Enterprise value equals equity value, plus debt, less cash
P/E multiples in excess of 100x or less than 0x and EBITDA multiples less than 0x are considered to be not meaningful
[a] Wall Street consensus estimates
Source: Company releases, Wall Street research, Shea & Company
Share Price Market Enterprise Projected Revenue [a] EV / Revenue Projected EBITDA [a] EV / EBITDA Projected E PS [a] P/E Multiple
Company (09/30/11) Value Value CY11E CY12E Growth % CY11E C Y12E CY11E CY12E Growth % CY11E CY12E CY11E CY12E Growth % C Y11E CY12E
Global Diversified
IBM 174.87$ 211,999$ 230,092$ 106,040$ 112,302$ 5.9% 2.2 x 2.0 x 25,708$ 27,876$ 8.4% 9.0 x 8.3 x 13.17$ 14.79$ 12.3% 13.3 x 11.8 x
Microsoft 24.89 209,418 163,942 71,904 77,558 7.9% 2.3 2.1 30,788 34,334 11.5% 5.3 4.8 2.64 3.02 14.2% 9.4 8.2
Oracle 28.74 146,959 130,435 37,008 39,871 7.7% 3.5 3.3 17,257 19,304 11.9% 7.6 6.8 2.24 2.50 11.7% 12.8 11.5
Intel 21.33 112,340 105,868 52,668 57,032 8.3% 2.0 1.9 22,289 25,028 12.3% 4.7 4.2 2.23 2.46 10.3% 9.6 8.7
Cisco Systems 15.50 83,691 55,961 43,967 46,981 6.9% 1.3 1.2 13,218 14,391 8.9% 4.2 3.9 1.56 1.81 16.2% 9.9 8.6
SAP AG 50.62 60,219 58,944 18,886 20,868 10.5% 3.1 2.8 7,013 7,819 11.5% 8.4 7.5 3.60 4.10 13.9% 14.1 12.3
EMC 20.99 47,875 39,252 19,684 22,044 12.0% 2.0 1.8 5,751 5,954 3.5% 6.8 6.6 1.48 1.71 15.7% 14.2 12.3
Hewlett Packard 22.45 44,725 57,863 126,453 127,279 0.7% 0.5 0.5 17,716 17,772 0.3% 3.3 3.3 4.58 4.71 3.1% 4.9 4.8
Dell 14.14 25,797 17,357 63,181 64,688 2.4% 0.3 0.3 5,648 5,900 4.5% 3.1 2.9 1.85 1.95 5.6% 7.6 7.2
Mean 59,977$ 63,180$ 6.9% 1.9 x 1.8 x 16,154$ 17,598$ 8.1% 5.8 x 5.4 x 3.71$ 4.12$ 11.5% 10.6 x 9.5 x
Median 52,668 57,032 7.7% 2.0 1.9 17,257 17,772 8.9% 5.3 4.8 2.24 2.50 12.3% 9.9 8.7
Application Delivery & Network Acceleration
Citrix Systems 54.53$ 10,399$ 8,708$ 2,152$ 2,464$ 14.5% 4.0 x 3.5 x 659$ 815$ 23.7% 13.2 x 10.7 x 2.29$ 2.76$ 20.9% 23.9 x 19.7 x
F5 Networks 71.05 5,763 4,706 1,198 1,431 19.5% 3.9 3.3 484 583 20.4% 9.7 8.1 3.75 4.47 19.3% 18.9 15.9
Riverbed Technology 19.96 3,236 2,625 723 885 22.4% 3.6 3.0 219 282 28.6% 12.0 9.3 0.84 1.13 33.6% 23.7 17.7
LogMeIn 33.21 835 668 119 147 24.0% 5.6 4.5 29 39 33.3% 22.7 17.0 0.65 0.84 29.5% 51.1 39.4
Blue Coat Systems 13.88 590 332 449 447 -0.5% 0.7 0.7 68 54 -21.2% 4.9 6.2 0.81 0.69 -15.0% 17.2 20.2
Radware 21.59 418 214 164 180 9.7% 1.3 1.2 31 34 9.7% 6.8 6.2 1.24 1.48 19.0% 17.4 14.6
Mean 801$ 926$ 14.9% 3.2 x 2.7 x 249$ 301$ 15.7% 11.6 x 9.6 x 1.60$ 1.90$ 17.9% 25.4 x 21.3 x
Median 586 666 17.0% 3.8 3.1 144 168 22.1% 10.8 8.7 1.04 1.30 20.1% 21.3 18.7
Business Intelligence
Informatica 40.95$ 4,624$ 4,060$ 774$ 911$ 17.7% 5.2 x 4.5 x 215$ 264$ 23.1% 18.9 x 15.4 x 1.33$ 1.65$ 24.3% 30.9 x 24.8 x
Qlik Technologies 21.63 1,885 1,710 307 401 30.6% 5.6 4.3 39 68 72.1% 43.4 25.2 0.26 0.44 69.0% 82.9 49.1
MicroStrategy 114.07 1,284 1,091 542 636 17.4% 2.0 1.7 49 65 31.9% 22.2 16.8 2.58 3.76 45.7% 44.2 30.3
Pegasystems 30.61 1,194 1,095 434 512 18.0% 2.5 2.1 61 78 29.2% 18.1 14.0 1.06 1.47 38.4% 28.9 20.9
PROS 12.89 351 287 95 116 22.1% 3.0 2.5 14 20 43.7% 20.2 14.0 0.30 0.42 41.9% 43.3 30.5
DemandTec 6.54 233 163 90 100 10.8% 1.8 1.6 4 11 151.4% 38.8 15.4 (0.04) 0.10 nm nm 62.7
Mean 374$ 446$ 19.5% 3.4 x 2.8 x 64$ 84$ 58.6% 26.9 x 16.8 x 0.92$ 1.31$ 43.9% 46.0 x 36.4 x
Median 370 457 17.9% 2.8 2.3 44 66 37.8% 21.2 15.4 0.68 0.95 41.9% 43.3 30.4
Content Management
Adobe 24.17$ 11,865$ 10,662$ 4,135$ 4,544$ 9.9% 2.6 x 2.3 x 1,670$ 1,917$ 14.8% 6.4 x 5.6 x 2.22$ 2.55$ 14.7% 10.9 x 9.5 x
Open Text 52.18 3,047 3,060 1,129 1,270 12.5% 2.7 2.4 318 373 17.2% 9.6 8.2 4.25 4.72 11.0% 12.3 11.1
IntraLinks 7.51 410 440 217 242 11.9% 2.0 1.8 71 80 12.3% 6.2 5.5 0.48 0.58 21.9% 15.7 12.9
Guidance Software 6.49 166 138 100 112 11.8% 1.4 1.2 10 24 137.4% 13.6 5.7 0.15 0.24 57.5% 42.4 26.9
Mean 1,395$ 1,542$ 11.5% 2.2 x 2.0 x 517$ 598$ 45.4% 9.0 x 6.3 x 1.78$ 2.02$ 26.3% 20.3 x 15.1 x
Median 673 756 11.9% 2.3 2.1 194 226 16.0% 8.0 5.7 1.35 1.57 18.3% 14.0 12.0
Copyright © 2011 Shea & Company, LLC
31
Equity Trading Multiples by Segment
($ millions)
Notes:
Enterprise value equals equity value, plus debt, less cash
P/E multiples in excess of 100x or less than 0x and EBITDA multiples less than 0x are considered to be not meaningful
[a] Wall Street consensus estimates
Source: Company releases, Wall Street research, Shea & Company
Share Price Market Enterprise Projected Revenue [a] EV / Revenue Projected EBITDA [a] EV / EBITDA Projected EPS [a] P/E Multiple
Company (09/30/11) Value Value CY11E CY12E Growth % CY11E CY12E CY11E CY12E Growth % CY11E CY12E CY11E CY12E Growth % CY11E CY12E
ERP & Business Applications
Salesforce.com 114.28$ 15,782$ 14,979$ 2,192$ 2,781$ 26.9% 6.8 5.4 x 389$ 555$ 42.6% 38.5 27.0 x 1.28$ 1.77$ 38.7% 89.5 x 64.6 x
Sage Group 4.00 5,296 5,410 2,373 2,395 0.9% 2.3 2.3 622 657 5.6% 8.7 8.2 0.32 0.33 5.0% 12.6 12.0
NetSuite 27.01 1,900 1,779 232 279 20.3% 7.7 6.4 22 33 48.5% 79.5 53.6 0.14 0.28 95.0% nm 97.2
Constellation Software 68.10 1,443 1,488 750 855 13.9% 2.0 1.7 160 177 10.6% 9.3 8.4 5.40 6.76 25.1% 12.6 10.1
Rightnow Technologies 33.05 1,342 1,086 225 268 18.9% 4.8 4.1 32 56 77.2% 34.3 19.4 0.53 0.83 56.1% 61.8 39.6
Blackbaud 22.27 997 964 372 416 11.8% 2.6 2.3 87 99 13.9% 11.0 9.7 1.05 1.22 16.4% 21.3 18.3
Synchronoss Technologies 24.91 978 800 226 269 19.2% 3.5 3.0 59 76 27.2% 13.5 10.6 0.84 1.03 23.7% 29.8 24.1
Cornerstone OnDemand 12.54 614 535 73 108 48.2% 7.4 5.0 (8) (4) nm nm nm (0.41) (0.07) nm nm nm
Responsys 10.78 571 489 133 162 21.4% 3.7 3.0 23 31 33.6% 21.2 15.9 0.19 0.24 25.3% 56.7 45.3
Constant Contact 17.29 526 405 215 259 20.4% 1.9 1.6 34 49 43.3% 11.9 8.3 0.59 0.91 54.5% 29.3 19.0
Deltek 6.01 416 540 352 389 10.6% 1.5 1.4 64 74 15.0% 8.4 7.3 0.34 0.48 41.2% 17.7 12.5
Vocus 16.76 355 239 113 133 17.2% 2.1 1.8 19 25 30.9% 12.6 9.6 0.76 0.89 17.2% 22.2 18.9
Convio 8.41 164 114 79 92 15.8% 1.4 1.2 10 14 41.8% 11.5 8.1 0.35 0.51 46.7% 24.1 16.5
CDC Software 3.30 91 60 223 238 6.7% 0.3 0.3 26 26 1.5% 2.3 2.3 0.55 0.57 3.7% 6.0 5.7
Mean 540$ 617$ 18.0% 3.4 x 2.8 x 110$ 133$ 30.1% 20.2 x 14.5 x 0.85$ 1.13$ 34.5% 32.0 x 29.5 x
Median 225 268 18.1% 2.4 2.3 33 52 30.9% 11.9 9.6 0.54 0.70 25.3% 23.2 18.9
Financial Applications
Intuit 47.44$ 14,538$ 14,153$ 3,986$ 4,361$ 9.4% 3.6 x 3.2 x 1,473$ 1,625$ 10.3% 9.6 x 8.7 x 2.59$ 2.99$ 15.5% 18.3 x 15.9 x
FIS 24.32 7,539 12,165 5,719 6,104 6.7% 2.1 2.0 1,735 1,880 8.4% 7.0 6.5 2.29 2.62 14.2% 10.6 9.3
Fiserv 50.77 7,216 10,194 4,283 4,518 5.5% 2.4 2.3 1,413 1,504 6.5% 7.2 6.8 4.51 5.09 12.9% 11.3 10.0
MSCI 30.33 3,694 4,524 913 1,003 9.8% 5.0 4.5 423 480 13.5% 10.7 9.4 1.81 2.07 14.5% 16.8 14.6
Jack Henry 28.98 2,517 2,617 999 1,060 6.1% 2.6 2.5 318 346 8.9% 8.2 7.6 1.62 1.81 11.5% 17.9 16.0
Concur 37.23 2,050 1,682 366 446 22.1% 4.6 3.8 98 128 30.1% 17.1 13.1 0.83 1.12 35.7% 45.0 33.2
Misys 3.35 1,486 1,624 641 718 12.0% 2.5 2.3 175 192 10.1% 9.3 8.5 0.28 0.34 22.5% 12.1 9.9
Advent Software 20.85 1,211 1,133 319 364 14.0% 3.5 3.1 86 105 22.4% 13.2 10.7 0.82 0.90 10.2% 25.5 23.2
SS&C Technologies 14.29 1,152 1,273 369 407 10.4% 3.5 3.1 148 168 13.1% 8.6 7.6 1.04 1.15 11.0% 13.8 12.4
ServiceSource 13.21 973 901 192 236 22.9% 4.7 3.8 11 23 109.9% 80.9 38.5 (0.00) 0.13 nm nm nm
Fidessa 24.47 896 811 449 474 5.4% 1.8 1.7 134 100 -25.6% 6.0 8.1 1.28 1.41 10.4% 19.2 17.4
IRESS Market Technology 6.76 855 812 197 213 8.5% 4.1 3.8 81 92 13.2% 10.0 8.8 0.46 0.51 10.7% 14.8 13.4
Fair Isaac 21.83 843 1,092 630 644 2.2% 1.7 1.7 173 175 1.2% 6.3 6.2 2.12 2.10 -1.3% 10.3 10.4
Bottomline Technologies 20.14 744 632 205 230 12.2% 3.1 2.8 44 59 33.3% 14.3 10.8 0.94 1.16 22.3% 21.3 17.4
SimCorp 143.74 637 591 270 288 6.6% 2.2 2.0 66 73 10.2% 8.9 8.1 9.60 11.31 17.9% 15.0 12.7
S1 Corporation 9.17 510 438 238 261 9.5% 1.8 1.7 25 37 49.5% 17.9 12.0 0.13 0.31 136.3% 69.9 29.6
Envestnet 10.00 326 249 125 160 27.3% 2.0 1.6 28 39 39.9% 8.8 6.3 0.39 0.61 54.7% 25.4 16.4
Mean 1,171$ 1,264$ 11.2% 3.0 x 2.7 x 378$ 428$ 20.9% 14.4 x 10.5 x 1.81$ 2.09$ 24.9% 21.7 x 16.4 x
Median 369 446 9.5% 2.6 2.5 134 117 13.1% 9.3 8.5 1.04 1.16 14.4% 17.3 15.2
Copyright © 2011 Shea & Company, LLC
32
Equity Trading Multiples by Segment continued
($ millions)
Notes:
Enterprise value equals equity value, plus debt, less cash
P/E multiples in excess of 100x or less than 0x and EBITDA multiples less than 0x are considered to be not meaningful
[a] Wall Street consensus estimates
Source: Company releases, Wall Street research, Shea & Company
Share Price Market Enterprise Projected Revenue [a] EV / Revenue Projected EBITDA [a] EV / EBITDA Projected EPS [a] P/E Multiple
Company (09/30/11) Value Value CY11E CY12E Growth % CY11E CY12E CY11E CY12E Growth % CY11E CY12E CY11E CY12E Growth % CY11E CY12E
Human Capital Management
SuccessFactors 22.99$ 1,996$ 1,746$ 306$ 395$ 29.1% 5.7 x 4.4 x 9$ 16$ 73.9% 186.7 x 107.3 x 0.02$ 0.10$ 436.8% nm x nm x
Ultimate Software 46.72 1,287 1,241 270 321 19.1% 4.6 3.9 46 67 45.6% 27.0 18.6 0.72 1.11 54.4% 65.3 42.3
Taleo 25.72 1,076 928 318 377 18.7% 2.9 2.5 64 77 19.4% 14.5 12.1 0.90 1.14 27.3% 28.6 22.5
Kenexa 15.64 427 341 276 315 14.1% 1.2 1.1 43 57 31.8% 7.9 6.0 0.76 1.03 35.4% 20.7 15.3
Mean 292$ 352$ 20.3% 3.6 x 3.0 x 41$ 54$ 42.7% 59.0 x 36.0 x 0.60$ 0.84$ 138.5% 38.2 x 26.7 x
Median 291 349 18.9% 3.8 3.2 45 62 38.7% 20.7 15.3 0.74 1.07 44.9% 28.6 22.5
IT Security Management
Symantec 16.30$ 12,221$ 12,003$ 6,572$ 7,048$ 7.2% 1.8 x 1.7 x 2,356$ 2,663$ 13.0% 5.1 x 4.5 x 1.53$ 1.76$ 14.9% 10.7 x 9.3 x
Check Point 52.76 11,243 8,553 1,234 1,376 11.5% 6.9 6.2 729 812 11.3% 11.7 10.5 2.78 3.14 12.9% 18.9 16.8
Verisign 28.61 4,765 3,955 774 869 12.3% 5.1 4.6 415 473 13.8% 9.5 8.4 1.43 1.82 27.6% 20.1 15.7
Trend Micro 31.67 4,187 2,504 1,261 1,334 5.8% 2.0 1.9 427 467 9.3% 5.9 5.4 1.61 1.73 7.6% 19.6 18.3
Fortinet 16.80 2,645 2,177 396 470 18.9% 5.5 4.6 86 113 31.0% 25.3 19.3 0.34 0.43 25.7% 49.1 39.1
Sourcefire 26.76 787 642 153 187 22.4% 4.2 3.4 25 35 41.5% 26.1 18.4 0.43 0.67 55.8% 62.7 40.2
Websense 17.30 692 679 364 381 4.7% 1.9 1.8 98 100 1.9% 6.9 6.8 1.55 1.67 7.8% 11.2 10.4
F-Secure 2.61 413 381 192 214 11.8% 2.0 1.8 36 46 27.4% 10.5 8.2 0.16 0.19 20.3% 16.8 13.9
Vasco Data Security 5.11 197 113 143 168 17.1% 0.8 0.7 17 20 18.0% 6.7 5.7 0.24 0.34 40.8% 21.0 14.9
Mean 1,232$ 1,339$ 12.4% 3.4 x 3.0 x 465$ 525$ 18.6% 12.0 x 9.7 x 1.12$ 1.31$ 23.7% 25.6 x 19.8 x
Median 396 470 11.8% 2.0 1.9 98 113 13.8% 9.5 8.2 1.43 1.67 20.3% 19.6 15.7
Network Infrastructure
Juniper Networks 17.26$ 9,232$ 6,011$ 4,589$ 5,194$ 13.2% 1.3 x 1.2 x 1,224$ 1,491$ 21.8% 4.9 x 4.0 x 1.30$ 1.52$ 17.1% 13.3 x 11.3 x
Aruba Networks 20.91 2,395 2,161 447 553 23.8% 4.8 3.9 96 130 35.6% 22.5 16.6 0.61 0.70 16.1% 34.5 29.7
Extreme Networks 2.65 246 99 317 334 5.4% 0.3 0.3 21 24 16.5% 4.8 4.1 0.13 0.36 176.9% 20.4 7.4
Mean 1,784$ 2,027$ 14.1% 2.2 x 1.8 x 447$ 549$ 24.6% 10.7 x 8.2 x 0.68$ 0.86$ 70.0% 22.7 x 16.1 x
Median 447 553 13.2% 1.3 1.2 96 130 21.8% 4.9 4.1 0.61 0.70 17.1% 20.4 11.3
Platforms, Development Tools & Deployment
Red Hat 42.26$ 8,194$ 6,893$ 1,049$ 1,249$ 19.0% 6.6 x 5.5 x 308$ 373$ 21.2% 22.4 x 18.5 x 0.95$ 1.16$ 21.9% 44.6 x 36.6 x
TIBCO Software 22.39 3,957 3,724 882 1,015 15.0% 4.2 3.7 244 299 22.9% 15.3 12.4 0.90 1.11 23.5% 25.0 20.2
Software AG 31.78 2,755 2,961 1,550 1,709 10.2% 1.9 1.7 458 539 17.5% 6.5 5.5 4.47 4.13 -7.7% 7.1 7.7
Progress Software 17.55 1,136 750 533 563 5.5% 1.4 1.3 194 234 20.3% 3.9 3.2 1.44 1.66 15.8% 12.2 10.6
Micro Focus 5.05 1,057 1,072 426 423 -0.9% 2.5 2.5 157 157 0.2% 6.9 6.8 0.55 0.55 0.2% 9.1 9.1
Mean 888$ 992$ 9.8% 3.3 x 3.0 x 272$ 320$ 16.4% 11.0 x 9.3 x 1.66$ 1.72$ 10.7% 19.6 x 16.8 x
Median 882 1,015 10.2% 2.5 2.5 244 299 20.3% 6.9 6.8 0.95 1.16 15.8% 12.2 10.6
Copyright © 2011 Shea & Company, LLC
33
Equity Trading Multiples by Segment continued
($ millions)
Notes:
Enterprise value equals equity value, plus debt, less cash
P/E multiples in excess of 100x or less than 0x and EBITDA multiples less than 0x are considered to be not meaningful
[a] Wall Street consensus estimates
Source: Company releases, Wall Street research, Shea & Company
Share Price Market Enterprise Projected Revenue [a] EV / Revenue Projected EBITDA [a] EV / EBITDA Projected EPS [a] P/E Multiple
Company (09/30/11) Value Value CY11E CY12E Growth % CY11E CY12E CY11E CY12E Growth % CY11E CY12E CY11E CY12E Growth % CY11E CY12E
Storage Management
NetApp 33.93$ 12,738$ 9,229$ 6,060$ 7,029$ 16.0% 1.5 x 1.3 x 1,285$ 1,564$ 21.8% 7.2 x 5.9 x 2.30$ 2.71$ 18.0% 14.8 x 12.5 x
CommVault Systems 37.06 1,804 1,550 359 417 16.2% 4.3 3.7 64 81 25.6% 24.1 19.2 0.84 1.02 20.6% 43.9 36.4
Carbonite 12.04 298 282 59 81 38.4% 4.8 3.5 (15) -8.93 nm nm nm (1.11) (0.76) nm nm nm
FalconStor Software 2.92 136 98 87 96 10.1% 1.1 1.0 15 n/a nm 6.7 nm (0.14) (0.06) nm nm nm
Mean 1,641$ 1,906$ 20.2% 2.9 x 2.4 x 337$ 823$ 23.7% 12.7 x 12.5 x 0.47$ 0.73$ 19.3% 29.3 x 24.5 x
Median 223 256 16.1% 2.9 2.4 39 823 23.7% 7.2 12.5 0.35 0.48 19.3% 29.3 24.5
Supply Chain Management
Ariba 27.71$ 2,711$ 2,478$ 461$ 520$ 12.9% 5.4 x 4.8 x 98$ 125$ 27.1% 25.2 x 19.8 x 0.84$ 1.06$ 26.1% 33.0 x 26.2 x
JDA Software 23.44 1,001 1,018 679 758 11.7% 1.5 1.3 180 208 15.3% 5.6 4.9 2.20 2.72 23.4% 10.6 8.6
Manhattan Associates 33.08 722 612 329 366 11.0% 1.9 1.7 68 82 21.1% 9.1 7.5 1.80 2.22 23.2% 18.4 14.9
Mean 489$ 548$ 11.9% 2.9 x 2.6 x 115$ 138$ 21.2% 13.3 x 10.7 x 1.61$ 2.00$ 24.2% 20.7 x 16.6 x
Median 461 520 11.7% 1.9 1.7 98 125 21.1% 9.1 7.5 1.80 2.22 23.4% 18.4 14.9
Systems & Network Management
VMware 80.38$ 34,486$ 31,233$ 3,647$ 4,460$ 22.3% 8.6 x 7.0 x 1,353$ 1,676$ 23.8% 23.1 x 18.6 x 1.95$ 2.45$ 25.6% 41.3 x 32.9 x
CA Technologies 19.41 9,802 8,159 4,752 5,094 7.2% 1.7 1.6 1,748 1,953 11.8% 4.7 4.2 2.06 2.34 13.5% 9.4 8.3
BMC Software 38.56 6,831 5,486 2,172 2,357 8.5% 2.5 2.3 947 1,023 7.9% 5.8 5.4 3.14 3.51 11.8% 12.3 11.0
Compuware 7.66 1,674 1,480 999 1,150 15.1% 1.5 1.3 194 270 39.1% 7.6 5.5 0.45 0.62 38.4% 17.1 12.4
SolarWinds 22.02 1,648 1,478 191 234 22.4% 7.7 6.3 94 121 27.9% 15.7 12.2 0.85 1.05 23.9% 26.0 20.9
Quest Software 15.88 1,370 1,122 858 920 7.3% 1.3 1.2 200 254 26.6% 5.6 4.4 1.39 1.63 17.5% 11.4 9.7
Opnet Technologies 34.91 808 689 169 201 19.2% 4.1 3.4 34 51 48.8% 20.2 13.6 0.89 1.22 37.6% 39.2 28.5
Netscout Systems 11.42 490 345 293 322 10.2% 1.2 1.1 76 87 14.9% 4.6 4.0 0.95 1.18 24.4% 12.0 9.6
Keynote Systems 21.13 398 307 102 114 12.5% 3.0 2.7 23 22 -5.9% 13.4 14.3 1.03 1.22 18.8% 20.6 17.3
Mean 1,465$ 1,650$ 13.8% 3.5 x 3.0 x 519$ 606$ 21.7% 11.2 x 9.1 x 1.41$ 1.69$ 23.5% 21.0 x 16.7 x
Median 858 920 12.5% 2.5 2.3 194 254 23.8% 7.6 5.5 1.03 1.22 23.9% 17.1 12.4
Technical & Embedded Applications
Dassault Systemes 71.26$ 8,861$ 7,559$ 2,296$ 2,484$ 8.2% 3.3 x 3.0 x 678$ 782$ 15.3% 11.1 x 9.7 x 3.62$ 4.12$ 13.6% 19.7 x 17.3 x
Autodesk 27.79 6,426 4,874 2,190 2,444 11.6% 2.2 2.0 588 715 21.6% 8.3 6.8 1.63 1.98 21.6% 17.0 14.0
ANSYS 49.04 4,632 4,151 683 792 16.0% 6.1 5.2 351 421 20.1% 11.8 9.9 2.42 2.82 16.5% 20.3 17.4
Synopsys 24.36 3,565 2,527 1,552 1,665 7.3% 1.6 1.5 463 441 -4.8% 5.5 5.7 1.79 1.99 11.6% 13.6 12.2
Cadence Design 9.24 2,487 2,381 1,113 1,203 8.1% 2.1 2.0 251 316 26.2% 9.5 7.5 0.43 0.62 43.6% 21.5 15.0
Parametric Technology 15.38 1,831 1,570 1,184 1,352 14.2% 1.3 1.2 241 283 17.3% 6.5 5.5 1.29 1.51 16.5% 11.9 10.2
Mentor Graphics 9.62 1,056 1,156 998 1,060 6.3% 1.2 1.1 190 237 25.0% 6.1 4.9 0.96 1.22 27.0% 10.0 7.9
Medidata Solutions 16.44 416 322 181 207 14.7% 1.8 1.6 42 52 21.5% 7.6 6.2 1.32 1.33 0.2% 12.4 12.4
Mean 1,275$ 1,401$ 10.8% 2.5 x 2.2 x 350$ 406$ 17.8% 8.3 x 7.0 x 1.68$ 1.95$ 18.8% 15.8 x 13.3 x
Median 1,149 1,278 9.9% 2.0 1.8 301 369 20.8% 7.9 6.5 1.48 1.7416.5% 15.3 13.2
Copyright © 2011 Shea & Company, LLC
34
Equity Trading Multiples by Comparable Subset
($ millions)
Notes:
Enterprise value equals equity value, plus debt, less cash
P/E multiples in excess of 100x or less than 0x are considered to be not meaningful
[a] Wall Street consensus estimates
Source: Company releases, Wall Street research, Shea & Company
Share Price Market Enterprise Projected Revenue [a] EV / Revenue Projected EBITDA [a] EV / EBITDA Projected EPS [a] P/E Multiple
Company (09/30/11) Value Value CY11E CY12E Growth % CY11E CY12E CY11E CY12E Growth % CY11E CY12E CY11E CY12E Growth % CY11E CY12E
High Growth (>20% Revenue Growth)
VMware 80.38$ 34,486$ 31,233$ 3,647$ 4,460$ 22.3% 8.6 x 7.0 x 1,353$ 1,676$ 23.8% 23.1 x 18.6 x 1.95$ 2.45$ 25.6% 41.3 x 32.9 x
Salesforce.com 114.28 15,782 14,979 2,192 2,781 26.9% 6.8 5.4 389 555 42.6% 38.5 27.0 1.28 1.77 38.7% 89.5 64.6
Riverbed Technology 19.96 3,236 2,625 723 885 22.4% 3.6 3.0 219 282 28.6% 12.0 9.3 0.84 1.13 33.6% 23.7 17.7
Aruba Networks 20.91 2,395 2,161 447 553 23.8% 4.8 3.9 96 130 35.6% 22.5 16.6 0.61 0.70 16.3% 34.5 29.7
Concur 37.23 2,050 1,682 366 446 22.1% 4.6 3.8 98 128 30.1% 17.1 13.1 0.83 1.12 35.7% 45.0 33.2
SuccessFactors 22.99 1,996 1,746 306 395 29.1% 5.7 4.4 9 16 73.9% 186.7 107.3 0.02 0.10 436.8% nm nm
NetSuite 27.01 1,900 1,779 232 279 20.3% 7.7 6.4 22 33 48.5% 79.5 53.6 0.14 0.28 95.0% nm 97.2
Qlik Technologies 21.63 1,885 1,710 307 401 30.6% 5.6 4.3 39 68 72.1% 43.4 25.2 0.26 0.44 69.0% 82.9 49.1
SolarWinds 22.02 1,648 1,478 191 234 22.4% 7.7 6.3 94 121 27.9% 15.7 12.2 0.85 1.05 23.9% 26.0 20.9
ServiceSource 13.21 973 901 192 236 22.9% 4.7 3.8 11 23 109.9% 80.9 38.5 (0.00) 0.13 nm nm nm
LogMeIn 33.21 835 668 119 147 24.0% 5.6 4.5 29 39 33.3% 22.7 17.0 0.65 0.84 29.5% 51.1 39.4
Sourcefire 26.76 787 642 153 187 22.4% 4.2 3.4 25 35 41.5% 26.1 18.4 0.43 0.67 55.7% 62.6 40.2
Cornerstone OnDemand 12.54 614 535 73 108 48.2% 7.4 5.0 (8) (4) nm nm nm (0.41) (0.07) nm nm nm
Responsys 10.78 571 489 133 162 21.4% 3.7 3.0 23 31 33.6% 21.2 15.9 0.19 0.24 25.3% 56.7 45.3
Constant Contact 17.29 526 405 215 259 20.4% 1.9 1.6 34 49 43.3% 11.9 8.3 0.59 0.91 54.5% 29.3 19.0
PROS 12.89 351 287 95 116 22.1% 3.0 2.5 14 20 43.7% 20.2 14.0 0.30 0.42 41.9% 43.3 30.5
Envestnet 10.00 326 249 125 160 27.3% 2.0 1.6 28 39 39.9% 8.8 6.3 0.39 0.61 54.7% 25.4 16.4
Carbonite 12.04 298 282 59 81 38.4% 4.8 3.5 (15) (9) nm nm nm (1.11) (0.76) nm nm nm
Mean 532$ 661$ 25.9% 5.1 x 4.1 x 137$ 180$ 45.5% 39.4 x 25.1 x 0.43$ 0.67$ 69.1% 47.0 x 38.3 x
Median 204 247 22.6% 4.8 3.9 29 39 40.7% 22.6 16.8 0.41 0.64 38.7% 43.3 33.0
High Profitability (>40% CY11E EBITDA Margin)
Microsoft 24.89$ 209,418$ 163,942$ 71,904$ 77,558$ 7.9% 2.3 x 2.1 x 30,788$ 34,334$ 11.5% 5.3 x 4.8 x 2.64$ 3.02$ 14.2% 9.4 x 8.2 x
Oracle 28.74 146,959 130,435 37,008 39,871 7.7% 3.5 3.3 17,257 19,304 11.9% 7.6 6.8 2.24 2.50 11.7% 12.8 11.5
Intel 21.33 112,340 105,868 52,668 57,032 8.3% 2.0 1.9 22,289 25,028 12.3% 4.7 4.2 2.23 2.46 10.3% 9.6 8.7
Adobe 24.17 11,865 10,662 4,135 4,544 9.9% 2.6 2.3 1,670 1,917 14.8% 6.4 5.6 2.22 2.55 14.7% 10.9 9.5
Check Point 52.76 11,243 8,553 1,234 1,376 11.5% 6.9 6.2 729 812 11.3% 11.7 10.5 2.78 3.14 12.9% 18.9 16.8
BMC Software 38.56 6,831 5,486 2,172 2,357 8.5% 2.5 2.3 947 1,023 7.9% 5.8 5.4 3.14 3.51 11.8% 12.3 11.0
F5 Networks 71.05 5,763 4,706 1,198 1,431 19.5% 3.9 3.3 484 583 20.4% 9.7 8.1 3.75 4.47 19.3% 18.9 15.9
Verisign 28.61 4,765 3,955 774 869 12.3% 5.1 4.6 415 473 13.8% 9.5 8.4 1.43 1.82 27.6% 20.1 15.7
ANSYS 49.04 4,632 4,151 683 792 16.0% 6.1 5.2 351 421 20.1% 11.8 9.9 2.42 2.82 16.5% 20.3 17.4
SolarWinds 22.02 1,648 1,478 191 234 22.4% 7.7 6.3 94 121 27.9% 15.7 12.2 0.85 1.05 23.9% 26.0 20.9
SS&C Technologies 14.29 1,152 1,273 369 407 10.4% 3.5 3.1 148 168 13.1% 8.6 7.6 1.04 1.15 11.0% 13.8 12.4
IRESS Market Technology 6.76 855 812 197 213 8.5% 4.1 3.8 81 92 13.2% 10.0 8.8 0.46 0.51 10.7% 14.8 13.4
Mean 14,378$ 15,557$ 11.9% 4.2 x 3.7 x 6,271$ 7,023$ 14.9% 8.9 x 7.7 x 2.10$ 2.42$ 15.4% 15.6 x 13.4 x
Median 1,216 1,404 10.1% 3.7 3.3 607 697 13.1% 9.1 7.8 2.24 2.53 13.6% 14.3 12.9
Copyright © 2011 Shea & Company, LLC
35
Software IPO Pricing & Performance Data
Initial Equity Issuances from 2007 – 2011 YTD ($ millions)
Notes:
Enterprise value equals equity value, plus debt, less cash
[a] Share price at acquisition
Source: Company releases, Wall Street research, Shea & Company
Current Trading Data Valuation at IPO Stock Performance
Share price Market Enterprise EV / Revenue Market Enterprise EV / Revenue Revenue % Change % of
Company (09/30/11) Value Value CY11E CY12E IPO Date Share Price Value Value IPO CY IPO +1 Growth from IPO 52wk High
Carbonite $ 12.04 $ 298 $ 282 4.8 x 3.5 x 08/10/11 $ 10.00 $ 247 $ 231 n/a x 2.8 x n/a % 20.4 % 57.1 %
Responsys 10.78 571 489 3.7 3.0 04/20/11 12.00 638 624 4.9 4.1 20.7 (10.2) 59.3
ServiceSource 13.21 973 901 4.7 3.8 03/25/11 10.00 710 689 3.9 3.3 19.3 32.1 56.0
Cornerstone OnDemand 12.54 614 535 7.4 5.0 03/17/11 13.00 651 652 9.1 6.1 48.7 (3.5) 53.4
IntraLinks 7.51 410 440 2.0 1.8 08/05/10 13.00 648 792 4.5 4.0 13.0 (42.2) 23.3
Envestnet 10.00 326 249 2.0 1.6 07/28/10 9.00 293 226 2.4 1.9 26.1 11.1 56.9
Qlik Technologies 21.63 1,885 1,710 5.6 4.3 07/15/10 10.00 746 616 3.0 2.5 21.8 116.3 60.7
Convio 8.41 164 114 1.4 1.2 04/28/10 9.00 170 172 2.5 2.3 11.0 (6.6) 64.7
SS&C Technologies 14.29 1,152 1,273 3.5 3.1 03/30/10 15.00 1,038 1,306 4.1 3.9 5.7 (4.7) 65.1
Fortinet 16.80 2,645 2,177 5.5 4.6 11/17/09 12.50 805 653 2.6 2.4 8.7 34.4 58.8
CDC Software 3.30 91 60 0.3 0.3 08/05/09 12.00 348 336 1.7 1.7 (0.7) (72.5) 40.6
LogMeIn 33.21 835 668 5.6 4.5 06/30/09 16.00 342 242 3.3 2.6 24.1 107.6 67.1
Medidata Solutions 16.44 416 322 1.8 1.6 06/24/09 14.00 313 247 1.8 1.6 18.2 17.4 60.0
SolarWinds 22.02 1,648 1,478 7.7 6.3 05/19/09 12.50 802 770 6.9 5.5 25.1 76.2 82.5
ArcSight 43.50 [a] 1,647 1,497 7.1 5.9 02/13/08 9.00 296 275 2.5 2.0 23.0 383.3 100.0
NetSuite 27.01 1,900 1,779 7.7 6.4 12/19/07 26.00 1,679 1,542 14.3 9.7 47.0 3.9 63.1
SuccessFactors 22.99 1,996 1,746 5.7 4.4 11/19/07 10.00 579 494 7.6 4.5 70.7 129.9 56.8
Deltek 6.01 416 540 1.5 1.4 10/31/07 18.00 818 996 3.6 3.2 13.5 (66.6) 69.2
VMware 80.38 34,486 31,233 8.6 7.0 08/13/07 29.00 10,992 10,542 8.3 5.6 48.5 177.2 72.1
DemandTec 6.54 233 163 1.8 1.6 08/09/07 11.00 323 252 4.7 3.5 34.9 (40.5) 46.4
BladeLogic 28.00 [a] 804 723 n/a n/a 07/24/07 17.00 464 385 5.8 4.3 34.9 64.7 88.3
Netezza 27.00 [a] 1,797 1,660 7.2 5.4 07/18/07 12.00 701 606 5.3 4.1 30.4 125.0 99.8
PROS 12.89 351 287 3.0 2.5 06/28/07 11.00 297 261 4.3 3.4 26.3 17.2 65.3
Data Domain 33.50 [a] 2,197 1,919 n/a n/a 06/26/07 15.00 777 668 6.1 3.8 62.3 123.3 97.5
Sourcefire 26.76 787 642 4.2 3.4 03/09/07 15.00 370 273 4.3 3.3 32.5 78.4 81.6
Mean 4.5 x 3.6 x 4.9 x 3.7 x 27.7 % 50.9 % 65.8 %
Median 4.7 3.5 4.3 3.4 24.6 20.4 63.1
Copyright © 2011 Shea & Company, LLC
36
Software IPO Pipeline
Note:
In a typical IPO process, the offering progresses through three key milestones: the initial filing of the S-1 (prospectus; F-1 for foreign companies); an amended version of the S-1 following comments from the SEC; and pricing
the offering and issuing shares to the public market.
[a] BlueArc was acquired by Hitachi Data Systems on September 7, 2011
($ millions)
Company Stage First Filing Date Ticker IPO Date Range Price Revenue (LTM) Net Income (LTM)
Carbonite Priced 05/12/11 CARB 8/10/11 $10 - $11 $10 $49 ($22)
Tangoe Priced 07/14/11 TNGO 7/26/11 $9 - $11 $10 $75 ($1)
Safenet SEC Review 07/12/10 SAFE n/a n/a n/a $455 ($1)
Kayak Software SEC Review 11/17/10 KYAK n/a n/a n/a $187 $2
Trustwave Holdings SEC Review 04/21/11 TWAV n/a n/a n/a $121 ($1)
Imperva SEC Review 06/17/11 IMPV n/a n/a n/a $60 ($12)
Demandware SEC Review 07/15/11 DWRE n/a n/a n/a $46 ($1)
EXA Corp SEC Review 08/03/11 EXA n/a n/a n/a $43 $3
Eloqua Limited SEC Review 08/24/11 ELOQ n/a n/a n/a $60 ($1)
Jive Software SEC Review 08/24/11 JIVE n/a n/a n/a $69 ($45)
Brightcove SEC Review 08/24/11 BCOV n/a n/a n/a $52 ($19)
Bazaarvoice SEC Review 08/26/11 BV n/a n/a n/a $74 ($20)
Guidewire Software SEC Review 09/02/11 GWRE n/a n/a n/a $172 $36
BlueArc [a] Withdrawn 06/24/11 BLRC n/a n/a n/a $92 ($10)
Copyright © 2011 Shea & Company, LLC
Shea & Company, LLC
37
Merger & Acquisition
Advisory
Shea & Company has a wealth of experience
with buy-side and sell-side M&A as well as
divestitures and other structures
Corporate Development &
Strategy
Our focus on “outsourced corporate
development” is ideal for emerging software
leaders facing tough strategic challenges
Capital Raising
We provide thoughtful advice in private and
public market capital raising transactions
without the conflicts of interest endemic to
large investment banks
Member FINRA & SIPC
￿
Shea & Company was launched in 2005 to provide buy-side and sell-side M&A,
strategic corporate development and capital raising advisory services, and is
focused solely on working with the emerging and established leaders in the
software industry
￿
We maintain and invest in relationships with the largest technology companies
in the world in order to bring the most relevant and expert perspective to all of
our clients
￿
Our clients are organizations facing robust corporate development challenges in
a rapidly-changing and highly turbulent industry
￿
New stages in the technology lifecycle
￿
Emerging market categories
￿
Competitive threats or partnering opportunities
￿
Issues of value creation versus value realization
￿
Our firm’s principals have an average of over 15 years working with emerging
leaders in software, as well as with the industry’s largest and most established
companies
￿
Shea & Company is based in Boston and since its inception has undertaken
projects with clients on both coasts of the U.S., in Canada and in Europe, as
M&A advisor in both sell and buy-side capacity
Shea & Company served as the exclusive
financial advisor to Onaro
has been acquired by
$113,000,000
Shea & Company served as the exclusive
financial advisor to SPL WorldGroup
has been acquired by
Financial terms not disclosed