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- 1. HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising John Hill Senior Managing Director [email protected] (813) 383-0205 John McDonald Senior Managing Director Technology [email protected] (813) 383-0206 M&A Report Keith Hodgdon Q2 2012 Senior Vice President [email protected] (813) 383-0208 Jeffrey Bridge Vice President [email protected] (813) 383-0204 Michael Mariani Associate [email protected] (813) 597-2649 Jennifer Paul Associate [email protected] (813) 383-0203 Hyde Park Capital Advisors, LLC 701 N. Franklin Street Tampa, FL 33602 Tel: 813-383-0202 www.hydeparkcapital.com Member FINRA/SIPC
- 2. Capital Markets Overview Commentary Select Initial Public Offerings – Technology (Q2 2012) ($ in millions) Transaction As of June 30, 2012 major market indices including the S&P 500 Offer Date Issuer Industry Sector Value and Nasdaq, increased 3.1% and 5.8%, respectively, over the 12- 05/17/12 Facebook, Inc. (NasdaqGS:FB) Internet $16,007 month period, while the S&P Global Information Technology index outperformed the overall market, increasing 6.1% over the same 04/18/12 Splunk, Inc. (NasdaqGS:SPLK) Software $230 period. 06/28/12 ServiceNow, Inc. (NYSE:NOW) Software $210 Technology companies continue to account for the majority of the initial public offerings (“IPOs”) in the U.S. As detailed in the table on 04/19/12 Infoblox, Inc. (NYSE:BLOX) Software $120 the right, eight IPOs were completed by companies in the Technology industry during Q2 2012, including the anticipated 05/09/12 Audience, Inc. (NasdaqGS:ADNC) Technology Hardware $90 debut of Facebook, Inc. 04/19/12 Proofpoint, Inc. (NasdaqGM:PFPT) Software $82 The Software-as-a-Service (SaaS) sector was the strongest performing sector in terms of valuation during the 2nd quarter, 04/24/12 Envivio, Inc. (NasdaqGS:ENVI) Software $70 trading at LTM revenue and EBITDA multiples of 4.0x and 23.7x, 06/28/12 Exa Corp. (NasdaqGM:EXA) Software $63 respectively. Public Market Performance (LTM) Market Performance by Sector 130% Median 120% Change in Stock Price Enterprise Value / LTM 6.1% Industry Sector 3 Months 12 months Revenue EBITDA 110% Enterprise Software (5.6%) (5.4%) 3.4x 11.5x 5.8% Software-as-a-Service (SaaS) (7.3%) 0.3% 4.0x 23.7x 100% 3.1% Infrastructure Software (11.4%) (5.8%) 3.1x 12.4x 90% Informatics & Data Services (6.7%) (6.0%) 2.4x 10.1x Internet (1.5%) 9.3% 1.9x 10.6x 80% IT Services (9.2%) (7.4%) 1.4x 9.1x 70% Technology Hardware (10.1%) 19.8% 0.8x 5.5x Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Nasdaq S&P 500 S&P Global Information Technology Index Source: S&P Capital IQ HYDE PARK CAPITAL 2 Investment Banking | Mergers & Acquisitions | Capital Raising
- 3. Annual Middle MarketM&A Activity – Technology Commentary Middle Market Purchase Multiples As detailed in the charts below, overall U.S. middle market M&A 35.0x 3.5x activity, or deal volume, in the Technology industry decreased in the 30.0x 3.0x 1st half of 2012 to 117 closed transactions, a 32% decrease from 1H 2.6x 2.8x 2.6x 2011. Enterprise Value / Revenue Enterprise Value / EBITDA 2.5x 25.0x 2.4x 2.4x 2.5x 2.3x 2.3x 2.3x During 1H 2012 the total value of completed M&A transactions in 20.0x 1.8x 1.9x 2.0x the Technology industry dropped 30% to $15.7 billion from $22.4 billion in the prior year period. 15.0x 32.2x 1.5x 25.8x 26.4x 23.0x Despite the decline in M&A activity, transaction pricing or purchase 10.0x 19.9x 21.5x 1.0x 18.2x 17.5x multiples, defined as Enterprise Value over revenue and Enterprise 13.6x 16.5x 15.7x Value over EBITDA, remained strong from a historical perspective 5.0x 0.5x at an average of 2.8x and 17.5x, respectively, for completed middle market transactions across the Technology industry in the 1st half of 0.0x 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2012 0.0x 2012. EV / EBITDA EV / Revenue U.S. Middle Market M&A Activity – Annual Trends: VOLUME U.S. Middle Market M&A Activity – Annual Trends: VALUE Total Transaction Value ($ in billions) Total Transaction Volume Less than $100M $100 - $499M $500 - $1,000M Less than $100M $100 - $499M $500 - $1,000M Source: S&P Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion) HYDE PARK CAPITAL 3 Investment Banking | Mergers & Acquisitions | Capital Raising
- 4. Quarterly Middle MarketM&A Activity – Technology Commentary Middle Market M&A Transactions by Deal Size – Technology As detailed in the table on the right, Technology M&A transaction ($ in billions) volume and value decreased year-over-year across all segments of the middle market during the 2nd quarter of 2012. Q2 2011 Q2 2012 % Change Deal Size Volume Value Volume Value Volume Value The total volume of completed middle market Technology deals Less than $100M 50 $1.7 39 $1.4 (22%) (17%) (transactions valued at less than $1 billion) declined 30% in Q2 $100 - $499M 27 $6.2 14 $3.1 (48%) (50%) 2012 versus the prior year period, while total middle market deal $500 - $1,000M 5 $3.6 4 $3.1 (20%) (16%) value fell 34% to $7.6 billion during the quarter. Total Middle Market 82 $11.5 57 $7.6 (30%) (34%) % of Total Market Transactions valued at less than $100 million represented Less than $100M 61% 15% 68% 19% approximately 68% of the total number of closed deals in Q2 2012. $100 - $499M 33% 53% 25% 41% $500 - $1,000M 6% 32% 7% 40% Despite representing less than 35% of the total deal volume in Q2 Total Middle Market 100% 100% 100% 100% 2012, transactions valued between $100 million and $1 billion accounted for more than 80% of the total deal value during the quarter. U.S. Middle Market M&A Activity – Quarterly Trends: VOLUME U.S. Middle Market M&A Activity – Quarterly Trends: VALUE Total Transaction Value ($ in billions) Total Transaction Volume Less than $100M $100 - $499M $500 - $1,000M Less than $100M $100 - $499M $500 - $1,000M Source: S&P Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion) HYDE PARK CAPITAL 4 Investment Banking | Mergers & Acquisitions | Capital Raising
- 5. Recent M&A Activity– Technology Select Announced M&A Transactions (Q2 2012) Enterprise EV / EV / Announced Date Target Industry Sector Buyer Value ($mm) Revenue EBITDA 06/28/2012 Open E Cry, LLC Internet GAIN Capital Group $12.0 0.9x NA 06/27/2012 Active Internet Technologies, LLC Internet Spectrum Equity Investors $55.0 NA NA 06/25/2012 Quest Software, Inc. Software Dell, Inc. $2,407.7 2.7x 15.0x Fidelity National Information Services, Inc. 06/25/2012 Software Lightyear Capital $335.0 NA NA (Healthcare Benefit Solutions Business) 06/21/2012 Savings.com, Inc. Internet Cox Target Media, Inc. $100.0 NA NA 06/21/2012 Brand.net, Inc. Internet Valassis Communications, Inc. $18.0 NA NA 06/20/2012 Wavelink Corp. Software LANDesk Software, Inc. $82.0 NA NA 06/18/2012 Network Engines, Inc. Technology Hardware UNICOM Systems, Inc. $55.3 0.2x 5.1x 06/18/2012 Network Equipment Technologies, Inc. Technology Hardware Sonus Networks, Inc. $42.4 0.8x NM 06/15/2012 Yammer, Inc. Internet Microsoft Corp. $1,200.0 NA NA 06/13/2012 SinglePlatform Corp. Internet Constant Contact, Inc. $95.0 NA NA 06/13/2012 Integrated Export Systems, Ltd. Software The Descartes Systems Group, Inc. $34.2 NA NA 06/12/2012 GlobalSpec, Inc. Internet HIS, Inc. $135.0 NA NA 06/11/2012 Vital Support Systems, LLC IT Services TDS Hosted & Managed Services, LLC $45.0 0.6x NA 06/07/2012 Bytemobile, Inc. Internet Citrix Systems International Gmbh $435.0 NA NA 06/05/2012 PlanetSoft, Inc. Software Ebix, Inc. $40.0 NA NA 06/04/2012 Buddy Media, Inc. Internet Salesforce.com $745.0 NA NA 06/01/2012 Nascent Systems, LP IT Services Perficient, Inc. $18.1 1.1x NA 05/30/2012 Clarus Systems, Inc. Software OPNET Technologies, Inc. $11.7 NA NA 05/29/2012 LeCroy Corp. Technology Hardware Teledyne Technologies, Inc. $291.7 1.5x 8.9x 05/24/2012 PowerReviews, Inc. Software Bazaarvoice, Inc. $127.8 11.1x NA 05/22/2012 Ariba, Inc. Software SAP AG $4,411.4 8.8x NM 05/22/2012 EDGAR Online, Inc. Internet R.R. Donnelley & Sons Co. $71.2 2.3x NM 05/14/2012 Tii Network Technologies, Inc. Technology Hardware Kelta, Inc. $28.1 0.5x 11.1x 05/11/2012 Xedar Corp. Software HIS, Inc. $28.0 NA NA 05/10/2012 Spectralink Corp. Technology Hardware Sun Capital Partners $114.0 1.2x NA 05/09/2012 AssetNation, Inc. Internet Ritchie Bros. Auctioneers, Inc. $64.0 NA NA 05/07/2012 Anue Systems, Inc. Technology Hardware Ixia $145.0 3.0x NA 05/07/2012 SpeechCycle, Inc. Internet Synchronoss Technologies, Inc. $38.0 NA NA Source: S&P Capital IQ HYDE PARK CAPITAL 5 Investment Banking | Mergers & Acquisitions | Capital Raising
- 6. Recent M&A Activity– Technology Select Announced M&A Transactions (Q2 2012) Enterprise EV / EV / Announced Date Target Industry Sector Buyer Value ($mm) Revenue EBITDA 05/07/2012 GTSI Corp. Distributors UNICOM Systems, Inc. $18.8 0.1x 3.3x 05/03/2012 SlideShare, Inc. Internet LinkedIn Corp. $72.1 NA NA 05/03/2012 Avista Solutions, Inc. Software Davis + Henderson Corp. $40.0 NA NA 05/02/2012 RentJuice Corp. Internet Zillow, Inc. $37.4 NM NM 05/01/2012 EasyLink Services International Corp. Internet Open Text Corp. $309.5 1.7x 7.3x 05/01/2012 Funzio, Inc. Internet GREE International, Inc. $210.0 NA NA 05/01/2012 nLayer Communications, Inc. Internet Global Internetworking, Inc. $18.0 1.2x NA 04/30/2012 Fox Enterprises, Inc. Distributors Integrated Device Technology, Inc. $30.0 1.3x NA 04/27/2012 Demandforce, Inc. Internet Intuit, Inc. $423.5 NA NA 04/25/2012 Inflection, LLC (Archives.com) Internet Ancestry.com, Inc. $100.0 NA NA 04/24/2012 Cray, Inc. (Interconnect Hardware Assets) Technology Hardware Intel Corp. $140.0 NA NA 04/23/2012 Peer39, Inc. Internet MediaMind Technologies, Inc. $15.6 NA NA 04/20/2012 MU Dynamics, Inc. Software Spirent Communications Plc. $40.0 NA NA 04/17/2012 SRS Labs, Inc. Software DTS, Inc. $113.2 3.4x NM Openwave Systems, Inc. (Mediation and 04/16/2012 Internet Marlin Equity Partners $49.6 NA NA Messaging Product Businesses) 04/10/2012 Elo Touch Solutions Technology Hardware The Gores Group $380.0 0.9x NA 04/09/2012 Instagram, Inc. Internet Facebook, Inc. $1,000.0 NA NA 04/05/2012 Automation Technology, Inc. Internet Intertek Group plc $16.0 NA NA 04/04/2012 DRI Corp. Software Luminator Holding, LLC $25.3 0.3x NM 04/03/2012 LogLogic, Inc. Software TIBCO Software, Inc. $131.6 NA NA Average $293.0 2.2x 8.4x Median $71.2 1.2x 8.1x Source: S&P Capital IQ HYDE PARK CAPITAL 6 Investment Banking | Mergers & Acquisitions | Capital Raising
- 7. Recent M&A TransactionsProfiled – Technology Ariba, Inc. (NasdaqGS:ARBA) Transaction Details Ariba, Inc. (NasdaqGS:ARBA) is a leader in cloud-based, Financial Profile Transaction Analysis collaborative business solutions for spend management, finance ($ in millions) LTM management and sales acceleration management. Income Statement 3/31/12 Purchase Price (Equity) $4,598.6 On May 22, 2012 SAP AG (DB:SAP), one of the largest developers of Revenue $501.8 Total Rights/Warrants/Options $9.1 enterprise software, entered into an agreement to acquire Ariba for $45.00 per share of common stock in an all–cash transaction, EBITDA $40.9 Net Assumed Liabilities ($196.4) implying an enterprise value of approximately $4.4 billion for Ariba. Net Income ($8.8) Implied Enterprise Value $4,411.4 The purchase price represented a considerable premium to Ariba’s As of stock price one-day prior (37%) to the announcement and the 52- Balance Sheet 3/31/12 Implied Purchase Multiples week average (44%), as well as implied attractive multiples of both Cash $196.4 Revenue 8.8x revenue and EBITDA, as illustrated to the right. Debt $0.0 EBITDA NM The acquisition of Ariba will expand SAP’s portfolio of cloud-based applications, further increasing its presence in the cloud. Net Debt ($196.4) Net Income NM Quest Software, Inc. (NasdaqGS:QSFT) Transaction Details Quest Software, Inc. (NasdaqGS:QSFT) is an award winning Financial Profile Transaction Analysis developer of enterprise system management software that provides ($ in millions) LTM Purchase Price (Equity) $2,382.9 solutions for common IT challenges. Income Statement 3/31/12 Total Rights/Warrants/Options $149.0 On June 30, 2012 Dell, Inc. (NasdaqGS:DELL) announced that it had Revenue $881.5 Minority Interest $34.9 entered into a definitive agreement to acquire Quest Software for approximately $2.4 billion, which represents an offer price of EBITDA $160.3 Net Assumed Liabilities ($159.1) $27.50 per share of common stock. Net Income $43.3 Implied Enterprise Value $2,407.7 The offer from Dell was deemed by Quest Software’s Board of As of Directors to represent a superior offer to the Company’s previously Balance Sheet 3/31/12 Implied Purchase Multiples announced merger agreement with Insight Venture Partners. Cash $263.2 Revenue 2.7x The proposed combination will add critical components to Dell’s Debt $104.1 EBITDA 15.0x enterprise software solutions, including systems management, security and data protection. Net Debt ($159.1) Net Income NM HYDE PARK CAPITAL 7 Investment Banking | Mergers & Acquisitions | Capital Raising
- 8. M&A Activity byTechnology Sector U.S. Middle Market M&A Activity by Technology Sector: VOLUME % Change 53 Software 36% 34 49 Internet 16% 41 26 IT Services 73% 7 43 Technology Hardware 19% 35 0 10 20 30 40 50 60 1H 2011 1H 2012 U.S. Middle Market M&A Activity by Technology Sector: VALUE % Change ($ in millions) $9.6 Software 51% $4.7 $3.9 Internet 13% $4.4 $2.8 IT Services 79% $0.6 $6.1 2% Technology Hardware $6.0 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 1H 2011 1H 2012 Source: S&P Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion) HYDE PARK CAPITAL 8 Investment Banking | Mergers & Acquisitions | Capital Raising
- 9. Private Equity Activity– Technology Commentary Select Private Equity Transactions (Q2 2012) ($ in millions) Transaction With financing markets cooperating, financial sponsors remained Announced Date Target Buyer Industry Value active investors across all sectors of the Technology industry in the 06/27/12 Active Internet Technologies, LLC Spectrum Equity Investors Internet $55 2nd quarter of 2012, as shown in the table on the right. 06/14/12 Bullhorn, Inc. Vista Equity Partners Internet NA 06/06/12 Plex Systems, Inc. Francisco Partners Management Internet NA Several notable private equity backed transactions were 05/30/12 Infogix, Inc. H.I.G. Capital Software NA announced during Q2 2012 including GTCR’s acquisition of CAMP 05/10/12 Spectralink Corp. Sun Capital Partners Technology Hardware $114 Systems International, Inc., a provider of aircraft maintenance 05/10/12 CAMP Systems International, Inc. GTCR Internet $675 tracking software, for $675 million; and The Gores Group buyout 05/03/12 Ajubeo, LLC Grey Mountain Partners Internet NA of Elo TouchSystems, Inc. a developer and manufacturer of touch screen products, for $380 million. 04/18/12 Help/Systems, LLC Summit Partners Software NA Openwave Systems, Inc. (Mediation and 04/16/12 Marlin Equity Partners Internet $50 Messaging Product Businesses) During the 1st half of 2012 financial sponsors participated in 10% 04/10/12 Elo TouchSystems, Inc. The Gores Group Technology Hardware $380 of completed deals and accounted for 15% of total transaction 04/10/12 Network Instruments, LLC Thoma Bravo Technology Hardware NA value, which is consistent with 1H 2011. 04/05/12 Legacy.com, Inc. Great Hill Partners Internet NA 04/02/12 MSDSonline, Inc. ICG Group Internet $48 Financial Sponsors vs. Strategic Buyers Select Private Placements (Q2 2012) ($ in millions) Transaction Announced Date Target Lead Investor(s) Industry Value 06/29/12 DocuSign, Inc. Kleiner, Perkins, Caufield & Byers Internet $56 Total Transaction Value ($ in billions) 06/28/12 Rocket Fuel, Inc. Northgate Capital Group Internet $50 Total Transaction Volume 06/20/12 Bromium, Inc. Highland Capital Partners Software $27 06/12/12 Message Systems, Inc. LLR Partners Software $32 06/07/12 GoHealth, LLC Norwest Equity Partners Internet $50 06/05/12 Donuts, Inc. Austin Ventures Internet $100 05/23/12 10gen, Inc. New Enterprise Associates Internet $50 Goldman Sachs Group (Merchant 05/21/12 AnchorFree, Inc. Internet $52 Banking Division) 05/17/12 Pinterest Bessemer Venture Partners Internet $100 05/16/12 Fotolia, LLC Kohlberg Kravis Roberts & Co. Internet $150 Accel Management Co, Inc. / 05/15/12 Qualtrics, Inc. Internet $70 Sequoia Capital 05/11/12 Utopia, Inc. FTV Capital IT Services $50 Financial Sponsor Strategic Buyer Financial Sponsor Strategic Buyer 04/19/12 Evernote Corp. MeriTech Capital Partners Internet $70 Source: S&P Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion) HYDE PARK CAPITAL 9 Investment Banking | Mergers & Acquisitions | Capital Raising
- 10. Industry Sector Overview– Recent Stock Price Performance Commentary Enterprise Software The charts included on the following pages detail the recent stock 130% price performance by sector for the leading public companies within the Technology industry for the 12-month period ended 120% June 30, 2012. The shaded section is the most recent 3-month 110% period (Q2). 3.1% 100% The Technology Hardware and Internet indices delivered the strongest gains in the Technology industry for the 12-month 90% 5.4% period ending June 30, 2012, increasing 19.8% and 9.3%, respectively. 80% 70% Due to mixed earnings reports by public companies in the Technology industry and increased volatility in the market, all 60% sector indices of the Technology industry decreased during Q2 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 2012. S&P 500 Enterprise Software Software-as-a-Service (SaaS) Infrastructure Software 130% 130% 120% 120% 110% 110% 3.1% 3.1% 100% 100% 0.3% 90% 90% 5.8% 80% 80% 70% 70% 60% 60% Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 S&P 500 Software-as-a-Service (SaaS) S&P 500 Infastructure Software Source: S&P Capital IQ HYDE PARK CAPITAL 10 Investment Banking | Mergers & Acquisitions | Capital Raising
- 11. Industry Sector Overview– Recent Stock Price Performance Informatics & Data Services Internet 130% 130% 120% 120% 9.3% 110% 110% 3.1% 100% 100% 3.1% 90% 6.0% 90% 80% 80% 70% 70% 60% 60% Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 S&P 500 Inormatics & Data Services S&P 500 Internet IT Services Technology Hardware 130% 140% 120% 130% 120% 19.8% 110% 3.1% 110% 100% 3.1% 100% 90% 7.4% 90% 80% 80% 70% 70% 60% 60% Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 S&P 500 IT Services S&P 500 Tehnology Hardware Source: S&P Capital IQ HYDE PARK CAPITAL 11 Investment Banking | Mergers & Acquisitions | Capital Raising
- 12. Industry Sector Overview– Public Company Analysis Enterprise Software ($ in millions, except per share) Enterprise Resource Planning Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Oracle Corp. ORCL $29.70 87.0% $151,322 $137,519 $37,121 $29,263 $16,050 78.8% 43.2% 3.7x 8.6x SAP AG DB:SAP $59.36 85.3% $70,465 $71,052 $19,214 $13,758 $6,882 71.6% 35.8% 3.7x 10.3x Sage Group plc LSE:SGE $4.35 88.5% $5,747 $5,552 $2,138 $2,004 $620 93.7% 29.0% 2.6x 9.0x NetSuite, Inc. N $54.77 99.9% $3,719 $3,568 $252 $177 ($17) 70.0% (6.8%) 14.1x* NM Deltek, Inc. PROJ $11.59 99.6% $755 $871 $343 $220 $50 64.0% 14.6% 2.5x 17.3x Exact Holding NV ENXTAM:EXACT $21.86 81.0% $499 $434 $280 $111 $64 39.6% 22.9% 1.5x 6.8x Average 90.2% $38,751 $36,499 $9,891 $7,589 $3,942 69.6% 23.1% 2.8x 10.4x Median 87.8% $4,733 $4,560 $1,240 $1,112 $342 70.8% 26.0% 2.6x 9.0x Supply/Demand Chain Management Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Ariba, Inc. ARBA $44.76 98.4% $4,191 $3,995 $502 $330 $41 65.8% 8.1% 8.0x NM JDA Software Group, Inc. JDAS $29.69 85.2% $1,270 $1,257 $672 $406 $165 60.4% 24.5% 1.9x 7.6x Manhattan Associates, Inc. MANH $45.71 89.6% $966 $869 $349 $204 $76 58.6% 21.7% 2.5x 11.5x SciQuest, Inc. SQI $17.96 99.1% $405 $345 $55 $41 $7 73.4% 12.1% 6.2x 51.8x Average 93.1% $1,708 $1,617 $394 $245 $72 64.6% 16.6% 4.6x 23.6x Median 94.0% $1,118 $1,063 $425 $267 $58 63.1% 16.9% 4.4x 11.5x Customer Relationship Management Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Oracle Corp. ORCL $29.70 87.0% $151,322 $137,519 $37,121 $29,263 $16,050 78.8% 43.2% 3.7x 8.6x SAP AG DB:SAP $59.36 85.3% $70,465 $71,052 $19,214 $13,758 $6,882 71.6% 35.8% 3.7x 10.3x Salesforce.com CRM $138.26 83.9% $18,869 $18,709 $2,458 $1,920 $106 78.1% 4.3% 7.6x NM Amdocs, Ltd. DOX $29.72 91.8% $5,266 $4,371 $3,230 $1,147 $596 35.5% 18.5% 1.4x 7.3x NetSuite, Inc. N $54.77 99.9% $3,719 $3,568 $252 $177 ($17) 70.0% (6.8%) 14.1x* NM Comverse Technology, Inc. CMVT $5.82 74.6% $1,230 $1,463 $1,589 $844 $145 53.1% 9.2% 0.9x 10.1x Pegasystems, Inc. PEGA $32.98 69.4% $1,300 $1,212 $425 $259 $27 60.9% 6.5% 2.8x NM CSG Systems International, Inc. CSGS $17.28 88.2% $568 $685 $737 $372 $165 50.5% 22.4% 0.9x 4.1x Average 85.0% $31,593 $29,822 $8,128 $5,967 $2,994 62.3% 16.6% 3.0x 8.1x Source: S&P Capital IQ *Excluded from average and median calculation. Median 86.2% $4,493 $3,969 $2,023 $995 $155 65.5% 13.8% 2.8x 8.6x HYDE PARK CAPITAL 12 Investment Banking | Mergers & Acquisitions | Capital Raising
- 13. Industry Sector Overview– Public Company Analysis Enterprise Software ($ in millions, except per share) Human Capital Management Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Concur Technologies, Inc. CNQR $68.10 98.3% $3,687 $3,457 $393 $282 $53 71.6% 13.6% 8.8x 64.8x The Ultimate Software Group, Inc. ULTI $88.93 97.3% $2,481 $2,420 $283 $160 $28 56.4% 9.9% 8.6x 86.7x Cornerstone OnDemand, Inc. CSOD $23.81 100.0% $1,156 $1,074 $81 $58 ($21) 71.0% (25.5%) 13.2x NM Kenexa Corp. KNXA $29.03 85.6% $771 $722 $301 $180 $26 59.7% 8.5% 2.4x 28.2x Vocus, Inc. VOCS $18.60 55.2% $352 $404 $138 $111 ($4) 80.3% (3.1%) 2.9x NM Average 87.3% $1,689 $1,615 $239 $158 $16 67.8% 0.7% 7.2x 59.9x Median 97.3% $1,156 $1,074 $283 $160 $26 71.0% 8.5% 8.6x 64.8x Content Management Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Adobe Systems, Inc. ADBE $32.37 93.1% $16,192 $14,704 $4,335 $3,875 $1,492 89.4% 34.4% 3.4x 9.9x Open Text Corp. OTEX $49.90 69.0% $2,928 $3,024 $1,187 $861 $325 72.5% 27.4% 2.5x 9.3x Synchronoss Technologies, Inc. SNCR $18.47 47.5% $717 $596 $241 $130 $40 54.1% 16.7% 2.5x 14.8x LogMeIn, Inc. LOGM $30.52 68.4% $779 $586 $125 $114 $16 90.8% 12.8% 4.7x 36.5x Average 69.5% $5,154 $4,727 $1,472 $1,245 $468 76.7% 22.8% 3.3x 17.6x Median 68.7% $1,853 $1,810 $714 $495 $183 80.9% 22.0% 3.0x 12.3x Business Intelligence/Analytics Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Teradata Corp. TDC $72.01 90.1% $12,375 $11,683 $2,469 $1,359 $566 55.0% 22.9% 4.7x 20.6x TIBCO Software, Inc. TIBX $29.92 86.3% $5,126 $5,034 $992 $724 $225 73.0% 22.7% 5.1x 22.3x Informatica Corp. INFA $42.36 67.9% $4,772 $4,206 $812 $685 $183 84.4% 22.5% 5.2x 23.0x Qlik Technologies, Inc. QLIK $22.12 62.1% $1,923 $1,717 $337 $301 $21 89.5% 6.1% 5.1x NM MicroStrategy, Inc. MSTR $129.86 72.7% $1,439 $1,227 $585 $437 $28 74.7% 4.7% 2.1x NM Average 75.8% $5,127 $4,773 $1,039 $701 $205 75.3% 15.8% 4.4x 22.0x Median 72.7% $4,772 $4,206 $812 $685 $183 74.7% 22.5% 5.1x 22.3x Source: S&P Capital IQ HYDE PARK CAPITAL 13 Investment Banking | Mergers & Acquisitions | Capital Raising
- 14. Industry Sector Overview– Public Company Analysis Software-as-a-Service (SaaS) ($ in millions, except per share) Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Salesforce.com CRM $138.26 83.9% $18,869 $18,709 $2,458 $1,920 $106 78.1% 4.3% 7.6x NM NetSuite, Inc. N $54.77 99.9% $3,719 $3,568 $252 $177 ($17) 70.0% (6.8%) 14.1x* NM athenahealth, Inc. ATHN $79.17 90.8% $2,903 $2,748 $376 $230 $50 61.1% 13.4% 7.3x 54.6x The Ultimate Software Group, Inc. ULTI $88.93 97.3% $2,481 $2,420 $283 $160 $28 56.4% 9.9% 8.6x NM Compuware Corp. CPWR $9.30 90.1% $2,065 $2,018 $1,006 $666 $176 66.2% 17.5% 2.0x 11.4x Blackbaud, Inc. BLKB $25.67 75.5% $1,138 $1,092 $379 $217 $68 57.2% 18.0% 2.9x 16.0x Cornerstone OnDemand, Inc. CSOD $23.81 100.0% $1,156 $1,074 $81 $58 ($21) 71.0% (25.5%) 13.2x* NM OpenTable, Inc. OPEN $45.01 49.5% $1,085 $1,027 $145 $105 $43 72.2% 29.8% 7.1x 23.7x Kenexa Corp. KNXA $29.03 85.6% $771 $722 $301 $180 $26 59.7% 8.5% 2.4x 28.2x Synchronoss Technologies, Inc. SNCR $18.47 47.5% $717 $596 $241 $130 $40 54.1% 16.7% 2.5x 14.8x LogMeIn, Inc. LOGM $30.52 68.4% $779 $586 $125 $114 $16 90.8% 12.8% 4.7x 36.5x Demandware, Inc. DWRE $23.69 74.1% $548 $443 $61 $40 $1 66.0% 2.3% 7.3x NM Constant Contact, Inc. CTCT $17.86 55.5% $556 $413 $224 $160 $24 71.3% 10.9% 1.8x 16.9x Vocus, Inc. VOCS $18.60 55.2% $352 $404 $138 $111 ($4) 80.3% (3.1%) 2.9x NM Bazaarvoice, Inc. BV $18.20 86.3% $481 $355 $106 $70 ($21) 65.7% (19.4%) 3.3x NM SciQuest, Inc. SQI $17.96 99.1% $405 $345 $55 $41 $7 73.4% 12.1% 6.2x 51.8x Average 78.7% $2,376 $2,282 $389 $274 $33 68.4% 6.3% 4.8x 28.2x Median 84.8% $932 $874 $233 $145 $25 68.1% 10.4% 4.0x 23.7x Source: S&P Capital IQ *Excluded from average and median calculation. HYDE PARK CAPITAL 14 Investment Banking | Mergers & Acquisitions | Capital Raising
- 15. Industry Sector Overview– Public Company Analysis Infrastructure Software ($ in millions, except per share) Enterprise IT Management Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA VMware, Inc. VMW $91.04 76.6% $39,490 $34,593 $4,180 $3,511 $1,075 84.0% 25.7% 8.3x 32.2x Citrix Systems, Inc. CTXS $83.94 95.4% $15,895 $14,597 $2,389 $2,121 $592 88.8% 24.8% 6.1x 24.7x CA Technologies CA $27.09 96.8% $13,193 $11,943 $4,814 $4,174 $1,729 86.7% 35.9% 2.5x 6.9x Red Hat, Inc. RHT $56.48 90.0% $11,091 $10,272 $1,183 $1,001 $262 84.6% 22.1% 8.7x 39.2x BMC Software, Inc. BMC $42.68 75.5% $7,375 $6,636 $2,172 $1,603 $675 73.8% 31.1% 3.1x 9.8x TIBCO Software, Inc. TIBX $29.92 86.3% $5,126 $5,034 $992 $724 $225 73.0% 22.7% 5.1x 22.3x SolarWinds, Inc. SWI $43.56 89.6% $3,273 $3,090 $233 $218 $114 93.4% 48.7% 13.2x* 27.2x Quest Software, Inc. QSFT $27.81 99.4% $2,405 $2,281 $881 $780 $160 88.5% 18.2% 2.6x 14.2x Compuware Corp. CPWR $9.30 90.1% $2,065 $2,018 $1,006 $666 $176 66.2% 17.5% 2.0x 11.4x Pegasystems, Inc. PEGA $32.98 69.4% $1,300 $1,212 $425 $259 $27 60.9% 6.5% 2.8x NM Progress Software Corp. PRGS $20.87 79.4% $1,349 $1,021 $504 $415 $95 82.3% 18.8% 2.0x 10.8x Average 86.2% $9,324 $8,427 $1,707 $1,407 $466 80.2% 24.7% 4.3x 19.9x Median 89.6% $5,126 $5,034 $1,006 $780 $225 84.0% 22.7% 3.0x 18.3x Data Storage Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA EMC Corp. EMC $25.63 85.4% $56,771 $53,237 $20,494 $12,649 $4,850 61.7% 23.7% 2.6x 11.0x Teradata Corp. TDC $72.01 90.1% $12,375 $11,683 $2,469 $1,359 $566 55.0% 22.9% 4.7x 20.6x Iron Mountain, Inc. IRM $32.96 92.1% $6,219 $9,503 $3,015 $1,767 $934 58.6% 31.0% 3.2x 10.2x NetApp, Inc. NTAP $31.82 58.3% $12,228 $8,095 $6,233 $3,713 $940 59.6% 15.1% 1.3x 8.6x CommVault Systems, Inc. CVLT $49.57 89.3% $2,340 $2,040 $407 $353 $54 86.9% 13.2% 5.0x 37.9x Average 83.1% $17,987 $16,911 $6,524 $3,968 $1,469 64.4% 21.2% 3.4x 17.7x Median 89.3% $12,228 $9,503 $3,015 $1,767 $934 59.6% 22.9% 3.2x 11.0x Source: S&P Capital IQ *Excluded from average and median calculation. HYDE PARK CAPITAL 15 Investment Banking | Mergers & Acquisitions | Capital Raising
- 16. Industry Sector Overview– Public Company Analysis Infrastructure Software ($ in millions, except per share) Security Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Symantec Corp. SYMC $14.61 73.1% $10,928 $9,834 $6,730 $5,739 $1,797 85.3% 26.7% 1.5x 5.5x Check Point Software Technologies, Ltd. CHKP $49.59 76.3% $10,525 $9,154 $1,307 $1,156 $739 88.4% 56.6% 7.0x 12.4x VeriSign, Inc. VRSN $43.57 99.0% $7,172 $6,479 $796 $631 $427 79.2% 53.6% 8.1x 15.2x Fortinet, Inc. FTNT $23.22 80.6% $3,820 $3,392 $458 $336 $98 73.5% 21.4% 7.4x 34.6x Trend Micro, Inc. TSE:4704 $29.26 81.0% $3,854 $2,568 $1,153 $940 $399 81.5% 34.6% 2.2x 6.4x Sourcefire, Inc. FIRE $51.40 86.2% $1,533 $1,383 $181 $140 $15 77.1% 8.5% 7.6x NM Websense, Inc. WBSN $18.73 67.3% $745 $745 $365 $306 $72 83.8% 19.7% 2.0x 10.3x Average 82.8% $3,425 $2,913 $591 $471 $202 79.0% 27.6% 5.5x 16.6x Median 81.0% $3,820 $2,568 $458 $336 $98 79.2% 21.4% 7.4x 12.8x Source: S&P Capital IQ HYDE PARK CAPITAL 16 Investment Banking | Mergers & Acquisitions | Capital Raising
- 17. Industry Sector Overview– Public Company Analysis Informatics & Data Services ($ in millions, except per share) Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Thomson Reuters Corp. TSX:TRI $28.40 79.7% $23,627 $30,972 $13,831 $4,413 $3,332 31.9% 24.1% 2.2x 9.3x Experian plc LSE:EXPN $14.12 89.6% $14,209 $16,334 $4,487 $1,994 $1,495 44.4% 33.3% 3.6x 10.9x Moody's Corp. MCO $36.55 84.9% $8,348 $8,835 $2,350 $1,642 $1,000 69.9% 42.6% 3.8x 8.8x IHS, Inc. IHS $107.73 99.9% $7,141 $7,720 $1,439 $837 $294 58.1% 20.5% 5.4x 26.2x Wolters Kluwer NV ENXTAM:WKL $15.88 79.9% $4,789 $7,686 $4,357 $2,918 $1,083 67.0% 24.9% 1.8x 7.1x Equifax, Inc. EFX $46.60 97.0% $5,738 $6,609 $2,010 $1,232 $654 61.3% 32.6% 3.3x 10.1x Informa plc LSE:INF $5.96 83.8% $3,595 $4,820 $1,985 $737 $556 37.1% 28.0% 2.4x 8.7x Gartner, Inc. IT $43.05 95.7% $4,220 $4,331 $1,508 $886 $244 58.8% 16.2% 2.9x 17.8x Dun & Bradstreet Corp. DNB $71.17 82.3% $3,475 $4,204 $1,758 $1,164 $520 66.2% 29.6% 2.4x 8.1x FactSet Research Systems, Inc. FDS $92.94 85.1% $4,300 $4,058 $790 $521 $295 66.0% 37.4% 5.1x 13.7x Aegis Group plc LSE:AGS $2.53 85.8% $3,097 $3,277 $1,767 $1,724 $320 97.6% 18.1% 1.9x 10.2x UBM plc LSE:UBM $9.17 90.8% $2,272 $3,133 $1,513 $337 $334 22.3% 22.1% 2.1x 9.4x NeuStar, Inc. NSR $33.40 86.3% $2,431 $2,836 $674 $522 $281 77.5% 41.8% 4.2x 10.1x CoreLogic, Inc. CLGX $18.31 98.0% $1,947 $2,462 $1,441 $570 $259 39.5% 18.0% 1.7x 9.5x Morningstar, Inc. MORN $57.84 90.4% $2,946 $2,504 $640 $449 $180 70.1% 28.1% 3.9x 13.9x Fair Isaac Corp. FICO $42.28 94.0% $1,610 $1,931 $641 $454 $190 70.8% 29.7% 3.0x 10.2x Ipsos SA ENXTPA:IPS $29.42 68.3% $1,124 $1,901 $1,771 $1,133 $238 64.0% 13.4% 1.1x 8.0x Acxiom Corp. ACXM $15.11 99.8% $1,215 $1,264 $1,131 $261 $236 23.1% 20.8% 1.1x 5.4x Forrester Research, Inc. FORR $33.86 85.1% $784 $540 $288 $183 $49 63.6% 16.9% 1.9x 11.1x Average 88.2% $5,098 $6,075 $2,336 $1,157 $609 57.3% 26.2% 2.8x 11.0x Median 86.3% $3,475 $4,058 $1,513 $837 $295 63.6% 24.9% 2.4x 10.1x Source: S&P Capital IQ HYDE PARK CAPITAL 17 Investment Banking | Mergers & Acquisitions | Capital Raising
- 18. Industry Sector Overview– Public Company Analysis Internet ($ in millions, except per share) Online Content and Search Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Google, Inc. GOOG $580.07 86.5% $190,064 $155,063 $43,162 $27,279 $15,332 63.2% 35.5% 3.6x 10.1x Yahoo!, Inc. YHOO $15.83 94.3% $19,585 $17,848 $4,980 $3,448 $1,306 69.2% 26.2% 3.6x 13.7x Scripps Networks Interactive, Inc. SNI $56.86 98.5% $9,235 $10,385 $2,127 $1,385 $996 65.1% 46.8% 4.9x 10.4x IAC/InterActiveCorp. IACI $45.60 86.4% $4,212 $3,468 $2,435 $1,568 $357 64.4% 14.7% 1.4x 9.7x Yelp, Inc. YELP $22.73 71.1% $1,257 $1,126 $94 $87 ($14) 92.8% (14.3%) 12.0x* NM Monster Worldwide, Inc. MWW $8.31 54.3% $1,015 $976 $1,025 $523 $145 51.0% 14.2% 1.0x 6.7x WebMD Health Corp. WBMD $20.51 41.7% $1,164 $822 $534 $327 $96 61.3% 18.0% 1.5x 8.5x Angie's List, Inc. ANGI $15.84 79.9% $720 $658 $119 $89 ($54) 74.4% (45.5%) 5.5x NM Average 76.6% $28,406 $23,793 $6,809 $4,338 $2,271 67.7% 12.0% 3.1x 9.9x Median 83.2% $2,734 $2,297 $1,576 $954 $251 64.7% 16.3% 3.6x 9.9x Software & Services Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Akamai Technologies, Inc. AKAM $31.75 81.1% $5,883 $5,479 $1,202 $876 $504 72.9% 41.9% 4.6x 10.9x Rovi Corp. ROVI $19.62 33.1% $2,133 $2,701 $713 $599 $237 83.9% 33.2% 3.8x 11.4x ValueClick, Inc. VCLK $16.39 75.0% $1,337 $1,335 $596 $347 $170 58.2% 28.4% 2.2x 7.9x Digital River, Inc. DRIV $16.62 48.7% $606 $259 $402 $338 $58 84.0% 14.3% 0.6x 4.5x Average 59.5% $2,490 $2,443 $728 $540 $242 74.7% 29.5% 2.8x 8.7x Median 61.8% $1,735 $2,018 $655 $473 $203 78.4% 30.8% 3.0x 9.4x e-Commerce Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Amazon.com, Inc. AMZN $228.35 92.6% $105,326 $99,611 $51,405 $11,698 $1,815 22.8% 3.5% 1.9x NM eBay, Inc. EBAY $42.01 95.6% $54,989 $51,317 $13,021 $9,104 $3,758 69.9% 28.9% 3.9x 13.7x priceline.com, Inc. PCLN $664.52 85.7% $34,062 $32,068 $4,584 $3,317 $1,547 72.4% 33.7% 7.0x 20.7x Expedia, Inc. EXPE $48.07 73.1% $6,670 $6,028 $3,538 $2,752 $669 77.8% 18.9% 1.7x 9.0x Netflix, Inc. NFLX $68.49 22.5% $3,888 $3,475 $3,456 $1,077 $228 31.2% 6.6% 1.0x 15.2x Vistaprint N.V. VPRT $32.30 64.6% $1,319 $1,393 $979 $637 $117 65.1% 11.9% 1.4x 11.9x Shutterfly, Inc. SFLY $30.69 47.6% $1,124 $980 $507 $267 $45 52.7% 8.8% 1.9x 21.9x Blue Nile, Inc. NILE $29.71 59.4% $428 $367 $351 $70 $15 20.1% 4.3% 1.0x 24.2x Average 67.6% $25,976 $24,405 $9,730 $3,615 $1,024 51.5% 14.6% 2.5x 16.7x Source: S&P Capital IQ *Excluded from average and median calculation. Median 68.9% $5,279 $4,751 $3,497 $1,915 $449 58.9% 10.4% 1.8x 15.2x HYDE PARK CAPITAL 18 Investment Banking | Mergers & Acquisitions | Capital Raising
- 19. Industry Sector Overview– Public Company Analysis IT Services ($ in millions, except per share) IT Consulting & Other Services Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Accenture plc ACN $60.09 91.2% $43,920 $38,777 $27,714 $8,954 $4,411 32.3% 15.9% 1.4x 8.8x Wipro, Ltd. WIPRO $7.19 88.3% $17,656 $16,311 $7,284 $2,137 $1,392 29.3% 19.1% 2.2x 11.7x Cognizant Technology Solutions Corp. CTSH $60.00 76.9% $18,582 $16,091 $6,461 $2,720 $1,321 42.1% 20.4% 2.5x 12.2x Cap Gemini S.A. ENXTPA:CAP $36.76 70.6% $6,313 $5,771 $12,592 $2,946 $1,111 23.4% 8.8% 0.5x 5.2x Computer Sciences Corp. CSC $24.82 64.5% $3,847 $5,549 $15,877 $2,471 $1,369 15.6% 8.6% 0.3x 4.1x SAIC, Inc. SAI $12.12 71.2% $4,021 $4,705 $10,681 $984 $421 9.2% 3.9% 0.4x 11.2x Syntel, Inc. SYNT $60.70 95.6% $2,534 $2,179 $690 $285 $224 41.3% 32.4% 3.2x 9.7x CACI International, Inc. CACI $55.02 82.7% $1,611 $2,137 $3,789 $1,157 $357 30.5% 9.4% 0.6x 6.0x Sapient Corp. SAPE $10.07 62.0% $1,438 $1,235 $1,040 $333 $130 32.0% 12.5% 1.2x 9.5x ManTech International Corp. MANT $23.44 50.7% $863 $944 $2,846 $409 $288 14.4% 10.1% 0.3x 3.3x Unisys Corp. UIS $19.55 71.3% $973 $870 $3,871 $1,005 $411 26.0% 10.6% 0.2x 2.1x CIBER, Inc. CBR $4.31 73.4% $312 $304 $963 $231 $19 24.0% 2.0% 0.3x NM Computer Task Group, Inc. CTGX $14.99 96.5% $252 $232 $404 $86 $22 21.4% 5.4% 0.6x 10.7x Average 76.5% $7,871 $7,316 $7,247 $1,824 $883 26.3% 12.3% 1.1x 7.9x Median 73.4% $2,534 $2,179 $3,871 $1,005 $411 26.0% 10.1% 0.6x 9.1x Data & Transaction Processing Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Fidelity National Information Services, Inc. FIS $34.08 99.8% $10,241 $14,714 $5,850 $1,847 $1,709 31.6% 29.2% 2.5x 8.6x Fiserv, Inc. FISV $72.22 99.9% $10,284 $13,451 $4,397 $1,818 $1,331 41.3% 30.3% 3.1x 10.1x Total System Services, Inc. TSS $23.93 99.8% $4,560 $4,461 $1,841 $566 $461 30.7% 25.0% 2.4x 9.7x Global Payments, Inc. GPN $43.23 80.2% $3,450 $3,469 $2,127 $1,363 $486 64.1% 22.8% 1.6x 7.1x Lender Processing Services, Inc. LPS $25.28 93.1% $2,144 $3,177 $2,059 $651 $370 31.6% 17.9% 1.5x 8.6x Jack Henry & Associates, Inc. JKHY $34.52 97.6% $3,013 $3,065 $1,010 $419 $326 41.5% 32.3% 3.0x 9.4x Broadridge Financial Solutions, Inc. BR $21.27 85.3% $2,707 $3,052 $2,279 $588 $394 25.8% 17.3% 1.3x 7.7x ACI Worldwide, Inc. ACIW $44.21 99.4% $1,542 $1,708 $498 $351 $111 70.5% 22.2% 3.4x 15.4x Heartland Payment Systems, Inc. HPY $30.08 88.5% $1,216 $1,247 $2,000 $235 $115 11.8% 5.7% 0.6x NM Average 93.7% $4,351 $5,372 $2,451 $871 $589 38.8% 22.5% 2.2x 9.6x Median 97.6% $3,013 $3,177 $2,059 $588 $394 31.6% 22.8% 2.4x 9.0x Source: S&P Capital IQ HYDE PARK CAPITAL 19 Investment Banking | Mergers & Acquisitions | Capital Raising
- 20. Industry Sector Overview– Public Company Analysis Technology Hardware ($ in millions, except per share) PCs, Servers & Components Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Apple, Inc. AAPL $584.00 90.7% $549,522 $520,984 $142,360 $62,569 $53,268 44.0% 37.4% 3.7x 9.8x International Business Machines Corp. IBM $195.58 92.8% $231,267 $252,607 $106,099 $50,295 $26,794 47.4% 25.3% 2.4x 9.4x Samsung Electronics Co., Ltd. KOSE:A005930 $1,051.33 84.7% $137,045 $129,107 $152,975 $50,370 $28,380 32.9% 18.6% 0.8x 4.5x Hewlett-Packard Co. HPQ $20.11 53.3% $40,703 $62,888 $124,040 $28,405 $14,732 22.9% 11.9% 0.5x 4.3x Xerox Corp. XRX $7.87 72.7% $11,231 $19,826 $22,664 $7,336 $3,162 32.4% 14.0% 0.9x 6.3x Dell, Inc. DELL $12.51 68.1% $22,715 $18,001 $61,476 $13,499 $5,064 22.0% 8.2% 0.3x 3.6x Pitney Bowes, Inc. PBI $14.97 63.8% $3,022 $6,628 $5,211 $2,642 $1,045 50.7% 20.1% 1.3x 6.3x Lenovo Group, Ltd. SEHK:992 $0.84 84.8% $8,719 $4,697 $29,574 $3,446 $799 11.7% 2.7% 0.2x 5.9x NCR Corp. NCR $22.73 95.1% $3,663 $4,075 $5,629 $1,214 $352 21.6% 6.3% 0.7x NM Diebold, Inc. DBD $36.91 86.0% $2,365 $2,442 $2,920 $787 $289 27.0% 9.9% 0.8x 8.5x Lexmark International, Inc. LXK $26.58 69.3% $2,021 $1,721 $4,131 $1,582 $694 38.3% 16.8% 0.4x 2.5x ScanSource, Inc. SCSC $30.64 76.6% $847 $860 $2,996 $303 $126 10.1% 4.2% 0.3x 6.8x Average 78.2% $84,427 $85,320 $55,006 $18,537 $11,225 30.1% 14.6% 1.0x 6.2x Median 80.6% $9,975 $12,315 $26,119 $5,391 $2,104 29.7% 12.9% 0.8x 6.3x Electronic Manufacturing Services Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Flextronics International, Ltd. FLEX $6.20 82.8% $4,512 $5,194 $29,388 $1,517 $1,049 5.2% 3.6% 0.2x 5.0x Jabil Circuit, Inc. JBL $20.33 74.2% $4,350 $5,046 $17,094 $1,321 $990 7.7% 5.8% 0.3x 5.1x Molex, Inc. MOLX $23.94 84.1% $4,239 $3,872 $3,544 $1,092 $668 30.8% 18.9% 1.1x 5.8x Sanmina-SCI Corp. SANM $8.19 65.3% $682 $1,337 $6,336 $481 $312 7.6% 4.9% 0.2x 4.3x TTM Technologies, Inc. TTMI $9.39 55.3% $769 $1,169 $1,386 $276 $221 19.9% 15.9% 0.8x 5.3x Plexus Corp. PLXS $28.20 73.2% $1,001 $997 $2,250 $214 $147 9.5% 6.5% 0.4x 6.8x Celestica, Inc. TSX:CLS $7.25 72.1% $1,581 $935 $7,104 $487 $299 6.8% 4.2% 0.1x 3.1x Benchmark Electronics, Inc. BHE $13.95 73.9% $821 $575 $2,308 $142 $87 6.1% 3.8% 0.2x 6.6x Multi-Fineline Electronix, Inc. MFLX $24.64 85.9% $597 $464 $831 $98 $94 11.8% 11.3% 0.6x 4.9x Average 74.1% $2,061 $2,177 $7,805 $625 $430 11.7% 8.3% 0.4x 5.2x Median 73.9% $1,001 $1,169 $3,544 $481 $299 7.7% 5.8% 0.3x 5.1x Source: S&P Capital IQ HYDE PARK CAPITAL 20 Investment Banking | Mergers & Acquisitions | Capital Raising
- 21. Industry Sector Overview– Public Company Analysis Technology Hardware ($ in millions, except per share) Storage & Networks Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA SanDisk Corp. SNDK $36.48 68.2% $8,955 $7,910 $5,574 $2,352 $1,662 42.2% 29.8% 1.4x 4.8x Western Digital Corp. WDC $30.48 68.6% $7,277 $6,643 $10,127 $2,635 $2,035 26.0% 20.1% 0.7x 3.3x QLogic Corp. QLGC $13.69 72.1% $1,406 $868 $559 $381 $161 68.2% 28.8% 1.6x 5.4x Emulex Corp. ELX $7.20 64.3% $635 $434 $496 $314 $48 63.3% 9.6% 0.9x NM Average 68.3% $4,568 $3,964 $4,189 $1,421 $976 49.9% 22.1% 1.1x 4.5x Median 68.4% $4,342 $3,756 $3,066 $1,367 $912 52.7% 24.5% 1.1x 4.8x Communications Equipment Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 3/30/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA QUALCOMM, Inc. QCOM $55.68 80.8% $96,577 $84,171 $18,368 $11,698 $6,785 63.7% 36.9% 4.6x 12.4x Cisco Systems, Inc. CSCO $17.17 80.6% $93,225 $61,203 $45,566 $27,988 $12,835 61.4% 28.2% 1.3x 4.8x Ericsson OM:ERIC B $9.12 67.2% $29,511 $22,804 $33,925 $11,742 $4,453 34.6% 13.1% 0.7x 5.1x Harris Corp. HRS $41.85 91.4% $4,928 $6,868 $6,042 $2,124 $1,217 35.2% 20.2% 1.1x 5.6x Juniper Networks, Inc. JNPR $16.31 49.3% $8,769 $6,338 $4,380 $2,766 $698 63.2% 15.9% 1.4x 9.1x Alcatel-Lucent, SA ENXTPA:ALU $1.65 30.8% $4,773 $4,775 $19,832 $6,717 $1,505 33.9% 7.6% 0.2x 3.2x ADTRAN, Inc. ADTN $30.19 70.9% $1,954 $1,794 $686 $378 $148 55.1% 21.5% 2.6x 12.2x Polycom, Inc. PLCM $10.52 30.7% $1,906 $1,342 $1,519 $907 $231 59.7% 15.2% 0.9x 5.8x Netgear, Inc. NTGR $34.51 76.2% $1,320 $950 $1,228 $383 $148 31.2% 12.1% 0.8x 6.4x Tellabs, Inc. TLAB $3.33 70.1% $1,216 $282 $1,221 $482 ($8) 39.4% (0.7%) 0.2x NM Average 64.8% $24,418 $19,053 $13,277 $6,518 $2,801 47.7% 17.0% 1.4x 7.2x Median 70.5% $4,850 $5,557 $5,211 $2,445 $958 47.3% 15.6% 1.0x 5.8x Source: S&P Capital IQ HYDE PARK CAPITAL 21 Investment Banking | Mergers & Acquisitions | Capital Raising
- 22. HYDE PARK CAPITAL Integrity| Expertise | Results Investment Banking | Mergers & Acquisitions | Capital Raising John Hill Senior Managing Director [email protected] Recent Transactions (813) 383-0205 John McDonald Senior Managing Director Southern Management Corp. has been recapitalized by [email protected] has been acquired by (813) 383-0206 has been recapitalized by has been acquired by & has been acquired by Keith Hodgdon ADG Acquisition with mezzanine financing from & Senior Vice President Holdings, LLC Harbert Mezzanine Partners [email protected] (813) 383-0208 Jeffrey Bridge Vice President [email protected] (813) 383-0204 has been acquired by has acquired has been acquired by has been acquired by has been acquired by Michael Mariani Associate [email protected] (813) 597-2649 Jennifer Paul Associate [email protected] (813) 383-0203 has been recapitalized by has merged with has been recapitalized by has acquired has been recapitalized by Hyde Park Capital Advisors, LLC 701 N. Franklin Street Tampa, FL 33602 Sage Compliance Services Tel: 813-383-0202 www.hydeparkcapital.com HYDE PARK CAPITAL Member FINRA/SIPC Investment Banking | Mergers & Acquisitions | Capital Raising