Technology, Media & Telecom Industry Update May · PDF fileNew regulations requiring ... Market As % of 52- Annual Growth Rates Enterprise Value/Revenue ... eBay Inc. 52,966.2 41.02

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Technology, Media & Telecom

Industry Update

May 2012

Table of Contents Technology, Media & Telecom

What We've Been Reading…………………………………………………………………………………………1

Bellwethers……………………………………………………………………………………………2

TMT Public Market Trading Statistics………………………………………………………………………..…………………..3

Recent TMT M&A Activity…………………………………………………………………………………………….4

Recent U.S. TMT Initial Public Offerings………………………………………………………………………….………………...………..5

Public and M&A Market Overview by Sector

Data and Information Services………………………………………………………………..…………..6

Financial Technology…………………………………………………………………………8

Internet & Digital Media……………………………………………………..…………………..10

IT and Tech-Enabled Services………………………………………………………………..13

Software – Application…………………………………………………….…………………..15

Software – Infrastructure……………………………………………………..…………………..18

Software – SaaS……………………………………………………………………………………………………..20

Tech Hardware……………………………………………………………………..…………………..22

Telecom………………………………………………………………………………………………..25

Selected HW&Co. TMT Transactions…………………………………………………………………………………………..28

TMT Group Overview and Disclosures…………………………………………………………………………………………..29

Note: All market data in the following materials is as of April 30, 2012.

Mobile computing is being adopted by consumers at rates never seen before. Last year, smart phones and tablets

outsold personal computers for the first time. According to Forrester Research, in the next 4 years more people will

access the internet via mobile devices than via personal computers. Hardware distinctions are expected to fade as

cloud storage becomes accessible on all devices. These trends raise questions for technology companies evaluating

their strategies for the post personal computer era.

Read the full article here.

Questions for Mobile Computing

Technology Review 5/1/2012

An increased amount of M&A activity is expected in the remainder of 2012 as potential changes in the capital gains

tax policies are motivating firms to exit investments before the end of the year when the Bush Tax Cuts expire. At

the end of 2012, capital gains taxes will jump from 15% to 20%, with some speculating it could reach as high as

39%. Both investors and founders looking to maximize their capital gains are being more aggressive in seeking

2012 exits at the right prices.


How The Bush Tax Cuts Could Lead To A Crazy Year For M&A

Business Insider 4/30/2012

Recent network and data breaches at Emory Healthcare in Atlanta, the South Carolina Department of Health and

Human Services, and the Utah Department of Health underscore the need for increased security investment at

healthcare organizations. New regulations requiring healthcare organizations to disclose data breaches publicly

further support the need to implement proactive security policies. IDC Health Insights recommends investing in

software programs providing data mining and intrusion protection, auditing security practices, and limiting data

storage to data centers.


Health Care Data Breaches Highlight Need for Security Investment

eWeek 4/25/2012

What We’ve Been Reading

A recent Pew Research Center survey shows that approximately two-thirds of the survey respondents, comprised of

technologists and social scientists, believe that mobile payment and banking technologies such as the mobile wallet

will have substantially replaced both cash and credit cards by the year 2020. A wide variety of technology startups

are vying for a piece of this rapidly expanding market, while established players, such as PayPal who posted $118B

in total transactions last year, continue to expand their offerings and partnerships.


The Post-Cash, Post-Credit-Card Economy

New York Times 4/28/2012

The recent successful IPO of Splunk, Inc has sparked stronger investor interest in the big data space. For a sector

that has been growing in “relative obscurity” until recently, the growing realization of the broad applications of big

data technologies is spurring investor interest. While most pure-play big data companies are still a few years away,

the market should expect to see increased M&A activity in the near term.


Big-Data Investors Look for the Next Splunk

Reuters 4/20/2012

1

http://www.technologyreview.com/business/40318/

http://articles.businessinsider.com/2012-04-30/tech/31462199_1_capital-gains-tax-rate-venture-capitalists

http://www.eweek.com/c/a/Health-Care-IT/Health-Care-Data-Breaches-Highlight-Need-for-Security-Investment-263129/

http://www.nytimes.com/2012/04/29/sunday-review/the-post-cash-post-credit-card-economy.html?_r=3

http://www.reuters.com/article/2012/04/21/us-splunk-bigdata-idUSBRE83K00B20120421

Public Market Trading Statistics Bellwethers

Stock

Performance

Last Twelve Months Last 30 Days

Comparable

Trading

Summary

2

80%

90%

100%

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130%

140%A

pr-

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y-1

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Jun

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v-1

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Dec-1

1

Jan

-12

Feb

-12

Ma

r-1

2

Ap

r-1

2

Nasdaq Bellwethers

90%

95%

100%

105%

110%

115%

120%

03

/30

/12

04

/01

/12

04

/03

/12

04

/05

/12

04

/07

/12

04

/09

/12

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/12

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/12

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/25

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/27

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/29

/12

Nasdaq Bellwethers

($ in millions) Stock Price CY 2012P Multiples Summary LTM

Market As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA

Company Capitalization Current Week High Revenue EBITDA LTM CY 2012P LTM CY 2012P

Bellwethers

Apple Inc. 546,057.5$ 583.98$ 90.7% 33.2% 43.4% 3.1x 2.6x 8.2x 6.7x

Microsoft Corporation 268,953.7 32.02 97.2% 7.1% 10.3% 2.9x 2.8x 7.0x 6.5x

International Business Machines Corporation 238,863.5 207.08 98.3% 1.2% 2.5% 2.4x 2.3x 9.5x 9.3x

Google Inc. 197,185.0 604.85 90.2% 24.2% 38.3% 3.9x 3.3x 10.6x 8.0x

Samsung Electronics Co. Ltd. 160,467.9 1,229.87 98.7% NA NA 1.0x NA 5.8x NA

Oracle Corporation 146,268.1 29.40 80.5% 3.6% 22.0% 3.6x 3.5x 8.3x 7.0x

Intel Corporation 142,196.7 28.40 98.7% 5.7% 5.7% 2.5x 2.4x 5.8x 5.4x

QUALCOMM Inc. 109,422.2 63.83 92.7% 23.4% 28.0% 4.8x 4.2x 13.0x 9.9x

Cisco Systems, Inc. 108,553.6 20.16 94.6% 6.5% 23.8% 1.7x 1.6x 6.4x 5.2x

Amazon.com Inc. 104,477.0 231.90 94.0% 31.5% 80.9% 1.9x 1.6x 54.4x 31.9x

SAP AG 78,988.5 66.36 91.4% 11.4% 2.2% 4.0x 3.7x 11.1x 10.8x

EMC Corporation 59,232.8 28.21 94.0% 10.5% 28.7% 2.5x 2.3x 10.6x 8.6x

eBay Inc. 52,966.2 41.02 98.0% 20.3% 36.7% 3.7x 3.3x 13.3x 10.2x

Hewlett-Packard & Company 48,959.0 24.76 59.3% (1.5%) 3.5% 0.6x 0.6x 4.6x 4.4x

Total Comp Set Median 125,809.4$ 94.0% 10.5% 23.8% 2.7x 2.6x 8.9x 8.0x

0%

20%

40%

60%

80%

100%

120%

Data and

Information Services

Financial

Technology

Internet &

Digital Media

IT and

Tech-Enabled Services

Software –

Application

Software –

Infrastructure

Software –

SaaS

Technology

Hardware

Telecommunications

Comparable

Trading

Summary

Valuation

Summary

Current Valuation Versus Historical Five-Year Average

Five-Year Average

Note: Based on current TEV/LTM EBITDA versus five-year historical average.

Note: Public comparables exclude companies with market capitalization below $500 million.

TMT Public Market Trading Statistics by Vertical

3

LTM Revenue LTM EBITDA

Industry Segment 1 Month 12 Month Growth Margin LTM 2012P 2013P LTM 2012P 2013P

Bellwethers 0.8% 18.8% 11.6% 32.1% 2.7x 2.6x 2.3x 8.9x 8.0x 6.7x

Data and Information Services (0.3% ) 11.9% 10.4% 25.9% 2.9x 2.9x 2.7x 10.1x 9.1x 8.4x

Diversified Information Services (0.9%) 23.0% 7.7% 28.2% 3.0x 2.9x 2.7x 9.8x 8.9x 8.4x

Lender/Mortgage/Real Estate Data and Processing 2.8% 8.9% 7.2% 19.4% 2.5x 2.4x 2.3x 11.9x 8.0x 7.6x

Market Data and Research 0.1% (1.1%) 13.0% 16.5% 2.0x 2.2x 2.0x 11.1x 12.1x 10.5x

Financial Data and Media (2.3%) 2.3% 10.6% 37.5% 4.1x 4.6x 4.3x 12.5x 10.3x 9.4x

Financial Technology 0.2% 14.1% 13.3% 27.6% 3.3x 2.9x 2.7x 11.3x 9.9x 8.9x

Financial Software and Solutions (2.0%) 3.3% 13.4% 26.6% 3.7x 3.3x 3.0x 13.3x 11.0x 10.1x

Transaction and Payment Processing 1.7% 22.0% 12.0% 27.6% 2.7x 2.6x 2.5x 10.7x 9.3x 8.4x

Internet & Digital Media (2.6% ) (5.6% ) 27.5% 20.0% 2.9x 2.4x 2.1x 10.2x 8.5x 7.7x

Advertising & Marketing (9.1%) 0.2% 57.8% 29.6% 5.5x 4.6x 2.8x 18.5x 14.5x 10.3x

Content & Services (3.9%) (22.0%) 29.3% 13.9% 2.9x 2.4x 2.1x 9.8x 9.8x 8.8x

Content Delivery & Management (7.4%) (13.6%) 20.7% 23.0% 2.9x 1.9x 1.8x 9.7x 8.5x 7.3x

e-Commerce 4.8% 2.1% 30.3% 18.1% 3.7x 3.3x 2.8x 19.4x 11.5x 10.2x

Diversified Media (2.0%) 1.7% 4.9% 21.9% 1.8x 1.7x 1.7x 7.5x 7.2x 6.8x

IT and Tech-Enabled Services (1.4% ) 2.5% 10.2% 15.7% 1.4x 1.4x 1.2x 9.6x 8.6x 7.5x

IT Services (4.0%) (11.3%) 15.8% 11.2% 0.6x 1.3x 1.1x 6.5x 8.7x 7.7x

Government IT & BPO (1.5%) 5.1% 10.2% 9.9% 0.6x 0.5x 0.5x 9.3x 6.2x 5.9x

Onshore BPOs (0.2%) 3.5% 2.6% 15.7% 0.9x 1.0x 1.0x 8.6x 5.7x 4.6x

Offshore BPOs 0.1% 4.6% 15.8% 18.4% 2.3x 2.1x 1.8x 11.0x 10.6x 9.7x

Software – Application (3.2% ) 8.7% 18.9% 21.2% 3.6x 3.4x 3.1x 14.3x 10.6x 10.4x

Enterprise Software (1.9%) 11.5% 18.4% 23.2% 3.6x 3.5x 3.2x 11.0x 10.4x 9.5x

Product Lifecycle Management/Technical Design (3.5%) 9.1% 14.6% 21.9% 3.4x 2.3x 2.1x 12.9x 8.3x 7.9x

Customer Engagement/Call Center Management (3.2%) 4.5% 11.4% 17.9% 2.4x 2.1x 1.9x 14.7x 8.1x 7.6x

Human Capital Management (0.2%) 16.8% 21.0% 10.6% 7.6x 6.0x 4.9x 68.6x 29.1x 23.6x

Vertically Focused - Public Sector 0.7% 9.0% 13.6% 19.3% 3.7x 3.3x 2.9x 14.4x 13.0x 10.8x

Vertically Focused - Healthcare IT (9.5%) 3.2% 24.8% 27.3% 5.0x 4.2x 3.7x 15.9x 12.5x 10.7x

Software – Infrastructure (1.8% ) 6.7% 15.6% 22.4% 3.1x 3.5x 3.2x 11.8x 11.1x 10.1x

Enterprise IT Management (0.0%) (0.4%) 14.4% 22.6% 3.0x 2.7x 2.5x 10.3x 9.5x 11.4x

Security (2.3%) 18.2% 12.8% 27.5% 7.0x 6.5x 5.5x 12.4x 11.1x 10.1x

Enterprise Storage (4.4%) 6.2% 22.2% 17.6% 3.6x 3.3x 2.9x 16.3x 12.4x 11.0x

Software – SaaS (4.3% ) 5.9% 34.4% 15.3% 6.9x 5.6x 4.4x 23.5x 18.8x 15.2x

Technology Hardware (5.6% ) (5.7% ) 0.9% 17.4% 1.1x 1.2x 1.1x 7.4x 6.6x 5.5x

Semiconductor Devices (5.0%) (11.1%) 0.5% 21.9% 2.2x 2.1x 1.8x 9.8x 8.2x 6.9x

Semiconductor Equipment (6.8%) (4.2%) (6.5%) 22.1% 1.4x 1.4x 1.2x 6.6x 6.8x 5.6x

Electronic Manufacturing (8.3%) (9.8%) 3.3% 5.7% 0.3x 0.3x 0.3x 5.7x 5.0x 4.5x

PCs, Servers, and Computing Components (0.6%) 6.4% 3.3% 13.2% 0.8x 0.7x 0.8x 6.9x 6.0x 5.4x

Storage and Networking Components (13.8%) (12.4%) 8.6% 23.6% 1.0x 1.0x 0.9x 6.0x 4.8x 3.6x

Telecommunications (5.8% ) (9.5% ) 9.8% 22.7% 2.0x 1.9x 1.7x 8.4x 7.9x 6.2x

Network Optimization (7.8%) (20.2%) 18.2% 21.3% 3.7x 3.3x 2.8x 10.8x 9.2x 7.8x

Fiber Optics (12.9%) (31.9%) 5.5% 7.1% 1.3x 1.2x 1.1x 26.9x 10.8x 9.2x

Telecom/Networking Equipment (9.0%) (18.2%) 6.4% 16.6% 1.2x 1.2x 1.2x 7.4x 7.8x 5.8x

Carriers and Content Providers (5.3%) (14.3%) 11.1% 25.5% 1.8x 1.8x 1.7x 6.1x 5.7x 5.3x

Infrastructure Services 6.1% 31.0% 11.8% 62.7% 13.2x 11.1x 9.8x 21.1x 17.6x 15.1x

Managed Services 7.0% 49.2% 27.1% 40.0% 5.7x 5.1x 4.4x 13.7x 11.1x 9.5x

NASDAQ (0.8% ) 8.6%

Stock Price % Change TEV / Revenue Multiple TEV / EBITDA Multiple

Date Date Enterprise LTM Multiples Summary

Announced Closed Target Acquirer Value (mm) Revenue EBITDA

04/30/12 Pending PLX Technology Inc. Fun World Media, Inc. 300.8$ 2.6 x NA

04/27/12 Pending Demandforce, Inc. Intuit Inc. 423.5 NA NA

04/26/12 Pending Gemcom Software International, Inc. Dassault Systemes SA 360.0 NA NA

04/26/12 Pending Torex Retail Holdings Limited MICROS Systems, Inc. 263.1 NA NA

04/25/12 Pending Archives.com Ancestry.com Inc. 100.0 NA NA

04/24/12 Pending Cray Inc., Interconnect Hardware Assets Intel Corporation 140.0 NA NA

04/23/12 Pending Thomson Reuters, Health Care Business Veritas Capital 1,250.0 NA NA

04/20/12 Pending MU Dynamics, Inc. Spirent Communications Plc. 40.0 NA NA

04/20/12 Pending Kawasaki Microelectronics, Inc. Megachips Corp. 104.2 NA NA

04/18/12 Pending Knology, Inc. WOW! Internet, Cable and Phone 1,488.9 2.9 x 8.3 x

04/17/12 Pending IBM, Point-of-Sale Business Toshiba Tec Corp. 842.3 NA NA

04/16/12 Pending SRS Labs Inc. DTS Inc. 114.4 3.5 x 65.2 x

04/15/12 Pending Openwave, Mediation and Messaging Marlin Equity Partners 55.0 NA NA

04/13/12 Pending Objet Ltd. Stratasys Inc. 606.4 5.0 x 30.2 x

04/10/12 Pending X-Rite, Incorporated Danaher Corp. 629.6 2.7 x 11.1 x

04/09/12 Pending Elo TouchSystems, Inc. The Gores Group LLC 380.0 0.9 x NA

04/09/12 Pending eResearchTechnology, Inc. Genstar Capital, LLC 376.7 2.0 x 9.2 x

04/09/12 Pending Instagram, Inc. Facebook, Inc. 1,000.0 NA NA

04/03/12 Pending DDI Corp. Viasystems Group, Inc. 267.8 1.0 x 7.9 x

04/02/12 Pending Wyse Technology, Inc. Dell Inc. 1,000.0 2.9 x NA

04/02/12 04/10/12 LogLogic, Inc. TIBCO Software Inc. 130.0 NA NA

03/27/12 03/30/12 MSDSonline Inc. ICG Group, Inc. 48.1 3.7 x NA

03/26/12 Pending Comverge, Inc. Bayside Capital, Inc.; H.I.G. Bayside 50.9 0.4 x NA

03/26/12 Pending Opnext, Inc. Oclaro, Inc. 133.5 0.4 x NA

03/24/12 Pending ClairMail, Inc. Monitise plc 174.4 10.0 x NA

03/23/12 03/30/12 MediConnect Global, Inc. Verisk Analytics, Inc. 348.6 6.0 x 15.8 x

03/22/12 Pending Convergys, Information Management NetCracker Technology Corporation 449.0 NA NA

03/22/12 03/22/12 Coolsand Holding Co., Ltd. RDA Microelectronics, Inc. 45.3 NA NA

03/21/12 03/21/12 OMGPOP, Inc. Zynga, Inc. 180.0 NA NA

03/21/12 04/05/12 BroadLight, Inc. Broadcom Corp. 205.0 NA NA

03/19/12 Pending Kiva Systems, Inc. Amazon.com Inc. 775.0 NA NA

03/18/12 Pending AboveNet, Inc. Zayo Group Inc. 2,149.8 4.5 x 11.2 x

03/16/12 03/16/12 Social Hour Inc. PlayPhone, Inc. 51.5 NA NA

03/16/12 Pending NEXX Systems, Inc. Tokyo Electron Ltd. 248.9 3.9 x 36.0 x

03/15/12 Pending NDS Group Ltd. Cisco Systems, Inc. 4,964.8 5.0 x 17.5 x

03/14/12 Pending Radvision Ltd. Avaya Inc. 163.7 2.1 x NA

03/13/12 Pending SonicWALL, Inc. Dell Inc. 1,200.0 4.6 x NA

03/08/12 Pending Quest Software Inc. Insight Venture Partners 1,947.3 2.3 x 12.7 x

03/08/12 Pending GFI Solutions Group, Inc. Private Equity Consortia 111.0 1.3 x NA

03/06/12 04/25/12 Transcend Services, Inc. Nuance Communications, Inc. 318.1 2.5 x 12.2 x

Median 284.3$ 2.8x 12.4x

Recent M&A

Statistics

Note: Includes announced domestic transactions over the last two months where enterprise value is more than $40 million.

Transaction Volume and Revenue Multiples Transaction Volume by Segment Summary

Statistics

Recent TMT M&A Activity

Note: Includes closed transactions over the last twelve months where enterprise value is publicly disclosed and more than $40 million. 4

2.6 x 2.8 x

3.2 x

1.4 x

3.0 x

3.8 x

4.8 x

2.0 x

1.5 x

0.0 x

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

0

10

20

30

40

50

60

70

80

90

Data and Information

Services

Financial Technology

Internet & Digital Media

IT and Tech-Enabled Services

Software –Application

Software –Infrastructure

Software –SaaS

Technology Hardware

Telecom

LT

M R

ev

en

ue M

ultip

leTra

nsa

cti

on

Volu

me

Data and Information

Services5%

Financial Technology

6%

Internet & Digital Media

17%

IT and Tech-Enabled Services

8%

Software –Application

17%

Software –Infrastructure

7%

Software –SaaS3%

Technology Hardware

22%

Telecom15%

0

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010 2011 2012 YTD

($ in millions) IPO Details Financials at IPO (LTM) Trading Multiples

Gross Offering % Post-IPO EBITDA 1YR Rev. TEV/LTM TEV/LTM

Date Company Amount Secondary Perf. Revenue Margin Growth Revenue EBITDA

04/24/12 Envivio, Inc. 69.8$ 16.2% 2.8% 50.6$ 4.4% 68.8% 5.3x NM

04/19/12 Proofpoint, Inc. 82.3 18.9% 0.8% 81.8 NM 26.3% 4.7x NM

04/19/12 Infoblox Inc. 120.0 23.4% 27.5% 151.9 NM 48.7% 5.7x NM

04/18/12 Splunk, Inc. 229.5 7.4% 99.7% 121.0 NM 82.6% 26.6x NM

03/28/12 Millennial Media Inc. 132.6 9.8% 45.9% 103.7 NM 116.8% 13.8x NM

03/27/12 Vocera Communications, Inc. 93.6 14.5% 38.4% 79.5 1.5% 40.0% 5.8x NM

03/21/12 ExactTarget, Inc. 161.5 0.0% 42.2% 207.5 NM 54.5% 8.2x NM

03/21/12 Vantiv, Inc. 500.0 0.0% 32.5% 1,622.4 26.9% 39.6% 4.2x 15.7x

03/14/12 M/A-Com Technology Solutions Holdings 114.0 7.4% 4.4% 308.4 18.6% 18.5% 3.4x 18.3x

03/14/12 Demandware, Inc. 88.0 0.0% 70.3% 56.5 3.8% 54.1% 15.1x NM

03/01/12 Yelp, Inc. 107.3 0.7% 52.4% 83.3 NM 74.5% 15.5x NM

02/23/12 Bazaarvoice, Inc. 113.8 5.1% 65.1% 94.0 NM 143.2% 12.2x NM

02/17/12 Brightcove, Inc. 55.0 0.0% 70.5% 63.6 NM 45.4% 8.0x NM

02/09/12 Synacor, Inc. 34.1 20.0% 65.8% 91.1 7.4% 37.5% 2.6x 35.1x

02/01/12 Greenway Medical Technologies, Inc. 66.7 19.2% 54.0% 105.8 5.2% 63.6% 5.4x NM

02/01/12 AVG Technologies N.V. 128.0 50.0% (13.4%) 272.4 29.5% 25.4% 4.0x 13.7x

01/24/12 Guidewire Software, Inc. 115.1 0.0% 109.4% 190.2 13.6% 31.4% 7.4x 54.7x

12/15/11 Zynga, Inc. 1,000.0 0.0% 138.8% 1,024.6 18.6% 743.5% 5.2x 28.1x

12/12/11 Jive Software, Inc. 161.3 25.1% 98.4% 69.4 NM 131.5% 21.0x NM

11/18/11 Digital Domain Media Group, Inc. 41.8 0.0% 0.0% 106.4 NM 66.5% 4.2x NM

11/17/11 Intermolecular, Inc. 96.5 41.1% (33.3%) 52.9 8.1% 96.4% 7.0x 87.0x

11/16/11 Angie's List, Inc. 114.3 28.9% 7.3% 78.7 NM 72.6% 10.2x NM

11/15/11 InvenSense, Inc. 75.0 0.0% 114.4% 129.7 30.6% 63.0% 9.6x 31.2x

11/08/11 Imperva Inc. 90.0 5.0% 93.2% 72.0 NM 82.9% 11.4x NM

11/03/11 Groupon, Inc. 700.0 0.0% (46.5%) 1,290.5 NM 312.4% 5.3x NM

Median 113.8$ 7.4% 45.9% 103.7$ 10.9% 63.6% 7.0x 29.6x

Recent IPO

Statistics

Note: Includes major U.S. exchanges and transactions for companies located in the U.S. over the last six months.

Number of Transactions by Tier Percentage of Transactions by Tier

Tier by Market Capitalization on IPO Pricing Date

$0 - $250M $250M - $500M $500M - $1,000M $1,000M - $2,000M $2,000M +

Recent U.S. TMT Initial Public Offerings

Note: Includes major U.S. exchanges and transactions for companies located in the U.S.

5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 2012 YTD

Stock

Performance

Public Market Trading Statistics Data and Information Services

Comparable

Trading

Summary


6




Diversified Information Services

Thomson Reuters Corporation 24,740.8$ 29.85$ 74.8% (5.7%) 5.5% 2.3x 2.4x 9.3x 8.8x

Experian plc 15,865.0 15.79 97.0% NA NA 3.9x NA 12.2x NA

Reed Elsevier plc 9,963.1 8.28 76.0% NA NA NA 0.8x NA 2.6x

Verisk Analytics, Inc. 8,111.3 48.95 98.6% 12.8% 15.6% 6.8x 6.0x 15.5x 13.4x

Alliance Data Systems Corporation 6,704.9 128.49 98.3% 11.7% 24.2% 3.9x 3.6x 13.2x 11.1x

IHS Inc. 6,644.0 101.07 99.0% 16.5% 84.4% 5.2x 4.7x 26.1x 14.5x

Equifax Inc. 5,516.0 45.82 97.0% 8.7% 10.6% 3.1x 3.0x 9.7x 9.0x

Wolters Kluwer NV 5,116.9 17.25 78.4% NA NA 1.8x NA 7.3x NA

Informa plc 4,045.5 6.73 89.9% NA NA 2.7x NA 9.8x NA

NeuStar, Inc. 2,432.2 36.35 94.0% 32.3% 50.1% 4.2x 3.5x 10.1x 7.3x

UBM plc 2,335.9 9.57 91.6% 3.3% 5.0% 2.1x 1.9x 9.4x 8.6x

Fair Isaac Corporation 1,545.8 42.90 95.3% 1.8% 3.2% 2.9x 2.9x 9.7x 9.7x

Acxiom Corporation 1,073.5 13.73 91.2% (4.8%) (4.1%) 1.0x 1.1x 5.1x 5.3x

Median 5,516.0$ 94.0% 8.7% 10.6% 3.0x 2.9x 9.8x 8.9x

Lender/Mortgage/Real Estate Data and Processing

Fidelity National Information Services, Inc. 9,946.4$ 33.67$ 99.0% 4.5% 8.4% 2.5x 2.4x 8.6x 8.0x

Lender Processing Services, Inc. 2,274.6 26.55 88.5% (3.2%) 15.9% 1.6x 1.7x 8.3x 7.1x

CoStar Group Inc. 1,881.0 72.89 99.3% 12.4% 17.2% 5.1x 4.7x 25.8x 22.6x

CoreLogic, Inc. 1,779.3 16.70 87.0% 6.1% 106.4% 1.7x 1.7x 11.9x 6.6x

LoopNet, Inc. 823.1 19.17 99.1% 11.5% 98.6% 7.9x 7.3x 43.8x 23.7x

Median 1,881.0$ 99.0% 6.1% 17.2% 2.5x 2.4x 11.9x 8.0x

Market Data and Research

Gartner Inc. 4,089.6$ 43.80$ 100.0% 10.8% 32.0% 2.8x 2.6x 17.4x 13.2x

Aegis Group plc 3,306.7 2.88 97.9% NA NA 1.9x NA 10.1x NA

Ipsos SA 1,469.3 32.44 68.7% NA NA 1.3x NA 9.4x NA

Forrester Research Inc. 803.6 35.45 88.6% 10.0% 16.7% 2.0x 1.9x 12.2x 10.9x

Median 2,388.0$ 93.2% 10.4% 24.4% 2.0x 2.2x 11.1x 12.1x

Financial Data and Media

Moody's Corporation 9,201.5$ 40.95$ 95.1% 9.5% 9.4% 4.1x 3.9x 9.7x 9.1x

FactSet Research Systems Inc. 4,710.0 104.86 93.3% 10.5% 12.2% 5.8x 5.4x 15.6x 14.3x

MSCI Inc. 4,444.3 36.59 93.8% 7.1% 9.1% 5.7x 5.3x 12.5x 11.4x

Dun & Bradstreet Corporation 3,721.9 77.78 89.9% (0.8%) 9.2% 2.6x 2.6x 8.7x 8.0x

Morningstar Inc. 2,890.5 57.72 90.2% NA NA 3.8x NA 13.2x NA

Median 4,444.3$ 93.3% 8.3% 9.3% 4.1x 4.6x 12.5x 10.3x

Total Data and Information Median 4,045.5$ 93.8% 9.1% 13.9% 2.9x 2.9x 10.1x 9.1x

80%

90%

100%

110%

120%

130%A

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Nasdaq Data and Information Services

90%

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120%

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Nasdaq Data and Information Services

2.7x 2.7x2.2x

3.7x

2.5x2.7x 2.8x 2.8x

2.0x2.3x

3.2x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

0

10

20

30

40

50

60

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD

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Transaction Volume Median LTM Revenue Multiple

Recent M&A

Activity

Comparable Transactions Data and Information Services

Summary

Statistics

M&A Transaction Volume and Revenue Multiples

Note: Includes announced transactions over the last six months where enterprise value is publicly disclosed and more than $40 million.

Note: Includes closed transactions where enterprise value is publicly disclosed and more than $40 million.

7

Date Date Enterprise LTM Multiples


04/23/12 Pending Thomson Reuters, Health Care Business Veritas Capital 1,250.0$ NA NA


03/23/12 03/30/12 MediConnect Global, Inc. Verisk Analytics, Inc. 348.6 6.0 x 15.8 x

02/23/12 Pending GlobeOp Financial Services S.A SS&C Technologies Holdings, Inc. 717.0 3.2 x 11.6 x

01/31/12 03/16/12 JBIS Holdings, Inc. NTT Data Corporation 129.1 0.3 x 20.7 x

01/05/12 01/05/12 Miyowa Inc. Synchronoss Technologies, Inc. 59.0 4.6 x NA

12/23/11 12/28/11 De Novo Legal, LLC Epiq Systems Holdings, LLC 118.7 2.0 x 7.0 x

11/14/11 11/14/11 LesPAC inc. Mediagrif Interactive Technologies Inc. 71.3 5.7 x NA

11/10/11 03/19/12 Bitstream Inc. Monotype Imaging Holdings Inc. 42.5 1.5 x NA

Median 129.1$ 3.2x 13.7x

Stock

Performance

Public Market Trading Statistics Financial Technology

Comparable

Trading

Summary


8




Financial Software and Solutions 1,719.7$ -$ 0.9$ 0.1$ 0.2$ 3.7$ 3.3$ 13.3$ 11.0$

Intuit Inc. 17,095.8$ 57.97$ 93.0% 8.0% 19.0% 4.2x 3.9x 12.3x 10.4x

Jack Henry & Associates Inc. 2,946.8 33.96 96.0% 6.2% 8.1% 3.0x 2.8x 9.4x 8.7x

Broadridge Financial Solutions Inc. 2,878.9 23.21 93.1% 6.4% 15.9% 1.4x 1.3x 8.5x 7.3x

SS&C Technologies Holdings, Inc. 1,853.7 23.77 97.2% 14.8% 20.8% 5.2x 4.5x 14.1x 11.7x

ACI Worldwide, Inc. 1,585.6 39.86 94.9% 50.9% 58.5% 3.1x 2.1x 14.5x 9.1x

Advent Software, Inc. 1,377.3 26.98 91.3% 12.0% 8.4% 4.0x 3.5x 12.6x 11.6x

Financial Engines, Inc. 1,050.8 22.84 78.8% 26.0% 91.3% 6.3x 5.0x 35.9x 18.8x

Bottomline Technologies Inc. 852.5 23.53 78.7% 14.7% 39.2% 3.4x 3.0x 20.7x 14.9x

Median 1,719.7$ 93.0% 13.3% 19.9% 3.7x 3.3x 13.3x 11.0x

Transaction and Payment Processing 7,277.5$ -$ 1.0$ 0.1$ 0.1$ 2.7$ 2.6$ 10.7$ 9.3$

Visa, Inc. 82,670.5$ 122.98$ 99.0% 9.7% 13.8% 8.3x 7.6x 13.1x 11.5x

Mastercard Inc. 57,202.8 452.27 97.8% 12.7% 14.7% 7.7x 6.9x 14.0x 12.2x

Automatic Data Processing, Inc. 27,285.8 55.62 97.4% 6.7% 7.5% 2.4x 2.3x 11.4x 10.8x

Paychex, Inc. 11,231.6 30.98 91.9% 6.5% 5.7% 4.7x 4.5x 11.1x 10.7x

Fidelity National Information Services, Inc. 9,946.4 33.67 99.0% 4.5% 8.3% 2.5x 2.4x 8.6x 8.0x

Fiserv, Inc. 9,650.0 70.29 99.1% 4.6% 12.8% 2.9x 2.8x 9.7x 8.6x

Vantiv, Inc. 4,905.1 22.52 99.0% (38.4%) 11.6% 3.6x 6.0x 13.6x 12.4x

Total System Services, Inc. 4,442.5 23.52 98.5% 3.3% 18.1% 2.3x 2.3x 9.2x 8.0x

Global Payments Inc. 3,647.5 46.43 86.1% 11.8% 9.4% 1.7x 1.6x 7.5x 7.2x

Wright Express Corporation 2,479.3 63.82 96.4% 8.8% 18.6% 4.9x 4.5x 10.9x 9.2x

Heartland Payment Systems, Inc. 1,186.1 30.47 98.3% (73.1%) 21.3% 0.6x 2.3x 10.6x 9.5x

Euronet Worldwide Inc. 1,095.5 21.63 96.1% 9.5% 16.6% 1.0x 1.0x 9.0x 7.7x

Median 7,277.5$ 98.1% 6.6% 13.3% 2.7x 2.6x 10.7x 9.3x

Total Financial Technology Median 3,297.2$ 96.2% 8.4% 15.3% 3.3x 2.9x 11.3x 9.9x

70%

80%

90%

100%

110%

120%

130%

140%

150%A

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Nasdaq Financial Technology

90%

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120%

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Nasdaq Financial Technology



03/26/12 Pending ClairMail, Inc. Monitise plc 174.4$ 10.0 x NA

03/06/12 Pending GlobeOp Financial Services S.A SS&C Technologies Holdings, Inc. 717.0 3.2x 11.4x

02/28/12 Pending Thomson Reuters, Portia Business SS&C Technologies Holdings, Inc. 170.0 NA NA

02/07/12 Pending Temenos Group AG Misys plc 1,569.8 3.3x 35.1x

01/13/12 Pending Buckaroo B.V. Intrum Justitia AB 50.7 NA NA

12/19/11 01/31/12 Orc Group AB Cidron Intressenter AB 250.7 1.8x 9.2x

11/28/11 Pending Systems@Work Pte Ltd. Wirecard AG 78.4 NA NA

Median 174.4$ 3.3x 11.4x

Recent M&A

Activity

Comparable Transactions Financial Technology

Summary

Statistics




9

4.7x

1.0x

1.8x

3.9x

3.2x3.4x

3.1x

1.7x2.0x

3.4x3.2x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

4.5x

5.0x

0

10

20

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40

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60

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Comparable

Trading

Summary

Public Market Trading Statistics Internet & Digital Media

Stock

Performance


10




Advertising & Marketing 2,341.6$ -$ 0.8$ 0.3$ 0.4$ 5.5$ 4.6$ 18.5$ 14.5$

Google Inc. 197,196.3$ 604.85$ 90.2% 24.2% 38.3% 3.9x 3.3x 10.6x 8.0x

Baidu, Inc. 46,348.6 132.70 80.0% 54.5% 50.4% 17.1x 12.5x 29.5x 22.0x

Yahoo! Inc. 18,938.6 15.54 82.5% (10.4%) 20.4% 2.3x 2.6x 8.7x 7.0x

Yandex N.V. 7,722.0 23.72 56.5% 43.0% 43.1% 9.4x 7.4x 21.7x 16.5x

Groupon, Inc. 6,940.2 10.71 34.4% 44.6% NM 3.6x 2.5x NM 16.2x

Bankrate, Inc. 2,341.6 23.42 90.3% 27.5% 31.1% 5.5x 4.6x 18.5x 14.5x

ExactTarget, Inc. 1,741.5 27.01 90.4% 25.7% NA 8.2x 6.5x NM NA

ValueClick, Inc. 1,708.0 21.18 97.5% 27.0% 36.6% 2.9x 2.4x 10.2x 7.8x

Millennial Media Inc. 1,420.7 18.97 68.0% 190.8% NM 13.5x 4.7x NM 88.1x

Bazaarvoice, Inc. 1,126.3 19.81 93.9% 31.8% NM 12.1x 9.2x NM NM

Constant Contact, Inc. 735.0 24.17 75.1% 17.6% 114.4% 2.6x 2.3x 24.3x 12.6x

Median 2,341.6$ 82.5% 27.5% 38.3% 5.5x 4.6x 18.5x 14.5x

Content & Services 1,267.7$ -$ 0.6$ 0.2$ 0.3$ 2.9$ 2.4$ 9.8$ 9.8$

LinkedIn Corporation 11,203.0$ 108.45$ 88.4% 65.5% 168.5% 20.3x 12.3x NM 62.3x

VeriSign, Inc. 6,494.9 41.11 95.5% 13.7% 29.4% 7.3x 6.6x 13.6x 11.2x

Zynga, Inc. 6,140.0 8.34 52.4% 23.6% NM 3.8x 3.3x NM 10.8x

Netflix, Inc. 4,449.0 80.14 26.3% 13.4% (70.1%) 1.2x 1.1x 12.4x 31.6x

IAC/InterActiveCorporation 3,913.2 48.15 94.3% 22.8% 59.0% 1.5x 1.2x 10.8x 6.8x

AOL, Inc. 2,340.0 25.04 91.2% (4.0%) (13.8%) 0.9x 1.0x 5.8x 6.7x

Pandora Media, Inc. 1,430.8 8.60 33.1% 51.7% NM 4.9x 3.2x NM NM

Yelp, Inc. 1,368.7 22.86 71.5% 49.8% NM 16.2x 10.8x NM NM

WebMD Health Corp. 1,267.7 22.75 38.9% (9.3%) (17.2%) 1.7x 1.9x 7.2x 8.7x

Ancestry.com Inc. 1,137.4 26.70 58.3% 16.0% 17.0% 2.6x 2.3x 7.7x 6.9x

Monster Worldwide, Inc. 1,046.4 8.63 46.7% (4.7%) 20.1% 1.0x 1.0x 7.3x 6.0x

Zillow, Inc. 1,003.5 34.87 58.1% 55.4% 264.4% 13.8x 8.9x NM 40.8x

The Active Network, Inc. 977.2 16.80 71.2% 27.8% 141.0% 2.6x 2.0x 44.5x 18.5x

Angie's List, Inc. 795.9 13.95 70.4% 69.6% NM 7.0x 4.8x NM NM

comScore, Inc. 703.9 19.92 63.7% 19.6% 461.9% 2.9x 2.4x 64.7x 11.5x

Dice Holdings, Inc. 693.8 10.78 57.5% 10.4% 10.3% 3.5x 3.2x 8.5x 7.9x

Demand Media, Inc. 664.8 8.31 40.6% 7.4% 61.4% 1.8x 1.7x 9.8x 6.1x

Median 1,267.7$ 58.3% 19.6% 29.4% 2.9x 2.4x 9.8x 9.8x

Content Delivery & Management

Akamai Technologies, Inc. 5,805.3$ 32.59$ 79.0% 15.8% 15.1% 4.0x 3.6x 9.7x 8.5x

Level 3 Communications Inc. 4,986.0 23.06 57.6% 50.2% 70.7% 2.9x 1.9x 14.6x 8.5x

Rovi Corporation 3,072.5 28.64 47.1% 11.6% 52.5% 5.2x 4.6x 15.1x 9.9x

Mentor Graphics Corporation 1,587.6 14.45 91.7% 8.4% 36.7% 1.7x 1.5x 9.7x 7.1x

EarthLink Inc. 862.4 8.12 96.9% 2.7% (7.2%) 0.9x 0.9x 3.8x 4.2x

Median 3,072.5$ 79.0% 11.6% 36.7% 2.9x 1.9x 9.7x 8.5x

70%

80%

90%

100%

110%

120%

130%

140%A

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Nasdaq Internet & Digital Media

80%

85%

90%

95%

100%

105%

110%

115%

120%

03

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04

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04

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04

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Nasdaq Internet & Digital Media

Public Market Trading Statistics Internet & Digital Media


Comparable

Trading

Summary

(continued)

11




e-Commerce

Amazon.com Inc. 104,477.0$ 231.90$ 94.0% 31.5% 80.9% 1.9x 1.6x 54.4x 31.9x

eBay Inc. 52,966.2 41.02 98.0% 20.3% 36.7% 3.7x 3.3x 13.3x 10.2x

priceline.com Inc. 37,882.7 760.82 98.2% 27.6% 40.2% 8.2x 6.5x 24.7x 17.6x

Rakuten, Inc. 14,651.7 1,115.29 93.9% NA NA 3.4x NA 15.5x NA

Expedia Inc. 5,420.2 42.65 64.8% 9.6% 13.2% 1.3x 1.2x 6.8x 6.1x

Mercadolibre, Inc. 4,270.8 96.74 92.6% 33.9% 36.8% 13.7x 10.3x 38.4x 28.1x

Ctrip.com International Ltd. 3,116.4 21.67 43.1% 21.1% 2.7% 3.9x 3.2x 11.8x 11.5x

HomeAway, Inc. 2,134.5 26.05 56.9% 22.8% 100.2% 7.9x 6.8x 43.6x 23.5x

Live Nation Entertainment, Inc. 1,690.8 9.06 72.8% 2.6% 5.8% 0.5x 0.5x 6.2x 5.8x

Liquidity Services, Inc. 1,634.4 53.33 94.5% 32.0% 59.4% 4.5x 3.4x 26.7x 16.8x

Vistaprint N.V. 1,379.5 37.29 66.3% 23.6% 5.7% 1.5x 1.3x 12.5x 10.3x

Shutterfly, Inc. 1,086.3 31.16 46.7% 17.5% 100.1% 1.9x 1.6x 19.4x 9.7x

OpenTable, Inc. 1,009.0 44.72 37.7% 20.6% 60.0% 6.9x 5.7x 22.8x 14.3x

Demandware, Inc. 763.9 27.25 85.2% 24.2% NM 14.9x 12.0x 395.0x NM

Digital River Inc. 694.3 18.81 51.5% 1.9% 44.6% 0.6x 0.6x 3.8x 2.6x

Median 2,134.5$ 72.8% 22.0% 40.2% 3.7x 3.3x 19.4x 11.5x

Diversified Media

Comcast Corporation 81,843.8$ 30.35$ 99.7% 9.9% 6.6% 2.3x 2.1x 6.8x 6.4x

Walt Disney Company 77,268.7 43.11 96.9% 4.9% 11.4% 2.1x 2.0x 8.8x 7.9x

News Corporation 47,631.1 19.61 96.1% 1.5% 8.2% 1.5x 1.4x 7.5x 6.9x

Time Warner Inc. 36,192.9 37.48 95.5% 1.4% (0.2%) 1.8x 1.7x 7.3x 7.3x

Viacom, Inc. 25,057.6 46.39 88.1% (0.7%) 3.1% 2.1x 2.1x 7.8x 7.6x

CBS Corporation 21,666.4 33.38 96.6% 5.5% 11.4% 1.9x 1.8x 8.6x 7.7x

Liberty Interactive Corporation 10,818.9 18.83 95.1% 5.1% 8.2% 1.4x 1.4x 7.8x 7.2x

Scripps Networks Interactive, Inc. 7,712.0 50.22 95.9% 8.9% 5.6% 4.0x 3.7x 8.4x 8.0x

Gannett Co., Inc. 3,274.6 13.82 85.0% 0.6% 7.3% 1.0x 1.0x 5.0x 4.5x

Meredith Corporation 1,292.5 28.83 79.9% 7.6% 14.7% 1.2x 1.2x 6.9x 6.1x

The New York Times Company 933.2 6.31 64.9% (10.7%) (10.3%) 0.6x 0.7x 4.0x 4.4x

Median 21,666.4$ 95.5% 4.9% 7.3% 1.8x 1.7x 7.5x 7.2x

Total Internet & Digital Media Median 2,341.6$ 79.9% 18.6% 29.4% 2.9x 2.4x 10.2x 8.5x



04/27/12 Pending Demandforce, Inc. Intuit Inc. 423.5$ NA NA

04/25/12 Pending Archives.com Ancestry.com Inc. 100.0 NA NA

04/09/12 Pending Instagram, Inc. Facebook, Inc. 1,000.0 NA NA

03/21/12 03/21/12 OMGPOP, Inc. Zynga, Inc. 180.0 NA NA

03/19/12 Pending Kiva Systems, Inc. Amazon.com Inc. 775.0 NA NA

03/16/12 03/16/12 Social Hour Inc. PlayPhone, Inc. 51.5 NA NA

02/16/12 02/16/12 Mobile Theory, Inc. Opera Software ASA 50.0 NA NA

01/23/12 02/29/12 Allrecipes.com, Inc. Meredith Corp. 175.0 NA NA

01/13/12 Pending Buckaroo B.V. Intrum Justitia AB 50.7 NA NA

01/05/12 01/05/12 Miyowa Inc. Synchronoss Technologies, Inc. 59.0 4.6x NA

12/22/11 03/06/12 Cotendo, Inc. Akamai Technologies, Inc. 268.0 NA NA

12/16/11 12/28/11 Webs, Inc. VistaPrint USA, Incorporated 117.9 NA NA

12/07/11 12/07/11 Wiggle Ltd. Bridgepoint Capital Group Ltd 313.7 2.3x 19.0x

12/05/11 12/09/11 Jobs2Web, Inc. SuccessFactors, Inc. 111.9 NA NA

11/30/11 01/13/12 Efficient Frontier, Inc. Adobe Systems Inc. 374.8 NA NA

11/28/11 Pending Systems@Work Pte Ltd. Wirecard AG 78.4 NA NA

11/22/11 11/22/11 VideoSurf, Inc. Microsoft Corporation 100.0 NA NA

11/21/11 11/21/11 Hunch Inc. eBay Inc. 80.0 NA NA

11/14/11 11/14/11 Babble Media, Inc. Disney Online 40.0 NA NA

11/14/11 11/14/11 LesPAC inc. Mediagrif Interactive Technologies Inc. 71.3 5.7x NA

11/14/11 12/16/11 Model Metrics, Inc. salesforce.com, inc 66.9 NA NA

11/12/11 01/03/12 Point International AB VeriFone Systems, Inc 1,049.7 5.5x NA

11/08/11 Pending Kobo, Inc. Rakuten, Inc. 315.0 NA NA

Median 111.9$ 5.0x 19.0x

Recent M&A

Activity

Comparable Transactions Internet & Digital Media

Summary

Statistics




12

4.5x

3.0x

2.1x

4.0x

2.7x

3.2x3.5x

2.4x2.6x

3.1x

5.0x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

0

25

50

75

100

125

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD

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Comparable

Trading

Summary

Public Market Trading Statistics IT and Tech-Enabled Services

Stock

Performance



13




IT Services

Accenture plc 41,857.1$ 64.95$ 98.6% 7.7% 8.1% 1.3x 1.3x 8.4x 8.0x

Atos S.A. 6,254.8 64.38 99.5% NA NA 0.7x NA 6.9x NA

Cap Gemini S.A. 6,003.2 39.02 70.2% NA NA 0.4x NA 4.8x NA

Logica PLC 2,025.1 1.26 53.4% NA NA 0.4x NA 6.1x NA

Sapient Corporation 1,678.8 11.97 73.7% 14.2% 18.5% 1.4x 1.3x 11.1x 9.4x

Tieto Oyj 1,259.8 17.61 85.0% NA NA 0.5x NA 4.4x NA

EPAM Systems, Inc. 875.0 20.64 87.4% 24.5% 24.8% 2.6x 2.1x 13.6x 10.9x

Unisys Corporation 815.6 18.66 56.3% (0.6%) 21.7% 0.1x 0.1x 1.1x 1.0x

Median 1,851.9$ 79.4% 10.9% 20.1% 0.6x 1.3x 6.5x 8.7x

Government IT & BPO

SAIC, Inc. 4,155.5$ 12.16$ 68.9% 2.4% 111.2% 0.4x 0.4x 9.9x 4.7x

CACI International Inc. 1,619.3 61.13 91.9% 7.7% 2.3% 0.6x 0.5x 6.3x 6.2x

MAXIMUS, Inc. 1,493.0 44.25 94.6% 6.8% 5.2% 1.4x 1.3x 9.3x 8.9x

Tyler Technologies, Inc. 1,202.7 39.95 96.0% 17.2% 26.1% 3.9x 3.4x 21.7x 17.3x

ManTech International Corporation 1,158.9 31.42 67.9% 6.9% (1.7%) 0.4x 0.4x 4.4x 4.5x

Median 1,493.0$ 91.9% 6.9% 5.2% 0.6x 0.5x 9.3x 6.2x

Onshore BPOs

Alliance Data Systems Corporation 6,704.9$ 128.49$ 98.3% 11.7% 24.2% 3.9x 3.6x 13.2x 11.1x

CGI Group, Inc. 5,773.1 22.42 91.2% 1.8% 9.7% 1.6x 1.5x 8.6x 7.8x

Computer Sciences Corporation 4,351.4 28.06 54.6% (0.7%) 456.9% 0.4x 0.4x 19.1x 3.4x

DST Systems Inc. 2,401.5 55.98 94.2% (13.9%) 12.9% 0.9x 1.0x 5.4x 4.8x

Convergys Corporation 1,552.0 13.37 91.9% (3.8%) (16.3%) 0.5x 0.6x 4.8x 5.7x

Median 4,351.4$ 91.9% (0.7% ) 12.9% 0.9x 1.0x 8.6x 5.7x

Offshore BPOs

Tata Consultancy Services Ltd. 46,243.0$ 23.63$ 97.3% NA NA 4.7x NA 15.9x NA

Infosys Technologies Ltd. 26,705.7 46.74 74.5% 5.2% 3.6% 3.2x 3.1x 10.2x 10.2x

Cognizant Technology Solutions 22,323.3 73.33 87.8% 23.4% 22.0% 3.2x 2.6x 15.8x 12.9x

Wipro Ltd. 18,791.5 7.69 89.3% 17.8% 19.0% 2.4x 2.2x 12.5x 11.2x

HCL Technologies Ltd. 6,730.5 9.72 97.2% NA NA 1.7x NA 10.8x NA

Genpact Ltd. 3,713.5 16.68 91.9% 17.1% 13.3% 2.3x 2.0x 12.4x 11.0x

Syntel, Inc. 2,504.9 59.89 94.3% 15.8% 2.7% 3.3x 2.9x 11.0x 11.8x

Satyam Computer Services Limited 1,724.2 1.47 82.0% NA NA 1.5x NA 9.6x NA

Patni Computer Systems Ltd. 1,429.6 9.64 97.5% 10.3% 13.7% 1.5x 1.4x 9.3x 8.4x

Exlservice Holdings, Inc. 869.2 27.68 96.0% 25.6% 23.1% 2.2x 1.7x 12.0x 9.7x

WNS Holdings Ltd. 557.4 11.13 85.3% (20.7%) 11.8% 1.2x 1.4x 8.0x 7.6x

Median 3,713.5$ 91.9% 16.5% 13.5% 2.3x 2.1x 11.0x 10.6x

Total IT Services Median 2,401.5$ 91.2% 7.7% 13.5% 1.4x 1.4x 9.6x 8.6x

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03/23/12 03/30/12 MediConnect Global, Inc. Verisk Analytics, Inc. 348.6$ 6.0 x 15.8 x

03/08/12 Pending GFI Solutions Group, Inc. Private Equity Consortia 111.0 1.3 x NA

02/22/12 Pending Roundarch, Inc. Isobar North America, Inc. 485.0 NA NA

02/22/12 Pending Sygnity Spolka Akcyjna Asseco Poland SA 87.9 0.5 x 12.0 x

02/21/12 Pending ATS Corporation Salient Federal Solutions, Inc. 76.4 0.8 x 7.6 x

12/12/11 12/30/11 Ironworks Consulting, LLC ICF Consulting Group, Inc. 100.4 1.8 x 7.5 x

12/08/11 Pending Inmeta Crayon ASA Norvestor Equity 143.5 NA NA

11/24/11 Pending Nexbis Limited, Substantially All Assets Agathis Capital L.P. 76.8 20.5 x NA

11/14/11 12/16/11 Model Metrics, Inc. salesforce.com, inc 66.9 NA NA

11/12/11 Pending Point International AB VeriFone Systems, Inc 1,049.7 5.5 x NA

11/02/11 Pending mindSHIFT Technologies, Inc. Best Buy Co. Inc. 167.0 NA NA

11/01/11 Pending INX Inc. Presidio, Inc. 148.1 0.4 x 41.6 x

Median 127.2$ 1.6x 12.0x

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Summary

Statistics




14

Public Market Trading Statistics Software – Application

Stock

Performance


Comparable

Trading

Summary

15

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Nasdaq Application Software




Enterprise Software 3,254.8$ -$ 0.9$ 0.1$ 0.3$ 3.6$ 3.5$ 11.0$ 10.4$

Oracle Corporation 146,268.1$ 29.40$ 80.5% 3.6% 22.0% 3.6x 3.5x 8.3x 7.0x

SAP AG 78,988.5 66.36 91.4% 11.4% 2.2% 4.0x 3.7x 11.1x 10.8x

salesforce.com, inc 21,335.0 155.73 94.5% 31.0% 385.8% 9.0x 6.9x NM 39.4x

Adobe Systems Inc. 16,645.0 33.55 93.2% 6.6% 30.4% 3.6x 3.4x 10.6x 8.0x

Sage Group plc 5,965.4 4.64 91.3% NA NA 2.9x NA 9.7x NA

Informatica Corporation 4,976.5 46.02 73.7% 14.8% 52.3% 5.4x 4.9x 23.4x 16.2x

Ariba Inc. 3,640.9 38.20 94.4% 14.6% 269.6% 6.8x 6.2x 78.6x 26.2x

Open Text Corporation 3,254.8 55.99 77.4% 10.2% 21.0% 3.0x 2.7x 10.9x 9.0x

NetSuite Inc. 3,106.0 44.38 85.7% 26.6% NM 11.7x 9.9x NM NM

MicroStrategy Inc. 1,515.1 139.78 78.3% 13.6% 153.0% 2.3x 2.1x 51.3x 20.3x

Jive Software, Inc. 1,486.3 23.81 84.6% 43.5% NM 17.1x 11.9x NM NM

JDA Software Group Inc. 1,228.9 28.88 82.5% 5.7% 18.3% 1.8x 1.7x 7.4x 6.2x

Manhattan Associates, Inc. 1,018.5 50.15 98.3% 12.7% 33.7% 2.6x 2.5x 12.1x 10.4x

Deltek, Inc 719.7 10.44 89.7% 8.2% 95.8% 2.4x 2.3x 16.6x 9.9x

Exact Holding NV 548.0 24.02 75.8% NA NA 1.7x NA 7.5x NA

Median 3,254.8$ 85.7% 12.7% 33.7% 3.6x 3.5x 11.0x 10.4x

Product Lifecycle Management/Engineering

Dassault Systemes SA 11,854.5$ 97.02$ 95.5% NA NA 4.2x NA 13.4x NA

Autodesk, Inc. 9,097.1 39.37 85.3% 10.4% 50.3% 3.4x 3.1x 15.9x 10.6x

Ansys, Inc. 6,241.0 67.07 99.1% 18.1% 32.5% 8.5x 7.2x 17.7x 13.4x

Synopsys Inc. 4,375.3 30.01 96.6% 4.8% 30.4% 2.1x 2.1x 9.5x 7.3x

Cadence Design Systems Inc. 3,205.1 11.67 92.6% 11.6% 69.8% 2.5x 2.3x 12.4x 8.2x

Parametric Technology Corporation 2,558.0 21.58 74.5% 6.2% 42.2% 2.0x 1.9x 11.6x 8.4x

Aspen Technology, Inc. 1,853.4 19.78 90.4% 18.1% NM 7.8x 6.6x NM NM

Aveva Group plc 1,831.8 27.04 92.5% NA NA 5.6x NA 19.2x NA

Mentor Graphics Corporation 1,587.6 14.45 91.7% 8.4% 36.7% 1.7x 1.5x 9.7x 7.1x

Median 3,205.1$ 92.5% 10.4% 39.5% 3.4x 2.3x 12.9x 8.3x

Customer Engagement/Call Center Management

Nuance Communications, Inc. 7,529.4$ 24.43$ 78.4% 29.9% 141.9% 5.9x 4.5x 28.1x 11.6x

Amdocs Limited 5,476.7 32.00 98.8% 5.1% 18.8% 1.4x 1.3x 7.6x 6.4x

NICE Systems Ltd. 2,464.8 37.90 95.8% 18.3% 88.6% 2.4x 2.0x 15.1x 8.0x

Comverse Technology Inc. 1,411.2 6.45 80.7% 4.8% 84.4% 1.0x 1.0x 11.6x 6.3x

Verint Systems Inc. 1,179.1 30.24 79.6% 11.4% 73.0% 2.4x 2.2x 14.2x 8.2x

LivePerson Inc. 866.2 15.88 90.4% 22.4% 49.4% 5.8x 4.7x 28.4x 19.0x

Median 1,938.0$ 85.5% 14.8% 78.7% 2.4x 2.1x 14.7x 8.1x

Comparable

Trading

Summary

(continued)


Public Market Trading Statistics Software – Application

16

Human Capital Management

Concur Technologies, Inc. 3,083.6$ 56.56$ 90.4% 25.7% 156.1% 7.6x 6.0x 66.6x 26.0x

The Ultimate Software Group, Inc. 2,035.6 77.16 99.6% 23.1% 129.5% 7.0x 6.0x 70.5x 32.2x

Cornerstone OnDemand, Inc. 1,033.4 20.79 88.5% 55.5% NM 13.0x 8.4x NM NM

Median 2,035.6$ 90.4% 25.7% 142.8% 7.6x 6.0x 68.6x 29.1x

Vertically Focused - Public Sector

Blackbaud Inc. 1,358.8$ 30.98$ 91.1% 15.0% 40.9% 3.5x 3.1x 18.3x 13.0x

Tyler Technologies, Inc. 1,202.7 39.95 96.0% 17.2% 26.1% 3.9x 3.4x 21.7x 17.3x

K12, Inc. 911.1 25.50 64.2% 19.8% 60.7% 1.3x 1.1x 13.8x 8.6x

Higher One Holdings, Inc. 892.5 15.77 73.3% 21.6% 33.8% 4.8x 3.9x 13.2x 9.9x

NIC Inc. 737.3 11.29 78.0% 13.2% 8.9% 3.7x 3.3x 14.4x 13.2x

Median 911.1$ 78.0% 17.2% 33.8% 3.7x 3.3x 14.4x 13.0x

Vertically Focused - Healthcare IT

Cerner Corporation 13,800.3$ 81.11$ 100.0% 19.3% 40.1% 5.5x 4.9x 20.2x 15.3x

athenahealth, Inc. 2,597.0 72.45 92.6% 32.1% 75.0% 7.0x 5.7x 46.6x 29.0x

Quality Systems Inc. 2,206.1 37.40 73.8% 17.9% 27.8% 5.0x 4.2x 15.9x 12.5x

Allscripts Healthcare Solutions, Inc. 2,112.3 11.10 50.6% 4.5% 34.3% 1.5x 1.5x 9.4x 6.7x

HMS Holdings Corp. 2,068.8 24.06 68.8% 39.4% 57.0% 5.9x 4.5x 19.7x 13.5x

MedAssets, Inc. 729.0 12.61 77.5% 4.8% 16.1% 2.7x 2.6x 9.3x 8.0x

Computer Programs & Systems Inc. 659.2 59.59 75.4% 12.5% 16.0% 3.6x 3.2x 14.3x 12.5x

Median 2,112.3$ 75.4% 17.9% 34.3% 5.0x 4.2x 15.9x 12.5x

Total Application Software Median 2,112.3$ 89.7% 14.6% 40.9% 3.6x 3.4x 14.3x 10.6x






04/26/12 Pending Gemcom Software International, Inc. Dassault Systemes SA 360.0$ 6.6 x NA

04/26/12 Pending Torex Retail Holdings Limited MICROS Systems, Inc. 263.1 NA NA

04/09/12 Pending eResearchTechnology, Inc. Genstar Capital, LLC 376.7 2.0x 9.2x


03/24/12 Pending ClairMail, Inc. Monitise plc 174.4 NA NA

03/22/12 Pending Convergys, Information Management NetCracker Technology Corporation 449.0 NA NA

03/15/12 Pending NDS Group Ltd. Scientific-Atlanta, LLC 4,964.8 5.0x 17.5x

03/08/12 Pending Quest Software Inc. Insight Venture Partners 1,947.3 2.3x 12.7x

03/06/12 04/25/12 Transcend Services, Inc. Nuance Communications, Inc. 318.1 2.5x 12.2x

02/29/12 02/29/12 BDGB Enterprise Software (LUX), S.C.A. Lexmark International Technology 148.0 NA NA

02/28/12 Pending eScreen, Inc. Alere Inc. 340.0 2.8x NA

02/24/12 02/24/12 iContact Corporation Vocus Inc. 178.7 NA NA

02/08/12 04/05/12 Taleo Corporation Oracle Corporation 1,805.5 5.7x 60.9x

02/07/12 Pending Temenos Group AG Misys plc 1,565.8 3.7x 7.6x

02/07/12 Pending IBS AG Siemens Beteiligungen Inland GmbH 43.9 1.3x 11.2x

02/07/12 02/21/12 CaseCentral, Inc. Guidance Software, Inc. 54.0 NA NA

02/01/12 04/11/12 CDC Software Corporation Vista Equity Partners; Vista Equity Fund 4 264.8 1.2x 12.1x

01/27/12 02/14/12 Numara Software, Inc. BMC Software Inc. 300.0 NA NA

01/23/12 01/23/12 Autologic Diagnostics Ltd. ISIS Equity Partners LLP; Foresight Group 71.7 3.2x NA

01/16/12 Pending Convio, Inc. Blackbaud Inc. 274.4 3.4x 37.8x

01/12/12 01/31/12 Compliance 360, Inc. SAI Global Limited 42.3 NA NA

01/09/12 01/13/12 LiveOffice LLC Symantec Corporation 115.0 NA NA

01/07/12 01/31/12 2nd Story Software, Inc. InfoSpace, Inc. 287.5 3.7x NA

12/21/11 Pending Ventelo Holding AB EQT Partners AB; EQT VI Fund 303.1 0.6x NA

12/20/11 12/20/11 InfoVista SA Thoma Bravo, LLC 63.2 1.1x NA

12/19/11 Pending Orc Group AB Cidron Intressenter AB 250.7 1.8x NA

12/09/11 Pending Workplace Systems International plc LDC Ltd. 60.2 3.9x NA

12/07/11 Pending DemandTec, Inc. International Business Machines Corp. 426.9 4.8x NA

12/02/11 Pending SuccessFactors, Inc. SAP America, Inc. 3,516.0 12.0x NA

11/30/11 Pending Magma Design Automation Inc. Synopsys Inc. 498.6 3.4x NA

11/07/11 12/16/11 HealthDataInsights, Inc. HMS Holdings Corp. 400.0 NA NA

Median 287.5$ 3.3x 12.2x

Recent M&A

Activity

Comparable Transactions Software – Application

Summary

Statistics




17

2.1x2.2x

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Trading

Summary

Public Market Trading Statistics Software – Infrastructure

Stock

Performance



18




Enterprise IT Management

Microsoft Corporation 268,953.7$ 32.02$ 97.2% 7.1% 10.3% 2.9x 2.8x 7.0x 6.5x

Hewlett-Packard Company 48,959.0 24.76 59.3% (1.5%) 3.5% 0.6x 0.6x 4.6x 4.4x

VMware, Inc. 47,700.5 111.72 94.0% 22.1% 71.2% 10.8x 9.3x 41.5x 25.9x

Citrix Systems, Inc. 15,894.4 85.61 96.7% 15.6% 39.6% 6.2x 5.6x 24.0x 17.6x

CA Technologies 12,830.7 26.42 94.4% 3.9% 5.6% 2.5x 2.4x 6.7x 6.4x

Red Hat, Inc. 11,496.3 59.61 95.0% 19.0% 50.4% 9.0x 7.9x 40.6x 28.1x

BMC Software Inc. 6,776.0 41.26 73.0% 2.9% 29.6% 2.6x 2.6x 7.8x 6.0x

TIBCO Software Inc. 5,357.6 32.90 94.9% 14.9% 45.8% 5.4x 4.9x 23.7x 16.6x

Splunk, Inc. 3,141.4 33.95 90.9% 34.4% NA 25.7x 19.1x NM NA

Compuware Corporation 1,905.9 8.72 76.1% 5.8% 23.2% 1.9x 1.8x 10.3x 8.4x

Progress Software Corporation 1,454.3 23.14 78.0% (4.6%) (13.9%) 2.1x 2.2x 9.4x 9.5x

Pegasystems Inc. 1,406.7 37.19 78.2% 19.6% 109.0% 3.1x 2.6x 47.8x 22.9x

Median 9,136.1$ 92.5% 11.0% 29.6% 3.0x 2.7x 10.3x 9.5x

Security

Check Point Software Technologies Ltd. 12,066.1$ 58.13$ 89.4% 10.6% 16.2% 7.0x 6.5x 12.4x 11.1x

Symantec Corporation 12,061.4 16.54 80.7% 1.5% 22.5% 1.8x 1.7x 6.4x 5.2x

VeriSign, Inc. 6,494.9 41.11 95.5% 13.7% 29.4% 7.3x 6.6x 13.6x 11.2x

Fortinet Inc. 4,084.2 26.12 90.6% 21.4% 42.2% 7.6x 6.6x 35.6x 25.5x

Trend Micro Inc. 4,012.6 30.50 84.3% NA NA 1.8x NA 5.2x NA

Sourcefire, Inc. 1,475.6 50.99 97.0% 22.3% 208.8% 8.0x 6.5x 105.9x 34.3x

Websense, Inc. 779.7 20.74 74.5% 1.1% 24.1% 2.1x 2.1x 10.8x 8.9x

Median 4,084.2$ 89.4% 12.2% 26.8% 7.0x 6.5x 12.4x 11.1x

Enterprise Storage

EMC Corporation 59,232.8$ 28.21$ 94.0% 10.5% 28.7% 2.5x 2.3x 10.6x 8.6x

NetApp, Inc. 14,093.1 38.83 68.7% 13.3% 47.3% 1.7x 1.5x 11.1x 7.5x

Teradata Corporation 11,741.2 69.78 98.3% 12.2% 33.6% 4.8x 4.2x 21.6x 16.2x

Brocade Communications Systems, Inc. 2,541.3 5.54 75.9% 3.9% 23.7% 1.3x 1.2x 6.6x 5.3x

Fusion-io, Inc. 2,311.4 25.65 61.5% 35.5% 43.2% 6.2x 5.0x 142.8x 48.8x

CommVault Systems, Inc. 2,301.6 52.07 94.0% 15.7% 66.5% 5.3x 4.6x 39.2x 23.5x

Median 7,141.2$ 84.9% 12.7% 38.4% 3.6x 3.3x 16.3x 12.4x

Total Infrastructure Software Median 6,494.9$ 90.6% 12.7% 29.6% 3.1x 3.5x 11.8x 11.1x

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Summary

Statistics




19



04/20/12 Pending MU Dynamics, Inc. Spirent Communications Plc. 40.0$ NA NA

04/02/12 Pending Wyse Technology, Inc. Dell Inc. 1,000.0 2.9 x NA


03/13/12 Pending SonicWALL, Inc. Dell Inc. 1,200.0 4.6 x NA

03/08/12 Pending Quest Software Inc. Insight Venture Partners 1,947.3 2.3 x 12.7 x

01/25/12 02/22/12 NovaTech LLC The Weir Group PLC 180.0 NA NA

11/14/11 11/14/11 Mobile Interactive Group Limited Velti Plc 59.0 3.0 x NA

Median 180.0$ 2.9 x 12.7 x

Public Market Trading Statistics Software – SaaS

Comparable

Trading

Summary

Stock

Performance



20

( $ in millions) Stock Price CY 2012P Multiples Summary LTM



SaaS

salesforce.com, inc 21,335.0$ 155.73$ 94.5% 31.0% 385.8% 9.0x 6.9x NM 39.4x

NetSuite Inc. 3,106.0 44.38 85.7% 26.9% NM 11.7x 9.8x NM NM

Concur Technologies, Inc. 3,083.6 56.56 90.4% 25.7% 156.1% 7.6x 6.0x 66.6x 26.0x

athenahealth, Inc. 2,597.0 72.45 92.6% 32.1% 75.4% 7.0x 5.7x 46.6x 28.9x

Qlik Technologies, Inc. 2,448.8 28.81 80.9% 28.9% 167.1% 6.7x 5.4x NM 36.6x

The Ultimate Software Group, Inc. 2,035.6 77.16 99.2% 23.1% 129.5% 7.0x 6.0x 70.5x 32.2x

ExactTarget, Inc. 1,741.5 27.01 90.4% NA NA 8.2x NA NM NA

Jive Software, Inc. 1,486.3 23.81 84.6% 43.5% NM 17.1x 11.9x NM NM

Blackbaud Inc. 1,358.8 30.98 91.1% 15.0% 40.9% 3.5x 3.1x 18.3x 13.0x

DealerTrack Holdings, Inc. 1,251.2 29.83 93.5% 4.8% 74.0% 3.1x 2.9x 20.0x 11.5x

Cornerstone OnDemand, Inc. 1,032.9 20.78 88.4% 55.5% NM 13.0x 8.4x NM NM

Financial Engines, Inc. 1,050.8 22.84 78.8% 26.0% 91.3% 6.3x 5.0x 35.9x 18.8x

OpenTable, Inc. 1,009.0 44.72 38.9% 20.6% 60.0% 6.9x 5.7x 22.8x 14.3x

LivePerson Inc. 873.8 15.88 90.4% 22.4% 49.4% 5.9x 4.8x 28.7x 19.2x

Websense, Inc. 779.7 20.74 74.5% 1.1% 24.1% 2.1x 2.1x 10.8x 8.9x

Demandware, Inc. 763.9 27.25 85.2% 24.2% NM 14.9x 12.0x NM NM

Ebix Inc. 745.3 20.45 76.0% 11.2% NA 4.5x 4.1x 10.4x NA

Constant Contact, Inc. 734.7 24.17 72.6% 17.5% 110.2% 2.6x 2.3x 24.3x 12.8x

MedAssets, Inc. 729.0 12.61 77.5% 4.8% 16.1% 2.7x 2.6x 9.3x 8.0x

Total SaaS Median 1,251.2$ 85.7% 23.7% 75.4% 6.9x 5.6x 23.5x 18.8x

65%

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Recent M&A

Activity

Comparable Transactions Software – SaaS

Summary

Statistics




21

2.6x

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04/27/12 Pending Demandforce, Inc. Intuit Inc. 423.5$ NA NA

03/27/12 03/30/12 MSDSonline Inc. ICG Group, Inc. 48.1 NA NA

02/08/12 04/05/12 Taleo Corporation Oracle Corporation 1,805.5 5.7 x 60.9 x

02/07/12 02/21/12 CaseCentral, Inc. Guidance Software, Inc. 54.0 NA NA

01/27/12 02/03/12 Numara Software, Inc. BMC Software Inc. 300.0 NA NA

01/12/12 01/31/12 Compliance 360, Inc. SAI Global Limited 42.3 NA NA

01/09/12 01/13/12 LiveOffice LLC Symantec Corporation 115.0 NA NA

12/09/11 Pending Workplace Systems International plc LDC Ltd. 60.2 4.0 x NA

12/08/11 Pending DemandTec, Inc. International Business Machines Corp. 426.9 4.8 x NA

12/02/11 Pending SuccessFactors, Inc. SAP America, Inc. 3,516.0 12.0 x NA

11/14/11 Pending Model Metrics, Inc. Salesforce.com 57.6 NA NA

Median 115.0$ 5.3x 60.9x

Comparable

Trading

Summary

Public Market Trading Statistics Tech Hardware

Stock

Performance


22




Semiconductor Devices

Intel Corporation 142,196.7$ 28.40$ 98.7% 5.7% 5.7% 2.5x 2.4x 5.8x 5.4x

Texas Instruments Inc. 36,478.1 31.94 88.8% (0.3%) (12.9%) 2.9x 2.8x 9.0x 9.8x

Broadcom Corporation 19,947.0 36.60 89.3% 10.9% 21.0% 2.2x 2.0x 14.5x 12.0x

Analog Devices Inc. 11,609.5 38.98 90.1% (3.0%) (5.2%) 3.0x 3.1x 7.9x 8.3x

Marvell Technology Group Ltd. 8,795.9 15.01 89.0% 4.3% 7.3% 1.9x 1.8x 8.8x 8.2x

Maxim Integrated Products Inc. 8,643.4 29.58 98.8% (0.2%) (1.1%) 3.3x 3.3x 10.2x 9.7x

Micron Technology Inc. 6,521.6 6.59 55.7% 0.4% (2.6%) 0.9x 0.9x 3.7x 3.4x

Advanced Micro Devices Inc. 5,147.5 7.36 80.3% 4.1% 5.7% 0.8x 0.8x 6.6x 6.6x

LSI Corporation 4,570.6 8.04 87.4% 28.5% 114.8% 1.8x 1.5x 12.1x 6.3x

Cree Inc. 3,573.0 30.90 68.9% 22.5% 8.9% 2.6x 2.3x 15.1x 13.2x

Freescale Semiconductor Holdings I, Ltd. 3,061.4 12.41 59.2% (9.2%) (17.7%) 2.1x 2.1x 9.1x 10.0x

Cypress Semiconductor Corporation 2,352.7 15.51 64.8% (13.5%) 11.4% 2.4x 2.7x 15.2x 11.3x

Microsemi Corporation 1,882.3 21.52 90.4% 16.9% 50.9% 2.7x 2.5x 11.9x 7.9x

Fairchild Semiconductor International Inc. 1,799.3 14.17 67.4% (4.6%) (17.8%) 1.1x 1.1x 6.4x 6.4x

Semtech Corporation 1,783.0 27.26 89.5% 17.0% 19.6% 3.0x 2.6x 12.8x 10.7x

PMC-Sierra Inc. 1,646.4 7.07 86.4% (6.0%) 11.5% 1.9x 2.0x 9.8x 7.7x

MEMC Electronic Materials Inc. 828.6 3.59 29.9% (2.3%) 61.7% 0.8x 0.8x 10.7x 6.6x

Median 4,570.6$ 87.4% 0.4% 7.3% 2.2x 2.1x 9.8x 8.2x

Semiconductor Equipment

Applied Materials Inc. 15,480.6$ 11.99$ 75.1% (2.3%) (9.0%) 1.4x 1.5x 6.4x 7.0x

KLA-Tencor Corporation 8,723.6 52.14 94.1% 4.8% 5.8% 2.2x 2.1x 6.2x 5.8x

Lam Research Corporation 4,990.8 41.67 79.8% 0.4% (16.4%) 1.2x 1.2x 7.4x 6.8x

Novellus Systems, Inc. 3,313.6 46.80 92.6% (2.3%) (10.4%) 2.4x 2.3x 11.0x 10.2x

Teradyne Inc. 3,210.6 17.21 95.6% 28.6% 41.5% 1.8x 1.4x 7.6x 5.0x

MKS Instruments Inc. 1,453.0 27.65 79.0% (6.0%) (34.2%) 1.1x 1.1x 5.0x 6.7x

Amkor Technology, Inc. 870.1 5.17 73.9% 5.7% 14.5% 0.7x 0.6x 3.4x 2.9x

Tessera Technologies Inc. 811.0 15.64 75.3% (10.5%) (57.4%) 1.4x 1.4x 4.7x 7.6x

Cabot Microelectronics Corporation 775.9 34.38 64.7% (0.3%) (2.0%) 1.9x 1.8x 9.4x 8.5x

Brooks Automation Inc. 742.5 11.76 89.4% (6.4%) (7.1%) 0.8x 0.9x 6.6x 7.1x

ATMI Inc. 670.7 21.01 83.9% 9.8% 11.6% 1.5x 1.3x 8.1x 6.7x

Median 1,453.0$ 79.8% (0.3% ) (7.1% ) 1.4x 1.4x 6.6x 6.8x

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Comparable

Trading

Summary

(continued)

Public Market Trading Statistics Tech Hardware


23

Electronic Manufacturing

Jabil Circuit Inc. 4,846.5$ 23.45$ 85.6% 6.5% 20.1% 0.3x 0.3x 5.7x 4.8x

Flextronics International Ltd. 4,585.9 6.68 88.6% (7.5%) 23.1% 0.2x 0.2x 4.9x 4.0x

Molex Inc. 4,865.7 27.59 96.9% (0.2%) (3.3%) 1.3x 1.3x 6.7x 6.8x

Celestica Inc. 1,893.5 8.95 81.8% (1.4%) 11.0% 0.2x 0.2x 4.2x 3.8x

Plexus Corporation 1,132.2 32.37 83.6% 12.3% 16.1% 0.5x 0.5x 8.0x 6.9x

Benchmark Electronics Inc. 917.3 15.88 84.2% 9.1% 45.6% 0.3x 0.3x 7.4x 5.2x

TTM Technologies Inc. 840.2 10.33 53.1% (0.7%) (2.6%) 0.9x 0.9x 5.2x 5.3x

Sanmina-SCI Corporation 725.0 8.90 70.9% (5.0%) (5.1%) 0.2x 0.2x 4.2x 4.3x

Multi-Fineline Electronix Inc. 629.3 26.49 92.3% 14.1% 17.3% 0.7x 0.6x 5.9x 5.0x

Median 1,132.2$ 84.2% (0.2% ) 16.1% 0.3x 0.3x 5.7x 5.0x

PCs, Servers, and Computing Components

Apple Inc. 546,057.5$ 583.98$ 90.7% 33.2% 43.4% 3.1x 2.6x 8.2x 6.7x

IBM Corporation 238,863.5 207.08 98.3% 1.2% 2.5% 2.4x 2.3x 9.5x 9.3x

Samsung Electronics Co. Ltd. 160,467.9 1,229.87 98.7% NA NA 1.0x NA 5.8x NA

Hewlett-Packard Company 48,959.0 24.76 59.3% (1.5%) 3.5% 0.6x 0.6x 4.6x 4.4x

Dell Inc. 28,844.7 16.37 89.2% 0.6% 2.7% 0.3x 0.3x 3.7x 3.6x

Xerox Corporation 10,485.5 7.78 71.3% 1.1% 3.4% 0.8x 0.8x 5.6x 5.4x

Lenovo Group Ltd. 9,938.7 0.96 96.8% NA NA 0.2x NA 8.9x NA

NCR Corporation 3,729.5 23.50 98.5% 8.6% 138.3% 0.7x 0.7x 12.0x 5.7x

Pitney Bowes Inc. 3,429.5 17.13 65.0% (0.8%) 4.2% 1.3x 1.3x 6.5x 6.2x

Diebold, Inc. 2,480.9 39.45 91.9% 7.8% 18.3% 0.9x 0.8x 8.4x 8.2x

Lexmark International Inc. 2,142.0 30.10 77.8% (4.0%) (5.5%) 0.4x 0.5x 2.7x 2.8x

ScanSource, Inc. 903.5 32.96 82.4% 9.2% 5.9% 0.3x 0.3x 7.3x 6.6x

Median 10,212.1$ 89.9% 1.2% 3.8% 0.8x 0.7x 6.9x 6.0x

Storage and Networking Components

Western Digital Corporation 9,117.7$ 38.81$ 87.3% 81.2% 157.2% 0.8x 0.5x 4.2x 2.1x

SanDisk Corporation 8,968.6 37.00 69.2% (11.0%) (44.0%) 0.9x 1.0x 3.1x 5.1x

QLogic Corporation 1,702.0 17.25 90.8% (4.6%) 16.9% 2.2x 2.3x 7.8x 6.7x

Emulex Corporation 753.4 8.68 77.6% 8.0% 267.5% 1.1x 1.1x 9.2x 4.5x

Median 5,335.3$ 82.5% 1.7% 87.1% 1.0x 1.0x 6.0x 4.8x

Total Tech Hardware Median 3,429.5$ 85.6% 0.4% 5.8% 1.1x 1.2x 7.4x 6.6x






04/30/12 Pending PLX Technology Inc. Fun World Media, Inc. 300.8$ 2.6 x NA

04/24/12 Pending Cray Inc., Interconnect Hardware Assets Intel Corporation 140.0 NA NA

04/20/12 Pending Kawasaki Microelectronics, Inc. Megachips Corp. 104.2 NA NA

04/17/12 Pending IBM, Point-of-Sale Business Toshiba Tec Corp. 842.3 763.8 x NA

04/16/12 Pending SRS Labs Inc. DTS Inc. 114.4 3.5 x 65.2 x

04/13/12 Pending Objet Ltd. Stratasys Inc. 606.4 5.0 x 30.2 x

04/10/12 Pending X-Rite, Incorporated Danaher Corp. 629.6 2.7 x 11.1 x

04/09/12 Pending Elo TouchSystems, Inc. The Gores Group LLC 380.0 0.9 x NA

04/03/12 Pending DDI Corp. Viasystems Group, Inc. 267.8 1.0 x 7.9 x

03/26/12 Pending Comverge, Inc. Bayside Capital, Inc.; H.I.G. Bayside 50.9 0.4 x NA

03/22/12 03/22/12 Coolsand Holding Co., Ltd. RDA Microelectronics, Inc. 45.3 NA NA

03/21/12 04/05/12 BroadLight, Inc. Broadcom Corp. 205.0 NA NA

03/16/12 Pending NEXX Systems, Inc. Tokyo Electron Ltd. 248.9 3.9 x 36.0 x

02/22/12 02/28/12 Nidec Sankyo, Actuator Division OPTIS Co., Ltd. 84.6 NA NA

02/15/12 Pending SmartSynch, Inc. Itron, Inc. 100.0 NA NA

01/23/12 Pending Gennum Corporation Semtech Corp. 479.9 3.5 x 15.4 x

01/23/12 Pending Vaughn Energy Services DHS Services 100.0 2.6 x NA

01/18/12 01/18/12 Maxim Integrated Products Inc., Certain Assets Microsemi Corp. 44.0 NA NA

01/05/12 Pending Picochip Ltd. Mindspeed Technologies Inc. 105.6 NA NA

12/30/11 Pending Racine Federated, Inc. Badger Meter Inc. 57.3 NA NA

12/30/11 01/06/12 Vista Research, Inc. Aerostar International, Inc. 48.5 3.2 x NA

12/26/11 Pending Optrex Corporation Kyocera Corp. 256.9 NA NA

12/23/11 Pending Tenesol SA SunPower Corporation 165.4 NA NA

12/20/11 12/20/11 Anobit Technologies Ltd. Apple Inc. 400.0 NA NA

12/16/11 Pending Argox Information Co., Ltd. Sato Holdings Corporation 74.3 2.1 x NA

12/15/11 Pending Greatek Electronics Inc. Powertech Technology Inc. 343.1 NA NA

12/14/11 Pending Novellus Systems, Inc. Lam Research Corporation 2,941.8 NA NA

12/09/11 12/16/11 SiliconBlue Technologies, Inc. Lattice Semiconductor Corporation 62.0 NA NA

12/06/11 12/06/11 Alt Telecom Euroset Trade House LLC 70.0 NA NA

12/05/11 12/05/11 Zu Industries Inc. ProLogic, Inc. 76.6 NA NA

11/21/11 Pending Accu-Sort Systems, Inc. Datalogic SpA 135.0 1.5 x 7.6 x

11/18/11 11/18/11 Fairchild Industrial Products Company Rotork plc 75.8 3.6 x NA

Median 124.7$ 2.7x 15.4x

Recent M&A

Activity

Comparable Transactions Tech Hardware

Summary

Statistics


Note: Includes closed transactions where enterprise value is publicly available and more than $40 million.

Note: Includes announced transactions over the last five months where enterprise value is publicly available and more than $40 million.

24

2.5x

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Public Market Trading Statistics Telecom

Comparable

Trading

Summary

Stock

Performance


25




Network Optimization

F5 Networks, Inc. 10,585.2$ 133.93$ 96.0% 21.5% 51.3% 7.5x 6.5x 22.8x 16.1x

Akamai Technologies, Inc. 5,805.3 32.59 79.0% 15.8% 15.1% 4.0x 3.6x 9.7x 8.5x

Riverbed Technology, Inc. 3,126.7 19.73 47.2% 14.3% 108.4% 3.4x 3.0x 21.3x 9.9x

Aruba Networks, Inc. 2,318.1 21.12 58.0% 22.4% 708.4% 4.4x 3.6x NM 14.9x

Ixia 896.9 12.60 73.3% 16.1% 40.3% 2.1x 1.9x 10.8x 7.6x

NetScout Systems, Inc. 859.7 20.69 77.6% 13.2% 31.1% 2.3x 2.1x 10.1x 8.0x

Median 2,722.4$ 75.5% 15.9% 45.8% 3.7x 3.3x 10.8x 9.2x

Fiber Optics

Finisar Corporation 1,507.9$ 16.52$ 57.5% 10.2% 62.9% 1.4x 1.3x 12.9x 7.9x

CIENA Corporation 1,462.1 14.82 51.5% 10.5% 200.0% 1.3x 1.2x 40.8x 13.6x

Infinera Corporation 784.1 7.16 79.8% 8.1% NM 1.3x 1.2x NM NM

Median 1,462.1$ 57.5% 10.2% 131.5% 1.3x 1.2x 26.9x 10.8x

Telecom/Networking Equipment

QUALCOMM Incorporated 109,422.2$ 63.83$ 92.7% 23.4% 28.0% 4.8x 4.2x 13.0x 9.9x

Cisco Systems, Inc. 108,553.6 20.16 94.6% 6.5% 23.8% 1.7x 1.6x 6.4x 5.2x

Ericsson 31,820.0 9.91 68.9% 1.3% (10.5%) 0.7x 0.7x 5.3x 5.4x

Nokia Corporation 13,326.6 3.59 42.7% (17.2%) (92.2%) 0.2x 0.2x 4.6x 32.5x

Juniper Networks, Inc. 11,340.3 21.43 53.0% (0.1%) 6.9% 1.9x 1.8x 11.6x 9.2x

Amphenol Corporation 9,440.7 58.14 94.0% 6.2% 7.1% 2.5x 2.4x 11.5x 10.8x

Research In Motion Limited 7,362.2 14.29 26.0% (23.9%) (42.0%) 0.3x 0.3x 1.5x 2.0x

Trimble Navigation Limited 6,753.3 54.14 96.8% 18.2% 44.2% 4.4x 3.7x 25.3x 17.6x

Harris Corporation 5,185.8 45.54 85.3% 2.3% 7.1% 1.2x 1.2x 6.1x 5.7x

Alcatel-Lucent, S.A. 3,491.9 1.54 26.0% (1.6%) (23.7%) 0.2x 0.2x 2.3x 2.6x

JDS Uniphase Corporation 2,796.8 12.17 54.3% 3.9% 30.1% 1.4x 1.3x 11.7x 9.0x

Polycom, Inc. 2,365.6 13.27 38.7% 2.5% 17.4% 1.2x 1.1x 7.5x 6.1x

ADTRAN Inc. 1,950.1 30.52 70.0% (6.2%) (20.7%) 2.1x 2.1x 8.4x 9.0x

Netgear Inc. 1,459.3 38.50 85.0% 15.4% 17.6% 0.9x 0.8x 7.3x 6.5x

Tellabs Inc. 1,377.2 3.77 68.8% (10.1%) NM 0.4x 0.4x NM 7.8x

Median 6,753.3$ 68.9% 2.3% 7.1% 1.2x 1.2x 7.4x 7.8x

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Comparable

Trading

Summary

(continued)

Public Market Trading Statistics Telecom


26

Carriers and Content Providers

AT&T, Inc. 193,346.3$ 32.91$ 100.0% 1.5% 23.4% 2.0x 2.0x 7.2x 5.9x

Verizon Communications Inc. 114,720.9 40.38 99.8% 3.8% 7.3% 1.8x 1.8x 5.7x 5.4x

Comcast Corporation 81,843.8 30.35 99.7% 9.9% 6.6% 2.3x 2.1x 6.8x 6.4x

DIRECTV, Inc. 33,343.3 49.28 92.3% 9.6% 12.5% 1.6x 1.5x 6.6x 5.9x

Time Warner Cable Inc. 25,140.2 80.45 96.2% 8.4% 11.1% 2.4x 2.3x 6.8x 6.3x

Dish Network Corporation 14,301.4 31.97 89.7% 3.5% (4.2%) 1.2x 1.2x 4.8x 5.0x

Sprint Nextel Corporation 7,433.5 2.48 38.4% 4.3% (22.2%) 0.6x 0.6x 3.6x 5.0x

Level 3 Communications Inc. 4,986.0 23.06 57.6% 50.2% 70.7% 2.9x 1.9x 14.6x 8.5x

Cablevision Systems Corporation 4,045.1 14.82 40.2% 1.1% (1.6%) 2.2x 2.2x 6.5x 6.6x

MetroPCS Communications, Inc. 2,651.3 7.30 38.9% 3.8% (2.6%) 1.1x 1.0x 4.1x 4.1x

Telephone & Data Systems Inc. 2,635.0 24.29 67.8% 0.6% 2.0% 0.7x 0.7x 3.3x 3.3x

EarthLink Inc. 862.3 8.12 96.7% 2.5% (7.4%) 0.9x 0.9x 3.9x 4.2x

Clearwire Corporation 719.1 1.46 24.3% 3.9% NM 4.2x 4.4x NM NM

Median 7,433.5$ 89.7% 3.8% 4.3% 1.8x 1.8x 6.1x 5.7x

Infrastructure Services

American Tower Corporation 25,882.1$ 65.58$ 100.0% 14.5% 18.3% 13.5x 11.8x 21.6x 18.3x

Crown Castle International Corporation 15,910.0 56.61 98.0% 9.0% 13.3% 11.2x 10.5x 17.8x 16.2x

SBA Communications Corporation 6,520.4 53.79 100.0% 23.8% 25.9% 13.2x 11.1x 21.1x 17.6x

Median 15,910.0$ 100.0% 14.5% 18.3% 13.2x 11.1x 21.1x 17.6x

Managed Services

Rackspace Hosting, Inc. 7,817.9$ 58.09$ 96.8% 29.0% 55.3% 7.6x 5.9x 26.6x 17.2x

Equinix, Inc. 7,666.6 164.20 95.2% 18.0% 31.5% 5.7x 5.1x 13.7x 11.1x

Interxion Holding NV 1,327.2 20.07 98.9% 15.9% 19.4% 4.7x 3.9x 11.6x 9.6x

Median 7,666.6$ 96.8% 18.0% 31.5% 5.7x 5.1x 13.7x 11.1x

Total Telecom Median 5,805.3$ 79.0% 8.1% 16.3% 2.0x 1.9x 8.4x 7.9x






04/18/12 Pending Knology, Inc. WOW! Internet, Cable and Phone 1,488.9$ 2.9 x 8.3 x

04/15/12 Pending Openwave, Mediation and Messaging Marlin Equity Partners 55.0 NA NA

03/26/12 Pending Opnext, Inc. Oclaro, Inc. 133.5 0.4 x NA

03/18/12 Pending AboveNet, Inc. Zayo Group Inc. 2,149.8 4.5 x 11.2 x

02/29/12 02/29/12 Cabovisão S.A. Altice One SAS 60.1 NA NA

02/24/12 03/19/12 Lightwire, Inc. Cisco Systems, Inc. 271.0 NA NA

02/20/12 Pending Vividwireless Pty Ltd. SingTel Optus Pty Ltd. 247.5 NA NA

02/20/12 02/22/12 Traffix Systems Ltd. F5 Networks, Inc. 130.0 NA NA

02/05/12 Pending SureWest Communications Consolidated Communications Holdings Inc. 560.3 2.3 x 6.5 x

02/02/12 Pending Orange Austria Telecommunication GmbH Hutchison 3G Austria GmbH 1,712.2 NA NA

01/31/12 03/23/12 M5 Networks, Inc. ShoreTel, Inc. 159.8 NA NA

01/27/12 03/16/12 RuggedCom Inc. Siemens Canada Limited 383.8 3.6 x 21.0 x

01/20/12 02/29/12 QLogic Corp., Certain Assets Intel Corporation 125.0 NA NA

01/01/12 Pending Netmagic Solutions Private Limited NTT Communications Corporation 172.8 NA NA

12/23/11 02/17/12 Orange Communications SA Apax Partners Worldwide LLP 2,130.6 1.5 x NA

12/22/11 01/31/12 Internode Pty. Ltd. iiNet Ltd. 106.3 NA NA

12/20/11 12/31/11 Conference Plus, Inc. Arkadin, Inc. 41.0 1.0 x NA

12/19/11 Pending RuggedCom Inc. Belden CDT (Canada) Inc. 224.0 2.1 x 12.2 x

12/16/11 Pending Advanced Wireless Services Spectrum Licenses Cellco Partnership, Inc. 315.0 NA NA

12/15/11 04/10/12 NextG Networks, Inc. Crown Castle International Corp. 1,000.0 NA NA

11/21/11 11/30/11 TransACT Capital Communications Pty Ltd. iiNet Ltd. 59.0 0.8 x 3.5 x

11/06/11 01/27/12 Tekelec Private Equity Consortia 507.1 1.3 x 11.4 x

Median 235.8$ 1.8x 11.2x

Recent M&A

Activity

Comparable Transactions Telecom

Summary

Statistics


Note: Includes announced transactions over the last six months where enterprise value is publicly available and more than $40 million.

Note: Includes closed transactions where enterprise value is publicly available and more than $40 million.

27

2.6x

1.9x2.1x 2.1x 2.0x

1.7x

2.1x 2.1x

1.5x 1.5x

2.3x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

0

50

100

150

200

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD

LT

M R

even

ue M

ultip

leTra

nsa

ctio

n V

olu

me


Selected HW&Co. TMT Transactions

a portfolio company of

has been acquired by

GFI Energy Group

a division of






has received a strategic

investment from


has acquired


has merged with


has received a minority

investment from

The Mill





has acquired


has been recapitalized by



has received a strategic

investment from

28





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TMT Group Overview

and Disclosures

Thierry Monjauze

Managing Director

63 Brook Street

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Phone: +44 20 7518 8901 [email protected]

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Managing Director

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Phone: +1 (617) 654-2102 [email protected]

Our Technology, Media & Telecom (TMT) Group is dedicated to providing superior merger & acquisition and

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29

Documents

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