Q4 2014 IT Services Market Snapshot

Transcription

Q4 2014 IT Services Market Snapshot
Michael Parent
Matt Fiore
Managing Director
[email protected]
Director
[email protected]
www.signalhill.com
B a l t i m o r e │ B a n g a l o r e │ B o s t o n │ M u m b a i │ N a s h v i l l e │ N e w Yo r k │ R e s t o n │ S a n F r a n c i s c o
Contents
Signal Hill at a Glance…………………………………..……………………….…..……..….
3
Signal Hill’s IT Services Practice………….…………......................................................
4
Q4 2014 IT Services M&A Overview..............................................................................
5
Notable Q4 2014 IT Services M&A Transactions……….……...........................………...
6
Q4 2014 IT Services M&A Transactions…….…..……………………...………………......
7
Q4 2014 IT Services Public Company Valuation Metrics………….………….…….…….
14
LTM Relative IT Services Stock Price Performance…………..……..…….....……………
19
2
Signal Hill at a Glance
Signal Hill, named 2014 Boutique Investment Bank of the Year by the Global M&A Network, is a leading independent
advisory boutique serving the M&A and private capital raising needs of growth companies. Signal Hill's
experienced bankers provide deep domain expertise and an unyielding commitment to clients in our sectors:
Internet & Digital Media, Internet Infrastructure, Services and Software. With more than 600 completed transactions
and offices in Baltimore, Bangalore, Boston, Mumbai, Nashville, New York, Reston and San Francisco, Signal Hill
leverages deep strategic industry and financial sponsor relationships to help our clients achieve Greater
Outcomes®.
Recent Mergers & Acquisitions, Strategic Advisory Transactions

Mergers &
Acquisitions

Equity Private
Placements

Restructurings

Strategic
Advisory

Special
Committee
Advisory

Fairness
Opinions
3
Signal Hill’s IT Services Practice
Includes previous experience
4
Q4 2014 IT Services M&A Overview
The IT Services sector decreased approximately 12 percent in terms of deal volume
from Q3 2014 to Q4 2014, but the year finished strong with more than 1,000
announced deals over the last twelve months (LTM). Total announced enterprise
value followed suit, reaching approximately $10.5B, marking an almost four percent
decrease from Q3 2014. Median announced deal size did take a significant dip,
however, falling to its lowest point of the LTM at $14.8M. Median revenue multiple
decreased as well, moving from 1.1x in Q3 2014 to 0.7x in Q4 2014.
Source: Signal Hill
Number of Deals
% change from prior quarter
Total Announced Enterprise Value ($M)
Median Announced Deal Size ($M)
Median EV/TTM Revenue Multiple
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
174
181
239
220
192
-
4.0%
32.0%
-7.9%
-12.7%
$6,630.3
$7,396.1
$13,427.2
$10,993.1
$10,580.5
-
11.6%
81.5%
-18.1%
-3.8%
$38.6
$20.0
$15.0
$57.2
$14.8
-
-48.2%
-25.2%
281.3%
-74.1%
0.9x
0.7x
1.1x
1.1x
0.7x
-
-19.5%
51.5%
-1.9%
-39.4%
5
Notable Q4 2014 IT Services M&A Transactions
Selected IT Services Transactions, Q4 2014
Ruby Receptionists
Received Growth Equity
Investment from Updata
Partners
Signal Hill advised Ruby Receptionists. Ruby Receptionists, a leading provider
of virtual, personalized receptionists services to small businesses across the
United States, has received a significant growth equity investment from Updata
Partners. The investment from Updata will allow Ruby to further enhance its
solution offerings, accelerate its impressive growth and help solidify it as a market
leader for receptionists services.
Sapient to be Acquired by
Publicis Groupe
EV: $3,418.9M
Revenue Multiple: 2.5x
Sapient (Nasdaq: SAPE), a global services company that helps clients transform
in the areas of marketing, omni-channel commerce and consulting, has entered
into an agreement to be acquired by Publicis Groupe (Euronext Paris:
FR0000130577, CAC 40), the world’s third-largest advertising agency. The
acquisition will create a platform named Publicis.Sapient which will focus
exclusively on digital transformation and the dynamics of an always-on world
across marketing, omni-channel commerce, consulting and technology.
Presidio to be Acquired by
Apollo Global
Management
EV: $1,500.0M
Presidio, a leading provider of professional and managed services for advanced
IT solutions, has entered into a definitive merger agreement with Apollo Global
Management (NYSE: APO), a leading global alternative investment manager. The
merger with Apollo will develop and scale Presidio’s franchise. Presidio is being
acquired from American Securities.
EVRY to be Acquired by
Apax Partners
EV: $1,075.9M
EVRY, one of the leading IT companies in the Nordic countries, has entered into
an agreement to be acquired by Apax, one of the world’s leading private equity
firms. Apax’s considerable international IT services expertise will help EVRY to
accelerate its strategy to develop the strong aspects of the business, including the
bank and finance solutions portfolio, scaling up its focus on industry verticals in
Nordic countries while continuing to strengthen its regional footprint.
Xerox (IT Outsourcing
Business) to be Acquired
by Atos
EV: $1,050.0M
Xerox (NYSE: XRX), a global business services, technology and document
management company, has agreed to sell its Information Technology Outsourcing
(ITO) business to Atos, a multinational IT services corporation. The transaction
will enable new levels of strategic collaboration in client situations, create
innovative solutions leveraging Atos’ world-class ITO capabilities and highlight
Xerox’s BPO and document outsourcing expertise.
6
Q4 2014 IT Services M&A Transactions
Date
Announced
Seller
Buyer
31-Dec-14
WonderLink Communications / Customer Assets
VoiceOnyx Business Phone Service &
Systems
29-Dec-14
Computech Inc.
NCI Information Systems Inc.
23-Dec-14
3i Infotech Western Europe Ltd.
Objectway Financial Software S.p.A.
23-Dec-14
Syncom Australia Pty. Ltd.
IM Medical Ltd.
22-Dec-14
Clarus Agency LLC
Inmar Inc.
22-Dec-14
Pacnet
Telstra Corporation Limited
22-Dec-14
Turnstone Solutions
22-Dec-14
22-Dec-14
Enterprise Value
Enterprise
Revenue EBITDA
Value
Revenue EBITDA
-
-
-
NA
NA
$56.0
-
-
NA
NA
-
-
-
NA
NA
$8.2
-
-
NA
NA
-
-
-
NA
NA
$697.0
$472.0
$111.0
1.5x
6.3x
LDiscovery LLC
-
-
-
NA
NA
Northgate Public Services / Assets
Cinven Ltd.
-
$304.4
-
NA
NA
Solid State Solutions Ltd.
Capita IT Enterprise Services
-
-
-
NA
NA
19-Dec-14
Unify Enterprise Communications Private Limited
Progility Plc
$1.2
-
-
NA
NA
19-Dec-14
Ensyst Pty. Ltd.
Optus Business
$10.6
-
-
NA
NA
18-Dec-14
Zeon Solutions
Perficient, Inc.
$35.7
$23.0
-
1.6x
NA
18-Dec-14
Itex Enterprise Solutions
Technology Integration Group Inc.
-
-
-
NA
NA
18-Dec-14
ITEC Intelligent Services PLC
Exclusive Networks Group
-
-
-
NA
NA
18-Dec-14
Xerox Corporation / IT Outsourcing Business
Atos SE
$1,050.0
$1,500.0
$115.0
0.7x
9.1x
18-Dec-14
The Lonsdale Group
Deloitte Australia
-
-
-
NA
NA
17-Dec-14
ShareNet Inc.
Technology Integration Group
17-Dec-14
SingleSource Services Corporation
ClearStar Inc.
17-Dec-14
Balkon Inc.
16-Dec-14
16-Dec-14
-
-
-
NA
NA
$3.2
$2.9
-
1.1x
NA
PricewaterhouseCoopers International
Limited
-
-
-
NA
NA
Terrible Labs
Autodesk Inc.
-
-
-
NA
NA
AME Eletronica Ltda. / Customer Service Business
Entrust Datacard
-
-
-
NA
NA
15-Dec-14
Advanced Pharmacy Concepts, Inc.
PricewaterhouseCoopers LLP
-
-
-
NA
NA
12-Dec-14
Xibis Limited
SCISYS plc
$1.3
-
-
NA
NA
12-Dec-14
Agile Technologies / Assets
Majesco Inc.
-
-
-
NA
NA
11-Dec-14
Backupify
Datto Inc.
-
-
-
NA
NA
11-Dec-14
BigVisible Solutions, Inc.
SolutionsIQ, Inc.
-
-
-
NA
NA
11-Dec-14
Agency Consulting Group
Vistronix
-
-
-
NA
NA
7
Date
Announced
Seller
Buyer
11-Dec-14
Pantha Corp / Assets
Bulletproof Networks Pty. Ltd.
10-Dec-14
Complete Imaging Limited
Capita plc
10-Dec-14
Royall & Company
The Advisory Board Company
10-Dec-14
cPrime Inc.
ALTEN SA
09-Dec-14
ServerSpace
iomart Group PLC
09-Dec-14
Severn Automation Ltd.
09-Dec-14
SiteSystems Inc.
08-Dec-14
Enterprise Value
Enterprise
Revenue EBITDA
Value
Revenue EBITDA
$0.7
-
-
NA
NA
-
-
-
NA
NA
$850.0
$105.0
$45.8
8.1x
18.6x
-
-
-
NA
NA
$4.1
-
-
NA
NA
HepcoMotion
-
-
-
NA
NA
Nymity Inc.
-
-
-
NA
NA
DDC Advocacy
Diversified Agency Services
-
-
-
NA
NA
08-Dec-14
EVRY ASA
Apax Partners
$1,075.9
$2,009.6
$195.3
0.5x
5.5x
04-Dec-14
Optaros Inc.
MRM//McCann
-
-
-
NA
NA
04-Dec-14
Veredus Corp. / 80% Stake
Hays plc
$55.0
$91.3
$6.7
0.6x
8.2x
04-Dec-14
Servicecare Support Services Ltd.
Clipper Logistics plc
$8.9
$17.5
-
0.5x
NA
04-Dec-14
Upshot Limited / Trinity portal
Virtual1 Ltd. Limited
-
-
-
NA
NA
04-Dec-14
Teraco Data Environments Pty. Ltd.
Permira Funds
-
-
-
NA
NA
04-Dec-14
Morar Consulting / 75% Stake
Next Fifteen Communications Group Plc
$3.7
-
-
NA
NA
03-Dec-14
Business Records Management LLC
Recall Holdings Ltd.
$77.0
-
-
NA
NA
03-Dec-14
StratoGen Inc.
Access Technology Group
-
-
-
NA
NA
03-Dec-14
Volt Information Sciences Inc. / Assets
NewNet Communication Technologies LLC
$10.0
-
-
NA
NA
03-Dec-14
H1 Studios
Mesosphere Inc.
-
-
-
NA
NA
02-Dec-14
Reactive Media Pty Ltd.
Accenture Ltd.
-
-
-
NA
NA
02-Dec-14
Inforsacom Informationssysteme GmbH
Logicalis Group
-
-
-
NA
NA
02-Dec-14
Cogent Works
Mitchell International, Inc.
-
-
-
NA
NA
01-Dec-14
Armada / Undisclosed Majority Stake
Ingram Micro Inc.
-
-
-
NA
NA
01-Dec-14
RYUKOSHA NETWARE Inc.
Internet Initiative Japan Inc.
01-Dec-14
Presidio Inc. / Assets
Apollo Global Management, LLC
01-Dec-14
Wellington IT Solutions
Volaris Group
28-Nov-14
nSynergy Pty Ltd.
27-Nov-14
SERJ Solutions
-
-
-
NA
NA
$1,500.0
$2,300.0
$180.0
0.7x
8.3x
-
-
-
NA
NA
rhipe
$14.8
-
-
NA
NA
8K Miles Software Services
$2.6
-
-
NA
NA
8
Date
Announced
Seller
Buyer
Enterprise Value
Enterprise
Revenue EBITDA
Value
Revenue EBITDA
26-Nov-14
Comendo A/S
j2 Global Inc.
$14.0
$9.8
-
1.4x
NA
24-Nov-14
Monthend Solutions Inc. / SAGE ERP reseller assets
BrainSell Technologies LLC
-
-
-
NA
NA
21-Nov-14
Social Media 180
Sochule Inc.
-
-
-
NA
NA
21-Nov-14
Reggeborgh Group / VolkerWessels / Datacenters
Keppel Data Centres Holding Pte Ltd.
-
-
-
NA
NA
20-Nov-14
Oasis Outsourcing / Assets
MBO / Stone Point Capital LLC
-
-
-
NA
NA
20-Nov-14
Intrepid Learning Solutions
Xerox
20-Nov-14
Lightbridge Communications Corporation / Assets
Tech Mahindra Ltd
20-Nov-14
Servion Global Solutions / Majority Acquisition
18-Nov-14
-
-
-
NA
NA
$240.0
$400.0
-
0.6x
NA
Everstone Capital Advisors Pvt. Ltd /
Solmark
-
-
-
NA
NA
iSupportU / Web Design Services
Ramblin Jackson Inc.
-
-
-
NA
NA
18-Nov-14
Oriel Technologies Pty Ltd.
BigAir Group Limited
$3.7
$20.7
$0.7
0.2x
5.0x
18-Nov-14
CensorNet Ltd.
CensorNet management / MBO
-
-
-
NA
NA
18-Nov-14
Strypes Bulgaria
ICT Automatisering N.V.
$5.4
-
-
NA
NA
17-Nov-14
Vertical Synergies Inc.
AFS Logistics, LLC
-
-
-
NA
NA
17-Nov-14
Uclid IT Services Pvt. Ltd.
Vedicsoft
-
-
-
NA
NA
17-Nov-14
Vedicsoft
Sowell & Co./ Vedicsoft management
-
-
-
NA
NA
17-Nov-14
Fisher/Unitech Inc.
The Riverside Company
-
-
-
NA
NA
17-Nov-14
RenewData Corp.
LDiscovery LLC
-
-
-
NA
NA
14-Nov-14
p3 Consulting + Software AG
KPMG LLP
-
-
-
NA
NA
14-Nov-14
Blue Sphere Solutions
C/D/H
-
-
-
NA
NA
13-Nov-14
Logic Method IT
Day1 Solutions
-
-
-
NA
NA
12-Nov-14
Shore Solutions Inc.
Acquire BPO
-
-
-
NA
NA
12-Nov-14
Prism Technologies LLC
Internet Patents Corp.
$27.2
$40.0
-
0.7x
NA
12-Nov-14
KVH Co. Ltd.
Colt Group S.A.
$162.6
$183.9
$25.3
0.9x
6.4x
12-Nov-14
Odecee
Cognizant Technology Solutions
-
-
-
NA
NA
11-Nov-14
Comnet Telecom Supply Inc.
RF Industries Ltd.
-
-
-
NA
NA
11-Nov-14
Just199 Hosting / Assets
Cloud Equity Group
-
-
-
NA
NA
11-Nov-14
Asidua Holdings Limited
Civica UK Limited
-
-
-
NA
NA
9
Date
Announced
Seller
Buyer
Enterprise Value
Enterprise
Revenue EBITDA
Value
Revenue EBITDA
11-Nov-14
The Technology Practice Limited / Assets
NCE Computer Group
-
-
-
NA
NA
11-Nov-14
Local Cloud9
Tectonic
-
-
-
NA
NA
10-Nov-14
Hudson Legal e-Discovery / Assets
DTI LLC
$23.0
$62.0
-
0.4x
NA
10-Nov-14
CLS Communication AG
Lionbridge Technologies Inc.
$77.0
$85.0
-
0.9x
NA
10-Nov-14
Survey Sampling International / Majority Stake
HGGC LLC
-
-
-
NA
NA
06-Nov-14
Brain Force Holding AG
Pierer Industrie AG
$10.5
$6.9
-
1.5x
NA
06-Nov-14
CSU Industries Inc.
Curvature Solutions LLC
-
-
-
NA
NA
06-Nov-14
SAS Telecom Pty Ltd / Assets
Decmil Group
$0.9
$13.2
$0.9
0.1x
0.9x
06-Nov-14
CloudVPS
IT-Ernity Internet Services BV
-
-
-
NA
NA
06-Nov-14
Code For The People
Automattic Inc.
-
-
-
NA
NA
05-Nov-14
Naxxos Group
Movilitas Consulting AG
-
-
-
NA
NA
05-Nov-14
CRGT Inc. / Majority Stake
Bridge Growth Partners LLC
-
-
-
NA
NA
05-Nov-14
I-Net Solutions Pte Ltd.
Hitachi Sunway Information Systems
-
-
-
NA
NA
05-Nov-14
Anittel Group Limited
Inabox Group Limited
$13.4
$34.0
-
0.4x
NA
05-Nov-14
FishNet Security
Accuvant Inc.
$350.0
$700.0
-
0.5x
NA
05-Nov-14
Logistics Management Solutions
Transplace
-
-
-
NA
NA
04-Nov-14
Logic Park AG
Noser Engineering AG
-
-
-
NA
NA
04-Nov-14
Lorien Resourcing
Impellam Group plc
$70.0
$487.3
$10.6
0.1x
6.6x
04-Nov-14
Network Systems and Technologies Ltd.
QuEST Global Services Pte. Ltd.
-
-
-
NA
NA
04-Nov-14
Touch Instinct Ltd.
Omnigon
-
-
-
NA
NA
04-Nov-14
Telindus Group NV/SA / Assets
telent Ltd.
-
$85.3
-
NA
NA
04-Nov-14
Evidence Exchange
AlixPartners LLP
-
-
-
NA
NA
03-Nov-14
EntryPoint Consulting LLC / Assets
KPMG LLP
-
-
-
NA
NA
03-Nov-14
Apalon
Mindspark Interactive Network, Inc.
-
-
-
NA
NA
03-Nov-14
InfoTrust AG
NTT Com Security AG
-
-
-
NA
NA
03-Nov-14
Sapient Corporation
Publicis Groupe
$3,418.9
$1,356.0
$172.1
2.5x
19.9x
03-Nov-14
WebRunners / Irvine datacenter assets
GAWK Inc.
-
-
-
NA
NA
10
Date
Announced
Seller
Buyer
Enterprise Value
Enterprise
Revenue EBITDA
Value
Revenue EBITDA
03-Nov-14
Keltec
Annodata Ltd.
-
-
-
NA
NA
31-Oct-14
BlackBerry Ltd. / Datacenter Assets
TeraGo Networks Inc.
-
-
-
NA
NA
31-Oct-14
Great Fridays
EPAM Systems, Inc.
-
-
-
NA
NA
31-Oct-14
HealthPort Technologies LLC
New Mountain Capital LLC
-
-
-
NA
NA
30-Oct-14
Blueware Consulting
Vistex Inc.
-
-
-
NA
NA
30-Oct-14
Systems Made Simple
Lockheed Martin Corporation
-
-
-
NA
NA
30-Oct-14
CloudBearing Inc.
COMPAREX Group
-
-
-
NA
NA
30-Oct-14
Challenge Training and Consulting
Compunnel Software Group
-
-
-
NA
NA
29-Oct-14
Marketelligent
Brillio
-
-
-
NA
NA
29-Oct-14
Aretel Ltd.
Swift Managed Services
-
-
-
NA
NA
29-Oct-14
DataBanker Corp. / Assets
Didean Systems
-
-
-
NA
NA
28-Oct-14
Torando Labs
BuzzFeed Inc.
-
-
-
NA
NA
27-Oct-14
Positive Digital Solutions Ltd
Apogee Corporation Ltd
-
-
-
NA
NA
27-Oct-14
Jeitosa Group International
Mercer LLC
-
-
-
NA
NA
24-Oct-14
BrightLight Consulting / Assets
Sirius Computer Solutions
-
-
-
NA
NA
24-Oct-14
Stream Integration
Prolifics
-
-
-
NA
NA
23-Oct-14
Xand / Assets
TierPoint LLC
-
-
-
NA
NA
22-Oct-14
Tactical Technologies Inc.
Selex ES
-
-
-
NA
NA
22-Oct-14
Sakonent
Tectonic
-
-
-
NA
NA
22-Oct-14
Distinction
Skyscanner Ltd.
-
-
-
NA
NA
22-Oct-14
Ultima IT Inc.
Pegasystems Inc.
-
-
-
NA
NA
22-Oct-14
Olson Inc.
ICF International, Inc.
$295.0
$126.0
$28.4
2.3x
10.4x
21-Oct-14
Nextpoint IS
Blackpoint IT
-
-
-
NA
NA
21-Oct-14
SilverSky
BAE Systems
$235.0
-
-
NA
NA
21-Oct-14
Intergen Ltd.
Empired Ltd.
$17.4
$60.0
-
0.3x
NA
21-Oct-14
Xpedia Fusion / Assets
Dimension Data Holdings plc
-
-
-
NA
NA
21-Oct-14
Agile Business Solutions
Dimension Data Holdings plc
-
-
-
NA
NA
21-Oct-14
Innovazion Inc. / 51% Stake
Innovazion Research Pvt Ltd.
-
-
-
NA
NA
11
Date
Announced
Seller
Buyer
Enterprise Value
Enterprise
Revenue EBITDA
Value
Revenue EBITDA
21-Oct-14
Service Solutions Pvt. Ltd.
B2X Care Solutions GmbH
-
-
-
NA
NA
20-Oct-14
Worldwide Payment Systems S.A.
Onyx Payments
-
-
-
NA
NA
20-Oct-14
Evenspring LLC
Timmons Group
-
-
-
NA
NA
20-Oct-14
Crypteia Networks SA
PCCW Global Ltd.
-
-
-
NA
NA
20-Oct-14
Bear Data Solutions Inc.
Datalink Corporation
$18.5
$130.0
-
0.1x
NA
16-Oct-14
Falcon Discovery
DTI LLC
-
-
-
NA
NA
16-Oct-14
CMC
Tata Consultancy Services
-
-
-
NA
NA
15-Oct-14
3|SHARE Corporation
Publicis Groupe
-
-
-
NA
NA
15-Oct-14
Evenspring LLC / healthcare practice
Clearview Logix LLC
-
-
-
NA
NA
15-Oct-14
MEDL Mobile Holdings Inc. / Assets
BBK Worldwide
-
-
-
NA
NA
15-Oct-14
CLEAR MEASURES Inc.
Data Intensity, LLC
-
-
-
NA
NA
14-Oct-14
Xpand Consulting LLC
Quality Management Solutions Inc.
-
-
-
NA
NA
14-Oct-14
Openjive Inc.
TekSavvy Solutions Inc.
-
-
-
NA
NA
14-Oct-14
Baked & Branded
StringCan Interactive LLC
-
-
-
NA
NA
14-Oct-14
Power Design Inc. / data center energy services
PowerSecure International, Inc.
$13.0
$24.0
-
0.5x
NA
14-Oct-14
rSmart / consulting services business
Navigator Management Partners LLC
-
-
-
NA
NA
13-Oct-14
Swissfiberinvest Menziken AG
HIAG Immobilien Holding AG
-
-
-
NA
NA
13-Oct-14
CDMS Limited (Transactis)
GB Group PLC
$8.1
$10.7
-
0.8x
NA
10-Oct-14
Parachute IT Ltd.
Chess Telecom
-
-
-
NA
NA
09-Oct-14
GNet Group / Majority Acquisition
Nihilent Technologies Pvt Ltd.
-
-
-
NA
NA
09-Oct-14
Discovery Services LLC
eTERA Consulting
-
-
-
NA
NA
09-Oct-14
Unified Technologies
DSCI LLC
-
-
-
NA
NA
08-Oct-14
Robobat Polska sp.
Graitec Group
-
-
-
NA
NA
08-Oct-14
Tectura /Australia/Singapore/Indonesia/Malaysia
MicroChannel Services
-
-
-
NA
NA
08-Oct-14
QuickStart Intelligence
360training.com Inc
-
-
-
NA
NA
08-Oct-14
TCP
UST Global Inc.
-
-
-
NA
NA
08-Oct-14
Dell Inc. / product and process innovation service
L&T Technology Services
-
-
-
NA
NA
08-Oct-14
DataHive Consulting
Blue Hill Research
-
-
-
NA
NA
12
Date
Announced
Seller
Buyer
Enterprise Value
Enterprise
Revenue EBITDA
Value
Revenue EBITDA
08-Oct-14
Flash Data Solutions LLC
LDiscovery LLC
-
-
-
NA
NA
06-Oct-14
Network Storage Inc.
Data Strategy
-
-
-
NA
NA
06-Oct-14
Norma4 / 76% Stake
AUBAY
-
$19.0
-
NA
NA
06-Oct-14
Radius Inc.
Luxoft Holding Inc.
-
-
-
NA
NA
06-Oct-14
Cintas Document Management Ltd. / Assets
Restore plc
$38.0
$33.0
$0.3
1.2x
113.8x
03-Oct-14
Technology Effect
Montech Holdings Ltd.
$8.5
-
-
NA
NA
03-Oct-14
Observatory Crest
Arrow Electronics Inc.
-
-
-
NA
NA
03-Oct-14
Sidin SpA
Exclusive Networks Group
-
-
-
NA
NA
03-Oct-14
Breeze Training Pty Ltd.
Montech Holdings Ltd.
$2.5
-
-
NA
NA
02-Oct-14
Another9 Inc.
Cohere Communications
-
-
-
NA
NA
02-Oct-14
Diablo Management Limited
Deloitte New Zealand
-
-
-
NA
NA
02-Oct-14
Qubera Solutions / Assets
KPMG LLP
-
-
-
NA
NA
02-Oct-14
Adaptive Path
Capital One
-
-
-
NA
NA
01-Oct-14
Symphony Management Consulting
itelligence Inc.
-
-
-
NA
NA
01-Oct-14
Stone Apple Solutions Pte. Ltd
Hitachi Consulting Corporation
01-Oct-14
UNSi
GTT
01-Oct-14
Excel Micro Inc.
01-Oct-14
-
-
-
NA
NA
$40.0
-
-
NA
NA
j2 Global Inc.
-
-
-
NA
NA
Saltbush Group Pty Ltd.
UXC Consulting Pty Ltd.
-
-
-
NA
NA
01-Oct-14
Ipeer AB / Assets
TeliaSonera AB
-
-
-
NA
NA
01-Oct-14
SSE Enterprise Telecoms / Hampshire Datacenters
SCC
01-Oct-14
BravePoint Inc
Progress Software Corporation
01-Oct-14
Electronic Publishing Services
01-Oct-14
-
-
-
NA
NA
$12.0
$19.0
-
0.6x
NA
MPS Ltd
-
-
-
NA
NA
Vtesse Networks Ltd.
Interoute Communications Ltd.
-
-
-
NA
NA
01-Oct-14
Kernel Networks
Arismore
-
-
-
NA
NA
01-Oct-14
DataSpan Inc. / Assets
DataSpan Holdings
-
-
-
NA
NA
01-Oct-14
Red Anvil
MBO / CoSentry
-
-
-
NA
NA
13
Q4 2014 IT Services Public Company Valuation Metrics
IT Services
Financial Data
Pricing Date: 12/31/14
% of 52
Median Metrics
Week Hi
Q/Q Rev Growth
YoY
Seq.
Valuation Data
LTM Margins
Gross
EV/Revenues
Price/Earnings
EV/EBITDA
(1)
Multiples
EBITDA
LTM
CY14E
CY15P
LTM
CY14E
CY15P
LTM
CY14E
CY15P
BPO
90.2%
7.2%
-0.8%
28.6%
14.9%
1.5x
1.8x
1.7x
10.0x
10.1x
9.1x
23.4x
20.0x
18.9x
Consulting
90.5%
4.4%
-1.0%
36.2%
9.8%
1.2x
1.2x
1.1x
9.8x
9.6x
8.3x
26.4x
20.1x
18.4x
Government Services
93.0%
-1.6%
-1.8%
18.4%
8.8%
0.8x
0.8x
0.8x
9.8x
9.9x
9.6x
17.6x
17.6x
15.9x
Offshore Outsourcing
89.9%
11.3%
3.6%
34.9%
21.4%
2.8x
2.8x
2.3x
12.5x
12.8x
11.4x
22.5x
20.4x
17.6x
Outsourcing
89.7%
-3.0%
-0.8%
28.6%
15.7%
1.4x
1.3x
1.3x
7.1x
7.5x
6.9x
19.8x
16.0x
13.1x
IT Staffing
80.8%
5.6%
-0.9%
23.4%
5.4%
0.4x
0.4x
0.4x
7.9x
7.9x
7.5x
24.9x
16.1x
14.8x
Systems Integration
89.7%
6.5%
-0.8%
17.1%
10.1%
0.9x
0.9x
0.9x
8.7x
8.7x
8.0x
15.3x
14.1x
13.8x
All IT Services Companies
91.2%
5.5%
0.4%
30.2%
12.3%
1.1x
1.2x
1.1x
9.8x
10.0x
9.0x
22.2x
18.6x
15.7x
(1) EBITDA excludes all one-time charges and expenses.
14
Business Process Outsourcing (BPO) Companies
($ in Millions, except per share data)
Market Data
Price
Company
% of 52
12/31/14 Week Hi
Financial Data
Market Enterprise
Cap (1)
Value (2)
LTM
Seq. QoQ YoY Rev Growth
Revenue Rev Growth MRQ
CY 14E
Valuation Data
EV/EBITDA
LTM Margin
Gross
EV/Revenues
EBITDA
LTM
CY14E CY15E
LTM
Price/Earnings
(3)
Multiples
CY14E CY15E
LTM
CY14E CY15E
Automatic Data Processing, Inc.
$83.37
96.3%
$40,189
$37,700
$11,941
-16.3%
-9.4%
-2.6%
46.1%
21.0%
3.2x
3.2x
3.3x
15.1x
15.6x
15.4x
27.4x
27.5x
26.8x
Paychex, Inc.
$46.17
95.8%
$16,834
$16,305
$2,644
1.4%
10.8%
0.1%
69.0%
42.5%
6.2x
6.2x
5.7x
14.5x
14.4x
13.5x
26.1x
25.7x
23.8x
Capita plc
$16.86
86.6%
$11,195
$13,995
$6,670
1.9%
13.9%
1.8%
26.0%
15.3%
2.1x
2.1x
2.0x
13.7x
13.4x
12.7x
40.0x
16.7x
16.0x
Iron Mountain Incorporated
$38.66
95.7%
$8,110
$12,297
$3,108
-0.5%
3.6%
0.6%
45.6%
28.8%
4.0x
3.9x
3.9x
13.7x
13.1x
12.8x
21.1x
28.1x
28.9x
$113.17
85.9%
$7,989
$7,668
$3,550
-0.1%
8.4%
0.3%
27.0%
19.7%
2.2x
2.2x
2.1x
11.0x
10.9x
10.0x
22.2x
19.4x
18.2x
Genpact Limited
$18.93
97.6%
$4,175
$4,564
$2,239
4.7%
10.9%
1.7%
39.6%
19.4%
2.0x
2.0x
1.8x
10.5x
12.7x
11.4x
22.3x
18.7x
16.5x
Teleperformance SA
$68.28
97.8%
$3,906
$3,791
$3,366
0.6%
4.1%
-1.4%
9.0%
12.3%
1.1x
1.1x
1.0x
9.1x
8.2x
7.1x
21.8x
18.6x
15.7x
TriNet Group, Inc.
$31.28
95.4%
$2,282
$2,720
$2,079
5.9%
26.2% -75.0%
15.4%
8.1%
1.3x
5.2x
4.6x
16.2x
15.7x
13.6x
625.6x
27.8x
22.7x
Convergys Corporation
$20.37
83.4%
$2,143
$2,372
$2,619
1.8%
43.9%
8.9%
30.5%
12.8%
0.9x
0.8x
0.8x
7.1x
6.7x
6.0x
45.6x
13.4x
12.0x
TeleTech Holdings, Inc.
$23.68
79.0%
$1,183
$1,221
$1,224
2.9%
3.2%
0.7%
24.7%
12.9%
1.0x
1.0x
0.9x
7.8x
7.7x
6.9x
17.2x
16.5x
14.1x
WNS (Holdings) Limited Sponsored ADR
$20.66
89.8%
$1,096
$1,006
$535
0.3%
22.6%
-5.2%
30.3%
21.7%
1.9x
2.0x
1.9x
8.7x
9.5x
8.6x
19.5x
13.3x
12.2x
CSG Systems International, Inc.
$25.07
78.1%
$861
$935
$758
0.2%
-0.6%
-0.8%
46.5%
18.3%
1.2x
1.2x
1.2x
6.7x
5.8x
5.9x
25.6x
12.1x
11.7x
Sykes Enterprises, Incorporated
$23.47
95.0%
$1,016
$878
$1,318
3.4%
3.2%
0.6%
27.9%
9.9%
0.7x
0.7x
0.7x
6.7x
6.6x
6.1x
21.7x
15.2x
13.9x
ExlService Holdings, Inc.
$28.71
92.1%
$967
$800
$488
2.3%
0.1%
2.7%
30.5%
15.6%
1.6x
1.6x
1.4x
10.5x
11.6x
8.2x
23.7x
16.1x
15.0x
Firstsource Solutions Limited
$0.55
78.2%
$386
$494
$514
1.0%
-3.5%
-3.3%
30.2%
12.5%
1.0x
1.0x
0.9x
7.7x
8.0x
6.7x
9.9x
9.9x
7.6x
Xchanging plc
$2.42
81.0%
$608
$448
$1,007
-16.7%
-18.8%
-36.5%
10.8%
10.3%
0.4x
0.7x
0.7x
4.3x
3.6x
3.2x
6.7x
15.3x
12.7x
$23.05
96.5%
$426
$297
$510
-7.6%
5.5%
-3.8%
32.1%
8.3%
0.6x
0.6x
0.6x
7.1x
5.9x
5.9x
56.2x
45.1x
32.7x
$9.75
99.0%
$150
$147
$249
0.3%
5.1%
1.2%
13.8%
6.0%
0.6x
0.6x
0.5x
9.8x
12.1x
9.3x
NM
81.3x
40.1x
Towers Watson & Co. Class A
Heidrick & Struggles International, Inc.
StarTek, Inc.
Mean
90.2%
-0.8%
7.2%
-2.1%
28.6%
14.9%
1.5x
1.8x
1.7x
10.0x
10.1x
9.1x
23.4x
20.0x
18.9x
Median
93.5%
0.8%
4.6%
0.2%
30.3%
14.1%
1.3x
1.4x
1.3x
9.5x
10.2x
8.4x
22.3x
17.6x
15.8x
Consulting Companies
Market Data
Price
Company
% of 52
12/31/14 Week Hi
Financial Data
Market Enterprise
Cap (1)
Value (2)
LTM
CY 14E
LTM Margin
Gross
EBITDA
Valuation Data
EV/EBITDA
EV/Revenues
LTM
CY14E CY15E
LTM
Price/Earnings
(3)
Multiples
CY14E CY15E
LTM
CY14E CY15E
FTI Consulting, Inc.
$38.63
90.5%
$1,585
$2,117
$1,747
-0.7%
8.8%
1.2%
34.2%
12.9%
1.2x
1.2x
1.1x
9.4x
9.4x
9.2x
30.9x
19.6x
18.2x
Advisory Board Company
$48.98
69.8%
$1,798
$1,775
$555
1.7%
12.4%
30.2%
43.0%
15.2%
3.2x
2.5x
2.5x
21.0x
14.4x
13.0x
119.5x
30.1x
33.3x
Huron Consulting Group Inc.
$68.39
93.9%
$1,571
$1,706
$606
-6.0%
12.7%
35.6%
48.5%
27.2%
2.8x
2.1x
1.9x
10.3x
10.9x
9.7x
17.8x
20.1x
18.4x
Navigant Consulting, Inc.
$15.37
79.2%
$766
$920
$751
10.6%
8.8%
1.8%
29.2%
15.7%
1.2x
1.2x
1.1x
7.8x
8.1x
7.3x
NM
16.4x
14.7x
Resources Connection, Inc.
$16.45
97.2%
$630
$526
$584
5.6%
3.8%
0.6%
37.5%
8.5%
0.9x
0.9x
0.9x
10.5x
9.6x
8.2x
27.9x
25.1x
20.8x
$8.79
93.8%
$262
$278
$229
-1.0%
4.4%
2.5%
31.1%
8.0%
1.2x
1.2x
1.1x
15.1x
10.4x
9.4x
41.9x
16.1x
14.4x
$30.32
93.3%
$301
$258
$304
-6.0%
-1.3%
-2.1%
30.2%
9.8%
0.8x
0.9x
0.8x
8.7x
5.3x
5.2x
22.5x
22.6x
20.4x
Management Consulting Group PLC
$0.25
52.9%
$123
$205
$420
-6.6%
1.3%
-9.1%
36.2%
9.1%
0.5x
0.5x
0.5x
5.3x
10.0x
8.3x
8.6x
19.1x
12.5x
Information Services Group, Inc.
$4.22
73.5%
$163
$197
$210
-3.0%
3.7%
0.7%
37.2%
9.6%
0.9x
0.9x
0.9x
9.8x
8.5x
7.4x
24.8x
22.2x
19.4x
Hackett Group, Inc.
CRA International, Inc.
Mean
82.7%
-0.6%
6.1%
6.8%
36.4%
12.9%
1.4x
1.3x
1.2x
9.6x
9.6x
8.6x
24.9x
19.1x
19.1x
Median
90.5%
-1.0%
4.4%
1.2%
36.2%
9.8%
1.2x
1.2x
1.1x
9.8x
9.6x
8.3x
26.4x
20.1x
18.4x
15
Government Services Companies
Market Data
Price
Company
% of 52
12/31/14 Week Hi
Financial Data
Market Enterprise
Cap (1)
Value (2)
LTM
CY 14E
Valuation Data
EV/EBITDA
LTM Margin
Gross
EBITDA
EV/Revenues
LTM
CY14E CY15E
LTM
Price/Earnings
(3)
Multiples
CY14E CY15E
LTM
CY14E CY15E
Booz Allen Hamilton Holding Corporation Class A
$26.53
95.4%
$3,990
$5,394
$5,300
-1.3%
-5.3%
0.5%
22.5%
9.7%
1.0x
1.0x
1.0x
10.5x
10.1x
9.7x
17.7x
16.3x
15.9x
Leidos Holdings, Inc.
$43.52
90.2%
$3,223
$4,034
$5,180
-2.3%
-10.1%
-0.9%
13.6%
8.6%
0.8x
0.8x
0.8x
9.1x
9.9x
9.5x
NM
19.9x
17.4x
MAXIMUS, Inc.
$54.84
98.0%
$3,742
$3,575
$1,701
3.7%
13.3%
3.5%
24.4%
16.1%
2.1x
2.0x
1.8x
13.0x
12.6x
11.4x
26.0x
25.3x
22.5x
CACI International Inc Class A
$86.18
93.9%
$2,077
$3,190
$3,515
-10.0%
-5.7%
-0.4%
30.8%
9.7%
0.9x
0.9x
0.9x
9.4x
10.0x
9.9x
16.1x
16.1x
15.9x
Science Applications International Corp.
$49.53
93.5%
$2,387
$2,628
$3,874
5.5%
-0.3%
0.0%
8.5%
6.7%
0.7x
0.7x
0.7x
10.1x
10.3x
9.7x
17.6x
17.6x
15.5x
Engility Holdings, Inc.
$42.80
92.5%
$773
$1,088
$1,377
-5.1%
1.7%
1.7%
14.4%
10.9%
0.8x
0.8x
0.7x
7.2x
8.9x
7.6x
17.6x
16.9x
16.9x
ManTech International Corporation Class A
$30.23
96.5%
$1,128
$1,074
$1,854
-3.5%
-21.2%
-2.9%
13.7%
7.3%
0.6x
0.6x
0.6x
7.9x
8.5x
8.4x
NM
23.8x
20.1x
ICF International, Inc.
$40.98
92.4%
$808
$916
$1,003
0.4%
8.5%
4.8%
35.2%
9.0%
0.9x
0.9x
0.7x
10.2x
9.3x
6.9x
21.1x
18.3x
15.6x
KEYW Holding Corporation
$10.38
45.0%
$390
$466
$286
6.4%
7.0%
2.7%
30.5%
4.6%
1.6x
1.6x
1.4x
35.5x
27.2x
14.1x
NM
NM
NM
NCI, Inc. Class A
$10.21
77.8%
$84
$65
$322
-2.8%
-2.9%
-1.3%
12.3%
6.1%
0.2x
0.2x
0.2x
3.3x
3.2x
3.2x
NA
15.7x
15.3x
Mean
87.5%
-0.9%
-1.5%
0.8%
20.6%
8.9%
1.0x
0.9x
0.9x
9.0x
9.2x
9.0x
19.4x
18.9x
17.2x
Median
93.0%
-1.8%
-1.6%
0.2%
18.4%
8.8%
0.8x
0.8x
0.8x
9.8x
9.9x
9.6x
17.6x
17.6x
15.9x
Offshore Outsourcing Companies
Market Data
Price
Company
% of 52
12/31/14 Week Hi
Financial Data
Market Enterprise
Cap (1)
Value (2)
LTM
CY 14E
LTM Margin
Gross
EBITDA
Valuation Data
EV/EBITDA
EV/Revenues
LTM
CY14E CY15E
LTM
Price/Earnings
(3)
Multiples
CY14E CY15E
LTM
CY14E CY15E
Tata Consultancy Services Limited
$40.47
90.1%
$79,274
$77,467
$14,561
7.7%
13.5%
17.4%
40.3%
29.9%
5.3x
5.3x
4.5x
17.8x
18.1x
15.7x
22.5x
23.9x
20.5x
Infosys Limited
$31.23
89.6%
$35,865
$30,622
$8,596
3.4%
5.9%
11.9%
38.4%
28.7%
3.6x
3.6x
3.2x
11.9x
11.9x
11.6x
17.9x
18.7x
16.5x
Cognizant Technology Solutions Corporation Class A $52.66
95.9%
$32,234
$27,616
$9,876
2.5%
11.9%
18.8%
39.6%
22.3%
2.8x
2.7x
2.3x
12.5x
13.3x
11.4x
23.0x
20.4x
17.9x
Wipro Limited
$8.77
89.1%
$21,659
$19,323
$7,501
4.9%
8.5%
12.2%
32.1%
22.8%
2.6x
2.6x
2.3x
11.3x
11.6x
10.3x
15.6x
16.2x
14.4x
HCL Technologies Limited
$25.28
89.9%
$17,758
$16,350
$5,232
NA
NA
14.0%
27.8%
25.1%
3.1x
3.0x
2.6x
12.4x
11.7x
10.6x
16.7x
16.5x
14.4x
IGATE Corporation
$39.48
92.0%
$3,189
$3,687
$1,268
2.7%
10.7%
8.5%
33.0%
20.4%
2.9x
2.9x
2.7x
14.3x
13.5x
12.5x
2649.7x
20.1x
18.2x
$2.55
82.3%
$3,128
$3,290
$1,224
-24.1%
3.1%
11.9%
29.2%
4.7%
2.7x
2.4x
2.2x
56.7x
38.4x
32.4x
57.9x
42.5x
34.2x
$44.98
92.5%
$3,777
$3,109
$899
0.0%
8.8%
9.4%
42.8%
32.2%
3.5x
3.4x
3.1x
10.7x
11.1x
10.5x
15.4x
15.9x
15.4x
$2.38
84.9%
$2,072
$2,120
$1,465
3.9%
39.0%
14.3%
18.9%
15.2%
1.4x
1.5x
1.3x
9.5x
10.1x
8.8x
20.4x
24.2x
20.4x
Mindtree Limited
$20.30
98.8%
$1,705
$1,581
$548
5.3%
15.0%
17.9%
36.8%
20.1%
2.9x
2.9x
2.4x
14.4x
14.4x
11.9x
23.0x
20.6x
17.4x
Virtusa Corporation
$41.67
98.0%
$1,229
$1,065
$442
4.4%
24.0%
16.4%
37.5%
14.7%
2.4x
2.3x
2.0x
16.4x
16.2x
13.4x
30.9x
28.9x
23.8x
Rolta India Limited
$1.49
73.3%
$251
$982
NA
0.5%
68.2%
NA
NM
NM
NA
NA
1.3x
NA
NA
3.8x
NA
NA
4.3x
Hexaware Technologies Limited
$3.17
86.7%
$956
$893
$406
9.9%
8.0%
17.4%
27.0%
19.1%
2.2x
2.2x
1.9x
11.5x
12.3x
10.1x
17.4x
18.2x
14.2x
Neusoft Corporation Class A
Syntel, incorporated
Sonda S.A.
Mean
89.5%
4.1%
13.5%
14.2%
33.6%
21.3%
2.7x
2.7x
2.4x
13.0x
13.1x
10.9x
20.3x
20.3x
17.8x
Median
89.9%
3.6%
11.3%
14.2%
34.9%
21.4%
2.8x
2.8x
2.3x
12.5x
12.8x
11.4x
22.5x
20.4x
17.6x
16
Outsourcing Companies
Market Data
Price
Company
% of 52
12/31/14 Week Hi
Financial Data
Market Enterprise
Cap (1)
Value (2)
International Business Machines Corporation $160.44
80.5%
Accenture Plc
$89.31
97.1%
$160,071 $196,343
$60,939
$57,800
Capita plc
$16.86
86.6%
$11,195
$13,995
Computer Sciences Corporation
$63.05
94.1%
$9,180
$10,072
Atos SE
$80.23
92.7%
$8,100
$8,041
Unisys Corporation
$29.48
81.8%
$1,481
$1,269
LTM
CY 14E
LTM Margin
Gross
EBITDA
Valuation Data
EV/EBITDA
EV/Revenues
LTM
CY14E CY15E
LTM
Price/Earnings
(3)
Multiples
CY14E CY15E
LTM
CY14E CY15E
$96,379
-8.1%
-5.6%
-4.8%
49.1%
25.3%
2.0x
2.1x
2.2x
8.1x
8.2x
8.0x
13.2x
9.9x
9.5x
$22,204
7.2%
-15.7%
3.7%
31.2%
16.1%
2.6x
1.9x
1.8x
16.2x
11.6x
11.0x
28.0x
19.4x
18.1x
$6,670
1.9%
13.9%
1.8%
26.0%
15.3%
2.1x
2.1x
2.0x
13.7x
13.4x
12.7x
40.0x
16.7x
16.0x
$12,874
-4.9%
-3.4%
0.2%
NM
26.5%
0.8x
0.8x
0.8x
2.9x
4.7x
4.5x
14.8x
14.2x
12.9x
$11,530
-3.4%
-2.7%
10.5%
NM
11.3%
0.7x
0.7x
0.7x
6.2x
6.8x
5.8x
24.8x
15.3x
13.3x
$3,447
9.4%
11.4%
0.8%
24.6%
11.4%
0.4x
0.4x
0.4x
3.2x
3.4x
3.2x
12.9x
28.0x
12.5x
Mean
88.8%
0.4%
-0.3%
2.0%
32.7%
17.6%
1.4x
1.3x
1.3x
8.4x
8.0x
7.5x
22.3x
17.3x
13.7x
Median
89.7%
-0.8%
-3.0%
1.3%
28.6%
15.7%
1.4x
1.3x
1.3x
7.1x
7.5x
6.9x
19.8x
16.0x
13.1x
IT Staffing Companies
Market Data
Price
Company
% of 52
12/31/14 Week Hi
Financial Data
Market Enterprise
Cap (1)
Value (2)
LTM
CY 14E
LTM Margin
Gross
EBITDA
Valuation Data
EV/EBITDA
EV/Revenues
LTM
CY14E CY15P
LTM
Price/Earnings
(3)
Multiples
CY14E CY15P
LTM
CY14E CY15P
ManpowerGroup Inc.
$68.17
78.4%
$5,529
$5,352
$20,894
1.7%
4.3%
-0.3%
16.8%
3.9%
0.3x
0.3x
0.3x
6.6x
6.6x
6.4x
13.4x
12.9x
12.4x
On Assignment, Inc.
$33.19
83.3%
$1,797
$2,170
$1,778
2.0%
10.6%
8.1%
30.3%
9.9%
1.2x
1.2x
1.1x
12.3x
10.7x
10.2x
25.1x
16.1x
14.8x
Kforce Inc.
$24.13
97.6%
$761
$774
$1,202
-4.2%
4.7%
6.7%
31.5%
4.6%
0.6x
0.6x
0.6x
14.1x
11.2x
9.6x
43.4x
22.0x
17.8x
CDI Corp.
$17.71
93.1%
$351
$310
$1,133
4.0%
6.4%
1.1%
18.6%
3.0%
0.3x
0.3x
0.3x
9.1x
7.9x
7.5x
24.6x
21.3x
19.3x
Computer Task Group, Incorporated
$9.53
49.8%
$177
$149
$398
-3.6%
-3.9%
-2.8%
21.0%
6.2%
0.4x
0.4x
0.4x
6.0x
6.4x
6.8x
12.2x
12.8x
13.4x
RCM Technologies, Inc.
$7.00
75.7%
$89
$81
$190
-6.3%
12.3%
NA
25.7%
6.5%
0.4x
NA
NA
6.5x
NA
NA
25.9x
NA
NA
Mean
79.7%
-1.1%
5.7%
2.5%
24.0%
5.7%
0.5x
0.5x
0.5x
9.1x
8.6x
8.1x
20.3x
17.0x
15.5x
Median
80.8%
-0.9%
5.6%
1.1%
23.4%
5.4%
0.4x
0.4x
0.4x
7.9x
7.9x
7.5x
24.9x
16.1x
14.8x
17
Sytems Integration Companies
Market Data
Price
Company
% of 52
12/31/14 Week Hi
Financial Data
Market Enterprise
Cap (1)
Value (2)
LTM
CY 14E
LTM Margin
Gross
EBITDA
Valuation Data
EV/EBITDA
EV/Revenues
LTM
CY14E CY15E
LTM
Price/Earnings
(3)
Multiples
CY14E CY15E
LTM
CY14E CY15E
CGI Group Inc. Class A
$38.24
97.2%
$12,219
$13,864
$9,699
-6.9%
1.0%
-6.2%
12.6%
16.9%
1.4x
1.5x
1.5x
8.5x
8.9x
8.8x
14.9x
15.3x
14.1x
Cap Gemini SA
$71.97
96.4%
$12,253
$12,003
$13,787
0.9%
1.4%
-7.8%
24.6%
10.1%
0.9x
0.9x
0.9x
8.6x
8.6x
8.0x
16.6x
16.7x
15.3x
Tieto Oyj
$26.03
95.0%
$1,918
$1,966
$2,090
-10.1%
-6.8%
-11.7%
4.1%
10.8%
0.9x
1.1x
1.1x
8.7x
8.9x
7.8x
31.9x
13.7x
13.8x
Altran Technologies SA
$9.50
92.4%
$1,663
$1,884
$2,287
4.6%
6.5%
-7.3%
7.2%
7.6%
0.8x
0.9x
0.9x
10.9x
8.7x
8.2x
14.9x
13.2x
12.1x
Sopra Steria Group SA
$76.84
66.2%
$1,565
$1,835
$1,913
5.0%
9.3%
58.7%
7.7%
8.4%
1.0x
0.6x
0.4x
11.4x
7.3x
5.1x
15.6x
11.1x
9.5x
Perficient, Inc.
$18.63
78.6%
$641
$711
$428
0.2%
20.9%
3.9%
31.2%
13.1%
1.7x
1.6x
1.5x
12.6x
10.2x
9.1x
27.4x
14.5x
13.1x
Reply S.p.A.
$73.69
89.7%
$689
$680
$838
-0.8%
14.2%
-7.5%
17.1%
9.7%
0.8x
0.9x
0.9x
8.4x
6.8x
6.4x
12.4x
13.9x
12.8x
CIBER, Inc.
$3.55
69.7%
$278
$271
$866
-1.6%
-1.7%
-1.0%
25.8%
2.4%
0.3x
0.3x
0.3x
13.1x
41.0x
9.1x
NM
59.2x
35.5x
Edgewater Technology, Inc.
$7.51
84.5%
$97
$72
$112
-1.7%
13.1%
1.4%
36.6%
10.2%
0.6x
0.6x
0.6x
6.3x
7.3x
5.4x
2.5x
NM
14.6x
Mean
85.5%
-1.1%
6.4%
-4.5%
18.6%
9.9%
0.9x
0.9x
0.9x
9.8x
8.3x
7.5x
19.1x
14.0x
13.2x
Median
89.7%
-0.8%
6.5%
-6.2%
17.1%
10.1%
0.9x
0.9x
0.9x
8.7x
8.7x
8.0x
15.3x
14.1x
13.8x
Source: All figures, estimates and prices per CapIQ as of December 31, 2014; $ in millions, except per share data
(1) Market value is calculated as diluted shares outstanding times current stock price per share
(2) Enterprise value is equal to market capitalization plus debt and pfd stock minus cash and cash equivalents
(3) EBITDA is per CapIQ and excludes one-time charges and expenses
(4) Italics denote an outlier that is excluded from mean calculations; CGI's gross margin includes SG&A expenses, which are traditionally excluded; the current calculation represents an EBIT margin.
18
LTM Relative IT Services Stock Price Performance
Last Twelve Months
IT Services Stock Price Performance
40%
40%
30%
30%
26.61%
20% 13.40%
20%
11.43%
10%
10%
0%
0%
7.86%
6.04%
4.70%
-10% -8.56%
-10%
-15.59%
-20%1/14
3/14
5/14
8/14
10/14
1/15-20%
-30%
-30%
Nasdaq Composite
Staffing
Outsourcing
Systems Integration
BPO
19
Consulting
Offshore Outsourcing
Government
Member, FINRA
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Q4 2014 IT Services Market Snapshot

Transcription

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