Q4 2013 IT Services Market Snapshot

Q4 2013 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 2013 IT Services M&A Overview..............................................................................
5
Notable Q4 2013 IT Services M&A Transactions……….……...........................………...
6
Q4 2013 IT Services M&A Transactions…….…..……………………...………………......
7
Q4 2013 IT Services Public Company Valuation Metrics………….………….…….…….
13
LTM Relative IT Services Stock Price Performance…………..……..…….....……………
19
2
Signal Hill at a Glance
Signal Hill 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 2013 IT Services M&A Overview
The IT Services sector finished strong in 2013 – metrics were up across the board in
Q4 2013. Deal velocity increased more than 25 percent, moving from 139 to 174, the
highest it has been in the Last Twelve Months (LTM). Total announced Enterprise
Value (EV) also increased significantly to more than $6.6B, a figure that can be
attributed to a few large deals: Six3 Systems / CACI International, Everis
Participaciones / NTT and Pactera / Blackstone.* Median announced deal size
followed suit with an increase of more than 54 percent and median revenue multiple
moved to 0.9x in Q4 2013.
Source: Signal Hill
Number of Deals
% change from prior quarter
Total Announced Enterprise Value ($M)
% change from prior quarter
Median Announced Deal Size ($M)
% change from prior quarter
Median EV/TTM Revenue Multiple
% change from prior quarter
Q4 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
134
153
163
139
174
-
14.2%
6.5%
-14.7%
25.2%
$2,955.2
$2,505.2
$6,929.3
$2,751.5
$6,630.3
-
-15.2%
176.6%
-60.3%
141.0%
$20.5
$46.5
$52.5
$25.0
$38.6
-
126.8%
12.9%
-52.4%
54.4%
1.1x
0.5x
0.7x
0.7x
0.9x
-
-54.5%
40.0%
0.0%
28.6%
*These transactions are profiled on page 6.
5
Notable Q4 2013 IT Services M&A Transactions
Selected IT Services Transactions, Q4 2013
RCG Global Services
Acquired by Eos
Partners
Signal Hill advised RCG Global Services. RCG Global Services (“RCG”), a
leading provider of world-class technology solutions for complex business
initiatives, has been acquired by Eos Partners, a New York-based private
investment firm. The transaction positions RCG for future growth in
complementary industry verticals and geographies, both internally and
through acquisition. This was Signal Hill’s second transaction with RCG – in
June 2013, Signal Hill advised RCG in selling its IT Staffing Division to
Stefanini.
Catapult Systems
Acquired by Chinasoft
International
EV: $41.0M
Revenue Multiple: 0.7x
Signal Hill advised Catapult Systems. Catapult Systems, a premier
Microsoft-focused consulting company, has been acquired by ChinaSoft
International. The combination launches a globally-focused IT services
provider and takes advantage of the global demand for end-to-end Microsoft
services.
Six3 Systems Acquired
by CACI International
EV: $820.0M
Revenue Multiple: 1.9x
Six3 Systems, a premier provider of highly-specialized support to the national
security community in the areas of cyber and signals intelligence, intelligence,
surveillance, reconnaissance and intelligence operations, has been acquired
by CACI International, a provider of information solutions and services in
support of national security missions and government transformation for
Intelligence, Defense and Federal Civilian customers. Six3 Systems was
acquired from private equity firm GTCR.
Everis Participaciones
to be Acquired by NTT
Data
EV: $509.5M
Revenue Multiple: 0.7x
Everis Participaciones, a Madrid-based company that provides a wide range
of IT services including consulting, systems integration and outsourcing, has
agreed to be acquired by NTT Data, a subsidiary of Nippon Telegraph and
Telephone Corporation (“NTT”). The acquisition will allow NTT Data to
accelerate its globalization activities and to widen its global offering portfolio
outside of Japan.
Pactera to be Acquired
by Blackstone Group
EV: $530.1M
Revenue Multiple: 1.0x
Pactera Technology, China’s largest technology outsourcing company, has
agreed to be taken private by a consortium led by Blackstone Group. Pactera
was formed in 2012 through a merger of HiSoft Technology and VanceInfo
Technologies.
Signal Hill Advised Transaction; Deal values where disclosed
6
Q4 2013 IT Services M&A Transactions
Date
Announced
Seller
Buyer
Enterprise Value
Enterprise
Revenue EBITDA
Value
Revenue EBITDA
23-Dec-13
2001 Electronic Components Ltd / assets
Solid State PLC
$3.3
$10.0
NA
0.3x
NA
23-Dec-13
Dynamics Research Corporation
Engility Holdings, Inc.
$186.7
$286.7
$21.6
0.7x
8.6x
20-Dec-13
LGS Innovations
Madison Dearborn Partners/ CoVant Inc.
$100.0
NA
NA
NA
NA
20-Dec-13
Invoco Holding GmbH
Xerox Corporation
NA
NA
NA
NA
NA
19-Dec-13
Tectura Corporation / North American subsidiaries
UXC Eclipse (USA) Inc
$21.0
NA
NA
NA
NA
19-Dec-13
CoreLink Data Centers LLC
Zayo Group Inc.
$15.2
$7.8
NA
1.9x
NA
19-Dec-13
Frankel Group Associates
Huron Consulting Group
NA
NA
NA
NA
NA
19-Dec-13
TESIS PLMware GmbH
Siemens AG
NA
NA
NA
NA
NA
19-Dec-13
Encaptis Business Solutions/Microsoft Dynamics AX
zedIT Solutions Inc.
NA
NA
NA
NA
NA
19-Dec-13
Iris Computers Limited
Inflexionpoint Acquisition Corporation
NA
NA
NA
NA
NA
19-Dec-13
RCG Global Services, Inc.
EOS Partners/ RCG Global Services
management
NA
NA
NA
NA
NA
19-Dec-13
ClickMedia / 51% Stake
GroupM
NA
NA
NA
NA
NA
18-Dec-13
We Are Social Ltd. / 83% Stake
BlueFocus Communication Group Co., Ltd.
$36.1
$57.7
NA
0.6x
NA
17-Dec-13
Context Information Security
Babcock International Group PLC
$52.1
$15.1
NA
3.5x
NA
17-Dec-13
PulsePoint Group
Olson
NA
NA
NA
NA
NA
17-Dec-13
Global Resource/technical recruiting services div
Signature Technology Group
NA
NA
NA
NA
NA
16-Dec-13
Hostway Corporation
Littlejohn & Co. LLC
$155.0
$60.0
$30.0
2.6x
5.2x
16-Dec-13
Total Specific Solutions B.V.
Constellation Software Inc.
$330.6
$238.9
NA
1.4x
NA
16-Dec-13
ENTOTA Limited
BackOffice Associates LLC
NA
NA
NA
NA
NA
13-Dec-13
Enabling Holding Aps
Innofactor
$2.2
$4.1
$0.4
0.5x
5.4x
12-Dec-13
Easynet Group PLC
MDNX
NA
NA
NA
NA
NA
11-Dec-13
Versant Technologies
Aspire Systems
NA
NA
NA
NA
NA
11-Dec-13
OptimizedNow, LLC
Square 2 Marketing
NA
NA
NA
NA
NA
11-Dec-13
Macromill LLC
Bain Capital LLC
$409.0
$163.6
NA
2.5x
NA
11-Dec-13
Orbis Media Technologies Pvt Ltd
Orient Technologies Pvt. Ltd.
NA
NA
NA
NA
NA
11-Dec-13
Initio International Holdings & Monroe Staffing
Staffing 360 Solutions Inc.
NA
NA
NA
NA
NA
10-Dec-13
Vocanic Pte Ltd. / 51% Stake
GroupM
NA
$3.5
NA
0.0x
NA
09-Dec-13
Plan4Demand Solutions, Ins.
Spinnaker Management Group, LLC
NA
NA
NA
NA
NA
09-Dec-13
Pygargus AB
IMS Health, Inc.
NA
NA
NA
NA
NA
7
Q4 2013 IT Services M&A Transactions
Date
Announced
Seller
Buyer
Enterprise Value
Enterprise
Revenue EBITDA
Value
Revenue EBITDA
09-Dec-13
Accel Frontline Ltd / 51% Stake
CAC Corporation
$11.1
$29.0
NA
0.4x
NA
06-Dec-13
Associated Dexia Technology Services SA
IBM Corporation
NA
NA
NA
NA
NA
06-Dec-13
emids Technologies/ unknown stake
Baird Capital and Council Capital
NA
NA
NA
NA
NA
05-Dec-13
20:20 Mobile Group Limited
Brightstar Corp.
NA
NA
NA
NA
NA
05-Dec-13
Kimmich Software Systems, Inc.
Vistronix
NA
NA
NA
NA
NA
04-Dec-13
NetCentric Technology Inc.
Vistronix
NA
NA
NA
NA
NA
04-Dec-13
Autofuss
Google, Inc.
NA
NA
NA
NA
NA
04-Dec-13
Kore Federal
Eagle Ray Inc
NA
NA
NA
NA
NA
03-Dec-13
Synergize Digital PTY LTD
Saatchi & Saatchi / South African division
NA
NA
NA
NA
NA
03-Dec-13
Paragrid
Evolve IP, LLC
NA
NA
NA
NA
NA
03-Dec-13
K-Four Systems, LLC / Sage Software Practice
BrainSell Technologies LLC
NA
NA
NA
NA
NA
02-Dec-13
Ideaca Knowledge Services Limited
Hitachi Solutions Canada, Ltd.
NA
NA
NA
NA
NA
02-Dec-13
CM Information Specialists, Inc.
HealthPort
NA
NA
NA
NA
NA
02-Dec-13
Whitaker Medical, LLC
On Assignment, Inc.
$17.1
NA
NA
NA
NA
02-Dec-13
Opus Capital Markets Consultants
Wipro
$75.0
NA
NA
NA
NA
02-Dec-13
CyberCoders Holdings, Inc
On Assignment, Inc.
$104.0
NA
NA
NA
NA
02-Dec-13
On Assignment /Assets of Allied Healthcare Divison
Cross Country Healthcare, Inc.
$28.7
NA
NA
NA
NA
29-Nov-13
Keystone Management Solutions
UXC Ltd.
NA
NA
NA
NA
NA
28-Nov-13
Distinct Business Consulting
FTI Consulting
NA
NA
NA
NA
NA
28-Nov-13
evopro Informatikai / Industrial & Embedded Biz
Accenture Ltd.
NA
NA
NA
NA
NA
27-Nov-13
ECOM Recruitment Limited
InterQuest Group
$9.2
NA
NA
NA
NA
27-Nov-13
Cerebra Communications / 51% Stake
WPP Group plc
NA
NA
NA
NA
NA
26-Nov-13
PDUs Direct
Server Technology
NA
NA
NA
NA
NA
25-Nov-13
Mindlance Inc. / Life Sciences Consulting Division
Cumberland Consulting Group
NA
NA
NA
NA
NA
25-Nov-13
Stone Canoe Inc.
CHR Group, The
NA
NA
NA
NA
NA
25-Nov-13
Blue Potato
Apkudo LLC
NA
NA
NA
NA
NA
22-Nov-13
Everyday Doctors
Advice Media, LLC
NA
NA
NA
NA
NA
22-Nov-13
Godot Entertainment & Media Pvt Ltd.
Trivone Digital Services Pvt. Ltd.
NA
NA
NA
NA
NA
22-Nov-13
Mobility Effect
Mobiquity, Inc
NA
NA
NA
NA
NA
8
Q4 2013 IT Services M&A Transactions
Date
Announced
Seller
Buyer
22-Nov-13
Scambler MacGregor
Heidrick & Struggles International Inc.
21-Nov-13
Optimal Solutions Integration, Inc.
NTT Data Corporation
21-Nov-13
Interactive Ideas Ltd.
21-Nov-13
OmniSYS
21-Nov-13
Enterprise Value
Enterprise
Revenue EBITDA
Value
Revenue EBITDA
NA
NA
NA
NA
NA
$150.0
$153.0
NA
1.0x
NA
CMS Distribution Limited
NA
NA
NA
NA
NA
Moelis Capital Partners
NA
NA
NA
NA
NA
Mind Services Informática LTDA / 76% Stake
Reply S.p.A.
$3.4
$4.1
NA
0.8x
NA
20-Nov-13
Biggs Gilmore Communications Inc.
VML, Inc.
NA
NA
NA
NA
NA
20-Nov-13
Flamingos Media Pvt Ltd. / 51% Stake
Kreata Global Digital Media Service Pvt Ltd.
NA
NA
NA
NA
NA
20-Nov-13
Catalyze.io
Baird Capital
NA
NA
NA
NA
NA
20-Nov-13
Score Networks Inc.
Golden Virtue Resources Inc.
$3.5
NA
NA
NA
NA
19-Nov-13
LeadKarma LLC
Bankrate, Inc.
NA
NA
NA
NA
NA
19-Nov-13
MetaSource, LLC
LaSalle Capital Group, L.P.
NA
NA
NA
NA
NA
19-Nov-13
E/OU
McCann Worldgroup
NA
NA
NA
NA
NA
19-Nov-13
Sue Hill Recruitment & Services Limited
Progility plc
NA
NA
NA
NA
NA
18-Nov-13
Encore Group, The
EVO Merchant Services
NA
NA
NA
NA
NA
18-Nov-13
Secureway Network Distributors
Exclusive Networks Group
NA
NA
NA
NA
NA
18-Nov-13
InTechnology Managed Services Limited
Redcentric plc.
$104.3
$62.0
$11.2
1.7x
9.4x
18-Nov-13
AT&T Corporation / Tennessee datacenter
Carter Validus Mission Critical REIT Inc
$110.0
NA
NA
NA
NA
14-Nov-13
Servio
Crowdsource.com
NA
NA
NA
NA
NA
14-Nov-13
Crossfield Data Services
InferX
NA
NA
NA
NA
NA
13-Nov-13
Netstarter
Salmat Ltd.
NA
NA
NA
NA
NA
13-Nov-13
Catapult Systems, LLC
Chinasoft International Ltd
$41.0
$62.3
$5.9
0.7x
6.9x
12-Nov-13
Bluemile, Inc. / Assets
WideOpenWest
NA
NA
NA
NA
NA
12-Nov-13
DataClues, Inc.
Precision Discovery, Inc.
NA
NA
NA
NA
NA
12-Nov-13
Savile Group
Penna Consulting
$1.8
NA
NA
NA
NA
12-Nov-13
Flex Recruitment Plus Limited
Corporate Resource Services Inc.
NA
NA
NA
NA
NA
11-Nov-13
Voicenet Solutions
8x8, Inc.
$18.4
NA
NA
NA
NA
11-Nov-13
TOFU Marketing, LLC
Fit Marketing
NA
NA
NA
NA
NA
10-Nov-13
Consularis Technology Solutions Pvt. Ltd.
Searce Inc.
NA
NA
NA
NA
NA
08-Nov-13
Bottle Rocket
WPP Group plc
NA
$17.0
NA
0.0x
NA
9
Q4 2013 IT Services M&A Transactions
Date
Announced
Seller
Buyer
Enterprise Value
Enterprise
Revenue EBITDA
Value
Revenue EBITDA
07-Nov-13
Aster Group / Lawson & Kronos consulting business
RPI Consultants
NA
NA
NA
NA
NA
07-Nov-13
ETO
Publicis Groupe
NA
NA
NA
NA
NA
07-Nov-13
Sigma Communications, Inc.
BCT Consulting, Inc.
NA
NA
NA
NA
NA
07-Nov-13
Thinksoft Global Services Ltd. / 56% Stake
SQS Software Systems AG
$47.4
$29.6
$5.9
1.6x
8.0x
06-Nov-13
Shelter Six Technologies, Inc.
BriteSky Technologies Inc.
NA
NA
NA
NA
NA
06-Nov-13
Teknision, Inc.
Synacor, Inc.
05-Nov-13
Comunica Holdings Ltd.
Coms plc
05-Nov-13
Worry Free Labs
05-Nov-13
Freeborders, Inc.
04-Nov-13
NA
NA
NA
NA
NA
$15.1
NA
NA
NA
NA
PointClear Solutions
NA
NA
NA
NA
NA
Symbio
NA
NA
NA
NA
NA
PLIX Sp. z o.o.
TelecityGroup
NA
NA
NA
NA
NA
04-Nov-13
3DC
TelecityGroup
NA
NA
NA
NA
NA
04-Nov-13
Thoughtbus
SherWeb, Inc.
NA
NA
NA
NA
NA
04-Nov-13
TorreyPoint
FishNet Security
NA
NA
NA
NA
NA
02-Nov-13
iSoftStone Holdings Limited
iSoftStone Management/ChinaAMC Capital
Management
NA
NA
NA
NA
NA
01-Nov-13
Aster Group
itelligence AG
NA
NA
NA
NA
NA
01-Nov-13
Sensepost
SecureData
NA
NA
NA
NA
NA
01-Nov-13
GlassHouse Technologies/Customer Support Services
Signature Technology Group
NA
NA
NA
NA
NA
31-Oct-13
Everis Participaciones, S.L.
NTT Data Corporation
$509.5
$756.8
NA
0.7x
NA
31-Oct-13
Alexander Mann Solutions
New Mountain Capital
$416.5
NA
NA
NA
NA
31-Oct-13
PCO Innovation
Accenture Ltd.
NA
NA
NA
NA
NA
30-Oct-13
iWeb Group Inc.
Internap Network Services Corporation
$145.0
$44.0
$11.0
3.3x
13.2x
29-Oct-13
WebTag IT Solutions Pvt. Ltd.
Superior Business Solutions
NA
NA
NA
NA
NA
29-Oct-13
Switchyard Creative Group
Rally Group
NA
NA
NA
NA
NA
29-Oct-13
FlipScript Co. Ltd
Engine Group Limited, The
NA
NA
NA
NA
NA
29-Oct-13
Quadrus Development Inc.
Improving Enterprises, Inc.
NA
NA
NA
NA
NA
28-Oct-13
CableCom Networking Ltd
Inflexion Private Equity Partners LLP
NA
NA
NA
NA
NA
28-Oct-13
Interactive Solutions Sp. z o.o.
Publicis Groupe
NA
NA
NA
NA
NA
28-Oct-13
Bulletproof Networks Pty. Ltd.
Spencer Resources Limited
$6.2
$13.5
$2.0
0.5x
3.1x
28-Oct-13
Indecs Computer Services Ltd
Daisy Group plc
$27.5
$16.1
$4.0
1.7x
7.0x
10
Q4 2013 IT Services M&A Transactions
Date
Announced
Seller
Buyer
28-Oct-13
Testing Solutions, Ltd. (dba TestWise)
RDT Group
28-Oct-13
RagingWire Data Centers / 80% Stake
NTT Communications Corp.
25-Oct-13
Search-Werks
RIESTER
24-Oct-13
Consolidated Graphics, Inc.
R.R. Donnelley & Sons Company
24-Oct-13
HumanR
23-Oct-13
23-Oct-13
Enterprise Value
Enterprise
Revenue EBITDA
Value
Revenue EBITDA
NA
NA
NA
NA
NA
$437.5
$85.0
NA
5.1x
NA
NA
NA
NA
NA
NA
$717.1
$1,046.0
$113.0
0.7x
6.3x
PwC
NA
NA
NA
NA
NA
Beehive Communications Pvt. Ltd.
Publicis Groupe
NA
NA
NA
NA
NA
Employment Plus
EmployBridge
NA
NA
NA
NA
NA
22-Oct-13
Stroma Service Consulting Inc.
Smart Employee Benefits, Inc.
$1.5
NA
NA
NA
NA
22-Oct-13
Solugenix Corporation / MSFT Dyanamics AX Practice
SBS Group
NA
NA
NA
NA
NA
21-Oct-13
Banyan Branch
Deloitte LLP
NA
NA
NA
NA
NA
21-Oct-13
Al Digit
Thumbtack Technology
NA
NA
NA
NA
NA
18-Oct-13
Cameo Employment Services
Corporate Resource Services Inc.
NA
NA
NA
NA
NA
18-Oct-13
OEC Group
RPS Group
$50.6
NA
NA
NA
NA
17-Oct-13
netsense
INNOVEX
NA
NA
NA
NA
NA
17-Oct-13
Pactera Technology International, Ltd.
Blackstone Group, The/Pactera management
$530.1
$537.1
$35.9
1.0x
14.8x
16-Oct-13
Intellectual Capital Management, Inc.
SpendSmart Payments Company, Inc.
NA
NA
NA
NA
NA
16-Oct-13
NXG Business Solutions
Deloitte Touche Tohmatsu
NA
NA
NA
NA
NA
16-Oct-13
Integrated Business Consulting
Dominion Business Solutions
NA
NA
NA
NA
NA
15-Oct-13
IM2.0
VML, Inc.
NA
NA
NA
NA
NA
15-Oct-13
Schiefelbein Analytics LLC
TechLaw Solutions, Inc.
NA
NA
NA
NA
NA
15-Oct-13
Quattro Innovation
Deloitte Touche Tohmatsu
NA
NA
NA
NA
NA
15-Oct-13
Media Temple, Inc.
Go Daddy Group, Inc.
NA
NA
NA
NA
NA
14-Oct-13
CoreMatrix Systems
Perficient, Inc.
$21.5
$15.0
NA
1.4x
NA
14-Oct-13
Suburban Digital LLC
Spokes Agency, The
NA
NA
NA
NA
NA
14-Oct-13
YamYam, LLC
EffTec International Inc.
NA
NA
NA
NA
NA
14-Oct-13
infrastructureWORKS
ITsavvy
10-Oct-13
Vocalocity, Inc.
Vonage Holdings
10-Oct-13
Brick and Click Solutions, LLC
McKinsey Development
09-Oct-13
Empirix Inc.
Thoma Bravo LLC
11
NA
NA
NA
NA
NA
$103.0
NA
NA
NA
NA
NA
NA
NA
NA
NA
$165.0
NA
NA
NA
NA
Q4 2013 IT Services M&A Transactions
Date
Announced
Seller
Buyer
Enterprise Value
Enterprise
Revenue EBITDA
Value
Revenue EBITDA
09-Oct-13
Marchex Inc. / PPC and IndustryBrains assets
Adiant
$2.6
NA
NA
NA
NA
09-Oct-13
Qualified Systems Contracting, Inc.
Convergint Technologies LLC
NA
NA
NA
NA
NA
09-Oct-13
Intela LLC
XL Marketing Corporation
NA
NA
NA
NA
NA
09-Oct-13
Encari, LLC
PowerSecure International, Inc.
$4.8
NA
NA
NA
NA
09-Oct-13
Sticky Content / 80% Stake
PA Group
NA
NA
NA
NA
NA
09-Oct-13
Six3 Systems Inc.
CACI International, Inc.
$820.0
$437.0
$61.0
1.9x
13.4x
09-Oct-13
Amplify Interactive
Add3, LLC
NA
NA
NA
NA
NA
08-Oct-13
OpenCredo Limited / 60% Stake
Trifork/Erlang Solutions Limited
08-Oct-13
GlobalLogic
Apax Partners
08-Oct-13
IDEA Solutions, Inc.
Xoriant Corporation
08-Oct-13
MSN Communications, Inc.
08-Oct-13
E5 Systems, Inc.
08-Oct-13
07-Oct-13
NA
$6.6
NA
0.0x
NA
$420.0
NA
NA
NA
NA
NA
NA
NA
NA
NA
Telephone and Data Systems, Inc.
$40.0
$99.0
NA
0.4x
NA
Lionbridge Technologies Inc.
$1.6
NA
NA
NA
NA
Allstates Technical Services / US Enterprise Ops
Magic Software Enterprises Ltd.
$10.0
NA
NA
NA
NA
Staples Inc. / Printing Systems Division business
CoBe Capital
NA
NA
NA
NA
NA
07-Oct-13
Datanamics, Inc. / HSIA Business
Single Digits, Inc.
NA
NA
NA
NA
NA
07-Oct-13
High Edge Consulting
Maetrics LLC
NA
NA
NA
NA
NA
04-Oct-13
8x8, Inc. / dedicated server hosting business
IRC Company, Inc., The
$3.0
$3.6
NA
0.8x
NA
04-Oct-13
Cohort Technology
Micro-P Ltd.
NA
NA
NA
NA
NA
03-Oct-13
Downs MicroSystems Pty. Ltd.
VTS IT
NA
NA
NA
NA
NA
03-Oct-13
Xaton
Mobiquity, Inc
NA
NA
NA
NA
NA
03-Oct-13
ValueSource NV
Cognizant Technology Solutions
NA
NA
NA
NA
NA
03-Oct-13
Equinox Consulting
Cognizant
NA
NA
NA
NA
NA
02-Oct-13
Lucas Group
Orchard Holdings Group
02-Oct-13
Xtreme Labs
GoPivotal, Inc.
01-Oct-13
ITNavigator
Avaya, Inc.
01-Oct-13
Refreshed Wellbeing
WCG
NA
NA
NA
NA
NA
01-Oct-13
Backup Technology Limited
iomart Group PLC
$37.1
$8.4
$3.9
4.4x
9.5x
01-Oct-13
Convergent Corporation
Ballantyne Strong, Inc.
$16.0
$40.0
NA
0.4x
NA
01-Oct-13
CloudBlue Technologies, Inc.
Ingram Micro Inc.
NA
NA
NA
NA
NA
12
NA
NA
NA
NA
NA
$65.0
NA
NA
NA
NA
NA
NA
NA
NA
NA
Q4 2013 IT Services Public Company Valuation Metrics
IT Services
Financial Data
Pricing Date: 12/31/13
% of 52
Median Metrics
Week Hi
Q/Q Rev Growth
YoY
Seq.
Valuation Data
LTM Margins
Gross
EV/Revenues
Price/Earnings
EV/EBITDA
(1)
Multiples
EBITDA
LTM
CY13E
CY14E
LTM
CY13E
CY14E
LTM
CY13E
CY14E
BPO
96.6%
7.5%
1.2%
29.1%
15.7%
1.6x
1.7x
1.6x
9.6x
10.4x
8.9x
20.9x
17.4x
15.9x
Consulting
90.5%
8.5%
1.0%
35.2%
11.3%
1.2x
1.1x
1.1x
10.2x
9.0x
8.4x
25.3x
21.0x
18.4x
Government Services
94.9%
-7.2%
-5.7%
24.6%
8.9%
0.6x
0.7x
0.8x
7.2x
7.5x
7.7x
13.1x
13.5x
16.3x
Managed Hosting
73.7%
14.2%
4.3%
48.0%
30.4%
6.1x
5.7x
5.1x
12.0x
12.2x
10.7x
58.4x
65.4x
43.1x
Offshore Outsourcing
96.8%
17.4%
8.7%
35.0%
22.2%
2.9x
2.8x
2.4x
13.4x
12.3x
11.6x
19.3x
19.6x
17.4x
Outsourcing
97.3%
-2.9%
-3.2%
25.4%
15.1%
1.3x
1.3x
1.2x
8.2x
7.5x
7.1x
26.5x
17.1x
13.7x
IT Staffing
97.2%
5.6%
3.2%
23.4%
5.2%
0.6x
0.6x
0.6x
10.9x
11.5x
9.6x
23.8x
21.3x
18.6x
Systems Integration
94.6%
7.9%
-2.0%
25.6%
9.0%
0.8x
0.8x
0.8x
12.0x
10.1x
8.1x
23.1x
16.2x
16.0x
All IT Services Companies
95.7%
6.1%
1.0%
30.6%
12.1%
1.4x
1.4x
1.3x
10.2x
10.3x
8.6x
22.7x
19.1x
17.4x
(1) EBITDA excludes all one-time charges and expenses.
13
Q4 2013 IT Services Public Company Valuation Metrics
Business Process Outsourcing (BPO) Companies
($ in Millions, except per share data)
Market Data
Price
Company
% of 52
12/31/13 Week Hi
Financial Data
Market Enterprise
Cap (1)
Value (2)
LTM
Seq. QoQ
Revenue
Rev Growth
YoY Rev Growth
MRQ
CY 13E
LTM Margin
Gross
EBITDA
Valuation Data
EV/EBITDA
EV/Revenues
LTM
CY13E CY14E
LTM
(3)
CY13E CY14E
Automatic Data Processing, Inc.
$80.80
96.4%
$39,131
$40,272
$11,512
1.0%
7.7%
1.9%
46.3%
20.8%
3.5x
3.4x
3.2x
16.8x
16.6x
15.2x
Paychex, Inc.
$45.53
99.1%
$16,682
$16,219
$2,396
0.5%
NA
0.5%
71.8%
43.4%
6.8x
6.7x
6.4x
15.6x
15.5x
14.5x
Capita plc
$17.19
97.9%
$11,329
$13,700
$5,583
4.3%
13.2%
15.5%
26.1%
15.6%
2.5x
2.1x
1.9x
15.7x
14.0x
12.7x
Iron Mountain Incorporated
$30.35
76.4%
$5,835
$9,668
$3,016
0.1%
1.0%
0.6%
46.6%
27.2%
3.2x
3.2x
3.1x
11.8x
10.6x
10.2x
$127.61
99.1%
$9,066
$8,820
$3,572
-7.5%
-2.9%
-0.1%
25.3%
19.0%
2.5x
2.5x
2.4x
13.0x
12.9x
12.3x
Genpact Limited
$18.37
86.2%
$4,342
$4,508
$2,076
0.0%
8.1%
2.3%
39.0%
21.5%
2.2x
2.1x
1.9x
10.1x
11.8x
10.9x
Teleperformance SA
$61.04
98.9%
$3,495
$3,402
$3,124
-2.0%
6.1%
7.4%
NM
11.3%
1.0x
1.0x
1.0x
9.7x
7.7x
7.2x
Convergys Corporation
$21.05
98.4%
$2,271
$1,674
$2,028
3.3%
2.6%
0.9%
30.6%
11.2%
0.8x
0.8x
0.8x
7.3x
6.9x
6.5x
TeleTech Holdings, Inc.
$23.94
88.4%
$1,237
$1,219
$1,160
3.2%
3.9%
1.5%
24.1%
11.7%
1.1x
1.0x
1.0x
9.0x
8.3x
7.3x
WNS (Holdings) Limited Sponsored ADR
$21.91
96.9%
$1,117
$1,096
$469
1.4%
7.5%
8.7%
27.3%
15.7%
2.3x
2.4x
2.1x
14.9x
12.3x
10.5x
CSG Systems International, Inc.
$29.40
98.6%
$995
$1,068
$751
0.0%
-2.0%
-0.3%
46.3%
19.2%
1.4x
1.4x
1.4x
7.4x
6.9x
6.5x
Sykes Enterprises, Incorporated
$21.81
93.6%
$959
$862
$1,231
6.0%
15.8%
2.5%
28.0%
9.0%
0.7x
0.7x
0.7x
7.8x
7.5x
6.4x
ExlService Holdings, Inc.
$27.62
83.8%
$938
$801
$472
5.4%
8.6%
0.8%
33.2%
18.3%
1.7x
1.7x
1.6x
9.3x
8.9x
8.9x
$0.36
93.4%
$239
$383
$522
10.3%
10.0%
-3.7%
29.1%
12.3%
0.7x
NM
NM
6.6x
NM
NM
$20.14
97.7%
$367
$271
$467
-3.0%
0.9%
-2.9%
29.1%
6.1%
0.6x
0.6x
0.6x
9.6x
7.3x
6.3x
$6.49
89.6%
$100
$94
$223
5.2%
22.6%
2.9%
12.2%
5.0%
0.4x
0.4x
0.4x
8.4x
10.4x
4.2x
Towers Watson & Co. Class A
Firstsource Solutions Limited
Heidrick & Struggles International, Inc.
StarTek, Inc.
Mean
93.4%
1.8%
6.9%
2.4%
31.6%
14.9%
1.6x
1.7x
1.6x
10.8x
10.5x
9.3x
Median
96.6%
1.2%
7.5%
1.2%
29.1%
15.7%
1.6x
1.7x
1.6x
9.6x
10.4x
8.9x
14
Q4 2013 IT Services Public Company Valuation Metrics
Consulting Companies
($ in Millions, except per share data)
Market Data
Price
Company
% of 52
12/31/13 Week Hi
Financial Data
Market Enterprise
Cap (1)
Value (2)
LTM
Seq. QoQ
YoY Rev Growth
Revenue
Rev Growth
MRQ
CY 13E
Valuation Data
EV/EBITDA
LTM Margin
Gross
EV/Revenues
EBITDA
LTM
CY13E CY14E
LTM
P
(3)
CY13E CY14E
The Advisory Board Company
$63.67
90.2%
$2,349
$2,271
$487
4.2%
15.9%
3.4%
40.1%
13.3%
4.7x
4.5x
3.9x
35.0x
25.4x
FTI Consulting, Inc.
$41.14
88.0%
$1,655
$2,224
$1,636
0.0%
7.4%
0.2%
36.4%
16.4%
1.4x
1.4x
1.3x
8.3x
8.5x
8.4x
Sapient Corporation
$17.36
96.7%
$2,470
$2,205
$1,268
2.5%
11.9%
-1.0%
28.3%
12.9%
1.7x
1.8x
1.6x
13.5x
13.4x
10.8x
Huron Consulting Group Inc.
$62.67
96.0%
$1,457
$1,601
$606
2.0%
9.6%
14.6%
37.1%
22.3%
2.6x
2.3x
2.1x
11.8x
12.3x
10.7x
Navigant Consulting, Inc.
$19.20
97.1%
$975
$1,081
$766
-0.7%
1.7%
9.2%
30.8%
16.3%
1.4x
1.3x
1.3x
8.7x
8.9x
8.4x
Resources Connection, Inc.
$14.33
97.4%
$567
$456
$466
10.8%
3.4%
21.1%
44.4%
9.5%
1.0x
0.8x
0.8x
10.3x
9.4x
9.4x
Management Consulting Group PLC
$0.43
79.8%
$211
$290
$412
-11.2%
-15.9%
6.3%
34.0%
9.0%
0.7x
0.7x
0.6x
7.8x
6.8x
6.0x
The Hackett Group, Inc.
$6.21
83.0%
$204
$204
$228
-1.8%
-1.2%
-2.2%
31.6%
8.8%
0.9x
0.9x
0.9x
10.1x
8.2x
7.6x
Information Services Group, Inc.
$4.24
90.8%
$165
$200
$207
-7.6%
10.5%
0.8%
37.2%
8.8%
1.0x
1.0x
0.9x
11.0x
9.0x
7.9x
$19.80
85.7%
$202
$186
$270
14.1%
12.9%
-0.4%
30.3%
9.7%
0.7x
0.7x
0.7x
7.1x
4.5x
4.0x
CRA International, Inc.
21.5x
Mean
90.5%
1.2%
5.6%
5.2%
35.0%
12.7%
1.6x
1.5x
1.4x
12.8x
10.9x
9.6x
Median
90.5%
1.0%
8.5%
2.1%
35.2%
11.3%
1.2x
1.1x
1.1x
10.2x
9.0x
8.4x
Government Services Companies
($ in Millions, except per share data)
Market Data
Price
Company
% of 52
12/31/13 Week Hi
Financial Data
Market Enterprise
Cap (1)
Value (2)
LTM
Seq. QoQ
Revenue
Rev Growth
YoY Rev Growth
MRQ
CY 13E
LTM Margin
Gross
EBITDA
Valuation Data
EV/EBITDA
EV/Revenues
LTM
CY13E CY14E
LTM
P
(3)
CY13E CY14E
Leidos Holdings, Inc.
$46.49
94.5%
$3,981
$4,648
$7,197
-42.6%
-50.5%
-13.7%
15.5%
6.3%
0.6x
0.7x
0.8x
10.3x
14.5x
Booz Allen Hamilton Holding Corporation Class A
$19.15
86.0%
$2,844
$4,107
$5,744
-3.5%
-0.7%
-2.5%
42.2%
10.0%
0.7x
0.7x
0.8x
7.1x
7.5x
7.7x
MAXIMUS, Inc.
$43.99
87.0%
$3,075
$2,938
$1,331
15.0%
27.8%
5.4%
27.8%
16.8%
2.2x
2.1x
1.8x
13.1x
13.2x
11.5x
CACI International Inc Class A
$73.22
98.6%
$1,818
$2,337
$3,615
-5.3%
-7.2%
1.0%
29.6%
8.9%
0.6x
0.6x
0.6x
7.2x
7.1x
7.0x
ManTech International Corporation Class A
$29.93
98.3%
$1,113
$1,054
$2,440
-6.2%
-12.0%
-4.0%
13.4%
7.2%
0.4x
0.5x
0.5x
6.0x
6.3x
6.8x
Engility Holdings, Inc.
$33.40
94.9%
$594
$813
$1,474
-10.1%
-17.1%
-4.8%
14.5%
10.5%
0.6x
0.6x
0.6x
5.3x
6.1x
6.5x
ICF International, Inc.
$34.71
95.6%
$700
$758
$952
1.0%
2.6%
0.1%
35.1%
9.3%
0.8x
0.8x
0.8x
8.6x
8.6x
7.9x
The KEYW Holding Corporation
$13.44
81.7%
$494
$572
$304
-5.7%
28.6%
-0.1%
24.6%
7.9%
1.9x
1.9x
1.6x
23.9x
22.3x
12.6x
$6.62
96.1%
$54
$56
$342
-6.1%
-11.9%
-5.7%
11.0%
5.8%
0.2x
0.2x
0.2x
2.8x
3.0x
3.5x
NCI, Inc. Class A
10.1x
Mean
92.5%
-7.1%
-5.4%
-2.7%
23.7%
9.2%
0.9x
0.9x
0.8x
9.5x
10.0x
8.2x
Median
94.9%
-5.7%
-7.2%
-2.5%
24.6%
8.9%
0.6x
0.7x
0.8x
7.2x
7.5x
7.7x
15
Q4 2013 IT Services Public Company Valuation Metrics
Managed Hosting Companies
($ in Millions, except per share data)
Market Data
Price
Company
Level 3 Communications, Inc.
% of 52
12/31/13 Week Hi
Financial Data
Market Enterprise
Cap (1)
Value (2)
LTM
Seq. QoQ
Revenue
Rev Growth
YoY Rev Growth
MRQ
Valuation Data
EV/EBITDA
LTM Margin
CY 13E
Gross
EV/Revenues
EBITDA
LTM
CY13E CY14E
LTM
(3)
CY13E CY14E
$33.17
99.5%
$7,417
$15,461
$6,325
0.3%
-1.3%
-0.4%
48.0%
22.8%
2.4x
2.5x
2.4x
10.7x
9.7x
8.8x
$177.45
76.6%
$9,508
$12,904
$2,097
2.7%
11.0%
2.4%
50.1%
42.1%
6.2x
6.0x
5.4x
14.6x
13.0x
11.5x
Digital Realty Trust, Inc.
$49.12
66.4%
$6,646
$12,061
$1,561
35.6%
44.0%
-5.3%
36.2%
NM
7.7x
8.2x
7.6x
NA
14.0x
12.9x
Rackspace Hosting, Inc.
$39.13
48.1%
$5,617
$5,419
$1,480
3.4%
15.7%
3.5%
49.4%
30.4%
3.7x
3.5x
3.0x
12.0x
10.8x
9.3x
DuPont Fabros Technology, Inc.
$24.71
88.5%
$1,611
$3,140
$362
5.2%
12.8%
2.9%
42.4%
NM
8.7x
8.4x
7.7x
NA
13.1x
12.1x
Telecity Group plc
$12.02
70.7%
$2,463
$2,899
$478
9.4%
16.0%
14.0%
NM
NM
6.1x
5.3x
4.8x
NA
11.3x
10.0x
Equinix, Inc.
Mean
75.0%
9.4%
16.3%
2.9%
45.2%
31.8%
5.8x
5.7x
5.1x
12.5x
12.0x
10.8x
Median
73.7%
4.3%
14.2%
2.7%
48.0%
30.4%
6.1x
5.7x
5.1x
12.0x
12.2x
10.7x
Offshore Outsourcing Companies
($ in Millions, except per share data)
Market Data
Company
Price
% of 52
12/31/13
Week Hi
Market
Cap (1)
Financial Data
Enterprise
Value (2)
LTM
Seq. QoQ
Revenue
Rev Growth
YoY Rev Growth
MRQ
CY 13E
LTM Margin
Gross
EBITDA
Valuation Data
EV/EBITDA
EV/Revenues
LTM
CY13E CY14E
LTM
P
(3)
CY13E CY14E
Tata Consultancy Services Limited
$35.10
96.1%
$68,746
$67,881
$12,601
16.6%
34.3%
-0.6%
40.8%
28.6%
5.4x
5.4x
4.5x
18.8x
18.0x
15.0x
Infosys Limited
$56.35
97.5%
$32,358
$28,224
$7,959
15.1%
31.5%
-2.8%
35.6%
NM
3.5x
3.7x
3.2x
13.2x
13.6x
11.7x
$100.98
99.9%
$30,726
$27,365
$8,436
6.7%
21.9%
4.9%
40.0%
22.7%
3.2x
3.1x
2.6x
14.3x
14.9x
13.0x
$9.04
99.6%
$22,283
$20,653
$6,488
10.7%
1.3%
5.6%
34.4%
21.8%
3.2x
3.0x
2.7x
14.6x
14.2x
12.1x
HCL Technologies Limited
$20.42
99.5%
$14,270
$13,746
$4,664
15.2%
11.1%
6.3%
NM
22.2%
2.9x
2.8x
2.4x
13.2x
12.1x
10.0x
Syntel, incorporated
$90.95
98.5%
$3,810
$3,378
$789
3.6%
12.6%
3.1%
43.6%
31.6%
4.3x
4.2x
3.7x
13.5x
12.3x
11.6x
Neusoft Corporation Class A
$2.03
66.9%
$2,488
$2,573
$1,183
-1.5%
5.6%
NA
30.1%
NM
2.2x
NA
NA
NA
NA
NA
Sonda S.A.
$2.40
72.0%
$2,089
$1,974
$1,397
0.7%
-0.7%
-4.1%
21.4%
16.7%
1.4x
1.5x
1.3x
8.4x
8.8x
7.8x
Virtusa Corporation
$38.09
99.0%
$1,098
$996
$361
4.5%
17.4%
4.9%
36.9%
15.3%
2.8x
2.6x
2.2x
22.4x
19.7x
15.6x
MindTree Limited
$24.75
95.7%
$1,036
$951
NA
18.8%
NA
NA
NM
NM
NA
2.1x
1.7x
NA
10.2x
8.5x
Rolta India Limited
$1.08
86.8%
$175
$761
$413
2.5%
33.5%
-14.9%
32.5%
38.6%
0.4x
0.5x
0.5x
1.0x
1.0x
1.0x
Hexaware Technologies Limited
$2.13
94.5%
$641
$548
$384
15.7%
22.4%
-2.5%
28.5%
21.0%
1.5x
1.5x
1.3x
6.8x
6.5x
6.0x
Cognizant Technology Solutions Corporation Class A
Wipro Limited
Mean
92.2%
9.1%
17.3%
0.0%
34.4%
24.3%
2.8x
2.7x
2.4x
12.6x
11.9x
10.2x
Median
96.8%
8.7%
17.4%
1.3%
35.0%
22.2%
2.9x
2.8x
2.4x
13.4x
12.3x
11.6x
16
Q4 2013 IT Services Public Company Valuation Metrics
Outsourcing Companies
($ in Millions, except per share data)
Market Data
Price
Company
International Business Machines Corporation
% of 52
12/31/13 Week Hi
Market
Cap (1)
Financial Data
YoY Rev Growth
Valuation Data
EV/EBITDA
Seq. QoQ
Revenue
Rev Growth
$206,098 $232,177
$101,356
-4.8%
-4.1%
-1.0%
48.2%
25.0%
2.3x
2.3x
2.3x
9.2x
8.6x
8.1x
$30,526
3.7%
1.7%
-5.3%
31.2%
15.4%
1.9x
1.8x
1.8x
11.3x
11.0x
10.6x
CY 13E
Gross
EBITDA
EV/Revenues
P
LTM
MRQ
LTM Margin
(3)
Enterprise
Value (2)
LTM
CY13E CY14E
LTM
CY13E CY14E
$187.57
86.9%
Accenture Plc
$82.22
97.6%
$57,387
$53,372
Capita plc
$17.19
97.9%
$11,329
$13,700
$5,583
4.3%
13.2%
15.5%
26.1%
15.6%
2.5x
2.1x
1.9x
15.7x
14.0x
12.7x
Computer Sciences Corporation
$55.88
99.4%
$8,436
$9,081
$13,623
-2.2%
-17.3%
-0.6%
15.1%
14.8%
0.7x
0.7x
0.7x
2.7x
4.5x
4.3x
ATOS SA
$90.66
97.1%
$8,938
$8,493
$11,333
-4.2%
-1.7%
5.5%
24.7%
10.5%
0.7x
0.7x
0.7x
7.2x
6.3x
6.2x
Unisys Corporation
$33.57
96.5%
$1,474
$1,399
$3,440
-7.7%
-9.7%
-1.3%
23.8%
10.0%
0.4x
0.4x
0.4x
4.1x
3.9x
3.6x
Mean
95.9%
-1.9%
-3.0%
2.1%
28.2%
15.2%
1.4x
1.3x
1.3x
8.4x
8.1x
7.6x
Median
97.3%
-3.2%
-2.9%
-0.8%
25.4%
15.1%
1.3x
1.3x
1.2x
8.2x
7.5x
7.1x
IT Staffing Companies
($ in Millions, except per share data)
Market Data
Price
Company
% of 52
12/31/13 Week Hi
Financial Data
Market Enterprise
Cap (1)
Value (2)
LTM
Seq. QoQ
Revenue
Rev Growth
YoY Rev Growth
MRQ
CY 13E
LTM Margin
Gross
EBITDA
Valuation Data
EV/EBITDA
EV/Revenues
LTM
CY13E CY14E
LTM
P
(3)
CY13E CY14E
Manpower Inc.
$85.86
98.5%
$6,869
$6,897
$20,201
2.9%
0.3%
0.0%
16.6%
3.1%
0.3x
0.3x
0.3x
10.9x
10.2x
8.9x
On Assignment, Inc.
$34.92
97.8%
$1,907
$2,220
$1,641
3.4%
11.3%
0.4%
28.2%
9.6%
1.4x
1.3x
1.2x
14.0x
12.9x
11.2x
Kforce Inc.
$20.46
95.7%
$690
$744
$1,119
5.6%
10.9%
2.8%
26.0%
5.0%
0.7x
0.6x
0.6x
13.3x
12.6x
9.6x
CDI Corp.
$18.53
96.6%
$365
$335
$1,081
5.5%
-0.5%
-0.3%
19.2%
3.4%
0.3x
0.3x
0.3x
9.1x
9.1x
8.5x
Computer Task Group, Incorporated
$18.83
72.1%
$350
$319
$424
-6.0%
-5.4%
-0.8%
21.2%
6.6%
0.8x
0.8x
0.7x
11.4x
11.5x
9.9x
$6.98
99.7%
$87
$73
$162
-2.5%
18.6%
NA
25.6%
5.5%
0.5x
NA
NA
8.2x
NA
NA
RCM Technologies, Inc.
Mean
93.4%
1.5%
5.9%
0.4%
22.8%
5.5%
0.6x
0.7x
0.6x
11.2x
11.3x
9.6x
Median
97.2%
3.2%
5.6%
0.0%
23.4%
5.2%
0.6x
0.6x
0.6x
10.9x
11.5x
9.6x
17
Q4 2013 IT Services Public Company Valuation Metrics
Sytems Integration Companies
($ in Millions, except per share data)
Market Data
Price
Company
% of 52
12/31/13 Week Hi
Financial Data
Market Enterprise
Cap (1)
Value (2)
LTM
Seq. QoQ
Revenue
Rev Growth
YoY Rev Growth
MRQ
CY 13E
LTM Margin
Gross
EBITDA
Valuation Data
EV/EBITDA
EV/Revenues
LTM
CY13E CY14E
LTM
P
(3)
CY13E CY14E
CGI Group Inc. Class A
$33.45
85.7%
$10,674
$13,360
$9,934
-4.2%
52.7%
-3.6%
18.5%
14.9%
1.3x
1.4x
1.4x
9.0x
9.0x
8.1x
Cap Gemini SA
$67.70
98.7%
$10,773
$10,471
$13,118
-1.6%
-2.3%
6.4%
23.7%
9.8%
0.8x
0.7x
0.8x
6.0x
5.3x
5.1x
$101.28
99.3%
$1,221
$1,502
$1,666
5.4%
12.1%
10.3%
NM
8.3%
0.9x
0.8x
0.8x
10.9x
9.5x
8.2x
$23.42
97.1%
$774
$784
$359
2.8%
10.6%
4.5%
31.5%
11.9%
2.2x
2.1x
1.8x
18.4x
13.8x
11.4x
CIBER, Inc.
$4.14
83.0%
$312
$298
$880
-2.4%
-0.3%
-0.8%
25.6%
2.6%
0.3x
0.3x
0.3x
13.1x
12.3x
6.8x
Edgewater Technology, Inc.
$6.99
92.1%
$86
$68
$101
-9.0%
5.1%
1.4%
33.6%
5.0%
0.7x
0.7x
0.6x
13.5x
10.7x
8.3x
Sopra Groupe SA
Perficient, Inc.
Mean
92.7%
-1.5%
5.0%
3.0%
26.6%
8.7%
1.0x
1.0x
1.0x
11.8x
10.1x
8.0x
Median
94.6%
-2.0%
7.9%
2.9%
25.6%
9.0%
0.8x
0.8x
0.8x
12.0x
10.1x
8.1x
Source: All figures, estimates and prices per Factset as of December 31, 2013; $ 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 FactSet 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
80%
80%
60%
60% 47.91%
77.20%
49.86%
45.11%
40.83%
40%
40% 38.46%
20%
20%
0%
0%
37.64%
5.16%
-20% -17.36%
-20%
1/13
3/13
Nasdaq Composite
Staffing
Outsourcing
6/13
BPO (Both)
8/13
Systems Integration
Consulting
Offshore Outsourcing
19
10/13
Government
Managed Hosting
1/14
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