Q1`2016 - Corporate Finance

Transcription

Global
Technology,
Media and
Telecom (TMT)
M&A Quarterly
Q1’2016
KPMG Corporate Finance
Global TMT M&A Quarterly
Featured Sub-sector of the Quarter: The Internet of Things
The IoT is set to revolutionize society in much the same way as the arrival of the Internet. While not
all the technology is yet in place, companies are starting to release the results of initial trials and early
adoption, and the hype is turning into reality. So far, early traction has occurred in areas such as
telematics, wearable and connected home, however we are only in the preliminary stages as a long
list of consumer and industrial applications are in development.
From 2014 to 2015, IoT total M&A volumes increased 47%. This growth in M&A activity is expected
to continue through 2016 as every major company with a technology offering is trying to figure out
what the IoT means to them, with acquisitions of early innovators being a key component of
corporates M&A strategies.
IoT M&A Activity
Q1: 2016
2014 values impacted by
two very large transactions:
Nest Labs Inc ($3.2 bn) and
Motorola Solutions
Enterprise business ($3.5
bn)
Q1’2016
$1.61 bn
Q1’2015
$1.20 bn
12
18
15
$0.27
$0.20
$0.77
2010
2011
$11.42
58
85
$8.29
77
$8.71
21
$0.45
2012
2013
Deal Value ($ bn)
2014
2015
Deal Volume
LTM
IoT Top Acquirers 2010 - 2016
7
5
5
4
Orbcomm
Sierra
Wireless
u-blox
ARM
Holdings
4
PTC
4
Telit
3
3
3
3
Cisco
Systems
Google
McWane
Silicon
Laboratories
Sources: 451Research, Capital IQ and KPMG research.
©2016 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA and SIPC. KPMG
Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm
of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG
International"), a Swiss entity. All rights reserved
2
Global TMT Sector M&A Activity
Global TMT sector witnessed 1,821 deals worth $61 bn in disclosed value during Q1’16,
representing year-on-year decline of 5.7% and 50.9%, respectively. This decline in TMT M&A
comes in the backdrop of a lackluster period for overall global M&A after a record performance
in 2015 which witnessed an unprecedented wave of consolidation. Standing as a support to
slowing deal activity, China emerged as the leading acquirer in this quarter with $24 bn worth
of announced transactions, primarily driven by Chinese government’s push to state-owned
companies to pursue high-tech deals and quest of Chinese companies to find growth
opportunities abroad amidst slowing domestic economy. Tianjin Tianhai’s announcement to
acquire Ingram Micro for $7 bn in Feb’16 marked the second largest Chinese acquisition ever
in the U.S. Despite a slow start to the year, TMT sector is expected to witness strong levels of
deal activity in 2016, as companies seek to replicate the success of consolidating peers, and
rely on acquisitions to procure new technologies and intellectual properties in order to scale
up operations and enhance their expertise. Fed’s dovish stance on interest rates, and ECB’s
and BOJ’s measures of Quantitative Easing are also expected to underpin the M&A market.
Sub-sector Performance
Communications Technology
and Electronics (1)
IT Services and BPO (2)
Q1’16
$27.6 bn
339
Q1’16
$5.3 bn
224
Q1’15
$85.4 bn
394
Q1’15
$4.1 bn
226
Software (4)
Internet and Media (3)
Q1’16
$13.9 bn
463
Q1’16
$14.4 bn
795
Q1’15
$10.9 bn
516
Q1’15
$24.4 bn
795
Notes: We have sourced the sub-sector classifications from Capital IQ as below:
(1) Communications Technology and Electronics: Companies/targets with primary industry classification as Consumer Electronics; Technology
Hardware and Equipment; Semiconductors and Semiconductor Equipment; Telecommunication Services; and Cable and Satellite.
(2) IT Services and BPO: Companies/targets with primary industry classification as IT Services.
(3) Internet and Media: Companies/targets with primary industry classification as Advertising; Broadcasting; Movies and Entertainment;
Publishing; and Internet Retail.
(4) Software: Companies/targets with primary industry classification as Internet Software and Services; and Software.
(5) Deal Values are based on transactions with disclosed deal values only.
Sources: Capital IQ, broker reports, and other publicly available information.
3
Global TMT Sector M&A – Regional Analysis
While the U.S. and the U.K. remain hotspots for TMT M&A activity and lead cross-border
transactions as well in terms of deal volume, China led the outbound cross-boarder space in
deal value terms in Q1’16, with overseas acquisitions amounting to $14 bn. Poland has also
emerged as a strong market place for TMT acquirers in last couple of years, largely due to
moderate risk compared to the other emerging markets.
Cross-border transactions accounted for 31% of the Global TMT M&A in
Q1’16, with 562 deals worth $21 bn
Germany
# of Deals: 97
% of Overall M&A: 16.4%
U.K.
# of Deals: 185
Netherlands
Canada
# of Deals: 73
# of Deals: 39
Japan
France
U.S.
# of Deals: 696
# of Deals: 45
% of Overall M&A:
10.3%
# of Deals: 89
China
# of Deals: 71
India
# of Deals: 52
% Share of Global TMT M&A
Greater than 5%
Australia
# of Deals: 44
Between 2% and 5%
Less than 2%
Note: “% of Overall M&A” indicates percentage share of TMT sector’s M&A volumes in the total M&A volumes for the country.
*Deal Value are only for the M&A deals were financials are disclosed
M&A Deals by Target Origin: Q1’16
Others
33.5%
U.S.
38.2%
China
3.9%
Canada
U.K.
4.0% France
Germany
10.2%
4.9%
5.3%
Sources: Capital IQ, broker reports, and other publicly available information.
M&A Deals by Buyer Origin: Q1’16
Others
33.7%
Canada
3.7%
China
4.3%
Germany France
4.4%
5.5%
U.S.
39.5%
U.K.
8.7%
4
Global TMT M&A Trend: Q2’13 – Q1’16
2,500
$300
$200
1,748
1,629
1,595
1,901
1,700
1,955
1,882
1,931
2,027
1,821
2,000
1,500
$150
$259
$100
$50
1,997
$86
$83
$95
Q2'13
Q3'13
Q4'13
$130
$165
$105
$103
$125
$251
1,000
Deal Volume
Deal Value ($ bn)
$250
2,043
500
$122
$61
$0
0
Q1'14
Q2'14
Q3'14
Q4'14
Deal Value ($ bn)
Q1'15
Q2'15
Deal Volume
Q3'15
Q4'15
Q1'16
Global TMT M&A Trend by Buyer Type: Q2’13 – Q1’16
100%
6.1%
6.5%
5.8%
7.0%
6.7%
6.9%
7.0%
6.0%
7.0%
6.4%
7.2%
5.4%
93.9%
93.5%
94.2%
93.0%
93.3%
93.1%
93.0%
94.0%
93.0%
93.6%
92.8%
94.6%
Q2'13
Q3'13
Q4'13
Q1'14
Q4'14
Q1'15
Q2'15
Financial Buyers
Q3'15
Q4'15
Q1'16
Deal Volume (%)
80%
60%
40%
20%
0%
Q2'14
Q3'14
Strategic Buyers
Global TMT Mid-Market M&A Trend ($50-$500 mm) (1): Q2’13 – Q1’16
Median
($ mm)
$126
$121
$135
$117
118
$32
102
$117
135
119
110
$116
125
$129
$138
135
138
$134
$137
150
160
102
120
89
80
$16
$8
$15
$17
Q2'13
Q3'13
$21
$27
$22
$18
$20
Q1'14
Q2'14
Q3'14
Q4'14
Deal Value ($ bn)
$20
$23
$23
$26
$19
$0
Deal Volume
Deal Value ($ bn)
$128
147
$40
$24
$131
40
0
Q4'13
Q1'15
Q2'15
Deal Volume
Q3'15
Q4'15
Q1'16
(1) Analysis is based on the deals with disclosed deal values only.
Source: Capital IQ.
5
Top 10 Most Active Global TMT Strategic Buyers: LTM
Strategic Buyer
Country
Sub-sector
Deal Volume
Deal Value ($ bn)
Microsoft Corporation
U.S.
Software
19
$5.3
International Business Machines
U.S.
IT Services & BPO
18
$0.02
Dentsu Aegis Network Ltd.
U.K.
Internet and Media
16
NA
Cisco Systems, Inc.
U.S.
Communication Technology and Electronics
14
$2.9
Webedia SAS
France
Internet and Media
13
$0.1
Guangdong Shenglu
China
11
$0.2
Accenture plc
Ireland
IT Services & BPO
11
$0.04
Alphabet Inc.
U.S.
Internet and Media
9
NA
Ströer SE
Germany
Internet and Media
8
$0.4
Konica Minolta, Inc.
Japan
8
$0.2
Charter Communications, Inc.
U.S.
2
$78.8
Denali Holding Inc.
U.S.
1
$75.7
Broadcom Limited
Singapore
2
$37.0
Visa Inc.
U.S.
IT Services & BPO
1
$23.4
Nokia Corporation
Finland
2
$23.1
Western Digital Corporation
U.S.
1
$20.0
Intel Corporation
U.S.
7
$18.2
Lam Research Corporation
U.S.
1
$13.7
Fidelity National Information Services
U.S.
IT Services & BPO
1
$9.9
Liberty Global plc
U.K.
1
$8.6
Deal Volume
Deal Value ($ bn)
By Deal Volume
By Deal Value
Top 10 Most Active Global TMT Financial Buyers: LTM
Financial Buyer
Country
Latest Fund Size (1) ($ bn)
By Deal Volume
The Carlyle Group LP
U.S.
$2.0
9
$7.0
Vista Equity Partners
U.S.
$5.7
8
$7.1
H.I.G. Capital, LLC
U.S.
$1.8
6
NA
Apax Partners LLP
U.K.
$7.5
5
$0.04
Marlin Equity Partners, LLC
U.S.
$0.4
5
$0.01
Main Capital Partners B.V.
Netherlands
$0.1
4
NA
Bridgepoint Advisers Limited
U.K.
$4.3
3
$0.6
GTCR, LLC
U.S.
$3.9
3
$0.6
The Riverside Company
U.S.
$1.5
3
$0.1
Endless LLP
U.K.
$0.8
3
$0.1
BC Partners
U.K.
$7.6
1
$19.4
Vista Equity Partners
U.S.
$5.7
8
$7.1
The Carlyle Group LP
U.S.
$2.0
9
$7.0
Silver Lake
U.S.
$10.3
1
$4.6
$2.4
By Deal Value
Shanghai Xingsheng Equity Investment & Management
China
NA
1
Huatai Ruilian Fund Management Co., Ltd.
China
$1.6
1
$1.9
Beijing JianGuang Asset Management Co., Ltd.
China
NA
2
$1.8
CVC Capital Partners Limited
U.K.
$1.0
2
$1.6
Stonepeak Infrastructure Partners
U.S.
$3.5
1
$1.4
Golden Brick Silk Road Fund Management (Shenzhen)
China
NA
1
$1.4
(1) Latest fund size denotes the amount of the largest current operating fund.
Source: Capital IQ as of March 31, 2016.
6
S&P Global TMT Index Price Performance: Apr’13 – Mar’16
(April 1, 2013 = 100)
160
+44.5%
+35.0%
+32.6%
140
120
100
80
Apr-13
Sep-13
Mar-14
Sep-14
S&P Global 1200 Information Technology
S&P Global 1200 Telecommunication Services
Mar-15
Sep-15
S&P Global 1200 Media
Mar-16
Global TMT Trading LTM Multiples (1,2): Q2’13 – Q1’16
16.0x
12.0x
11.5x
11.8x
12.3x
12.5x
12.5x
12.5x
12.7x
12.5x
12.5x
11.9x
12.2x
12.2x
8.0x
4.0x
1.7x
1.9x
1.8x
1.9x
1.9x
1.9x
1.9x
2.0x
2.0x
1.9x
2.0x
2.0x
0.0x
Q2'13
Q3'13
Q4'13
Q1'14
Q2'14
Q3'14
EV/Revenue
Q4'14
Q1'15
Q2'15
Q3'15
Q4'15
Q1'16
EV/EBITDA
Global TMT Transactions LTM Multiples (2): Q2’13 – Q1’16
16.0x
13.9x
12.7x
12.0x
11.3x
9.8x
14.7x
12.9x
13.3x
13.0x
13.2x
11.7x
10.6x
12.3x
8.0x
4.0x
1.8x
1.8x
1.9x
1.9x
2.0x
2.3x
1.9x
2.4x
2.2x
2.1x
2.1x
2.1x
0.0x
Q2'13
Q3'13
Q4'13
Q1'14
Q2'14
Q3'14
EV/Revenue
Q4'14
Q1'15
Q2'15
Q3'15
Q4'15
Q1'16
EV/EBITDA
(1)
Trading multiples include average multiples calculated for all the ‘Public Companies’ classified under the primary industry classifications
described on the notes of page 3.
(2) EV/Revenue and EV/EBITDA multiples greater than 10.0x and 50.0x, respectively, were excluded from the analysis.
Source: Capital IQ.
7
Global TMT Selected Public Comps: Communications Technology & Electronics
Market Data
$ value millions, except per
share
Operating Metrics
Country
China Mobile Limited
Hong Kong
Dec-15
$11.15
73.3%
$228,205
$164,445 $102,940
$109,124
33.9%
36.0%
1.6x
1.5x
4.7x
4.2x
AT&T, Inc.
U.S.
Dec-15
$39.17
98.6%
$240,943
$365,912 $146,801
$166,956
32.1%
32.5%
2.5x
2.2x
7.8x
6.7x
Verizon Communications Inc.
U.S.
Dec-15
$54.08
99.5%
$220,646
$327,227 $131,620
$131,334
37.3%
35.3%
2.5x
2.5x
6.7x
7.1x
Dec-15
$43.15
89.5%
$90,443
$144,879
$94,910
$103,167
27.4%
27.9%
1.5x
1.4x
5.6x
5.0x
Company Name
% of 52
Week
Market
High
Cap. (1)
Valuation Multiples
Latest
Quarter Share
Ending Price
Enterprise
Value (2)
Revenue
LTM
EBITDA Margin (3)
2016E
LTM
2016E
EV / Revenue
LTM
EV / EBITDA
2016E
LTM
2016E
Communication Services
Nippon Telegraph and Telephone Japan
Vodafone Group Plc
U.K.
Sep-15
$3.19
85.7%
$84,612
$131,244
$63,163
$60,655
24.0%
28.9%
2.1x
2.2x
8.6x
7.5x
Deutsche Telekom AG
Germany
Dec-15
$18.01
89.7%
$82,512
$152,471
$75,187
$80,879
26.6%
29.8%
2.0x
1.9x
7.6x
6.3x
Telefónica, S.A.
Spain
Dec-15
$11.22
68.9%
$54,234
$129,748
$52,135
$52,040
26.5%
31.9%
2.5x
2.5x
9.4x
7.8x
Telstra Corporation Limited
Australia
Dec-15
$4.10
81.6%
$50,009
$62,061
$19,770
$21,831
35.4%
39.1%
3.1x
2.8x
8.9x
7.3x
Singapore Telecommunications
Singapore
Dec-15
$2.84
83.6%
$45,278
$52,357
$12,141
$12,955
29.1%
29.5%
4.3x
4.0x
14.8x
13.7x
29.1%
31.9%
2.5x
2.2x
7.8x
7.1x
7.0x
Communication Services Median
85.7%
Communication Equipment
Cisco Systems, Inc.
U.S.
Jan-16
$28.47
95.2%
$143,264
$107,495
$49,589
$49,083
28.8%
31.1%
2.2x
2.2x
7.5x
Taiwan Semiconductor
Taiwan
Dec-15
$5.04
99.4%
$130,680
$120,280
$25,580
$28,811
64.3%
64.0%
4.7x
4.2x
7.3x
6.5x
Broadcom Limited*
Singapore
Jan-16
$154.50
98.2%
$60,324
$75,873
$15,354
$15,285
32.0%
47.1%
4.9x
5.0x
15.4x
10.5x
Hon Hai Precision Industry Co.
Taiwan
Dec-15
$2.64
89.3%
$41,589
$30,331 $135,926
$139,967
5.3%
5.3%
0.2x
0.2x
4.2x
4.1x
Nokia Corporation*
Finland
Dec-15
$5.95
74.7%
$34,055
$26,572
$29,845
$29,862
12.9%
11.9%
0.9x
0.9x
6.9x
7.5x
Keyence Corporation
Japan
Dec-15
$546.37
87.6%
$33,131
$28,386
$2,324
$3,526
54.5%
54.0%
NM
8.1x
22.4x
14.9x
Telefonaktiebolaget LM Ericsson
Sweden
Dec-15
$10.03
67.7%
$32,635
$27,754
$29,250
$30,375
14.9%
15.2%
0.9x
0.9x
6.4x
6.0x
FleetCor Technologies, Inc.
U.S.
Dec-15
$148.75
89.8%
$13,777
$16,267
$1,703
$1,759
49.7%
55.4%
9.6x
9.2x
19.2x
16.7x
Citrix Systems, Inc.
U.S.
Dec-15
$78.58
93.4%
$12,100
$12,553
$3,276
$3,321
25.9%
32.4%
3.8x
3.8x
14.8x
11.7x
Juniper Networks, Inc.
U.S.
Dec-15
$25.51
78.8%
$9,760
$9,761
$4,858
$5,020
22.2%
27.0%
2.0x
1.9x
9.1x
7.2x
ZTE Corp.
China
Dec-15
$2.33
52.0%
$9,303
$10,832
$15,530
$16,315
3.7%
8.6%
0.7x
0.7x
18.7x
7.7x
Amdocs Limited
U.S.
Dec-15
$60.42
98.3%
$9,085
$7,899
$3,659
$3,785
18.9%
19.3%
2.2x
2.1x
11.4x
10.8x
Tech Mahindra Limited
India
Dec-15
$7.17
69.8%
$6,936
$6,345
$3,907
$4,268
16.0%
16.5%
1.6x
1.5x
10.1x
9.0x
22.2%
27.0%
2.1x
2.1x
10.1x
7.7x
89.3%
Communication Equipment Median
Electronics
Apple Inc.
U.S.
Dec-15
$108.99
81.0%
$604,304
$628,910 $234,988
$229,312
35.2%
33.4%
2.7x
2.7x
7.6x
8.2x
Samsung Electronics Co. Ltd.
South Korea
Dec-15
$1,154.22
87.8%
$188,471
$142,353 $170,515
$178,628
23.3%
22.4%
0.8x
0.8x
3.6x
3.6x
Canon Inc.
Japan
Dec-15
$29.86
73.9%
$32,609
$28,740
$31,616
$33,450
16.5%
16.4%
0.9x
0.9x
5.5x
5.2x
HP Inc.*
U.S.
Jan-16
$12.32
34.6%
$21,399
$24,443
$62,910
$47,155
8.5%
9.5%
0.4x
0.5x
4.6x
5.5x
Lenovo Group Limited
China
Dec-15
$0.78
42.2%
$8,650
$8,939
$47,113
$47,477
2.7%
4.1%
0.2x
0.2x
6.9x
4.6x
16.5%
16.4%
0.8x
0.8x
5.5x
5.2x
73.9%
Electronics Median
Source: Capital IQ
* Company financials are pro-forma adjusted for acquisitions/divestitures.
(1) Market Data including Market Capitalization amounts are based on closing share prices as of March 31, 2016.
(2) Enterprise Value (EV) equals Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.
(3) EBITDA equals Earnings before Interest, Taxes, Depreciation, and Amortization.
Correlation Analysis
Communication Services
40.0%
Communication Equipment
80.0%
(4)
60.0%
20.0%
LTM EBITDA Margin
30.0%
LTM EBITDA Margin
LTM EBITDA Margin
30.0%
Electronics
40.0%
40.0%
10.0%
20.0%
R² = 0.4198
0.0%
0.0x
1.0x
2.0x
3.0x
4.0x
R² = 0.6433
0.0%
0.0x
2.5x
5.0x
7.5x
20.0%
10.0%
R² = 0.8548
0.0%
10.0x
EV / LTM Revenue
EV / LTM Revenue
(4) China Mobile Limited and Singapore Telecommunications are excluded from the correlation analysis.
Source: Capital IQ.
0.0x
1.0x
2.0x
3.0x
EV / LTM Revenue
8
Global TMT Selected Transactions (1): Communications Technology & Electronics
Announced
Target Name
Date
PT XL Axiata Tbk, 2500
29-Mar-16
Telecommunication Towers
Toshiba Lifestyle Products &
17-Mar-16
Services Corporation
airtel Tanzania Limited, 1,350
17-Mar-16 Communications Towers in
Tanzania
16-Mar-16
16-Mar-16
14-Mar-16
Target
Country
Acquirer Name
Indonesia
Deal Value
($ mm)
EV /
Revenue
EV /
EBITDA
PT Profesional Telekomunikasi
Indonesia Tbk
$266
-
-
Japan
Midea Group Co., Ltd.
$483
0.1x
-
Tanzania
American Tower Corporation
$179
-
-
Coherent Inc.
$956
1.5x
10.6x
Bharti Airtel Limited
$665
-
-
Goldcard High-Tech Co., Ltd.
$217
3.2x
-
$244
4.1x
18.9x
Rofin-Sinar Technologies Inc. U.S.
Videocon
Telecommunications Limited, India
Radio Frequency Spectrum
Tancy Instrument Group Co.,
China
Ltd.
10-Mar-16
GCS Holdings, Inc.
U.S.
Xiamen San'an Integrated Circuit
Co., Ltd.
9-Mar-16
Axia NetMedia Corporation
Canada
Digital Connection (Canada) Corp.
$214
4.2x
24.7x
3-Mar-16
Guangdong Appscomm Co.,
Ltd.
China
Beijing Kingee Culture
Development Co., Ltd.
$133
12.1x
-
2-Mar-16
Leaba Semiconductor Ltd.
Israel
Cisco Systems, Inc.
$320
-
-
Grupo Televisa, S.A.B.
$371
-
-
$3,059
9.9x
-
$376
-
-
$245
1.6x
14.2x
26-Feb-16
25-Feb-16
25-Feb-16
Televisión Internacional S.A.
Mexico
de C.V.
Greatwall Information
China
Industry Co., Ltd.
Wuhan Zhongyuan
China
Electronics Group Co., Ltd.
China Great Wall Computer
Shenzhen Co., Ltd.
China Great Wall Computer
Shenzhen Co., Ltd.
25-Feb-16
RR Media Ltd.
Israel
Ses Astra S.A.
22-Feb-16
Newport Corp.
U.S.
MKS Instruments, Inc.
$1,045
1.7x
13.0x
20-Feb-16
XO Communications, LLC,
U.S.
Fiber-Optic Network Business
Verizon Communications Inc.
$1,800
-
-
17-Feb-16
Ingram Micro Inc.
U.S.
Tianjin Tianhai Investment Co.,
Ltd.
$7,247
0.1x
8.1x
7-Feb-16
Oasis Sprl
Congo
Orange
$160
-
-
Ametek Inc.
$167
3.0x
-
Singtel Optus Pty Limited
$139
-
-
0.6x
4.7x
5-Feb-16
5-Feb-16
Brookfield Engineering
U.S.
Laboratories, Inc.
2 x 20 MHz of 800 MHz
Spectrum Band in 5 Regions
Australia
and 2 x 25 MHz 800 MHz
Spectrum Band in 7 Regions
4-Feb-16
Multi-Fineline Electronix, Inc. U.S.
Suzhou Dongshan Precision
Manufacturing Co.,Ltd
$621
4-Feb-16
Xtralis Pty Ltd.
Australia
Honeywell International Inc.
$480
-
-
3-Feb-16
Cascade Microtech Inc.
U.S.
FormFactor Inc.
$350
2.2x
13.3x
Germany
Ningbo Joyson Electronic Corp.
$196
-
-
Taiwan
Chipmos Technologies Inc.
$1,024
1.1x
4.0x
Altair Semiconductor Ltd.
Israel
Sony Corporation
$212
4.7x
-
19-Jan-16
IEE S.A.
Aerospace Hi-Tech Holding Group
Luxembourg
Co.,Ltd
$217
-
-
18-Jan-16
Diamondtelecom, Inc.
Japan
Kanematsu Corp.
$148
-
-
13-Jan-16
Skyworth LCD (Shenzhen)
China
Skyworth Digital Co., Ltd.
$137
-
-
12-Jan-16
Atmel Corporation
U.S.
Microchip Technology Inc.
$3,492
2.8x
25.4x
29-Jan-16
21-Jan-16
21-Jan-16
Preh TechniSat Car Connect
GmbH
Chipmos Technologies
(Bermuda) Ltd.
(1) Top 30 M&A transactions on the basis of disclosed deal value in Q1’16.
Source: Capital IQ.
9
Global TMT Selected Public Comps: IT Services and BPO
Market Data
share
Operating Metrics
% of 52
Week
Market
High
Cap. (1)
Valuation Multiples
Company Name
Country
Latest
Quarter Share
Ending Price
Tata Consultancy Services
India
Dec-15
$38.03
91.0%
$74,931
$71,197
$15,768
$17,783
25.4%
28.1%
4.5x
4.0x
17.8x
14.3x
Accenture plc
Ireland
Feb-16
$115.40
99.0%
$71,985
$69,539
$31,618
$33,123
16.7%
16.7%
2.2x
2.1x
13.2x
12.6x
Infosys Limited
India
Dec-15
$18.38
98.5%
$42,017
$37,498
$9,214
$10,329
27.8%
27.5%
4.1x
3.6x
14.7x
13.2x
Cognizant
U.S.
Dec-15
$62.70
89.8%
$38,192
$34,530
$12,416
$13,927
19.9%
20.7%
2.8x
2.5x
14.0x
12.0x
Wipro Ltd.
India
Dec-15
$8.50
89.6%
$20,875
$17,758
$7,513
$8,358
21.6%
22.0%
2.4x
2.1x
10.9x
9.6x
HCL Technologies Ltd.
India
Dec-15
$12.28
77.9%
$17,325
$15,920
$6,139
$6,755
21.5%
22.4%
2.6x
2.4x
12.1x
10.5x
Cap Gemini S.A.
France
Dec-15
$94.05
90.9%
$16,208
$14,659
$12,941
$14,586
11.0%
13.0%
1.1x
1.0x
10.3x
7.7x
CGI Group Inc.
Canada
Dec-15
$47.86
99.1%
$14,671
$15,924
$7,517
$8,406
17.2%
19.4%
2.1x
1.9x
12.3x
9.8x
NTT Data Corporation
Japan
Dec-15
$50.28
89.4%
$14,105
$16,251
$13,229
$14,533
15.9%
16.5%
1.2x
1.1x
7.7x
6.8x
Capita plc
U.K.
Dec-15
$15.01
78.0%
$9,953
$12,989
$7,133
$7,187
15.0%
15.7%
1.8x
1.8x
12.1x
11.5x
Atos SE
France
Dec-15
$81.52
89.5%
$8,419
$8,033
$11,605
$13,327
12.7%
11.8%
0.7x
0.6x
5.4x
5.1x
Nomura Research Institute, Ltd.
Japan
Dec-15
$33.73
74.9%
$7,679
$6,977
$3,484
$3,812
21.0%
22.5%
2.0x
1.8x
9.6x
8.1x
Fujitsu Limited
Japan
Dec-15
$3.71
48.0%
$7,671
$15,023
$39,909
$42,718
6.4%
7.1%
0.4x
0.4x
5.8x
5.0x
Tech Mahindra Limited
India
Dec-15
$7.17
69.8%
$6,936
$6,345
$3,907
$4,268
16.0%
16.5%
1.6x
1.5x
10.1x
9.0x
Genpact Limited
Bermuda
Dec-15
$27.19
99.4%
$5,725
$6,073
$2,461
$2,643
16.9%
17.2%
2.5x
2.3x
14.6x
13.4x
Computer Sciences Corporation* U.S.
Jan-16
$34.39
48.3%
$4,748
$5,594
$7,799
$7,229
8.6%
18.0%
0.7x
0.8x
8.3x
4.3x
Convergys Corporation
U.S.
Dec-15
$27.77
99.7%
$2,682
$2,806
$2,951
$2,962
12.9%
13.2%
1.0x
0.9x
7.4x
7.2x
Exlservice Holdings, Inc.
U.S.
Dec-15
$51.80
97.9%
$1,717
$1,569
$628
$701
15.8%
18.3%
2.5x
2.2x
15.8x
12.2x
Sonda S.A.
Chile
Dec-15
$1.94
81.7%
$1,686
$1,733
$1,258
$1,336
13.6%
14.6%
1.4x
1.3x
10.1x
8.9x
FTI Consulting, Inc.
U.S.
Dec-15
$35.51
77.2%
$1,436
$1,781
$1,779
$1,822
11.2%
11.0%
1.0x
1.0x
8.9x
8.9x
Huron Consulting Group Inc.
U.S.
Dec-15
$58.19
74.5%
$1,160
$1,414
$699
$741
22.3%
19.2%
2.0x
1.9x
9.1x
9.9x
Virtusa Corporation
U.S.
Dec-15
$37.46
63.1%
$1,117
$938
$554
$863
12.7%
10.3%
1.7x
1.1x
13.3x
10.6x
Perficient Inc.
U.S.
Dec-15
$21.72
99.1%
$781
$828
$458
$519
12.1%
16.4%
1.8x
1.6x
15.0x
9.7x
15.9%
16.7%
1.8x
1.8x
10.9x
9.7x
IT Services and BPO Median
Enterprise
Value (2)
Revenue
LTM
EBITDA Margin (3)
2016E
89.5%
LTM
2016E
EV / Revenue
LTM
EV / EBITDA
2016E
LTM
2016E
Source: Capital IQ
LTM EBITDA Margin
30.0%
24.0%
18.0%
12.0%
6.0%
R² = 0.7721
0.0%
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
4.5x
5.0x
EV / LTM Revenue
Source: Capital IQ.
Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm 10
Global TMT Selected Transactions (1): IT Services and BPO
Announced
Target Name
Date
Target
Country
Acquirer Name
17-Mar-16
Pioneer Data
China
17-Mar-16
She Yang Cheng He
Information Technology
Company Limited
16-Mar-16
15-Mar-16
Deal Value
($ mm)
EV /
Revenue
EV /
EBITDA
Zhejiang Jinggong Science &
Technology Co., Ltd
$818
-
-
China
Sheen Tai Holdings Group
Company Limited
$30
-
-
InfoReady Pty Ltd.
Australia
Melbourne IT Ltd.
$11
-
-
PromptNow Company
Limited
Thailand
TIS Inc.; TISI (Thailand) Co., Ltd.
$5
4.1x
-
14-Mar-16
MMT Limited
U.K.
Be Heard Group plc
$29
-
-
9-Mar-16
Experton Group AG
Germany
Information Services Group, Inc.
$2
-
-
3-Mar-16
Tetran Pty. Ltd.
Australia
Montech Holdings Limited
$7
-
-
29-Feb-16
Provus Service Provider S.A. Romania
Wirecard AG
$35
-
-
29-Feb-16
Acrotech inc.
Japan
Encourage Technologies Co., Ltd.
$2
0.9x
-
24-Feb-16
CollectorSolutions, Inc.
U.S.
JetPay Corporation
$10
-
-
23-Feb-16
Cube.Itg S.A., IT Services
Poland
Sescom Spólka Akcyjna
$3
-
-
keepITsafe Data Solutions, Ltd.
$24
-
-
Keva Flavours Pvt. Ltd.
$4
1.8x
-
Egemin Automation Inc.
19-Feb-16
9-Feb-16
8-Feb-16
VaultLogix, LLC, Online Data
Backup Related Business
U.S.
Assets
Hi-Tech Technologies India
India
Private Limited
Retrotech, Inc.
U.S.
$40
0.6x
-
Maximus Venture Holdings
Limited
EarthLink Holdings Corp.,
Select IT Services Assets
British Virgin
Excellence Steps Limited
Islands
$4
3.7x
-
U.S.
Synoptek, Inc.
$29
0.8x
-
29-Jan-16
City Lifeline Limited
U.K.
Redcentric plc
$7
1.4x
8.0x
29-Jan-16
IBM Japan Services
Company, Ltd, 2-dimensional Japan
CAD System Business
Argo Graphics Inc.
$3
-
-
27-Jan-16
LanTroVision (S) Ltd
Singapore
Mirait Holdings Corporation
$128
0.5x
5.1x
26-Jan-16
TransFirst Holdings Corp.
U.S.
Total System Services, Inc.
$3,484
2.3x
27.6x
26-Jan-16
Pivot Technology Solutions,
Inc.
U.S.
PTS Holdings Corporation
$324
0.2x
13.8x
$7
-
-
5-Feb-16
1-Feb-16
25-Jan-16
Transact24 Limited
Hong Kong
Net1 Applied Technologies
Netherlands B.V.
22-Jan-16
Hundsun Intelligent System
Integration Co., Ltd.
China
Ant Financial Services Group
$25
-
-
22-Jan-16
AncarB Technologies Ltd
U.K.
Pinnacle Cloud Solutions Limited
$7
1.6x
6.0x
22-Jan-16
Weston Communications
Limited
U.K.
Pinnacle Cloud Solutions Limited
$2
0.5x
6.8x
21-Jan-16
Kloud Solutions (Vic) Pty Ltd. Australia
Telstra Corporation Limited
$28
-
-
18-Jan-16
Magnet 360, LLC
U.S.
MindTree Limited
$50
2.0x
-
14-Jan-16
TSG IT Advanced Systems
Ltd.
Israel
Formula Systems (1985) Ltd.
$50
-
-
12-Jan-16
QuantumKDB Ltd.
U.K.
First Derivatives plc
$3
-
-
8-Jan-16
PayPoint.net Limited and
Metacharge Limited
U.K.
Capita plc
$21
-
-
Source: Capital IQ.
Global TMT Selected Public Comps: Internet and Media
Market Data
share
Operating Metrics
Country
Alphabet Inc.
U.S.
Dec-15
$762.90
94.1%
$518,917
$454,639
$74,989
$86,801
32.6%
40.7%
6.1x
5.2x
18.6x
Facebook, Inc.
U.S.
Dec-15
$114.10
97.0%
$334,694
$316,575
$17,928
$25,617
46.0%
60.9%
NM
NM
38.4x
20.3x
Amazon.com, Inc.
U.S.
Dec-15
$593.64
85.2%
$279,511
$277,250 $107,006
$130,102
7.4%
11.0%
2.6x
2.1x
35.2x
19.4x
Alibaba Group Holding Limited
China
Dec-15
$79.03
83.1%
$198,557
$193,734
$14,537
$18,773
34.1%
51.2%
NM
NM
39.1x
20.2x
Tencent Holdings Limited
China
Dec-15
$20.42
92.6%
$188,665
$186,697
$15,843
$20,907
41.7%
42.2%
NM
8.9x
28.2x
21.2x
Baidu, Inc.
China
Dec-15
$190.88
85.2%
$66,057
$61,606
$10,224
$12,290
23.6%
25.8%
6.0x
5.0x
25.6x
19.4x
Yahoo! Inc.
U.S.
Dec-15
$36.81
79.7%
$34,852
$30,297
$4,968
$3,542
6.7%
21.3%
6.1x
8.6x
NM
40.1x
eBay Inc.
U.S.
Dec-15
$23.86
35.8%
$27,263
$27,911
$8,592
$8,718
34.3%
39.6%
3.2x
3.2x
9.5x
8.1x
LinkedIn Corporation
U.S.
Dec-15
$114.35
42.9%
$15,103
$13,137
$2,991
$3,675
8.3%
26.8%
4.4x
3.6x
NM
13.3x
Twitter, Inc.
U.S.
Dec-15
$16.55
30.9%
$11,459
$9,567
$2,218
$2,958
Company Name
% of 52
Week
Market
High
Cap. (1)
Valuation Multiples
Latest
Quarter Share
Ending Price
Enterprise
Value (2)
Revenue
LTM
EBITDA Margin (3)
2016E
LTM
2016E
EV / Revenue
LTM
EV / EBITDA
2016E
LTM
2016E
Internet
Internet Median
84.2%
12.9x
NM
26.1%
4.3x
3.2x
NM
12.4x
32.6%
33.2%
4.4x
4.3x
28.2x
19.4x
10.3x
Media
The Walt Disney Company
U.S.
Jan-16
$99.31
81.3%
$162,031
$180,885
$54,318
$56,982
30.3%
30.8%
3.3x
3.2x
11.0x
Time Warner Inc.
U.S.
Dec-15
$72.55
79.4%
$57,326
$78,992
$28,118
$29,552
28.1%
28.0%
2.8x
2.7x
10.0x
9.5x
Twenty-First Century Fox, Inc.
U.S.
Dec-15
$27.88
79.3%
$53,728
$70,780
$26,497
$28,299
23.2%
25.1%
2.7x
2.5x
11.5x
10.0x
WPP plc
U.K.
Dec-15
$23.43
99.3%
$29,812
$34,982
$18,043
$19,035
17.5%
16.4%
1.9x
1.8x
11.1x
11.2x
CBS Corporation
U.S.
Dec-15
$55.09
86.1%
$25,316
$33,441
$13,886
$14,540
22.4%
23.6%
2.4x
2.3x
10.8x
9.7x
Sky plc
U.K.
Dec-15
$14.75
86.8%
$25,161
$34,002
$16,819
$17,420
16.8%
18.3%
2.0x
2.0x
12.0x
10.7x
Omnicom Group Inc.
U.S.
Dec-15
$83.23
98.8%
$19,941
$22,513
$15,134
$15,526
14.6%
14.9%
1.5x
1.5x
10.2x
9.7x
Liberty Media Corporation
U.S.
Dec-15
$38.63
91.5%
$12,825
$26,688
$4,795
$5,162
29.7%
33.5%
5.6x
5.2x
18.7x
15.4x
News Corporation
U.S.
Dec-15
$12.77
77.9%
$7,501
$5,825
$8,442
$8,136
7.6%
10.6%
0.7x
0.7x
9.1x
6.7x
REA Group Limited
Australia
Dec-15
$41.52
96.6%
$5,469
$5,386
$420
$538
53.3%
56.4%
NM
NM
24.1x
17.7x
Singapore Press Holdings Limited Singapore
Nov-15
$2.97
94.1%
$4,802
$5,676
$829
$880
38.7%
36.1%
6.8x
6.5x
17.7x
17.9x
Lagardere SCA
France
Dec-15
$26.59
77.3%
$3,408
$5,138
$7,812
$8,303
8.4%
8.5%
0.7x
0.6x
7.9x
7.3x
Daily Mail and General Trust plc
U.K.
Sep-15
$10.02
70.3%
$3,353
$4,583
$2,788
$2,734
15.9%
18.5%
1.6x
1.7x
10.3x
9.1x
22.4%
23.6%
2.2x
2.1x
11.0x
10.0x
Media Median
86.1%
Information Services
Thomson Reuters Corporation
U.S.
Dec-15
$40.58
94.1%
$30,776
$39,602
$12,209
$11,754
21.3%
27.5%
3.2x
3.4x
15.3x
12.2x
McGraw Hill Financial, Inc.
U.S.
Dec-15
$98.98
91.5%
$26,277
$29,370
$5,313
$5,700
41.6%
42.2%
5.5x
5.2x
13.3x
12.2x
Moody's Corporation
U.S.
Dec-15
$96.56
84.8%
$18,818
$20,218
$3,485
$3,609
45.5%
45.6%
5.8x
5.6x
12.7x
12.3x
Experian plc
Ireland
Sep-15
$17.93
98.5%
$16,817
$20,011
$4,656
$4,472
31.9%
34.7%
4.3x
4.5x
13.5x
12.9x
Pearson plc
U.K.
Dec-15
$12.60
58.9%
$10,227
$11,333
$6,589
$6,415
15.7%
17.3%
1.7x
1.8x
10.9x
10.2x
31.9%
34.7%
4.3x
4.5x
13.3x
12.2x
Information Services Median
91.5%
Source: Capital IQ
37.5%
20.0%
10.0%
0.0%
0.0x
R² = 0.8288
20.0x
40.0x
60.0x
Information Services
50.0%
LTM EBITDA Margin
30.0%
LTM EBITDA Margin
Media
50.0%
3-yrs Revenue CAGR (4)
Internet
40.0%
25.0%
12.5%
0.0%
0.0x
R² = 0.847
3.0x
6.0x
EV / LTM EBITDA
EV / LTM Revenue
(4) “3-yrs Revenue CAGR” represents estimated growth between 2015A-2018E.
Source: Capital IQ.
9.0x
37.5%
25.0%
12.5%
0.0%
0.0x
R² = 0.9676
3.0x
6.0x
9.0x
EV / LTM Revenue
Global TMT Selected Transactions (1): Internet and Media
Announced
Target Name
Date
Qingdao Jiashengtai
31-Mar-16 Investment Consulting Co.,
Ltd.
Beijing Zibolan Technology
24-Mar-16
Development Co., Ltd.
Create Leaders Group Eight
23-Mar-16
Co. Ltd.
Freedom Communications,
17-Mar-16
Inc.
Master Ad Public Company
16-Mar-16
Limited
Shanghai Purity Media Co.
15-Mar-16
Ltd.
Shanghai Sumi Information
15-Mar-16
Technology Co., Ltd.
Sony/ATV Music Publishing
14-Mar-16
LLC
14-Mar-16
13-Mar-16
9-Mar-16
Target
Country
Acquirer Name
China
China
EV /
Revenue
EV /
EBITDA
Gauteng Focus Limited
$152
-
-
Shenke Slide Bearing Corporation
$323
-
-
Dongbu 4th Special Purpose
South Korea
Acquisition Co., Ltd.
$52
-
-
U.S.
$56
-
-
Orange County Media, LLC
VGI Global Media Public Company
Limited
Shanghai New Culture Media
Group Co., Ltd.
Fujian Guanfu Modern Household
Wares Co.,Ltd
$61
4.6x
14.5x
$332
-
-
$258
0.8x
-
Sony Corporation of America
$750
-
-
Beijing Baofeng Technology Co.,
Ltd.
$166
-
-
U.S.
Digital First Media Inc.
$52
-
-
China
iMeigu Capital Management Ltd
$712
0.3x
-
$207
1.7x
-
Thailand
China
China
U.S.
Jiangsu Straw Bear Films Ltd China
Freedom Communications,
Orange County Register and
Riverside Press-Enterprise
E-Commerce China
Dangdang Inc.
Deal Value
($ mm)
6-Mar-16
Clear Link Technologies, LLC U.S.
Sykes Enterprises, Incorporated
3-Mar-16
Carmike Cinemas Inc.
U.S.
AMC Entertainment Holdings, Inc.
$1,201
1.4x
8.4x
3-Mar-16
Media Broadcast GmbH
Germany
mobilcom-debitel GmbH
$323
-
-
23-Feb-16
Invia.cz, a.s.
Czech
Republic
Rockaway Capital SE
$82
-
-
22-Feb-16
Amedia AS
Norway
DNB Savings Bank Foundation,
Endowment Arm
$46
0.1x
-
16-Feb-16
Ebuys, Inc.
U.S.
DSW Shoe Warehouse, Inc.
$118
-
-
15-Feb-16
VisionChina New Culture
Media Co., Ltd
China
Ledman Optoelectronic Co., Ltd.
$120
-
-
12-Feb-16
Marketwire, L.P.
Canada
Nasdaq, Inc.
$108
-
-
29-Jan-16
Co.Mark S.p.A.
Italy
Tecnoinvestimenti S.p.A.
$37
-
-
28-Jan-16
Grupo A Tarde
Brazil
Piatra Participações S/A
$43
-
-
27-Jan-16
The Tennis Channel, Inc.
U.S.
Sinclair Broadcast Group, Inc.
$350
-
-
Zhejiang Jinlihua Electric Co.,Ltd.
$103
2.0x
-
Unity Glory International Ltd.
$100
-
-
24-Jan-16
22-Jan-16
Hangzhou Xinli Media
China
Advertisement Co., Ltd.
Assets and Brands of Images
Division, Motion Division of U.S.
Corbis and Demotix
13-Jan-16
Shaw Media Inc.
Canada
Corus Entertainment Inc.
$1,868
-
7.7x
11-Jan-16
Legend Pictures, LLC
U.S.
Dalian Wanda Group Co Ltd
$3,500
-
-
11-Jan-16
Loen Entertainment, Inc.
South Korea Kakao Corp.
$1,564
6.4x
27.5x
8-Jan-16
Dagbladet Børsen A/S
Denmark
JP/Politikens Hus A/S
$117
-
-
7-Jan-16
Clear Channel Outdoor
Holdings, Inc.
U.S.
Lamar Media Corp.
$459
6.0x
-
7-Jan-16
Gilt Groupe, Inc.
U.S.
Hudson's Bay Company
$250
-
-
Source: Capital IQ.
Global TMT Selected Public Comps: Software
Market Data
share
Operating Metrics
Country
Microsoft Corporation
U.S.
Dec-15
$55.23
97.2%
$436,831
$379,385
$88,084
$94,578
34.6%
36.0%
4.3x
4.0x
12.5x
Oracle Corporation
U.S.
Feb-16
$40.91
90.4%
$169,771
$159,576
$37,159
$37,329
40.1%
46.0%
4.3x
4.3x
10.7x
9.3x
SAP SE
Germany
Dec-15
$80.84
93.8%
$96,846
$103,434
$22,583
$25,010
27.5%
34.3%
4.6x
4.1x
16.7x
12.0x
Adobe Systems Incorporated
U.S.
Mar-16
$93.80
95.7%
$46,920
$44,739
$5,070
$5,826
27.2%
37.1%
8.8x
7.7x
32.5x
20.7x
Intuit Inc.
U.S.
Jan-16
$104.01
95.2%
$26,712
$27,623
$4,467
$4,726
29.1%
38.3%
6.2x
5.8x
21.2x
15.3x
VMware, Inc.
U.S.
Dec-15
$52.31
56.0%
$22,158
$16,153
$6,647
$6,870
26.7%
35.6%
2.4x
2.4x
9.1x
6.6x
Dassault Systèmes SE
France
Dec-15
$79.41
90.6%
$20,144
$18,627
$3,084
$3,504
27.2%
34.2%
6.0x
5.3x
22.2x
15.6x
Red Hat, Inc.
U.S.
Feb-16
$74.51
88.2%
$13,607
$13,122
$2,052
$2,307
17.7%
25.7%
6.4x
5.7x
36.0x
22.2x
Autodesk, Inc.
U.S.
Jan-16
$58.31
88.6%
$13,090
$12,327
$2,504
$1,992
5.9%
NM
4.9x
6.2x
NM
NM
CA, Inc.
U.S.
Dec-15
$30.79
94.5%
$12,832
$12,582
$4,039
$4,025
30.5%
38.5%
3.1x
3.1x
10.2x
8.1x
Symantec Corporation*
U.S.
Jan-16
$18.38
70.3%
$11,988
$11,459
$3,986
$3,618
32.7%
34.0%
2.9x
3.2x
8.8x
9.3x
Sage Group plc
U.K.
Sep-15
$9.06
99.8%
$9,778
$10,270
$2,172
$2,162
27.1%
29.5%
4.7x
4.8x
17.5x
16.1x
Open Text Corporation
Canada
Dec-15
$51.80
88.7%
$6,274
$7,117
$1,830
$1,865
28.8%
36.3%
3.9x
3.8x
13.5x
10.5x
Trend Micro Inc.
Japan
Dec-15
$36.67
75.6%
$5,023
$3,725
$1,034
$1,275
31.6%
29.9%
3.6x
2.9x
11.4x
9.8x
Teradata Corporation
U.S.
Dec-15
$26.24
57.0%
$3,383
$3,324
$2,530
$2,294
17.9%
26.1%
1.3x
1.4x
7.3x
5.6x
Kingsoft Corporation Limited
China
Dec-15
$2.34
52.0%
$3,006
$2,427
$874
$1,327
15.7%
16.6%
2.8x
1.8x
17.7x
11.0x
27.4%
34.3%
4.3x
4.1x
13.5x
11.0x
30.0x
Company Name
% of 52
Week
Market
High
Cap. (1)
Valuation Multiples
Latest
Quarter Share
Ending Price
Revenue
Enterprise
Value (2)
LTM
EBITDA Margin (3)
2016E
LTM
2016E
EV / Revenue
LTM
EV / EBITDA
2016E
LTM
2016E
Diversified Software
Diversified Software Median
89.5%
11.1x
Software as a Service
salesforce.com, inc.
U.S.
Jan-16
$73.83
89.1%
$49,533
$50,248
$6,667
$8,122
7.0%
20.6%
7.5x
6.2x
NM
Workday, Inc.
U.S.
Jan-16
$76.84
82.1%
$14,984
$13,522
$1,162
$1,549
NM
8.7%
NM
8.7x
NM
NM
ServiceNow, Inc.
U.S.
Dec-15
$61.18
67.0%
$9,837
$9,510
$1,005
$1,361
NM
18.5%
9.5x
7.0x
NM
37.7x
The Ultimate Software Group, Inc. U.S.
Dec-15
$193.50
89.5%
$5,582
$5,470
$618
$772
10.3%
24.7%
8.9x
7.1x
NM
28.7x
NetSuite Inc.
U.S.
Dec-15
$68.49
66.8%
$5,478
$5,397
$741
$962
NM
8.7%
7.3x
5.6x
NM
NM
athenahealth, Inc.
U.S.
Dec-15
$138.78
81.4%
$5,406
$5,563
$925
$1,108
6.6%
21.0%
6.0x
5.0x
NM
23.9x
Atlassian Corporation Plc
Australia
Dec-15
$25.15
79.9%
$5,342
$4,660
$387
$507
4.1%
18.1%
NM
9.2x
NM
NM
Veeva Systems Inc.
U.S.
Jan-16
$25.04
85.3%
$3,359
$3,013
$409
$512
21.6%
28.2%
7.4x
5.9x
34.0x
20.9x
Blackbaud Inc.
U.S.
Dec-15
$62.89
91.8%
$2,816
$3,210
$638
$734
16.4%
24.3%
5.0x
4.4x
30.7x
18.0x
Medidata Solutions, Inc.
U.S.
Dec-15
$38.71
63.1%
$2,180
$2,163
$393
$460
10.2%
23.3%
5.5x
4.7x
NM
20.2x
Zendesk, Inc.
U.S.
Dec-15
$20.93
74.2%
$1,894
$1,649
$209
$297
NM
NM
7.9x
5.5x
NM
NM
Box, Inc.
U.S.
Jan-16
$12.26
59.5%
$1,484
$1,343
$303
$393
NM
NM
4.4x
3.4x
NM
NM
10.2%
20.8%
7.3x
5.7x
32.4x
23.9x
Software as a Service Median
80.7%
Source: Capital IQ
Diversified Software
Software as a Service
(5)
40.0%
20.0%
10.0%
R² = 0.6391
0.0%
2.5x
5.0x
7.5x
10.0x
30.0%
(10.0%)
0.0x
(6)
30.0%
20.0%
10.0%
0.0%
0.0x
EV / LTM Revenue
(4) “3-yrs Revenue CAGR” represents estimated growth between 2015A-2018E.
(5) Kingsoft Corporation Limited is excluded from the correlation analysis.
(6) Box, Inc. is excluded from the correlation analysis.
Source: Capital IQ.
R² = 0.4323
2.5x
5.0x
7.5x
10.0x
EV / LTM Revenue
Global TMT Selected Transactions (1): Software
Announced
Target Name
Date
Beijing Zhiyue Network
23-Mar-16
Target
Country
Acquirer Name
China
22-Mar-16
Serena Software, Inc.
21-Mar-16
BoardVantage, Inc.
17-Mar-16
Zol.com.cn
15-Mar-16
CME Group Inc., Chicago
U.S.
Data Center in Aurora, Illinois
14-Mar-16
Jagex Ltd.
14-Mar-16
Fortnox AB
14-Mar-16
1-Mar-16
Deal Value
($ mm)
EV /
Revenue
EV /
EBITDA
Keda Group Co., Ltd.
$110
20.0x
-
U.S.
Micro Focus International plc
$540
-
-
U.S.
Nasdaq, Inc.
$200
-
-
China
HC International Inc.
$232
-
-
CyrusOne LP
$130
-
-
U.K.
Shanghai Hongtou Network
$300
-
-
Sweden
Visma AS
$169
9.4x
46.1x
Beijing Baofeng Technology Co.,
Ltd.
$150
-
-
$285
7.8x
-
$260
-
-
Hangzhou Lidong
Communication Technology China
Co., Ltd.
Shanghai Snowfish Tech Co.,
China
Ltd.
Allwin Telecommunication Co.,
Ltd.
Insieme Networks, Inc. (Cisco
Systems, Inc. Subsidiary)
1-Mar-16
CliQr Technologies, Inc.
U.S.
18-Feb-16
Lytx, Inc.
U.S.
GTCR, LLC
$500
-
-
18-Feb-16
GameLoft S.E.
France
Vivendi SA
$467
2.4x
82.2x
12-Feb-16
Diligent Corporation
U.S.
Insight Venture Partners
$505
4.4x
26.2x
11-Feb-16
Yodle, Inc.
U.S.
Web.com Group, Inc.
$342
1.6x
-
$1,365
2.1x
13.2x
10-Feb-16
Opera Software ASA
Norway
Golden Brick Silk Road Fund
Management (Shenzhen) LLP
3-Feb-16
Jasper Technologies, Inc.
U.S.
Cisco Systems, Inc.
$1,400
-
-
29-Jan-16
Tapad, INC.
U.S.
Telenor ASA
$360
-
-
28-Jan-16
Union Mobile Pay Ltd.
China
Qingdao Haili Metal One Co.,Ltd.
$462
-
-
25-Jan-16
CD-adapco Group, Inc.
U.S.
Siemens Aktiengesellschaft
$970
4.9x
-
20-Jan-16
Italiaonline S.p.A.
Italy
Seat Pagine Gialle SpA
$491
-
-
U.S.
Fiserv, Inc.
$200
-
-
$426
-
-
$251
-
-
20-Jan-16
16-Jan-16
15-Jan-16
14-Jan-16
12-Jan-16
11-Jan-16
11-Jan-16
8-Jan-16
7-Jan-16
5-Jan-16
ACI Worldwide, Inc.,
Community Financial
Services Business
Shenzhen Southern Galaxy
Valley Technology Co., Ltd.
Bocom Smart Network
Technologies Inc.
iSight Security, Inc.
Hangzhou Miaoju Network
Foresee Science &
Nexidia, Inc.
China
China
U.S.
FireEye, Inc.
$269
-
-
China
Chtc Helon Co., Ltd.
$262
-
-
China
Jiangsu Fengdong Thermal
Technology Co.,Ltd.
$274
7.0x
-
U.S.
Nice Systems Ltd.
$135
-
-
IHS Global Inc.
$650
-
-
Quikr India Private Limited
$200
27.4x
-
Oracle Corporation
$175
-
-
Oil Price Information Service,
U.S.
LLC
maxHeap Technologies
India
Private Limited
AddThis
San Bian Science & Technology
Co., Ltd.
Beibu Gulf Tourism Corporation
Limited
U.S.
Source: Capital IQ.
Software
Internet and Media
IT Services and BPO
Communications
Technology
and Electronics
Selected Recent Transactions (1)
Toshiba
Corporation
Linx Technologies
Advantech Co. Ltd.
Pantech Co. Ltd
KPMG CF United States
KPMG CF Taiwan
KPMG CF Republic of
Korea
assisted the management team on its sale
of the business to Argosy Capital
assisted the management team on its
acquisition of B+B SmartWorx Inc.
disposal of Pantech
divesture of European LED business to
Unity Opt Technology
Value not disclosed
January 2016
TW 100 million
January 2016
KRW 49600 million
October 2015
Value not disclosed
October 2015
AJB Software
Design Inc.
KPMG CF Japan
Formicary
Star Check S.A.
Deutsche Post
KPMG CF Canada
KPMG CF United
Kingdom
KPMG CF Italy
KPMG CF Germany
of the business to VeriFone Systems Inc.
of the business to Accenture
assisted the Board of Directors of Star
Check S.A. on its disposal of F2A S.r.l
assisted the management team on the
sale of its online-marketing subsidiary
nugg.ad to Zalando Media Solutions
CA$140 million
January 2016
Value not disclosed
January 2016
Value not disclosed
February 2016
Value not disclosed
December 2015
Experian Plc
Fairprint
MB Trading
Conga
KPMG CF United
Kingdom
KPMG CF United
Kingdom
disposal of its FootFall business to Tyco
International
of the business to Cimpress N.V.
of the business to TradeKing
majority recapitalization with Insight
Venture Partners
£38.5 million
July 2015
Value not disclosed
July 2015
Value not disclosed
August 2015
Value not disclosed
April 2015
ORIGO Education
Trend Micro
Itesso
Verian
Technologies, LLC
KPMG CF Australia
KPMG CF Taiwan
KPMG CF Netherlands
of the business to BasWare Oyj
growth capital raising process from Blue
Sky Private Equity
disposal of Trend Micro (China) Co., Ltd.
of the business to Amadeus IT Group, S.A.
US$36.0 million
March 2016
Value not disclosed
September 2015
Value not disclosed
August 2015
Value not disclosed
July 2015
2015 Global (2)
No. of Deals
2015 Global TMT (2)
1.
PwC
432
No. of Deals
1.
PwC
2.
KPMG (1)
73
387
2.
Ernst & Young LLP
3.
60
Ernst & Young LLP
299
3.
KPMG (1)
56
4.
Deloitte
249
4.
Deloitte
45
5.
Rothschild
244
5.
Morgan Stanley
44
6.
M&A International
218
6.
M&A International
43
7.
Houlihan Lokey
215
7.
Houlihan Lokey
41
8.
Morgan Stanley
196
8.
IMAP
36
9.
IMAP
177
9.
Mizuho Financial Group
35
10.
BDO
175
10.
Lazard
35
(1) Represents the Corporate Finance practices of KPMG International’s network of independent member firms.
(2) League tables include deals which have value between $0 to $500mm and also where deal value is not disclosed.
Source: Thomson One.
Global TMT Coverage Team
Global Coverage. Industry Knowledge. Middle-Market Focus.
The Corporate Finance practices of KPMG International’s network of independent member firms
(KPMG) have been ranked collectively as the number two global mid-market advisor based on total
deal volume announced in 2015, according to Thomson Reuters SDC. KPMG firms operate in 155
countries with over 2,600 professionals who are able to meet the needs of clients across the globe.
Mike Franson
Global Head of TMT M&A
Managing Director
Denver, U.S.
T: +1-303-295-8896
E: [email protected]
Americas
EMA
Mark Wyatt
Partner
Paris, France
T: +33-155-689-300
Adrian Bieri
Director
Zurich, Switzerland
T: +41-582-492-819
Takeshi Moriya
Partner
Tokyo, Japan
T: +81-335-485-171
E:[email protected]
Adam Joy
Partner,
London, U.K.
T: +44 (0) 207-311-3614
Toru Sumikawa
Partner
Tokyo, Japan
T: +81-335-485-182
E:[email protected]
Ed Wirgman
Director
London, U.K.
T: +44 (0) 207-694-5168
Hikaru Okada
Partner,
Tokyo, Japan
T: +81-335-485-164
Cyrus Lam
Managing Director
New York, U.S.
T: +1-212-872-5540
Florian Frei
Partner
Frankfurt/Main, Germany
T: +49-699-587-2834
Mihir Jobalia
Managing Director
Santa Clara, U.S.
T: +1-408-367-2850
Hillel Schuster
Partner
Israel
T: +97-203-684-8546
Joseph Radecki
Managing Director
Denver, U.S.
T: +1-303-295-8890
Wouter Van de Bunt
Partner
Amsterdam, Netherlands
T: +31-206-567-968
Peter Turner
Partner
Melbourne, Australia
T: +61-392-886-022
Takeo Takanashi
Partner,
Tokyo, Japan
T: +81-335-485-178
E:[email protected]
Doug Robinson
Managing Director
Denver, U.S.
T: +1-303-295-8884
Wushe Kundishora
Manager
South Africa
T: +27-72-132-9185
Jon Adgemis
Partner
Sydney, Australia
T: +61-293-357-222
Jay C.W. Cheng
President
Taipei, Taiwan
T: +88-628-101-6666
Patrick Coady
Partner
Ottawa, Canada
T: +1-613-212-2841
Bjorn Hallin
Partner
Stockholm, Sweden
T: +46-070-548-9626
Michael Jiang
Partner
Beijing, China
T: +86 (10) 850-87077
Luis Motta
Partner
Brazil
T: +55-113-940-8314
Eloy Serrano
Partner
Spain
T: + 34-91-456-3870
Jayant Kumaar
Partner
India
T: +91-124-334-5115
Asia Pacific
KPMG Corporate Finance LLC
KPMG Corporate Finance LLC provides a broad range of investment banking and
advisory services to its domestic and international clients. Our professionals have
the experience and depth of knowledge to advise clients on global mergers and
acquisitions, sales and divestitures, buyouts, financings, debt restructurings, equity
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Important Disclosures
The information contained in this newsletter is of a general nature and is not
intended to address the circumstances of any particular individual or entity
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newsletter, we have relied upon and assumed, without independent verification,
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Although we endeavor to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or that it
will continue to be accurate in the future. No one should act or rely on the
information in this newsletter without appropriate professional advice after a
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or hold any security of any issuer. Past performance does not guarantee future
results.
©2016 KPMG Corporate Finance LLC, a Delaware limited liability company.
Member FINRA and SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG
LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG
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Q1`2016 - Corporate Finance

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