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Electronics Software and Engineering Services
Industry Update
November 2013
Mergers & Acquisitions
Business Valuation
Strategic Consulting
2
November 2013
Notable M&A Activity
Apple buys PrimeSense
Mitel acquires Aastra
M/A Com acquires Mindspeed
Tellabs acquired by Marlin Equity
Microsoft acquires Nokia’s devices
business and license key patents
Cisco Systems acquires Sourcefire, Inc.
from Sequoia Capital, Blackrock and T.
Rowe price.
McAfee,Inc. acquires 97.93% stake in
Stonesoft Oyj
Industry News and Recent M&A Transactions
Industry News
According to Ernst and Young, total tech deal volume worldwide for 3Q13 was $72 billion, relative to a normal volume of
$30 billion. Q3 represents the best quarter in the industry since the dot-com crash.
Intel has created a new “Internet of Things” group to include the Wind River software business as well as the Atom and
Quark processor platforms.
The Semiconductor Industry Association (SIA) reports September industry sales reaching $26.97 billion, the highest
monthly total ever. This represents an increase of 8.7 percent compared to September 2012.
Snapchat, a photo messaging application used primarily by teens, has rejected a $3 billion offer by Facebook. The Los
Angeles, CA-based company has reportedly received higher offers from companies such as China’s Tencent.
Sony sold 1 million of the new PlayStation 4 in 24 hours. The PS4 is the first platform update in seven years.
“Finding the Right Financier for Your Company” – The Institute of Electrical and Electronics Engineers (IEEE) recently
published McLean Group banker Brent Lorenz’s article about the advantages of hiring advisors with engineering
backgrounds for the sales of highly technical companies. Read it here.
Source: Public Filings; Capital IQ as of 11/8/13
52 Weeks YTD 4 Weeks 1 Week
Semiconductors Index 15.03% 8.77% 1.39% -1.85%
Defense Electronics Index 66.75% 59.21% 11.77% 1.19%
EDS and Contract Manufacturers Index 25.54% 14.50% -10.26% -1.95%
Large Cap Software Index 13.01% -0.32% 2.42% 1.63%
Mid/Small Cap Software Index -18.10% -22.52% -3.21% 1.83%
Electronics Equipment Index 12.98% 9.33% 6.27% 1.27%
S&P 500 28.32% 21.07% 3.96% 0.51%
% Change
3
November 2013 Announced M&A Transactions
Announced Announced Announced
November 18, 2013 November 11, 2013 November 5, 2013
Notes Notes Notes
Apple has reportedly acquired Israeli
3-D sensor company PrimeSense, in
a deal valued at $345 million.
PrimeSense is the technology behind
Microsoft’s Kinect 3D motion sensor
for the Xbox gaming system. The
technology is rumored to be planned
for use in Apple’s TV platforms.
PrimeSense raised $85 million from
Israeli and U.S. venture-capital
funds, including Canaan Partners
Global, Gemini Israel and Genesis
Partners.
Ottawa, Canada based Mitel
Networks, a provider of VoIP-based
unified communications solutions
such as IP Phones for business, has
acquired rival Aastra Technologies in
a deal valued at $376 million. The
combined company will have a global
customer base of 60 million end
users and $1.1 billion in revenue.
Mitel is now expected to be the #5
worldwide player in terms of market
share, still a long distance behind #1
Cisco.
Lowell, MA based semiconductor
company M/A Com will acquire
network infrastructure semiconductor
firm Mindspeed for $272 million. M/A
Com plans to use the acquisition
solidify itself as a global leader in
100G optical networking, with
combined revenue of $450 million.
Mindspeed plans to either sell off or
wind down its communications
processor business, which does not
fit with the long term strategy.
has acquired has acquired has acquired
4
November 2013 Announced M&A Transactions
Announced Announced Announced
October 21, 2013 September 3, 2013 July 23, 2013
Notes Notes Notes
Tellabs agreed to be acquired by
Marlin Equity Partners for $891
million, enabling the telecom
infrastructure equipment supplier to
go private. Tellabs posted 11
straight quarters losing money as the
company shifts from older
technologies to equipment for
wireless networks.
Microsoft has purchased
substantially all of Nokia’s Devices
and Services businesses and license
its patents and mapping services.
Microsoft will pay a total of EUR 5.44
billion in cash. Microsoft aims to
build on the partnership announced
in 2011, of leveraging the Nokia
Lumina smartphone platform to
provide a market-leading solution
and represents a market shift to key
suppliers providing both hardware
and software. (This acquisition was
completed on November 5, 2013.)
Cisco has acquired network security
equipment maker Sourcefire for $2.7
billion. Maryland-based Sourcefire
was founded in 2001 and offers
products to help secure enterprises
from threats with products such as
firewalls and malware protection.
Sourcefire recorded $223 million of
revenue in 2012. This follows other
Cisco security acquisitions including
Cognitive Security and Virtuata.
(This acquisition was completed on
October 7, 2013.)
has acquired has acquired certain assets of has acquired
5
November 2013
Company
11/8/13
Close
% of 52
Week High
4 Week
Change
52 Week
Change Comments
$24.09 92.73% 3.59% 15.82%
Intel announced the purchase of Kno on 11/8/13. Kno is a startup that
helps educational publishers make their books interactive. It
previously had raised $73 MM from such investors as Advance
Publications, Andreessen Horowitz, Floodgate, SV Angel and others.
$67.45 95.85% -0.15% 9.46%
Qualcomm subsidiary Qualcomm Technologies will power Google’s
new Android smartphone, the Nexus 5, with its Qualcomm
Snapdragon 800 processor. The Nexus 5 also uses the Qualcomm
QFE1100 feature, an important part of a system-level solution
enabling OEMs to develop a single, global 4G LTE design.
$41.98 99.08% 3.96% 42.26%
Texas Instruments projects $Q 2013 revenues of $2.86 B to $3.10 B
and quarterly EPS of $0.42 to $0.50. Analysts were expecting the
Company to report $3.12 B in revenue and $0.51 EPS for 4Q 2013.
$26.50 70.01% -0.04% -13.43%
Renesas Mobile sold a 100% stake in Subsidiary A, specializing in
communication modem R&D for mobile phones in Finland, and a
100% stake in a Subsidiary A subsidiary (doing the same business in
India), to Broadcom on 10/1/13. It also sold a Long Term Evolution-
related (LTE) modem technology to Broadcom.
$7.50 72.73% -17.90% 27.82%
STM, a global semiconductor leader serving customers across the
spectrum of electronics applications, was named Company of the
Year by MEMS Industry Group and affiliated voters for its continuing
success growing its MEMS business and product line while
demonstrating industry leadership and vision.
$1,770.61 99.92% 3.96% 28.32% The S&P 500 and other major US stock indices continued to set new
market highs through November 2013.
Electronics Software and Engineering Services: 4 Week and 52 Week Stock Performances
Source: Capital IQ 11/8/2013
6
November 2013
Company
11/8/13
Close
% of 52
Week High
4 Week
Change
52 Week
Change Comments
$133.49 99.19% 13.15% 82.24%
Boeing projects FY 13 revenue of $83 B to $86 B, core earnings per
share of $6.50 - $6.65 and EPS of $5.40 - $5.55. Analysts FY 13
consensus was for $84 B in revenues and $6.52 EPS.
$138.11 99.97% 9.46% 53.49%
Lockheed Martin projects FY 13 net sales of $45.0 B, consolidated
operating profit of $4.625 B to $4.775 B and diluted EPS of $9.40-
$9.70. For FY 14, it projects a slight decline in net sales v. FY 13 while
its business segment operating margin remains above 11.5%.
$85.36 99.57% 11.98% 52.27%
Raytheon projects FY 13 net sales of $23.6 B to $23.8 B, EPS from
continuing operations of $5.67 to $5.77 and adjusted EPS of $6.10 to
$6.20. Analyst consensus was for $23.7 B in revenue and $5.66 EPS.
$101.50 98.80% 8.05% 36.30%
L-3 declared a $0.55 P/S quarterly cash dividend payable 12/16/13 to
S/H of record 11/18/13. Its Warrior Systems-ALST business recently
was awarded a contract to deliver Ground Laser Target Designators
(GLTD) to the Republic of Korea (ROK).
$51.90 100.00% 9.96% 73.64%
Curtiss-Wright acquired Arens Controls, LLC, Ovalpath, Inc., and
Parvus Corporation for a total $139 million in early October. The
acquisitions will operate within its Controls, Nuclear Group and
Controls segments, respectively.
$1,770.61 99.92% 3.96% 28.32% The S&P 500 and other major US stock indices continued to set new
market highs through November 2013.
Electronics Software and Engineering Services: 4 Week and 52 Week Stock Performances
Source: Capital IQ 11/8/2013
7
November 2013
Company
11/8/13
Close
% of 52
Week High
4 Week
Change
52 Week
Change Comments
$7.70 79.34% -14.40% 28.55%
Flextronics projects $6.9 B in 3Q 14 revenue and $0.25 in EPS.
Analysts consensus was for $6.8 B in revenue and $0.26 EPS.
$20.51 84.33% -6.73% 16.40%
Jabil Circuit projects 1Q 14 revenue of $4.35 B to $4.65 B, core
operating income $165 MM to $195 MM and core EPS of $0.50 to
$0.60, GAAP operating income should range from $110 MM to $140
MM with GAAP EPS ranging from $0.25 to $0.35.
$10.67 93.87% -3.12% 54.42%
Celestica projects 4Q 13 revenue of $1.4 B to $1.5 B, and adjusted
net EPS of $0.20 to $0.26. It expects a negative $0.06 to $0.13 P/S
pre-tax aggregate impact on net earnings on an IFRS basis for stock-
based compensation, amortization of intangible assets & restructuring.
$0.53 72.86% -11.50% 12.40%
A Finnish newspaper reported that Nokia Siemens Networks, the
Nokia Oyj/Siemens AG joint venture, plans to sell its manufacturing
assets to contract manufacturers in a tender to raise cash and release
working capital. Firms participating in the tender include: Flextronics,
Jabil Circuit, Foxconn Technology, Sanmina-SCI, among others.
$15.36 83.30% -10.23% 71.81%
Sanmina projected 4Q 13 revenue of $1.48 Billion to $1.525 B and
Non-GAAP diluted EPS of $0.37 to $0.43. Analyst consensus was for
4Q 13 revenue of $1.52 B and $0.40 in EPS.
$1,770.61 99.92% 3.96% 28.32% The S&P 500 and other major US stock indices continued to set new
market highs through November 2013.
Source: Capital IQ 11/8/2013
Electronics Software and Engineering Services: 4 Week and 52 Week Stock Performances
8
November 2013
Company
11/8/13
Close
% of 52
Week High
4 Week
Change
52 Week
Change Comments
$31.93 96.90% 8.16% 43.76%
CA Technologies increased its FY 14 guidance for revenue and GAAP
and non-GAAP earnings per share. For FY 2014, it expects GAAP
diluted EPS to decrease by -7% to -4% in constant currency. It
reported FY 13 revenue of $4.64 billion and EPS of $2.53.
$34.35 94.29% 3.28% 13.18%
Oracle acquired Cloud-based content marketing provider
Compendium, which helps companies plan, produce and deliver
engaging content across multiple channels throughout their
customers' lifecycles.
$42.76 99.05% 4.17% 38.20%
Autodesk agreed to acquire Graitec`s Advance Steel and Advance
Concrete product lines, and associated employees, to enhance its
structural engineering and expand its technology portfolio for Building
Information Modeling (BIM), structural fabrication and detailing.
$39.91 89.38% -3.99% 45.98%
NetApp projects 2Q 14 revenue of $1.56 B to $1.66 B, GAAP EPS of
$0.41 to $0.46 and Non-GAAP EPS of $0.60 to $0.65. Analyst
consensus expected $1.626 B revenues and $0.63 EPS for 2Q 14.
$79.28 79.64% -1.44% -9.49%
Juniper Networks expanded its partnership with VMware to deliver a
broad range of solutions unifying virtual and physical networks within
a virtualized data center environment, including VMware NSX(TM) L2
Gateway integration and VXLAN routing capabilities.
$1,770.61 99.92% 3.96% 28.32% The S&P 500 and other major US stock indices continued to set new
market highs through November 2013.
Source: Capital IQ 11/8/2013
Electronics Software and Engineering Services: 4 Week and 52 Week Stock Performances
9
November 2013
Company
11/8/13
Close
% of 52
Week High
4 Week
Change
52 Week
Change Comments
$8.85 67.66% -2.75% -19.55%
Guidance Software projects FY 13 revenue of $112 MM to $115 MM,
non-GAAP pre-tax losses of $0.50 P/S to $0.42 P/S, while analyst
consensus expectations were for $134 MM and a $0.07 P/S loss.
$64.45 82.90% -3.08% N/A
Siemens Energy Sector recently selected Tableau for its visual
analytics. Siemens employees will use Tableau Desktop and Server
to connect to live data and perform visual, rapid-fire analysis,
achieving faster, better decisions and insights.
$34.06 55.36% -3.76% -34.27%
Solarwinds reported that through its SolarWinds Worldwide, LLC
subsidiary, it agreed to merge and reorganization with Confio Corp. on
10/1/13. SolarWinds acquired Confio for $103 MM.
$3.30 89.43% 25.95% 13.01%
BSQUARE’s Brian Crowley stepped down as its president, CEO and
member of the Board of Directors on 9/30/13. Jerry Chase, who
joined Bsquare’s Board of Directors on 7/1/13 is serving as interim
CEO.
$1,770.61 99.92% 3.96% 28.32% The S&P 500 and other major US stock indices continued to set new
market highs through November 2013.
Source: Capital IQ 11/8/2013
Electronics Software and Engineering Services: 4 Week and 52 Week Stock Performances
10
November 2013
Company
11/8/13
Close
% of 52
Week High
4 Week
Change
52 Week
Change Comments
$520.56 87.55% 5.63% -4.84%
A Washington, DC federal appeals court handed Apple another patent
victory, reviving the iPhone maker's claims against Google's Motorola
Mobility unit over two smart phone touch screen patents. The ruling
could end up keeping Motorola from importing technology used in a
number of its Android smart phones.
$27.05 99.49% 10.86% 28.81%
GE's GE Money Bank, a Swiss consumer finance business, could be
valued at up to 1.53 billion Swiss francs or $1.67 B. GE Money Bank
expects to raise up to CHF1.05 billion from a share sale as GE
Capital sells up to 18 MM shares, or 60% of the Money Bank.
$23.51 88.76% 0.99% 39.77%
GE is partnering with Cisco Systems to expand an 'Industrial Internet'
service enabling customers to analyze data and predict outcomes.
The service helps customers analyze industrial data so large it is
difficult to process using traditional databases/software.
$93.79 98.82% 4.19% 37.18%
Schlumberger declared a $0.3125 P/S quarterly dividend on
outstanding common stock payable 1/10/14 to stockholders of record
at the close of business on 12/4/13.
$74.60 99.95% 7.43% 43.41%
Danaher projects 4Q 13 GAAP diluted net EPS of $0.91 to $0.96 and
reaffirms FY 13 adjusted diluted net EPS guidance of $3.37 to $3.42.
Analyst consensus expected 4Q 13 EPS of $0.96 and $3.40 EPS for
FY 13.
$1,770.61 99.92% 3.96% 28.32% The S&P 500 and other major US stock indices continued to set new
market highs through November 2013.
Source: Capital IQ 11/8/2013
Electronics Software and Engineering Services: 4 Week and 52 Week Stock Performances
11
November 2013 Capital Markets: Last 52 Weeks’ Market Index Performances
Source: Public Filings; Capital IQ as of 11/8/13
-50.00%
-30.00%
-10.00%
10.00%
30.00%
50.00%
70.00%
90.00%
S&P 500 Index Semiconductors Index Defense Electronics Index
EDS and Contract Manufacturers Index Large Cap Software Index Mid/Small Cap Software Index
Electronics Equipment Index
52 Weeks YTD 4 Weeks 1 Week
Semiconductors Index 15.03% 8.77% 1.39% -1.85%
Defense Electronics Index 66.75% 59.21% 11.77% 1.19%
EDS and Contract Manufacturers Index 25.54% 14.50% -10.26% -1.95%
Large Cap Software Index 13.01% -0.32% 2.42% 1.63%
Mid/Small Cap Software Index -18.10% -22.52% -3.21% 1.83%
Electronics Equipment Index 12.98% 9.33% 6.27% 1.27%
S&P 500 28.32% 21.07% 3.96% 0.51%
% Change
12
November 2013 Electronics Software and Engineering Services Industry Snapshot ($MM Except EPS)
Semiconductor
Index
Quarter Ending Consensus
Revenue
Consensus
EPS
Actual
Revenue
Actual EPS
Difference vs.
Est. Revenue
Difference vs.
Estimated EPS
9/28/2013 $13,457.4 $0.53 $13,483.0 $0.59 0.19% 11.20%
9/29/2013 $6,352.0 $1.08 $6,481.0 $0.88 2.03% -18.64%
9/30/2013 $3,222.4 $0.57 $3,244.0 $0.56 0.67% -0.81%
9/30/2013 $2,127.7 $0.69 $2,146.0 $0.55 0.86% -19.25%
9/28/2013 $2,046.3 $0.01 $2,013.0 -$0.16 -1.63% -1177.36%
Defense
Electronics
Index
Quarter Ending Consensus
Revenue
Consensus
EPS
Actual
Revenue
Actual EPS Difference vs.
Est. Revenue
Difference vs.
Estimated EPS
9/30/2013 $21,684.7 $1.55 $22,130.0 $1.53 2.05% -1.17%
9/29/2013 $11,137.2 $2.27 $11,347.0 $2.62 1.88% 15.34%
9/29/2013 $5,812.6 $1.34 $5,842.0 $1.51 0.51% 12.76%
9/27/2013 $3,068.5 $1.95 $2,996.0 $2.28 -2.36% 16.60%
9/30/2013 $613.1 $0.77 $600.7 $0.77 -2.02% -0.30%
Source: Public Filings; Capital IQ as of 11/8/13
13
November 2013
EDS/Contract
Manufactures
Index
Quarter Ending Consensus
Revenue
Consensus
EPS
Actual
Revenue
Actual EPS
Difference vs.
Est. Revenue
Difference vs.
Estimated EPS
9/27/2013 $6,279.2 $0.21 $6,410.1 $0.19 2.08% -7.78%
8/31/2013 $4,542.8 $0.56 $4,814.9 $0.63 5.99% 11.89%
9/30/2013 $1,489.5 $0.21 $1,491.9 $0.31 0.16% 48.11%
6/30/2013 $0.0 $0.00 $1,238.1 $0.00 N/A N/A
9/28/2013 $1,505.6 $0.40 $1,505.3 $0.46 -0.02% 16.62%
Large Cap
Software Index
Quarter Ending Consensus
Revenue
Consensus
EPS
Actual
Revenue Actual EPS
Difference vs.
Est. Revenue
Difference vs.
Estimated EPS
9/30/2013 $1,118.1 $0.72 $1,140.0 $0.53 1.96% -26.60%
8/31/2013 $8,477.1 $0.56 $8,372.0 $0.48 -1.24% -15.28%
7/31/2013 $560.9 $0.42 $561.7 $0.28 0.14% -34.09%
7/26/2013 $1,536.3 $0.49 $1,516.2 $0.23 -1.31% -52.84%
9/30/2013 $1,287.9 $0.82 $1,289.0 $0.61 0.09% -26.16%
Source: Public Filings; Capital IQ as of 11/8/13
Electronics Software and Engineering Services Industry Snapshot ($MM Except EPS)
14
November 2013
Mid/Small Cap
Software Index
Quarter Ending Consensus
Revenue
Consensus
EPS
Actual
Revenue
Actual EPS
Difference vs.
Est. Revenue
Difference vs.
Estimated EPS
9/30/2013 $28.2 -$0.12 $28.3 -$0.19 0.23% 65.27%
9/30/2013 $50.9 -$0.09 $61.1 $0.05 19.93% -157.14%
9/30/2013 $85.8 $0.36 $87.9 $0.30 2.43% -15.46%
6/30/2013 $0.0 $0.00 $21.8 -$0.07 N/A N/A
Electronics
Equipment
Index
Quarter Ending Consensus
Revenue
Consensus
EPS
Actual
Revenue
Actual EPS Difference vs.
Est. Revenue
Difference vs.
Estimated EPS
9/28/2013 $36,937.7 $7.96 $37,472.0 $8.31 1.45% 4.39%
9/30/2013 $36,048.6 $0.36 $35,725.0 $0.32 -0.90% -9.70%
7/27/2013 $12,433.4 $0.51 $12,417.0 $0.42 -0.13% -17.55%
9/30/2013 $11,576.5 $1.24 $11,608.0 $1.30 0.27% 4.36%
9/27/2013 $4,616.5 $0.83 $4,669.1 $0.86 1.14% 3.27%
Source: Public Filings; Capital IQ as of 11/8/13
Electronics Software and Engineering Services Industry Snapshot ($MM Except EPS)
15
November 2013
($ Millions) EDS and Contract Manufacturers’ Index
3x LTM EBITDA $2,821.68 $3,174.32 $613.80 -$151.26 $774.21
Plus Cash $1,127.07 $1,011.37 $546.80 $2,265.83 $402.88
Less LT Debt -$2,013.71 -$1,690.43 $0.00 $0.00 -$562.51
Estimated Liquidity $1,935.04 $2,495.26 $1,160.60 $2,114.57 $614.57
Company Liquidity Estimates by Subsector
Source: Capital IQ 11/8/2013
($ Millions) Semiconductors Index
3x LTM EBITDA $60,306.00 $25,734.00 $11,934.00 $3,924.00 $1,425.00
Plus Cash $4,881.00 $6,142.00 $1,435.00 $1,524.00 $1,434.00
Less LT Debt -$13,181.00 $0.00 -$4,161.00 -$1,394.00 -$619.00
Estimated Liquidity $52,006.00 $31,876.00 $9,208.00 $4,054.00 $2,240.00
($ Millions) Defense Electronics Index
3x LTM EBITDA $24,843.00 $15,807.00 $9,990.00 $4,683.00 $1,024.66
Plus Cash $10,041.00 $2,661.00 $2,942.00 $377.00 $171.36
Less LT Debt -$8,677.00 -$6,156.00 -$4,733.00 -$3,647.00 -$958.46
Estimated Liquidity $26,207.00 $12,312.00 $8,199.00 $1,413.00 $237.56
16
November 2013
($ Millions) Electronics Equipment Index
3x LTM EBITDA $167,268.00 $86,679.00 $41,595.00 $35,832.00 $12,704.40
Plus Cash $14,259.00 $10,202.00 $7,925.00 $3,149.00 $1,995.60
Less LT Debt -$16,960.00 -$226,872.00 -$12,928.00 -$9,916.00 -$3,445.50
Estimated Liquidity $164,567.00 -$129,991.00 $36,592.00 $29,065.00 $11,254.50
Source: Capital IQ 11/8/2013
($ Millions) Large Cap Software Index
3x LTM EBITDA $4,779.00 $48,777.00 $1,394.40 $2,669.10 $3,969.03
Plus Cash $2,790.00 $19,664.00 $1,401.00 $1,796.80 $2,263.00
Less LT Debt -$1,768.00 -$22,590.00 -$746.00 -$994.80 -$450.00
Estimated Liquidity $5,801.00 $45,851.00 $2,049.40 $3,471.10 $5,782.03
($ Millions) Mid/Small Cap Software Index
3x LTM EBITDA -$28.01 -$6.16 $446.75 $2.72
Plus Cash $16.80 $226.34 $182.83 $10.77
Less LT Debt $0.00 $0.00 $0.00 $0.00
Estimated Liquidity -$11.21 $220.18 $629.58 $13.50
Company Liquidity Estimates by Subsector
17
November 2013 Notable M&A Transactions
Source: Capital IQ as of 11/8/13
Closed Target/Issuer (Seller(s)) Buyers/Investors
Implied
EV ($ MM)
Implied
EV/Rev.
(x)
Implied
EV/EBITD
A (x) Industry
11/5/13 Nokia Microsoft International Holdings BV - - - Communications Equipment
10/31/13
RadioMobile (RF Industries
(NasdaqGM:RFIL)) - - - - Communications Equipment
10/28/13 W&D Holdings Limited Ultra Electronics Holdings (LSE:ULE) $11.29 - - Communications Equipment
10/10/13 BroadWeb Corp. Trend Micro (TSE:4704) - - - Communications Equipment
11/4/13 Empirix (Matrix Partners; Tenaya Capital) Thoma Bravo, LLC - - - Application Software
10/1/13
Acoustic Technologies (TWJ Capital;
Northport Investments) Cirrus Logic (NasdaqGS:CRUS) - - - Application Software
10/1/13 Radant Technologies Communications & Power Industries LLC - - - Aerospace and Defense
10/1/13
Sensory Networks (JAFCO Investment
(Asia Pacific); Technology Venture
Partners Pty. Ltd.; Accede Capital Pty.
Ltd.; The Individuals' Venture Fund; Xilinx
Technology Ventures) Intel Corp. (NasdaqGS:INTC) $20.00 - - Systems Software
9/25/13
IdenTrust (Polaris Financial Technology
Limited (BSE:532254)) Parallax Capital Partners; StepStone Group - - - Systems Software
11/1/13
Enterasys Networks (Enterprise Networks
Holdings) Extreme Networks (NasdaqGS:EXTR) $180.00 0.545 - Communications Equipment
8/28/13 Amplifier Technology Vislink (LSE:VLK) $6.20 - - Communications Equipment
8/30/13 Teradek Vitec Videocom $27.52 2.65 - Communications Equipment
10/1/13
Volterra Semiconductor Corp. (Invesco
(NYSE:IVZ))
Maxim Integrated Products
(NasdaqGS:MXIM) $445.31 2.84 20.13 Semiconductors
7/29/13
The Portland Group (STMicroelectronics
(ENXTPA:STM)) NVIDIA Corp. (NasdaqGS:NVDA) - - - Systems Software
10/7/13
Sourcefire (Sequoia Capital; T. Rowe Price
Group (NasdaqGS:TROW); BlackRock
(NYSE:BLK)) Cisco Systems (NasdaqGS:CSCO) $2,193.57 8.87 118.76 Systems Software
18
November 2013 Notable M&A Transactions
Source: Capital IQ as of 11/8/13
Closed Target/Issuer (Seller(s)) Buyers/Investors
Implied
EV ($ MM)
Implied
EV/Rev.
(x)
Implied
EV/EBITD
A (x) Industry
7/12/13 Omek Interactive (Intel Capital) Intel Corp. (NasdaqGS:INTC) $40.00 - - Systems Software
7/9/13 American Arium ASSET InterTech - - - Systems Software
7/8/13
TrustedID (Draper Fisher Jurvetson; Draper
Richards; Western Technology
Investment; Opus Capital; University
Venture Fund) Equifax (NYSE:EFX) - - - Systems Software
7/16/13
iWatt (Sigma Partners; VantagePoint
Capital Partners; Horizon Ventures;
Samsung Venture Investment Corp.; PAC-
LINK Management Corp.) Dialog Semiconductor (XTRA:DLG) $345.00 4.66 - Semiconductors
7/26/13
Exacq Technologies (CID Capital; KB
Partners) Tyco International (NYSE:TYC) $150.00 2.73 - Systems Software
7/15/13
Veramark Technologies (Glacier Peak
Capital) Hubspoke Holdings $11.65 0.749 11.57 Application Software
7/1/13
IPtronics A/S (Creandum AB; Sunstone
Capital A/S; 10i10 ApS) (Evli Bank plc;
Ilmarinen Mutual Pension Insurance Mellanox Technologies (NasdaqGS:MLNX) $47.50 - - Semiconductors
7/10/13
Stonesoft Oyj (HLSE:SFT1V) (AB,
Investment Arm; Nordea Bank Finland Plc) McAfee $375.31 6.98 - Systems Software
7/31/13
Elpida Memory (Kingston Technology
Company; Development Bank of Japan;
Concord Venture Capital; Senshu Ikeda
Capital) Micron Technology (NasdaqGS:MU) $2,519.68 0.642 6.01 Semiconductors
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November 2013 McLean Group Introduction
Mergers & Acquisitions
The McLean Group uses its considerable experience and
expertise in a wide range of industries to guide its clients
through each stage of the M&A process and ultimately
identify the most probable and suitable candidates to
complete transactions under the most favorable terms.
Market Intelligence
By leveraging superior competitive analysis, The McLean
Group provides business executives with comprehensive
market intelligence studies incorporating the requisite
market insights and analytical expertise to reduce risk and
uncertainty in M&A and strategic decision-making.
Capital Formation
The McLean Group arranges private equity, venture capital,
senior debt and subordinated debt to support clients’
expansions, mergers & acquisitions (M&A), refinancings,
recapitalizations, leveraged buyouts, and other shareholder
liquidity objectives.
Business Valuation & Litigation Support
As a core competency and complement to its M&A
business, The McLean Group provides business valuation
services, including intangible asset and financial security
valuations for a variety of transactions, financial reporting
and tax purposes. In addition, the McLean Group has the
experience and credentials necessary to support litigation
proceedings, including quantifying economic damages and
valuing a minority interest in a business.
McLean Securities, a wholly-owned affiliate of The McLean Group, is a registered broker/dealer with the Financial Industry Regulatory
Authority (FINRA) and a Member, Securities Investor Protection Corporation (SIPC).
Founded in 1997, The McLean Group is a national, middle market investment bank with deep expertise in a variety of industry
verticals. Headquartered in McLean, VA, The McLean Group is among the largest independent middle market investment
banks in the region. Our core advisory services include:
20
November 2013 Recent Technology Advisory Experience – M&A
21
November 2013 Recent Technology Advisory Experience – Valuation Services
22
November 2013
The McLean Group
7900 Westpark Drive, Suite A320
McLean, VA 22102
Main: 703.827.0200
Fax: 703.827.0175
Joe Golden
Principal
703.752.9018
Brent Lorenz
Vice President
301.455.1833
Vippy Bhambra
Director
410.440.3189
Greg Boucher
Managing Director
410.347.3818
Kathleen Crow
Managing Director
703.827.0200, ext. 128
Stephen Findlay
Managing Director
814.464.3749
Sue Keil
Vice President
703.752.9025
Tom Swanson
Managing Director
703.752.9014
Shari Overstreet
Managing Director
512.687.3485
Technology & Telecommunications Team
Team Members