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FINTECHSECTOR REPORTOctober 2017
2
Strong sector and product expertise across FinTech and related sub-sectorsGCA OVERVIEW
New York640 Fifth Avenue, 10th Fl.
New York, NY 10019United States
Phone: (212) 999-7090
San FranciscoOne Maritime Plaza, 25th Fl.
San Francisco, CA 94111United States
Phone: (415) 318-3600
Sean MinnihanManaging Director
Head of FinTechPhone: (212) 999 - 7077Mobile: (917) 364 - 6230
Rob FreimanDirectorFinTech
Phone: (212) 999 - 7075Mobile: (973) 229 - 0436 [email protected]
Kegan GreeneVice President
FinTechPhone: (415) 318 - 3648Mobile: (917) 579 - 4838 [email protected]
David KruegerVice President
FinServicesPhone: (212) 537 - 4534Mobile: (616) 822 - [email protected]
Steve FletcherManaging DirectorHead of Software
Phone: (415) 318 - 3661Mobile: (415) 518 - [email protected]
Peter BangManaging DirectorHead of FinServicesPhone: (212) 999 - 7074Mobile: (917) 783 - [email protected]
Chris GoughManaging Director
M&A/Real Estate Tech.Phone: (415) 318 - 3658Mobile: (415) 385 - [email protected]
3
A leading independent, global investment bankGCA OVERVIEW
San Francisco I New York I Manchester I London I Milan I Zurich I Frankfurt I Munich I Tel Aviv I Mumbai I New Delhi I Singapore I Shanghai I Osaka I Tokyo
GLOBAL
Global reach with 15 offices in 10 key markets – but deep local roots ensure close, hands-on support for our clients
TECH &INTERNET
Leading advisor in Tech and Internet sectors with strong networks in key tech hubs, including Silicon Valley
CROSS-BORDER
Expert advisor for cross-border transactions – the majority of our deals involve cross-border outcomes
GROWTHCOMPANIES
Strong expertise in advising growth companies and leading corporations in capital raising and M&A
400+
Over 400 M&A bankers and growth company experts in the U.S., in Europe and across Asia
350+
Over 350 deals closed in last 3 years, of which 33% were cross border
4
Selected recent FinTech experienceGCA OVERVIEW
We Advised the Seller
Acquired by
We Advised the Buyer
Acquisition of
We Advised the Seller
Acquired by
We Advised the Seller
Acquired byStrategic Investment
We Advised ControlExpertFinancial Advisor
Series C Financing
Sale of
Financial Advisor
to
Payments Banking & Lending Tech Payments Insurance Technology Payments Payments Real Estate Tech
We Advised the Buyer
Acquired bySale of 54% stake in
We Advised GP Net
to
Financial Advisor
Series B Financing
We Advised the Seller
Acquired by
Investor Group led by Casin Group
We Advised the Buyer
Acquisition of
We Advised the Seller
Acquired by Series A Financing
Financial Advisor
Payments IT & BPO Services Insurance Technology Information Services Payments Payments Liquidity Venues
Acquired by
We Advised the SellerWe Advised the Seller
Acquired by Acquired by
We Advised the Seller We Advised the Seller
Acquired by
We Advised the Seller
Growth Investmentfrom
Financial Advisor
Convertible NoteOffering
We Advised the Seller
Majority sale to
Information Services Insurance Technology Payments Real Estate Tech Insurance Technology Banking & Lending Tech Real Estate Tech
We Advised the Seller
Acquired by
We Advised the Buyer
Acquisition of
Lead Generation Business
Acquired by
We Advised the Seller
sold its investment in
to the shareholders of
We Advised the Seller
Acquired by
We Advised the Seller
Insurance Technology Insurance Technology Insurance Technology Insurance Technology Insurance Technology
5
Select October Financing Transactions Percent Change Select October M&A Transactions
Date Company Selected Investors Amount Sub-Sector Subsector LTM 3 Years Date Target Buyer Value Sub-Sector
10/31/17 $115 32% 56% 10/27/17 $640
10/24/17 $324 26% 45% 10/26/17 $222
10/20/17 $144 33% 55% 10/20/17 $760
10/18/17 $166 20% 41% 10/18/17 $2,500
10/13/17 $203 18% 57% 10/17/17 $1,000
10/10/17 $100 33% 41% 10/2/17 $1,111
Quarterly Financing Activity ($Bn) 16% 14% Quarterly M&A Activity ($Bn)
23% 26%
37% 56%
23% 35%
44% 56%
Average Deal Size ($MM) Average Deal Size ($MM)
$89 Bn | 995 DealsLTM M&A Volume
Aggregate FinTech Market 28% 44%
S&P 500 19% 11%
$25 Bn | 1,627 DealsLTM Financing Volume Industry Stock Market Performance
$17 $18 $24
$14
$23
$13
$32
$7
Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Oct-17
$10 $9
$6 $4 $4
$9
$5 $3
Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Oct-17
Real Estate & Mortgage Tech.
Benefits Administration/Payroll
Information Services
Investment Technology
Trading Technology
Banking & Lending Technology
Insurance Technology
Financial SaaS
IT & BPO Services
Payments
Liquidity Venues
3
1
5
9
7
6
4
1
2
8
9
7
6
5
4
3
10
11
8
9
9
9
436
377408
368
328
369
397264
244
195201
235
222 216
156
$12.6$23.9$10.8$12.2$16.3$22.1$22.9 $18.6
121
$148$58.6$97.9$69.7$123$73.8$64.4 $57.9
11
FINTECH DEAL DASHBOARD
Notes:Source: Pitchbook. CapIq. GCA Deal Database.Market data as of 10/31/17.(1) Includes private company equity financings.(2) Represents weighted average by market cap.
The FinTech market is trading at 28% over the LTM period, as compared to 19% for the S&P 500. Financing volume YTD ‘17 is at 84% of total ‘16 volume, while capital raised YTD ‘17 is at 72% of total ‘16 capital raised
(1)
(1)
(2)
6
FINTECH PUBLIC COMPANY LANDSCAPEFinTech subsectors and key operating stats ($Bn)
Insurance Technology
Benefits Administration/Payroll Financial SaaS
Investment Technology
Banking & Lending Technology
Combined Market Cap.: $16017E/16A Rev. Growth: 10.5%
17E EBITDA Margin: 26.3%
Information Services
Combined Market Cap.: $10017E/16A Rev. Growth: 17.6%
17E EBITDA Margin: 19.9%
Combined Market Cap.: $9817E/16A Rev. Growth: 45.7%
17E EBITDA Margin: 26.7%
Combined Market Cap.: $24617E/16A Rev. Growth: 13.8%
17E EBITDA Margin: 25.1%
Combined Market Cap.: $3017E/16A Rev. Growth: 9.9% 17E EBITDA Margin: 11.4%
Combined Market Cap.: $31817E/16A Rev. Growth: 7.4% 17E EBITDA Margin: 30.8%
Notes:Source: CapIq.Revenue growth and EBITDA margins shown are median values for comp group.Market data as of 11/9/17.
1 2 3
4 5 6
7
FINTECH PUBLIC COMPANY LANDSCAPE (CONT’D)(3)
FinTech subsectors and key operating stats ($Bn)
Liquidity Venues PaymentsIT & BPO Services
Combined Market Cap.: $57417E/16A Rev. Growth: 10.2%
17E EBITDA Margin: 16.8%
Combined Market Cap.: $81517E/16A Rev. Growth: 14.4%
17E EBITDA Margin: 26.7%
Combined Market Cap.: $23317E/16A Rev. Growth: 9.9%17E EBITDA Margin: 58.7%
Notes:Source: CapIq.Revenue growth and EBITDA margins shown are median values for comp group.Market data as of 11/9/17.
7 8 9
Real Estate & Mortgage Tech.
Combined Market Cap.: $20117E/16A Rev. Growth: 11.3%
17E EBITDA Margin: 18.6%
Trading Technology
Combined Market Cap.: $12517E/16A Rev. Growth: 12.3%
17E EBITDA Margin: 29.4%
10 11
8
FINTECH STOCK PRICE PERFORMANCE
3 Year Share Price Performance
LTM Share Price Performance
Notes:Source: CapIq. Market data as of 10/31/17.
Trading tech leads the pack on an LTM basis, while insurance tech has outperformed over the past three years
6) Investment Technology
11) Trading Technology
1) Banking & Lending Technology
2) Benefits Administration/Payroll
3) Financial SaaS 5) Insurance Technology
4) Information Services
7) IT & BPO Services 8) Liquidity Venues 9) Payments 10) Real Estate & Mortgage Technology
9
FINTECH PUBLIC COMPANY VALUATIONLiquidity venues have outperformed the rest of the FinTech market on both an EV/ LTM revenue and EV/ NTM revenue basis
Notes:Source: CapIq.Market data as of 10/31/17.Lines display median multiples across comp groups for given year.
Enterprise Value / LTM RevenueEnterprise Value / LTM Revenue
Median Revenue Growth to EV / NTM Revenue MultipleEnterprise Value / NTM Revenue
1
2
3
4
56
7
8
9
10
11
3.5x 3.8x 4.0x4.6x
3.5x 3.8x 3.8x4.3x
6) Investment Technology
11) Trading Technology
1) Banking & Lending Technology
2) Benefits Administration/Payroll
3) Financial SaaS 5) Insurance Technology
4) Information Services
7) IT & BPO Services 8) Liquidity Venues 9) Payments 10) Real Estate & Mortgage Technology
10
FINTECH PUBLIC COMPANY VALUATION (CONT’D)Financial SaaS has outperformed the rest of the FinTech market on both an EV/ LTM EBITDA and EV/ NTM EBITDA basis
Notes:Source: CapIq.Market data as of 10/31/17.Lines display median multiples across comp groups for given year.
Enterprise Value / LTM EBITDAEnterprise Value / LTM EBITDA
Median EBITDA Growth to EV / NTM EBITDA MultipleEnterprise Value / NTM EBITDA
1
23
4
5
6
7 8
910
11
15.1x 15.4x 15.6x
17.2x
12.8x 13.0x 12.8x15.2x
6) Investment Technology
11) Trading Technology
1) Banking & Lending Technology
2) Benefits Administration/Payroll
3) Financial SaaS 5) Insurance Technology
4) Information Services
7) IT & BPO Services 8) Liquidity Venues 9) Payments 10) Real Estate & Mortgage Technology
11
Investment Technology6
Real Estate & Mort. Tech10
Long-term growth is not necessarily correlated with FinTech public company P/E multiples or PEG ratiosFINTECH PUBLIC COMPANY VALUATION (CONT’D)
Notes: Figures represent medians of sub-sectors.Market data as of 11/9/17.Long-term EPS growth covers last 5 years.
21.6%
17.3%
15.0%
12.6%
17.3%
15.7%
12.0%
11.0%
8.7%
15.0%
13.5%
2.3
2.2
2.9
2.2
1.4
2.1
1.8
2.1
2.8
1.5
1.5
2017E P/E Multiple 2017E PEG Ratio
Long-Term EPS Growth
Banking & Lending Tech1
Benefits Admin/Payroll2
Financial SaaS3
Information Services4
Insurance Technology5
IT & BPO Services7
Liquidity Venues8
Payments9
Trading Technology11
12
SELECTED RECENT GROWTH EQUITY & VC ACTIVITY
Date
Announced Target Investors Type Amount ($MM) Sub-Sector
Notes: Source: CapIq. Pitchbook.Selected deals from last calendar month.
10/31/17Bezos Expeditions, Chase Franklin, Chris DeVore, DN Capital, Draper Fisher
Jurvetson, FundersClub, International Finance Corporation, PayUSeries D $115
10/31/17 Insight Venture Partners, Undisclosed Series E $25
10/30/17 Fosun International Limited NA $14
10/25/17Camp One Ventures, Globespan Capital Partners, IA Capital Group, Inventus
Capital Partners, Menlo Ventures, Plug and Play VenturesSeries E $27
10/25/17 Mainsail Partners NA $36
10/24/17 The Intercontinental Exchange (ICE) NA $324
10/24/17Accel Partners, Alumni Ventures Group, Aspect Ventures, Fenway Summer
Ventures, GDP Venture, Mission Holdings, Pelion Venture Partners SparkLabs Series B $12
10/24/17 Mainsail PartnersGrowth Equity
$42
10/24/17China Soft Capital, Chuanrong Capital, CreditEase, IDG Capital, Jiaxing Leader
Fund, National SMEs Development Fund, Tendence Capital, THG VenturesSeries B $30
10/24/17ABN AMRO Bank, ABN Amro Capital, Creades, Nordea Bank, Nordnet, SEB
Venture Capital, Skandinaviska Enskilda Banken, Sunstone CapitalSeries C $16
10/24/17 Accel Partners, Elaia Partners, General Catalyst, Iris Capital Series B $28
10/23/17 Global Founders Capital NA $40
10/23/17American Express Ventures, Arbor Ventures, Blockchain Capital, Boost VC,
Carthona Capital, Digital Currency Group, First Round Capital, Foxconn Series B $16
10/23/175square Committed Capital, Arthur Kosten, Holtzbrinck Ventures, Initial
Capital, Orange Growth Capital, Thierry Schaap, Velocity CapitalSeries C $12
10/20/17 Metrobank, ANZ Funds NA $144
10/18/17Accel Partners, Caisse de depot et placement du Quebec, iNovia Capital,
Investissement Quebec, Silicon Valley BankSeries D $166
10/18/17AID Partners, David Friedberg, Financial Solutions Lab, J.P. Morgan Partners,
Jason Rubin, Jonathan Kraft, Justin Yoshimura, Mark CubanSeries A $13
10/18/17e.Bricks Digital, Ed Baker, Endeavor Catalyst, International Finance Corporation,
Kaszek Ventures, Mark Goines, Omidyar NetworkSeries D $39
10/18/17CoVenture, MHS Capital, Refactor Capital, Metamorphic Venture, 500 StartUps,
Sam Hodges, Jake Gibson, Al Hamra GroupNA $103
10/17/17Cowboy Ventures, Foundation Capital, Noah Holdings, Renren Lianhe Holdings,
Ribbit Capital, Sberbank, SURA Ventures, Undisclosed AngelaSeries C - III $57
Payments
IT & BPO Services
Investment Technology
Banking & Lending Technology
Real Estate & Mortgage Tech.
Liquidity Venues
Payments
Financial SaaS
Financial SaaS
Banking & Lending Technology
Insurance Technology
Real Estate & Mortgage Tech.
Payments
Trading Technology
Payments
Financial SaaS
Banking & Lending Technology
Banking & Lending Technology
Banking & Lending Technology
Banking & Lending Technology
13
SELECTED RECENT GROWTH EQUITY & VC ACTIVITY (CONT’D)
Date
Announced Target Investors Type Amount ($MM) Sub-Sector
Notes: Source: CapIq. Pitchbook.Selected deals from last calendar month.
10/17/17Amazon, Eight Roads Ventures, Experian, Mousse Partners, Sequoia Capital
India, Walden InternationalSeries D $30
10/17/17 Sapphire Ventures, Undisclosed Series C $50
10/16/17ABN AMRO Bank, Accenture, Australian Securities Exchange, BNP Paribas
Private Equity, Broadridge Financial Solutions, Citigroup, CME GroupSeries B $40
10/13/17 The Clermont Group, Toscafund, Coltrane Asset Management NA $203
10/12/17ABG Capital, IDG Ventures India, Info Edge, Intel Capital, Inventus Capital
Partners, MakeSense Technologies, PremjiInvest, Ribbit Capital, Steadview Series E $77
10/12/17Commerce Ventures, CreditEase, Industry Ventures, Nyca Partners,
Undisclosed InvestorsSeries A $13
10/12/17Nokia Growth Partners, Intel Capital, Sequoia Capital, Moody's Corporation,
AXA Strategic Ventures, Boldstart Ventures, Two Sigma VenturesSeries C $28
10/10/17American Express Ventures, August Capital, Bank of America, Citi Capital
Advisors, Commerce Ventures, DCM Ventures, Emergence Capital Partners, Series G $100
10/9/17Access Industries, Finstar Financial Group, Heartland Bank, Holtzbrinck
Ventures, Kreos Capital, Rocket Internet, Undisclosed InvestorsSeries C $26
10/5/17Andy Palmer, Braughm Ricke, Draper Associates, Draper Fisher Jurvetson,
Elefund, Expansion VC, Industry Ventures, K9 Ventures, Kima VenturesSeries C $42
10/5/17Benzinga Global Fintech Awards, Foundation Capital, Founder Collective, Highland Capital Partners, Index Ventures, Starr Companies, Two Sigma
Series B $19
10/5/17Horizons Ventures, Munich Re/HSB Ventures, Plug and Play Accelerator, Plug and Play Ventures, Sompo Holdings, Tusk Ventures, Undisclosed Investors, XL
Series A $12
10/4/17 Brightbridge Ventures, Legal & General Group Series B $47
10/4/17Andrew Hodson, Cambridge Angels, Cambridge Capital Group, Highland
Europe, Invoke Capital, Mike Lynch, Nesta Investment ManagementSeries C $22
10/4/17Bain Capital Ventures, Canvas Ventures, FJ Labs, Great Oaks Venture Capital,
Grey Wolf, Hone Capital, Khosla Ventures, Lightspeed Venture Partners, Marc Series C $35
10/4/17 Zeev Ventures, Lightspeed Venture Partners Series A $27
10/3/17Rakuten Capital, Draper Espirit, Talis Capital, Emery Capital, Rubicon Venture
CapitalSeries A $36
10/2/17 A-CAP NA $12
10/2/17 Undisclosed NA $38
10/2/17 Long Arc Capital, Bpifrance NA $62
Median $36
Banking & Lending Technology
IT & BPO Services
Financial SaaS
Banking & Lending Technology
Insurance Technology
Payments
IT & BPO Services
Financial SaaS
Banking & Lending Technology
Financial SaaS
Insurance Technology
Insurance Technology
Benefits Administration/Payroll
IT & BPO Services
Real Estate & Mortgage Tech.
Benefits Administration/Payroll
Insurance Technology
Insurance Technology
Payments
IT & BPO Services
14
SELECTED RECENT PUBLIC EQUITY AND DEBT FINANCINGS
Offer
Date Issuer Ticker Type Amount ($MM) Offer Price Price to Date Sub-Sector
Notes: Source: CapIq. Pitchbook.Price to Date as of 11/6/17.Selected financings from last calendar month.
10/30/17 NYSE:TRU Follow On $394 $52.35 3%
10/26/17 NYSE:DFS Follow On $570 NA NA
10/25/17 NYSE:SCHW Follow On $500 NA NA
10/20/17 ASX:ESV Follow On $31 $0.12 22%
10/3/17 AIM:EPO Follow On $33 $0.27 (10%)
Median $394 NM 3%
Information Services
Payments
Trading Technology
Payments
Payments
Offer
Date Issuer Use of Funds S&P Moody's Amount ($MM) Coupon Sub-Sector
10/30/17 General Corporate Purposes BBB- NA $3 3.15%
10/30/17 General Corporate Purposes BBB- NA $2 4.00%
10/23/17General Corporate Purposes,
Working CapitalNA NA $1,498 2.20%
10/23/17General Corporate Purposes,
Working CapitalNA NA $500 NA
10/23/17General Corporate Purposes,
Working CapitalNA NA $1,649 3.00%
10/13/17 General Corporate Purposes NA NA $118 0.21%
Median $309
Security Rating at Issuance
Payments
Payments
Payments
Payments
Payments
Liquidity Venues
15
SELECTED RECENT M&A ACTIVITY
Notes: Source: CapIq. Pitchbook.Selected deals >$50MM.
Date Enterprise EV / Revenue EV / EBITDA
Announced Acquirer Target Value ($MM) LTM LTM Sub-Sector
10/27/2017 $640 9.5x 18.3x
10/26/2017 $222 4.7x 20.5x
10/24/2017 $400 NA NA
10/20/2017 $760 NA NA
10/19/2017 $275 NA NA
10/19/2017 $150 NA NA
10/18/2017 $2,500 NA NA
10/17/2017 NA NA NA
10/17/2017 $1,000 3.4x 46.0x
10/10/2017 $100 4.5x NA
10/6/2017 $275 NA NA
10/5/2017 $155 NA NA
10/3/2017 $105 NA NA
10/2/2017 $1,111 25.7x NA
Median 4.7x 20.5x
Trading Technology
Payments
Trading Technology
Payments
IT & BPO Services
Banking & Lending Technology
IT & BPO Services
Information Services
Payments
Insurance Technology
Banking & Lending Technology
Payments
Investment Technology
Payments
16
PUBLIC COMPANY VALUATIONS
Bene
fits
Adm
in/P
ayro
llBa
nkin
g &
Len
ding
Tec
hnol
ogy
Notes: Source: CapIq. Pitchbook.Multiples based on CapIq Consensus Estimates. Multiples <0 and >100 considered NM.
Fina
ncia
l Saa
S
$MM, Except Per Share Data
Stock EPS Operating Metrics Trading MetricsPrice Equity Enterprise Long Term Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA Price / EPS
11/9/17 Value Value Growth PEG 17E/16A NTM 17E/16A NTM 17E 17E 18E 17E 18E 17E 18EBanking & Lending TechnologyFidelity National Information Services, Inc. $92.52 $30,890 $39,383 11.9% 1.8 (0.8%) (0.9%) 33.1% 5.8% 33.0% 4.3x 4.3x 13.0x 12.3x 21.0x 19.0x Intuit Inc. $152.41 $38,861 $38,572 14.7% 2.3 10.5% 9.9% 40.6% 10.1% 37.0% 7.2x 6.5x 19.4x 17.7x 34.1x 30.1x First Data Corporation $16.75 $15,468 $36,553 10.0% 1.1 4.0% 5.4% 14.4% 7.5% 25.4% 3.0x 2.9x 12.0x 11.2x 11.0x 10.7x Fiserv, Inc. $128.88 $26,859 $31,645 11.5% 2.2 2.9% 5.9% 18.6% 6.7% 36.0% 5.6x 5.3x 15.5x 14.5x 25.4x 22.4x Wolters Kluwer N.V. $49.40 $13,946 $16,542 8.5% 2.2 14.0% 3.3% 18.7% 2.4% 27.2% 3.2x 3.2x 11.8x 11.5x 18.8x 17.6x Temenos Group AG $121.03 $8,507 $8,785 15.3% 3.2 14.9% 15.1% 51.8% 18.1% 34.9% 12.1x 10.8x 34.6x 29.3x 48.9x 41.2x Jack Henry & Associates, Inc. $113.96 $8,801 $8,697 11.0% 3.2 5.2% 5.8% 4.1% 5.7% 35.0% 5.9x 5.6x 16.9x 16.0x 35.7x 33.4x Black Knight, Inc. $43.05 $2,962 $4,362 14.2% 2.2 3.1% 7.9% 47.4% 11.5% 47.9% 4.1x 3.8x 8.6x 7.7x 31.3x 26.6x ACI Worldwide, Inc. $23.15 $2,745 $3,371 11.0% 3.4 1.4% (0.3%) NA 8.0% 25.0% 3.3x 3.2x 13.2x 12.2x 37.3x 35.0x Ellie Mae, Inc. $86.84 $2,998 $2,632 13.2% 4.3 14.5% 18.0% 62.8% 16.7% 28.9% 6.4x 5.3x 22.1x 18.9x 56.7x 52.1x Q2 Holdings, Inc. $42.65 $1,777 $1,688 NM NM 29.1% 22.8% NA NA 5.0% 8.7x 7.0x NM 85.6x NM NMCoupa Software Incorporated $33.33 $1,787 $1,578 NM NM 33.4% 24.8% NA NA NA 8.8x 7.1x NM NM NM NMLendingClub Corporation $4.29 $1,780 $1,402 27.7% NM 15.7% NA NA NA 8.2% 2.4x 1.9x 29.7x 11.9x NM 23.0x Bottomline Technologies (de), Inc. $33.30 $1,264 $1,323 16.0% 1.9 5.6% 7.0% NA 7.3% 22.9% 3.6x 3.4x 15.9x 14.9x 31.1x 29.1x On Deck Capital, Inc. $5.01 $369 $1,030 NM NM 19.8% NA NA NA 1.7% 3.0x 2.7x NM 31.9x NM 18.8x Elevate Credit, Inc. $7.20 $301 $724 NM NM 16.1% 21.5% 78.9% 69.7% 14.1% 1.1x 0.9x 7.6x 4.5x 23.9x 7.1x Computer Services, Inc. $47.50 $663 $626 NM NA NA NA NA NA NA NA NA NA NA NA NAPerformant Financial Corporation $1.80 $92 $109 NM NM (8.8%) NA NA NA 6.2% 0.8x 0.9x 13.6x 42.7x NM NM
Median 12.6% 2.2 10.5% 7.4% 36.9% 7.7% 26.3% 4.1x 3.8x 14.6x 14.7x 31.2x 24.8x
Benefits Administration/PayrollAutomatic Data Processing, Inc. $111.97 $49,658 $49,312 10.5% 2.8 5.7% 7.1% (4.7%) 11.4% 20.4% 3.9x 3.6x 18.9x 17.0x 29.7x 27.5x Paychex, Inc. $64.76 $23,270 $22,959 8.1% 3.5 5.6% 6.9% 7.6% 6.7% 43.6% 7.1x 6.7x 16.3x 15.3x 28.1x 26.3x The Ultimate Software Group, Inc. $196.91 $5,883 $5,754 23.3% 2.3 19.6% 17.9% NA 27.5% 23.0% 6.2x 5.2x 26.8x 21.0x 54.5x 43.4x Paycom Software, Inc. $78.48 $4,573 $4,540 28.1% 2.2 31.3% 26.4% 95.2% 25.4% 30.7% 10.5x 8.4x 34.2x 27.3x 62.3x 50.9x TriNet Group, Inc. $41.72 $2,899 $3,067 NM NM NA NA NA 1.4% 34.6% 3.8x 3.7x 11.0x 10.9x 20.9x 20.8x HealthEquity, Inc. $50.77 $3,071 $2,861 28.3% 2.6 27.3% 24.2% 52.2% 27.5% 36.5% 12.6x 10.2x 34.6x 27.1x 75.0x 59.2x Paylocity Holding Corporation $47.85 $2,513 $2,415 28.9% 2.2 26.1% 22.5% NA 27.3% 19.9% 7.3x 5.9x 36.5x 28.7x 62.8x 49.5x Insperity, Inc. $105.55 $2,200 $2,016 16.5% 1.4 11.7% 10.9% 45.7% 14.3% 5.3% 0.6x 0.6x 11.5x 10.1x 22.4x 19.9x WageWorks, Inc. $61.35 $2,432 $1,784 15.0% 2.3 31.7% 10.8% NA 14.3% 30.4% 3.7x 3.4x 12.2x 10.7x 34.5x 31.3x Benefitfocus, Inc. $25.35 $793 $858 20.0% NM 9.9% 7.5% NA 47.1% 7.4% 3.3x 3.0x 45.3x 30.8x NM NMCastlight Health, Inc. $3.75 $502 $420 25.0% NM 28.6% 24.9% NA NA NA 3.2x 2.6x NM NM NM NM
Median 21.6% 2.3 22.8% 14.4% 45.7% 19.9% 26.7% 3.9x 3.7x 22.9x 19.0x 34.5x 31.3x
Financial SaasIntuit Inc. $152.41 $38,861 $38,572 14.7% 2.3 10.5% 9.9% 40.6% 10.1% 37.0% 7.2x 6.5x 19.4x 17.7x 34.1x 30.1x Workday, Inc. $106.15 $22,079 $20,530 34.0% NM 34.0% 26.6% NA 41.3% 15.2% 9.8x 7.8x 64.2x 45.4x NM 96.2x The Sage Group plc $9.85 $10,637 $11,060 10.9% 2.3 10.0% 10.0% 12.0% 12.6% 29.1% 4.9x 4.5x 17.0x 15.1x 25.0x 22.2x SS&C Technologies Holdings, Inc. $40.01 $8,236 $10,350 15.0% 1.4 13.1% 6.6% 34.4% 10.8% 41.2% 6.2x 5.9x 15.0x 13.5x 20.8x 18.3x Paycom Software, Inc. $78.48 $4,573 $4,540 28.1% 2.2 31.3% 26.4% 95.2% 25.4% 30.7% 10.5x 8.4x 34.2x 27.3x 62.3x 50.9x Xero Limited $23.20 $3,186 $3,128 NM NM 42.7% 16.9% NA NA 2.6% 11.5x 8.6x NM 68.4x NM NMEnvestnet, Inc. $53.10 $2,353 $2,563 16.2% 2.5 17.6% 15.8% NA 27.9% 17.9% 3.8x 3.3x 21.0x 16.4x 40.8x 32.5x Paylocity Holding Corporation $47.85 $2,513 $2,415 28.9% 2.2 26.1% 22.5% NA 27.3% 19.9% 7.3x 5.9x 36.5x 28.7x 62.8x 49.5x Alfa Financial Software Holdings PLC $6.30 $1,890 $1,864 NM NM 23.3% 3.9% NA NA NA 16.7x 14.7x NA NA 44.9x 38.4x Coupa Software Incorporated $33.33 $1,787 $1,578 NM NM 33.4% 24.8% NA NA NA 8.8x 7.1x NM NM NM NMFinancial Engines, Inc. $27.08 $1,714 $1,517 13.0% 1.5 13.4% 8.7% NA 6.3% 32.9% 3.2x 3.0x 9.6x 9.0x 19.7x 18.4x Blucora, Inc. $19.85 $916 $1,200 18.5% 0.8 10.5% 6.3% 27.6% 18.5% 19.8% 2.4x 2.2x 12.0x 10.1x 14.3x 11.2x Benefitfocus, Inc. $25.35 $793 $858 20.0% NM 9.9% 7.5% NA 47.1% 7.4% 3.3x 3.0x 45.3x 30.8x NM NM
Median 17.3% 2.2 17.6% 10.0% 34.4% 22.0% 19.9% 7.2x 5.9x 20.2x 17.7x 34.1x 31.3x
17
PUBLIC COMPANY VALUATIONS
Info
rmat
ion
Serv
ices
Notes: Source: CapIq. Pitchbook.Multiples based on CapIq Consensus Estimates. Multiples <0 and >100 considered NM.
Insu
ranc
e Te
chno
logy
$MM, Except Per Share Data
Stock EPS Operating Metrics Trading MetricsPrice Equity Enterprise Long Term Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA Price / EPS
11/9/17 Value Value Growth PEG 17E/16A NTM 17E/16A NTM 17E 17E 18E 17E 18E 17E 18EInformation ServicesRELX PLC $22.67 $45,375 $51,960 8.1% 2.6 15.1% 5.2% 33.4% 9.7% 34.8% 5.3x 5.1x 15.3x 13.9x 21.4x 20.0x S&P Global Inc. $157.91 $40,267 $42,738 13.3% 1.8 5.4% 5.8% 16.2% 6.9% 48.1% 7.2x 6.8x 14.9x 13.9x 23.8x 21.8x Thomson Reuters Corporation $44.56 $31,706 $38,580 9.3% 2.0 1.6% 3.3% 42.8% 4.2% 30.0% 3.4x 3.3x 11.3x 10.9x 18.2x 17.1x Moody's Corporation $143.09 $27,344 $32,207 9.5% 2.5 13.6% 10.8% 19.1% 11.4% 47.8% 7.9x 7.2x 16.5x 14.8x 24.1x 21.8x Experian plc $21.39 $19,518 $22,740 9.3% 2.5 NA 6.2% NA 5.3% 35.1% 5.2x 4.8x 14.9x 14.1x 23.1x 20.4x Nielsen Holdings plc $37.10 $13,214 $21,200 7.2% 1.9 4.1% 4.1% 24.8% 4.0% 30.8% 3.2x 3.1x 10.5x 10.1x 14.0x 13.8x IHS Markit Ltd. $43.20 $17,100 $21,017 12.7% 1.7 30.2% 5.6% NA 9.3% 38.8% 5.9x 5.6x 15.2x 13.9x 21.0x 19.1x Verisk Analytics, Inc. $90.82 $14,957 $17,693 9.3% 3.1 6.8% 8.6% 11.0% 8.1% 48.9% 8.3x 7.7x 17.0x 15.7x 28.6x 26.2x Wolters Kluwer N.V. $49.40 $13,946 $16,542 8.5% 2.2 14.0% 3.3% 18.7% 2.4% 27.2% 3.2x 3.2x 11.8x 11.5x 18.8x 17.6x Equifax Inc. $108.95 $13,083 $15,539 11.3% 1.6 7.2% 4.2% 10.6% 2.0% 36.8% 4.6x 4.4x 12.5x 12.3x 18.3x 17.8x Gartner, Inc. $117.34 $10,637 $13,357 17.1% 2.0 37.4% 29.9% 74.0% 19.8% 20.8% 4.0x 3.3x 19.1x 16.0x 34.0x 29.1x MSCI Inc. $127.88 $11,518 $12,796 14.0% 2.4 10.4% 11.6% 15.7% 13.8% 51.9% 10.1x 9.1x 19.4x 17.1x 33.4x 28.3x TransUnion $53.12 $9,688 $11,907 11.0% 2.6 12.2% 9.4% 31.4% 11.8% 38.9% 6.2x 5.7x 16.0x 14.3x 28.6x 25.2x Informa plc $9.60 $7,909 $9,946 6.0% 2.6 37.3% 11.1% 46.8% 5.6% 33.6% 4.4x 4.2x 13.0x 12.3x 15.8x 14.8x FactSet Research Systems Inc. $196.24 $7,675 $8,023 11.3% 2.3 10.6% 10.7% 8.1% 8.6% 34.4% 6.3x 5.8x 18.4x 17.0x 26.0x 23.4x News Corporation $14.36 $8,369 $7,056 20.9% 1.4 0.5% 0.7% 45.0% (2.4%) 11.8% 0.9x 0.9x 7.3x 7.5x 30.2x 29.1x The Dun & Bradstreet Corporation $114.97 $4,249 $5,517 10.0% 1.6 3.3% 3.2% 11.8% 4.1% 28.6% 3.1x 3.1x 11.0x 10.5x 16.0x 15.6x CoreLogic, Inc. $45.43 $3,742 $5,390 11.0% 1.8 (5.4%) 0.8% 12.9% 4.7% 25.6% 2.9x 2.9x 11.4x 10.9x 19.5x 18.2x Fair Isaac Corporation $153.76 $4,611 $5,110 16.0% 1.9 5.2% 6.6% 10.3% 16.7% 24.1% 5.4x 5.1x 22.4x 19.2x 31.0x 27.1x Morningstar, Inc. $87.85 $3,736 $3,617 NM NA 7.6% NA NA NA NA NA NA NA NA NA NAThe Advisory Board Company $52.85 $2,154 $2,639 17.0% 2.0 (3.9%) 3.5% 40.7% 19.5% 22.6% 3.4x 3.2x 15.1x 12.7x 33.2x 26.1x Acxiom Corporation $26.45 $2,093 $2,154 10.0% 3.6 2.3% 9.6% NA 19.9% 19.0% 2.4x 2.2x 12.6x 10.5x 35.6x 26.6x Euromoney Institutional Investor PLC $15.11 $1,621 $1,736 NM NM 13.0% 12.2% 6.6% 6.2% 26.9% 3.1x 2.9x 11.4x 10.7x 15.1x 14.0x comScore, Inc. $30.10 $1,724 $1,610 NM NM NA 40.9% NA 19.4% 26.7% 2.6x 2.3x 9.9x 8.3x 15.3x 12.2x National Research Corporation $53.50 $1,310 $1,276 NM NA 8.3% NA 12.6% 10.8% 33.7% 10.8x 10.0x 32.0x 28.9x NA NAForrester Research, Inc. $44.75 $804 $670 13.5% 2.7 1.8% 4.5% (5.5%) 20.8% 11.5% 2.0x 1.9x 17.5x 14.5x 37.1x 29.7x
Median 11.0% 2.1 7.4% 6.0% 16.2% 8.6% 30.8% 4.4x 4.2x 14.9x 13.9x 23.4x 21.1x
Insurance TechnologyVerisk Analytics, Inc. $90.82 $14,957 $17,693 9.3% 3.1 6.8% 8.6% 11.0% 8.1% 48.9% 8.3x 7.7x 17.0x 15.7x 28.6x 26.2x Guidewire Software, Inc. $79.31 $6,092 $5,519 15.8% 6.1 22.3% 22.2% NA 30.5% 20.3% 10.0x 8.3x 49.4x 37.9x 95.8x 81.3x HealthEquity, Inc. $50.77 $3,071 $2,861 28.3% 2.6 27.3% 24.2% 52.2% 27.5% 36.5% 12.6x 10.2x 34.6x 27.1x 75.0x 59.2x Ebix, Inc. $74.00 $2,328 $2,610 15.0% 1.6 19.1% 18.3% 11.5% 20.8% 34.4% 7.3x 6.4x 21.3x 17.7x 23.6x 20.8x CorVel Corporation $55.55 $1,042 $1,004 NM NA 4.5% NA NA NA NA NA NA NA NA NA NABenefitfocus, Inc. $25.35 $793 $858 20.0% NM 9.9% 7.5% NA 47.1% 7.4% 3.3x 3.0x 45.3x 30.8x NM NMCrawford & Company $8.95 $499 $687 10.0% 1.2 1.5% 6.5% 21.0% 11.9% 11.4% 0.6x 0.6x 5.4x 4.8x 11.5x 10.5x Sapiens International Corporation N.V. $13.14 $647 $645 10.0% 3.8 25.4% 18.2% (3.6%) 61.2% 10.6% 2.4x 2.1x 22.4x 13.9x 38.3x 21.0x eHealth, Inc. $24.83 $462 $411 NM NM (8.8%) 5.7% NA NA NA 2.4x 2.2x NM 51.3x NM NMMajesco $5.36 $196 $203 NM NM (6.6%) 13.9% 14.1% NA 3.6% 1.7x 1.5x 48.6x 15.8x NM 24.4x Symbility Solutions Inc. $0.33 $78 $73 NM NM 25.5% 20.1% NA 23.4% 4.9% 2.3x 2.0x 46.7x 37.8x NM NA
Median 15.0% 2.9 9.9% 16.1% 12.8% 25.4% 11.4% 2.9x 2.6x 34.6x 22.4x 33.4x 24.4x
18
PUBLIC COMPANY VALUATIONS
Inve
stm
ent T
echn
olog
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Notes: Source: CapIq. Pitchbook.Multiples based on CapIq Consensus Estimates. Multiples <0 and >100 considered NM.
IT &
BPO
Ser
vice
s
$MM, Except Per Share Data
Stock EPS Operating Metrics Trading MetricsPrice Equity Enterprise Long Term Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA Price / EPS
11/9/17 Value Value Growth PEG 17E/16A NTM 17E/16A NTM 17E 17E 18E 17E 18E 17E 18EInvestment TechnologyThe Bank of New York Mellon Corporation $50.82 $52,041 $75,473 7.7% 1.9 3.6% 4.0% NA NA NA 4.8x 4.6x NA NA 14.3x 13.1x The Charles Schwab Corporation $44.00 $58,985 $60,976 18.8% 1.5 15.1% 12.3% NA 18.7% NA 7.1x 6.3x 15.2x 12.8x 27.3x 22.6x State Street Corporation $90.77 $33,661 $41,438 11.4% 1.3 14.2% 11.6% NA NA NA 3.6x 3.4x NA NA 14.6x 13.1x TD Ameritrade Holding Corporation $48.38 $27,428 $28,511 20.4% 1.3 20.1% 35.7% NA 27.3% 42.8% 7.2x 5.7x 16.7x 13.1x 27.2x 20.0x Northern Trust Corporation $92.16 $20,959 $18,468 10.7% 1.8 7.8% 10.1% NA NA NA 3.4x 3.2x NA NA 19.4x 17.1x Broadridge Financial Solutions, Inc. $87.83 $10,237 $11,240 10.0% 2.5 22.4% 2.5% 31.3% 1.1% 19.7% 2.7x 2.6x 13.5x 13.3x 25.2x 23.1x SS&C Technologies Holdings, Inc. $40.01 $8,236 $10,350 15.0% 1.4 13.1% 6.6% 34.4% 10.8% 41.2% 6.2x 5.9x 15.0x 13.5x 20.8x 18.3x SEI Investments Co. $64.73 $10,193 $9,548 12.0% 2.3 8.0% 10.0% 42.3% 17.2% 37.8% 6.3x 5.7x 16.7x 14.2x 27.6x 23.8x Computershare Limited $11.94 $6,496 $7,591 8.0% 2.7 4.1% 3.8% 30.2% 8.9% 26.9% 3.6x 3.5x 13.4x 12.3x 21.3x 18.6x DST Systems, Inc. $60.36 $3,635 $4,139 10.0% 2.0 33.3% 7.6% 29.1% 12.5% 20.5% 2.0x 1.9x 9.7x 8.6x 19.6x 16.8x Envestnet, Inc. $53.10 $2,353 $2,563 16.2% 2.5 17.6% 15.8% NA 27.9% 17.9% 3.8x 3.3x 21.0x 16.4x 40.8x 32.5x SimCorp A/S $55.85 $2,204 $2,200 NM NM 26.2% 20.0% 35.8% 16.6% 25.7% 5.6x 5.1x 21.7x 18.6x 30.4x 26.1x Equiniti Group plc $3.91 $1,424 $1,782 NM NM 11.2% 8.0% 37.5% 5.9% 24.5% 3.4x 3.2x 13.8x 13.1x 19.2x 17.8x IRESS Limited $8.83 $1,493 $1,627 10.4% 2.4 18.8% 11.8% 26.6% 14.2% 28.2% 4.9x 4.5x 17.2x 15.1x 25.1x 22.5x Financial Engines, Inc. $27.08 $1,714 $1,517 13.0% 1.5 13.4% 8.7% NA 6.3% 32.9% 3.2x 3.0x 9.6x 9.0x 19.7x 18.4x Sanne Group plc $9.54 $1,324 $1,348 24.0% 1.2 NA 27.9% NA 23.1% 37.4% 8.8x 7.1x 23.6x 19.2x 29.4x 25.1x Blucora, Inc. $19.85 $916 $1,200 18.5% 0.8 10.5% 6.3% 27.6% 18.5% 19.8% 2.4x 2.2x 12.0x 10.1x 14.3x 11.2x First Derivatives plc $44.77 $1,132 $1,149 NM NM NA 16.5% NA 10.0% 18.5% 5.1x 4.5x 27.6x 25.1x 55.0x 46.9x Fidessa group plc $30.14 $1,161 $1,069 NM NM 12.6% 2.6% 28.4% 3.8% 20.7% 2.3x 2.3x 11.2x 10.8x 24.8x 23.3x StatPro Group plc $2.08 $136 $160 NM NM 38.5% 19.5% 72.0% 26.8% 14.3% 2.5x 2.1x 17.5x 13.8x 32.1x 22.2x
Median 12.0% 1.8 13.8% 10.0% 31.3% 14.2% 25.1% 3.7x 3.5x 15.2x 13.3x 24.9x 21.1x
IT & BPO ServicesInternational Business Machines Corporation $150.30 $139,146 $173,403 4.9% 2.2 (1.6%) 0.7% 2.9% 4.1% 24.3% 2.2x 2.2x 9.1x 8.7x 10.9x 10.8x Accenture plc $143.83 $88,415 $85,071 9.9% 2.4 6.6% 9.0% 7.9% 10.5% 17.1% 2.4x 2.2x 13.9x 12.6x 24.0x 21.5x Tata Consultancy Services Limited $42.04 $80,471 $75,481 12.8% 1.6 8.1% 7.6% 4.4% 6.6% 26.5% 4.1x 3.7x 15.3x 14.4x 20.7x 19.0x Cognizant Technology Solutions Corporation $73.94 $43,598 $39,708 14.4% 1.4 9.8% 9.6% 14.4% 15.4% 20.6% 2.7x 2.5x 13.0x 11.3x 19.9x 17.0x DXC Technology Company $94.63 $26,995 $33,216 10.5% 1.4 60.3% NA NA 27.8% 19.5% 1.6x 1.4x 8.4x 6.6x 14.2x 11.5x Infosys Limited $14.66 $33,521 $28,089 9.4% 1.6 6.1% 6.8% 2.6% 4.8% 26.7% 2.6x 2.5x 9.8x 9.4x 15.0x 14.4x Capgemini SE $116.79 $19,021 $21,493 7.9% 2.1 12.3% 5.2% 19.3% 7.1% 13.4% 1.4x 1.4x 10.8x 10.1x 16.9x 15.8x NTT Data Corporation $11.64 $16,325 $20,124 9.2% 3.4 28.5% 4.8% 16.1% 6.8% 14.2% 1.1x 1.1x 7.8x 7.3x 30.9x 26.4x Wipro Limited $4.65 $22,507 $18,886 8.7% 1.9 4.5% 2.5% 12.5% (0.7%) 21.5% 2.2x 2.2x 10.5x 10.5x 16.7x 16.2x HCL Technologies Limited $13.46 $17,996 $16,690 13.5% 1.0 14.6% 10.5% 14.8% 6.9% 22.2% 2.1x 2.0x 9.7x 9.1x 13.8x 13.5x CGI Group Inc. $52.72 $14,910 $16,330 13.8% 1.3 8.5% 2.4% 15.6% 6.2% 18.1% 1.9x 1.8x 10.4x 9.8x 17.9x 16.3x Atos SE $147.81 $15,478 $15,699 12.2% 1.2 20.0% 7.7% 21.1% 3.3% 13.2% 1.1x 1.0x 8.0x 7.8x 15.2x 13.9x Nomura Research Institute, Ltd. $44.55 $10,639 $10,116 NM NM 11.1% 5.7% 10.7% 6.3% 20.5% 2.6x 2.4x 12.4x 11.7x 26.6x 24.9x Capita plc $6.61 $4,400 $7,364 17.4% 0.6 (6.7%) (9.4%) 1.4% 1.8% 13.5% 1.3x 1.3x 9.6x 9.5x 10.4x 9.8x Genpact Limited $31.14 $6,011 $6,792 10.3% 1.9 6.0% 6.4% 7.9% 10.2% 16.7% 2.5x 2.3x 15.0x 13.6x 19.5x 17.6x Tech Mahindra Limited $7.53 $7,354 $6,301 17.1% 0.8 10.8% 7.2% (1.3%) 11.9% 13.6% 1.4x 1.3x 10.0x 8.9x 14.3x 13.3x Conduent Incorporated $15.90 $3,345 $4,939 NM NM (5.9%) (3.7%) NA 9.2% 11.0% 0.8x 0.8x 7.4x 6.8x 20.2x 16.3x EPAM Systems, Inc. $102.34 $5,405 $4,917 19.9% 1.5 24.7% 22.6% 52.0% 24.2% 17.9% 3.4x 2.8x 19.0x 15.3x 29.8x 24.6x Presidio, Inc. $15.83 $1,451 $2,349 9.0% 1.4 2.5% 5.6% 22.7% 4.9% 8.4% 0.8x 0.8x 9.8x 9.3x 12.5x 11.8x Syntel, Inc. $23.75 $1,968 $2,247 10.0% 1.3 (7.2%) (4.9%) (15.7%) 2.0% 25.3% 2.5x 2.5x 9.9x 9.7x 12.7x 13.2x WNS (Holdings) Limited $39.76 $2,003 $1,922 14.4% 3.0 17.3% 11.9% 36.8% 18.9% 18.5% 2.8x 2.5x 15.1x 12.7x 42.8x 27.2x ExlService Holdings, Inc. $61.63 $2,092 $1,888 14.0% 1.7 10.6% 9.5% 31.6% 13.6% 17.2% 2.5x 2.3x 14.5x 12.7x 23.4x 21.5x MphasiS Limited $11.17 $2,157 $1,828 10.3% 1.8 7.6% 9.6% 3.7% 13.1% 15.4% 1.9x 1.7x 12.3x 10.9x 18.7x 15.8x Hexaware Technologies Limited $5.29 $1,571 $1,503 13.5% 1.5 16.2% 9.5% 22.5% 10.5% 16.9% 2.5x 2.2x 14.7x 13.3x 20.5x 19.4x Luxoft Holding, Inc. $46.15 $1,545 $1,447 18.5% 0.9 17.9% 18.1% 41.1% 32.6% 15.3% 1.6x 1.4x 10.7x 8.1x 16.8x 13.2x Virtusa Corporation $45.61 $1,339 $1,297 20.0% 1.5 19.4% 17.0% 27.4% 41.1% 7.1% 1.3x 1.2x 19.1x 13.5x 30.9x 23.0x Globant S.A. $36.30 $1,268 $1,241 NM NM 24.2% 23.7% 3.8% 28.5% 15.8% 3.1x 2.6x 19.6x 15.3x 29.0x 23.5x Mindtree Limited $7.59 $1,245 $1,161 14.1% 1.4 5.9% 9.5% (7.9%) 19.9% 12.3% 1.4x 1.3x 11.5x 9.6x 19.4x 16.3x Perficient, Inc. $18.49 $645 $708 17.0% 0.9 3.5% 11.7% 40.2% 14.5% 14.5% 1.5x 1.4x 10.1x 8.8x 15.3x 13.3x Persistent Systems Limited $10.10 $808 $695 13.9% 1.1 12.0% 12.5% 23.6% 18.7% 15.8% 1.5x 1.3x 9.5x 8.0x 16.0x 13.6x
Median 13.5% 1.5 10.2% 7.7% 14.6% 10.3% 16.8% 2.0x 1.9x 10.6x 9.8x 18.3x 16.2x
19
PUBLIC COMPANY VALUATIONS
Notes: Source: CapIq. Pitchbook.Multiples based on CapIq Consensus Estimates. Multiples <0 and >100 considered NM.
Liqu
idity
Ven
ues
$MM, Except Per Share Data
Stock EPS Operating Metrics Trading MetricsPrice Equity Enterprise Long Term Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA Price / EPS
11/9/17 Value Value Growth PEG 17E/16A NTM 17E/16A NTM 17E 17E 18E 17E 18E 17E 18ELiquidity VenuesCME Group Inc. $138.04 $46,974 $47,488 10.2% 2.8 1.3% 4.9% 6.0% 7.9% 71.4% 13.0x 12.2x 18.3x 16.9x 28.9x 26.0x Intercontinental Exchange, Inc. $66.20 $38,729 $44,383 9.2% 2.5 3.0% 4.6% 6.5% 8.2% 63.3% 9.6x 9.0x 15.1x 14.0x 22.4x 19.6x Deutsche Börse Aktiengesellschaft $106.06 $19,813 $20,246 10.9% 1.8 (4.8%) (13.2%) 18.9% 9.4% 58.8% 7.1x 6.7x 12.1x 11.1x 19.8x 17.2x Hong Kong Exchanges and Clearing Limited $29.54 $36,582 $4,951 8.8% 4.5 15.3% 13.2% 26.5% 11.8% 71.9% 3.0x 2.7x 4.2x 3.7x 39.1x 35.0x London Stock Exchange Group plc $49.01 $16,974 $17,878 16.0% 1.6 21.3% 13.7% 47.4% 15.0% 50.5% 7.2x 6.6x 14.3x 12.4x 25.3x 21.5x B3 S.A. - Brasil, Bolsa, Balcão $7.01 $14,297 $15,569 3.7% 6.0 68.8% 50.9% 73.8% 17.6% 65.7% 12.9x 11.6x 19.7x 16.7x 22.3x 20.3x Nasdaq, Inc. $73.73 $12,256 $15,421 8.5% 2.1 5.5% NA 5.7% 5.9% 50.8% 6.4x 6.0x 12.6x 11.9x 17.6x 16.5x Cboe Global Markets, Inc. $114.13 $12,949 $14,144 33.6% 1.0 53.4% NA NA 22.2% 63.7% 14.0x 12.3x 22.0x 18.0x 33.6x 28.8x ASX Limited $41.88 $8,100 $7,387 4.6% 5.2 2.6% NA (10.4%) 4.2% 76.5% 12.3x 11.7x 16.0x 15.4x 24.1x 23.2x MarketAxess Holdings Inc. $174.50 $6,550 $6,345 NM NM 7.5% 14.0% 5.2% 19.0% 55.2% 16.0x 13.9x 28.9x 24.3x 44.2x 37.4x Singapore Exchange Limited $5.68 $6,088 $5,446 4.1% 5.7 9.7% 6.0% 23.5% 13.0% 57.9% 9.0x 8.4x 15.6x 13.8x 23.4x 20.5x Euronext N.V. $56.95 $3,957 $3,990 5.9% 2.8 18.3% (2.2%) 15.5% 12.7% 54.8% 6.4x 6.0x 11.7x 10.4x 16.9x 15.6x TMX Group Limited $55.48 $3,071 $3,488 NM NM (2.7%) NA (4.2%) 13.1% 54.1% 6.0x 5.5x 11.1x 9.8x 15.1x 13.5x Bolsas y Mercados Españoles, Sociedad Holding de Mercado $33.00 $2,743 $2,363 0.8% 20.0 9.9% (1.4%) 10.4% 1.1% 66.0% 6.3x 6.3x 9.6x 9.5x 15.3x 15.1x Bursa Malaysia Berhad $2.35 $1,263 $1,177 5.7% 4.2 17.9% 6.7% 22.0% 3.4% 58.7% 9.0x 8.7x 15.3x 14.8x 23.7x 23.3x Bolsa Mexicana de Valores, S.A.B. de C.V. $1.70 $1,006 $909 14.0% 1.2 19.3% 4.3% 29.5% 6.1% 56.3% 5.5x 5.2x 9.8x 9.2x 16.8x 16.0x JSE Limited $9.47 $810 $659 4.6% 3.5 (14.0%) (10.7%) NA 23.7% 38.6% 4.4x 3.9x 11.3x 9.2x 15.9x 13.7x Gielda Papierów Wartosciowych w Warszawie S.A. $12.01 $504 $454 NM NM 24.1% 0.3% 25.1% 5.7% 60.2% 4.9x 4.8x 8.2x 7.7x 13.1x 12.1x Hellenic Exchanges - Athens Stock Exchange SA $5.41 $327 $214 93.5% 0.7 32.7% 49.0% 23.7% NA 30.0% 6.1x 4.9x 20.4x 10.3x 66.4x 27.0x
Median 8.7% 2.8 9.9% 4.9% 18.9% 10.6% 58.7% 7.1x 6.6x 14.3x 11.9x 22.4x 20.3x
20
PUBLIC COMPANY VALUATIONS
Notes: Source: CapIq. Pitchbook.Multiples based on CapIq Consensus Estimates. Multiples <0 and >100 considered NM.
Paym
ents
$MM, Except Per Share Data
Stock EPS Operating Metrics Trading MetricsPrice Equity Enterprise Long Term Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA Price / EPS
11/9/17 Value Value Growth PEG 17E/16A NTM 17E/16A NTM 17E 17E 18E 17E 18E 17E 18EPaymentsVisa Inc. $112.14 $255,163 $260,092 16.6% 1.9 17.1% 9.5% 19.3% 12.7% 70.3% 13.9x 12.6x 19.8x 17.6x 31.2x 26.5x Mastercard Incorporated $149.29 $158,048 $156,114 18.3% 1.8 15.4% 14.2% 16.6% 14.2% 58.6% 12.6x 11.1x 21.4x 18.7x 32.8x 28.0x American Express Company $93.75 $81,375 $106,422 10.0% 1.6 11.7% 16.9% NA 8.5% NA 3.2x 3.0x 9.5x 8.8x 16.0x 14.6x PayPal Holdings, Inc. $74.10 $89,062 $78,456 20.3% 1.9 19.6% 20.4% 59.8% 20.5% 25.9% 6.1x 5.0x 23.4x 19.4x 39.5x 32.7x Discover Financial Services $65.47 $23,791 $37,286 8.2% 1.3 36.4% 45.8% NA NA NA 3.8x 3.5x NA NA 11.1x 9.9x First Data Corporation $16.75 $15,468 $36,553 10.0% 1.1 4.0% 56.3% 14.4% 7.5% 25.4% 3.0x 2.9x 12.0x 11.2x 11.0x 10.7x Alliance Data Systems Corporation $227.91 $12,592 $32,748 13.7% 0.9 8.7% 12.6% 36.4% 15.5% 25.7% 4.2x 3.8x 16.4x 14.2x 12.6x 10.6x Cielo S.A. $7.10 $19,257 $21,649 6.0% 2.5 (2.3%) 40.5% (4.1%) 8.0% 43.9% 5.9x 5.6x 13.3x 12.4x 15.1x 14.4x Global Payments Inc. $99.32 $15,806 $20,044 15.9% 1.6 23.6% (8.8%) 17.0% 18.5% 32.9% 5.7x 5.0x 17.3x 14.6x 24.9x 21.1x FleetCor Technologies, Inc. $177.00 $15,852 $19,554 16.6% 1.3 22.5% 14.2% 28.0% 12.9% 53.3% 8.7x 7.7x 16.3x 14.5x 21.0x 18.2x Vantiv, Inc. $68.77 $11,176 $15,888 15.3% 1.3 11.1% NA 18.4% 10.5% 47.6% 7.5x 6.9x 15.8x 14.3x 20.5x 18.2x Total System Services, Inc. $72.23 $13,279 $15,839 11.6% 1.9 (19.0%) (26.2%) NA 7.7% 35.2% 4.7x 4.4x 13.3x 12.4x 21.6x 19.7x Square, Inc. $37.96 $14,750 $14,236 NM NM 37.2% NA NA 79.7% 14.0% 14.7x 11.3x NM 58.4x NM 85.4x Worldpay Group plc $5.29 $10,505 $12,206 16.6% 1.8 17.3% 11.3% 26.9% 14.0% 40.8% 7.5x 6.9x 18.4x 16.1x 30.7x 26.0x The Western Union Company $20.08 $9,223 $11,564 5.1% 2.2 0.9% 1.5% (1.1%) 1.1% 24.7% 2.1x 2.1x 8.5x 8.5x 11.0x 11.0x The Sage Group plc $9.85 $10,637 $11,060 10.9% 2.3 10.0% 10.0% 12.0% 12.6% 29.1% 4.9x 4.5x 17.0x 15.1x 25.0x 22.2x Wirecard AG $94.68 $11,699 $10,896 24.5% 1.5 34.8% 66.8% 53.0% 26.6% 27.8% 6.4x 5.3x 23.0x 18.1x 37.5x 29.1x Edenred SA $28.54 $6,660 $8,272 11.5% 2.1 36.9% 19.2% 51.1% 7.4% 37.1% 5.3x 5.0x 14.4x 13.4x 24.7x 22.4x WEX Inc. $124.90 $5,359 $7,545 15.4% 1.5 22.2% 12.8% 63.9% 16.1% 38.9% 6.1x 5.4x 15.6x 13.4x 23.3x 19.7x NCR Corporation $31.40 $3,825 $6,691 NM NM (0.8%) 1.6% 32.3% 4.3% 17.5% 1.0x 1.0x 5.9x 5.7x 10.0x 9.4x Nets A/S $25.54 $5,119 $6,196 23.3% 1.3 16.6% 3.5% 57.0% 7.0% 36.5% 5.1x 4.8x 13.9x 13.0x 30.4x 24.8x Ingenico Group - GCS $92.03 $5,728 $5,931 13.8% 1.2 18.2% 11.4% 26.4% 11.5% 20.3% 2.1x 1.9x 10.1x 9.1x 16.8x 15.0x Euronet Worldwide, Inc. $90.64 $4,775 $4,458 15.0% 1.3 15.2% 11.5% 26.0% 15.3% 18.4% 2.0x 1.8x 10.7x 9.3x 19.9x 17.1x VeriFone Systems, Inc. $17.75 $1,992 $2,740 15.0% 0.8 (2.8%) 2.7% 39.7% 4.3% 16.4% 1.5x 1.4x 8.9x 8.5x 12.4x 11.1x Green Dot Corporation $64.64 $3,285 $2,640 23.1% 1.3 22.9% 14.8% NA 16.9% 22.8% 3.0x 2.7x 13.1x 11.2x 30.3x 26.3x GMO Payment Gateway, Inc. $75.02 $2,763 $2,556 NM NM 76.2% 22.6% 40.4% 35.0% 26.7% 12.3x 10.0x 46.3x 34.3x 96.6x 73.2x Blackhawk Network Holdings, Inc. $34.85 $1,980 $2,424 15.3% 1.4 14.4% 10.6% 57.7% 17.1% 10.7% 1.1x 1.0x 10.4x 8.9x 21.4x 17.5x Cardtronics plc $18.19 $831 $1,719 12.0% 0.5 17.1% (8.8%) 13.0% (13.6%) 22.7% 1.2x 1.3x 5.1x 5.9x 6.3x 8.3x Everi Holdings Inc. $8.40 $566 $1,586 20.0% 0.5 12.1% 5.8% 17.4% 7.8% 22.1% 1.6x 1.6x 7.5x 6.9x 10.1x NAEVERTEC, Inc. $13.35 $966 $1,564 1.8% 5.2 2.0% (3.8%) 13.9% 0.5% 43.7% 3.9x 3.9x 9.0x 9.0x 9.2x 9.4x MoneyGram International, Inc. $14.32 $777 $1,517 NM NM (2.1%) 4.9% 22.6% 7.1% 17.1% 0.9x 0.9x 5.6x 5.2x 14.1x 12.1x SafeCharge International Group Limited $4.12 $605 $492 13.0% 1.6 7.3% 13.7% 7.1% 17.2% 29.6% 4.4x 3.9x 14.9x 12.7x 20.8x 18.4x Cass Information Systems, Inc. $63.18 $705 $463 NM NA 6.9% NA NA NA NA NA NA NA NA NA NANet 1 UEPS Technologies, Inc. $9.29 $529 $533 10.0% 0.6 2.8% NA (18.1%) 11.2% 21.1% 0.9x 0.8x 4.2x 3.7x 5.5x 5.4x Planet Payment, Inc. $4.48 $224 $214 25.0% 1.0 5.5% NA 50.3% 18.3% 29.9% 3.7x 3.4x 12.5x 10.6x 25.7x 20.7x PAR Technology Corporation $8.75 $139 $137 NM NA 12.1% NA NA NA NA NA NA NA NA NA NAEarthport plc $0.23 $143 $118 NM NM 33.2% 34.5% NA NA NA 2.5x 1.9x NM NM NM NMeServGlobal Limited $0.14 $96 $104 NM NM 3.4% NA NA NA NA 9.0x 6.8x NM 67.7x NM NAJetPay Corporation $2.15 $34 $42 NM NM 34.2% NA 83.1% 63.7% 6.4% 0.6x 0.5x 8.8x 5.3x NM NM
Median 15.0% 1.5 14.4% 11.5% 26.2% 12.7% 26.7% 4.2x 3.9x 13.3x 12.4x 20.8x 18.2x
21
PUBLIC COMPANY VALUATIONS
Notes: Source: CapIq. Pitchbook.Multiples based on CapIq Consensus Estimates. Multiples <0 and >100 considered NM.
Real
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$MM, Except Per Share Data
Stock EPS Operating Metrics Trading MetricsPrice Equity Enterprise Long Term Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA Price / EPS
11/9/17 Value Value Growth PEG 17E/16A NTM 17E/16A NTM 17E 17E 18E 17E 18E 17E 18E
Real Estate & Mortgage TechnologyThe Priceline Group Inc. $1,703.14 $83,061 $85,445 15.7% 1.5 16.9% 14.0% 13.6% 13.8% 37.5% 6.8x 6.0x 18.1x 15.9x 22.9x 20.3x Expedia, Inc. $117.32 $17,891 $19,980 15.6% 1.6 15.3% 12.3% 61.8% 14.4% 17.2% 2.0x 1.8x 11.5x 10.1x 25.4x 21.2x Nationstar Mortgage Holdings Inc. $16.68 $1,630 $16,504 NM NM (6.5%) NA NA 16.4% 30.9% 9.6x 8.6x 31.0x 26.7x 45.1x 8.9x Fidelity National Financial, Inc. $38.76 $10,587 $10,671 NM NM 4.5% NA (18.2%) (10.6%) 16.2% 1.4x 1.4x 8.4x 9.4x 16.5x 16.1x CoStar Group, Inc. $299.29 $10,818 $10,500 18.7% 3.4 15.2% 15.6% 34.1% 30.0% 29.9% 10.9x 9.5x 36.4x 28.0x 63.7x 49.1x Jones Lang LaSalle Incorporated $145.25 $6,589 $7,857 13.5% 1.3 12.1% 4.6% 8.9% 7.0% 9.3% 1.0x 1.0x 11.1x 10.4x 17.3x 16.2x REA Group Limited $57.37 $7,557 $7,660 18.2% 2.1 15.2% 19.5% 32.0% 16.8% 57.3% 13.6x 11.7x 23.7x 20.3x 38.1x 31.4x Zillow Group, Inc. $40.43 $7,431 $7,131 20.0% 3.8 26.7% 21.4% NA 34.0% 22.1% 6.7x 5.5x 30.2x 22.5x 75.1x 47.3x Realogy Holdings Corp. $26.61 $3,582 $6,981 20.0% 0.9 5.4% 4.4% (3.9%) 6.0% 11.9% 1.1x 1.1x 9.5x 9.0x 17.2x 14.4x Ocwen Financial Corporation $3.15 $412 $6,925 NM NM (14.4%) NA NA NA NA 5.8x 7.6x NA NA NM NMFirst American Financial Corporation $54.85 $6,078 $5,675 NM NM 2.9% 0.1% 12.4% 16.8% 12.1% 1.0x 1.0x 8.2x 7.0x 15.6x 14.7x CoreLogic, Inc. $45.43 $3,742 $5,390 11.0% 1.8 (5.4%) 0.8% 12.9% 4.7% 25.6% 2.9x 2.9x 11.4x 10.9x 19.5x 18.2x Rightmove plc $51.91 $4,739 $4,716 12.1% 2.1 17.4% 11.6% 19.9% 9.6% 75.7% 14.8x 13.5x 19.5x 17.8x 24.8x 22.2x Black Knight, Inc. $43.05 $2,962 $4,362 14.2% 2.2 3.1% 7.9% 47.4% 11.5% 47.9% 4.1x 3.8x 8.6x 7.7x 31.3x 26.6x Radian Group Inc. $19.94 $4,298 $4,172 8.5% 1.3 (1.3%) 9.4% NA NA NA 3.4x 3.2x NA NA 11.3x 10.2x RealPage, Inc. $44.05 $3,651 $3,939 21.1% 2.3 17.9% 22.8% NA 27.6% NA 5.9x 4.9x 24.4x 19.1x 48.1x 37.4x TripAdvisor, Inc. $31.56 $4,383 $3,892 11.9% 2.4 4.4% 2.2% 49.9% (2.7%) 20.9% 2.5x 2.4x 12.1x 12.4x 28.4x 29.2x LendingTree, Inc. $258.25 $3,091 $2,981 32.1% 2.1 58.4% 28.4% NA 30.5% 18.5% 4.9x 3.9x 26.4x 20.3x 67.2x 50.5x Colliers International Group Inc. $59.37 $2,308 $2,716 25.0% 0.8 16.0% 8.5% 20.0% 12.0% 10.6% 1.2x 1.1x 11.6x 10.4x 20.3x 18.5x Ellie Mae, Inc. $86.84 $2,998 $2,632 13.2% 4.3 14.5% 18.0% 62.8% 16.7% 28.9% 6.4x 5.3x 22.1x 18.9x 56.7x 52.1x Moneysupermarket.com Group PLC $4.32 $2,312 $2,289 9.4% 2.1 13.1% 9.3% 25.1% 7.8% 38.3% 5.2x 4.8x 13.5x 12.5x 19.8x 18.0x ZPG Plc $4.48 $1,950 $2,213 16.3% 1.6 15.1% 25.7% 49.5% 16.2% 44.1% 7.5x 7.0x 16.9x 14.6x 25.9x 20.9x Redfin Corporation $23.20 $1,889 $1,676 NM NM 36.8% 32.3% NA NA 0.3% 4.6x 3.5x NM NM NM NMAppFolio, Inc. $41.50 $1,409 $1,366 NM NM 33.9% 28.0% NA 28.4% 18.6% 9.7x 7.7x 52.0x 40.5x NM 96.5x Stewart Information Services Corporation $40.56 $964 $944 NM NM (3.8%) 0.7% (10.1%) 33.7% 6.0% 0.5x 0.5x 8.1x 6.1x 20.1x 14.7x Marcus & Millichap, Inc. $30.48 $1,163 $906 6.0% 3.4 (1.7%) NA (9.2%) 5.0% 14.3% 1.3x 1.2x 9.0x 8.6x 20.1x 18.3x Lifull Co., Ltd. $7.19 $854 $823 NM NM 13.9% 12.6% NA NA 9.4% 4.5x 2.5x 47.6x 15.0x 97.4x 26.0x RE/MAX Holdings, Inc. $54.30 $961 $720 8.5% 3.4 11.3% 7.7% 15.5% 6.8% 54.0% 3.7x 3.4x 6.8x 6.4x 28.5x 26.5x Altisource Portfolio Solutions S.A. $25.27 $452 $719 NM NM (7.4%) (17.3%) (50.5%) 25.9% 9.6% 0.8x 0.9x 8.1x 6.4x 16.7x 22.8x Real Matters Inc. $7.03 $616 $549 23.3% NM 11.0% 11.8% (36.3%) 86.3% 3.3% 1.7x 1.4x 52.2x 28.0x NM 52.5x QuinStreet, Inc. $9.00 $411 $361 NM NM 8.1% 11.4% NA 33.1% 6.3% 1.1x 1.0x 17.8x 13.4x NM 69.2x Agilysys, Inc. $11.75 $274 $236 25.0% NM (0.7%) 6.5% NA NA 4.4% 1.8x 1.7x 41.4x 24.0x NM NMReis, Inc. $18.30 $210 $192 NM NM 1.9% 8.9% 29.5% 32.1% 25.4% 4.0x 3.6x 15.6x 11.8x NM 53.0x
Median 15.7% 2.1 11.3% 11.4% 17.7% 16.3% 18.6% 4.0x 3.4x 16.3x 13.0x 25.1x 22.5x
Trading TechnologyThe Charles Schwab Corporation $44.00 $58,985 $60,976 18.8% 1.5 15.1% 12.3% 26.7% 18.7% NA 7.1x 6.3x 15.2x 12.8x 27.3x 22.6x TD Ameritrade Holding Corporation $48.38 $27,428 $28,511 20.4% 1.3 20.1% 35.7% 25.7% 27.3% 42.8% 7.2x 5.7x 16.7x 13.1x 27.2x 20.0x Interactive Brokers Group, Inc. $53.69 $22,104 $24,713 10.0% 3.5 10.5% 15.4% 29.1% 14.6% 67.2% 15.6x 14.7x 23.2x 20.2x 34.8x 32.2x E*TRADE Financial Corporation $43.08 $11,617 $12,121 15.8% 1.2 12.3% 6.0% 13.3% 2.8% NA 5.2x 4.7x 10.1x 9.9x 18.3x 16.8x Virtu Financial, Inc. $16.45 $3,111 $4,002 NM NM 25.4% 28.4% NA 82.1% NA 7.6x 4.8x 20.3x 11.2x 38.8x 17.4x INTL FCStone Inc. $42.18 $790 $728 NM NA 35.7% NA NA NA NA NA NA NA NA NA NAInvestment Technology Group, Inc. $18.64 $616 $469 NM NM 1.9% 6.8% NA 39.6% 16.1% 1.0x 0.9x 6.2x 4.4x 81.1x 17.2x GAIN Capital Holdings, Inc. $7.22 $325 $235 NM NM (18.0%) 5.1% NA 71.4% 15.8% 0.7x 0.6x 4.5x 2.6x NM 10.3x Global Brokerage, Inc. $1.27 $8 $191 NM NA 7.7% NA NA NA NA NA NA NA NA NA NA
Median 17.3% 1.4 12.3% 12.3% 26.2% 27.3% 29.4% 7.1x 4.8x 15.2x 11.2x 31.0x 17.4x