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Smart Cities: M&A Opportunities
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World Financial Symposiums
WFS is an international organization dedicated to educating technology leaders through monthly, Market Spotlight webcasts and quarterly, day-
longGrowth and Exit Strategies for Software and
IT Companies conferences.
www.wfs.com
Jeff Brown - Moderator
Jeff Brown has over 25 years of entrepreneurial experience building software and business services companies in the energy and sustainability sector. He specializes in information technology for engineering, scientific and business applications for asset intensive industries.
Jeff helped form and was President of Severn Trent Worksuite, a FTSE 100 subsidiary, which grew to become the leading provider of enterprise and wireless workflow management software in the utility industry. Jeff was co-founder at IntelliGIS, a pioneer in geographic information systems and wireless computing for energy infrastructure management. Additionally, he launched Western Hemisphere operations for Simon Petroleum Technology, a provider of energy management software, and was a member of the core team at venture backed, GeoQuest Systems, which became the leader in energy decision support systems before being acquired by Schlumberger.
Jeff began his career on the research staff at Columbia University where he was a published author on global climate change.
Agenda
• Welcome• Jeff Brown, Vice President - Corum Group
• Smart City M&A Report • Tyler Vickers, Research Analyst - Corum Group
• Industry Panel• Eric Woods, Research Director - Navigant Research• Will Winn, Principal - SmartCore
• Q&A
Building a smart city
Smart Cities are interconnected, sustainable, low carbon cities striving to be more competitive, livable and attract more investment than traditional counterparts.
“To reduce isolated data and business processes and to encourage better data-sharing and flow, well-managed cities are establishing shared business capabilities, data-rich common infrastructures, and service-oriented architectures.”
Internet of Thing
s
Integrated IT-OT
Big Data Analytics
Smart
Grid/Smar
t Mete
r
Contextual Intelligenc
e
High Bandwidth Internet
The global smart city market is expected to cross $1 trillion by 2016
Source: marketsandmarkets.com May 2014
Homes
Who’s the leading Smart City brand?
Source: www.greenbang.com
Energy Management Market ‘to Almost Double’ by 2020
Select VC Funded Companies in 2013
Sold to
Target: CITYTECHAcquirer: ICF InternationalTransaction Value: Undisclosed
- Web and mobile application development, cloud web experience management, infrastructure migration consulting and Amazon Web Services.
Sold to
Target: ARCOSAcquirer: Riverside CompanyTransaction Value: Undisclosed
- Provides automated repair request, repair scheduling and workforce management SaaS for electric and gas utilities and power plants.
Recent Corum Transactions
Agenda
• Welcome• Jeff Brown, Vice President - Corum Group
• Smart City M&A Report • Tyler Vickers, Research Analyst - Corum Group
• Industry Panel• Eric Woods, Research Director - Navigant Research• Will Winn, Principal - SmartCore
• Q&A
Tyler Vickers Research Analyst – Corum Group
As a research analyst at Corum Group, Tyler Vickers works with clients to create an optimal selling outcome by delivering value propositions and strategic marketing documents.
Prior to joining Corum, Tyler worked in risk management and compliance for a large online marketing company where he identified and managed the fraud activity of the company’s large user base. During his time there, he received first-hand experience dissecting a wide range of online marketing strategies. Before that, he worked with a small IT services business, helping to establish its online presence and increase sales. Tyler graduated from the University of California, Santa Barbara with a B.A. in Economics.
Corum Top Ten Tech Trends 2014
Mobilization Enmeshed Systems
Advanced Manufacturing
Digital Force Multipliers
Information Security
Omni-Channel Marketing
Data-Connected Networks
Online Exchanges Digital Currency Flow Internet of Things
CREA
TECO
NN
ECT
Corum Top Ten Tech Trends 2014
Mobilization Enmeshed Systems
Advanced Manufacturing
Digital Force Multipliers
Information Security
Omni-Channel Marketing
Data-Connected Networks
Online Exchanges Digital Currency Flow Internet of Things
CREA
TECO
NN
ECT
Vertical Application Software Market
Public Valuation Multiples
04/26/2013
05/27/2013
06/28/2013
07/29/2013
08/30/2013
09/01/2013
10/02/2013
11/03/2013
12/04/2013
01/05/2014
02/06/2014
03/07/2014
04/08/2014
04/26/2013
05/27/2013
06/28/2013
07/29/2013
08/30/2013
09/01/2013
10/02/2013
11/03/2013
12/04/2013
01/05/2014
02/06/2014
03/07/2014
04/08/2014
EV/EBITDA
11.48 11.8 11.81 12.4 11.74 12.81 13.12 13.24 14.08 13.01 13.69 14.01 13.82
EV/S
2.49 2.39 2.4 2.42 2.6 2.52 2.65 2.53 2.55 2.72 2.64 2.79 2.88
6.50 x
7.50 x
8.50 x
9.50 x
10.50 x
11.50 x
12.50 x
13.50 x
14.50 x
1.60 x
1.80 x
2.00 x
2.20 x
2.40 x
2.60 x
2.80 x
3.00 x
EV/EBITDA EV/Sales
Subsector Sales EBITDA Examples
Government 1.18x 8.55x
Energy & Environment
3.00x 11.14x
A/E/C 3.23x 14.40x
Vertical Application Software Valuations
Horizontal Application Software Market
Public Valuation Multiples
04/26/2013
05/27/2013
06/28/2013
07/29/2013
08/30/2013
09/01/2013
10/02/2013
11/03/2013
12/04/2013
01/05/2014
02/06/2014
03/07/2014
04/08/2014
04/26/2013
05/27/2013
06/28/2013
07/29/2013
08/30/2013
09/01/2013
10/02/2013
11/03/2013
12/04/2013
01/05/2014
02/06/2014
03/07/2014
04/08/2014
EV/EBITDA
12.13 12.59 12.09 15.03 12.83 16.12 17.94 18.79 19.37 19 20.34 19.64 17.49
EV/S
2.71 2.93 2.88 3.08 2.99 2.93 3.48 3.32 3.61 4.07 3.89 3.77 3.71
7.00 x
9.00 x
11.00 x
13.00 x
15.00 x
17.00 x
19.00 x
21.00 x
1.75 x
2.25 x
2.75 x
3.25 x
3.75 x
4.25 x
EV/EBITDA EV/Sales
Subsector Sales EBITDA Examples
SCM 5.83x 26.21x
Horizontal Other 5.95x 22.98x
Horizontal Application Software Valuations
3.9x
19.0x
Since Q4 Corum Analysis
Jan. 2014
Sold to
Target: Hara SoftwareAcquirer: Verisae [Marlin Equity Partners]Date: Oct 2013
- Energy, water and waste analytics SaaS provider
- Verisae adds energy monitoring and analytics SaaS to its existing facilities management offerings
Big Data
3.9x
19.0x
Since Q4 Corum Analysis
Jan. 2014
Sold to
Target: VerdeecoAcquirer: Sensus Date: Apr 2014Transaction Value: reported at $5 million
- Offers smart grid analytics and big data solutions for electric, water and gas utilities
- Serving more than 50 percent of Verdeeco's core market, Sensus gains their smart grid technology to respond to customer demand more fully
Big Data
Since Q4Sold to
Target: Activation EnergyAcquirer: EnerNOC Date: Feb 2014- Brings EnerNOC an immediate presence in the Irish capacity market & strengthens its ability to
deliver its full suite of energy intelligence software applications throughout Europe
Sold to
Target: Entelios AGAcquirer: EnerNOC Date: Feb 2014- The acquisition expands EnerNOC's entry into continental Europe with Entelios' team & existing
relationships.
Sold to
Target: EnTech USBAcquirer: EnerNOC Date: Apr 2014- A global utility bill management software provider- Bolsters EnerNOC’s energy management offerings with more detailed forecasting of energy costs
Energy Management
3.9x
19.0x
Since Q4 Corum AnalysisJan. 2014
Sold to
Target: CP ElectronicsAcquirer: Inflexion Private Equity PartnersDate: Feb 2014
- UK’s leading manufacturer of lighting controls for the building sector
- With Inflexion’s investment support, in conjunction with its international network and expertise, CP Electronics seeks to consolidate its position in the UK and grow overseas markets
Energy Management
3.9x
19.0x
Since Q4 Corum AnalysisJan. 2014
Sold to
Target: EnerlianceAcquirer: Yardi SystemsDate: May 2014
- Provides energy efficiency software focused on air conditioning systems for large buildings and campuses
- Yardi will intergrate Enerliance’s LOBOS energy consumption with it’s own real estate platform
Energy Management
3.9x
19.0x
Since Q4 Corum Analysis
Jan. 2014
Sold to
Target: PowerSenseAcquirer: Landis+GyrDate: May 2014
- A Danish producer of high-quality smart grid supervision and control systems for the power distribution industry
- The acquisition will dramatically strengthen developments in the smart grid field globally, delivering solutions which enable utility use cases
IT-OT integration
Sold to
Target: CyberGRIDAcquirer: ToshibaDate: Jul 2013- Provides virtual power plant network management SaaS for smart grid operators,
utility companies and energy retailers.
Smart Grid/Smart Meter
Sold to
Target: ConsertAcquirer: ToshibaDate: Jan 2013- Converts electric consumption in homes and small businesses into sources of
capacity and energy reserves for utilities
3.9x
19.0x
Since Q4 Corum Analysis
Jan. 2014
Sold to
Target: Nautical TechnologiesAcquirer: LocoMobi [fka QuickPay]Date: Apr 2014
- A global provider of smart parking and transportation innovative solutions
- The combined business will now be known as LocoMobi, Inc. and will offer consumer-facing mobile payments to deliver new value for drivers as well as parking owners and operators.
Location Tracking & Contextual Intelligence
3.9x
19.0x
Since Q4 Corum Analysis
Jan. 2014
Sold to
Target: Euroscan HoldingsAcquirer: ORBCOMMDate: Mar 2014Transaction Value: $29 million- A global supplier of refrigerated transportation temperature compliance recording
systems from Netherlands
- With Euroscan’s suite of powerful asset monitoring, control technology and M2M solutions, ORBCOMM implements the growth strategy of adding vertical expertise, technologies and geographic markets
Location Tracking & Contextual Intelligence
3.9x
Target: Smallworld FibreAcquirer: Virgin MediaDate: Feb 2014
-Adds 40,000 homes in cities in Scotland and NW England to Virgin Media’s network.
High Bandwidth Internet
Sold to
Target: Zitius Service Delivery ABAcquirer: TeliaSonera ABDate: Dec 2013Transaction Value: $58M
- Operates multi-dwelling residential building fiber optic networks and provides broadband services for consumers in multi-dwelling buildings in Sweden.
Sold to
Jeff Brown - Moderator
Jeff Brown has over 25 years of entrepreneurial experience building software and business services companies in the energy and sustainability sector. He specializes in information technology for engineering, scientific and business applications for asset intensive industries.
Jeff helped form and was President of Severn Trent Worksuite, a FTSE 100 subsidiary, which grew to become the leading provider of enterprise and wireless workflow management software in the utility industry. Jeff was co-founder at IntelliGIS, a pioneer in geographic information systems and wireless computing for energy infrastructure management. Additionally, he launched Western Hemisphere operations for Simon Petroleum Technology, a provider of energy management software, and was a member of the core team at venture backed, GeoQuest Systems, which became the leader in energy decision support systems before being acquired by Schlumberger.
Jeff began his career on the research staff at Columbia University where he was a published author on global climate change.
Industry Panelists
Eric WoodsResearch Director
Will WinnPrincipal
Eric WoodsResearch Director – Navigant Research
Eric Woods is a research director leading Navigant Research’s coverage of smart cities. In this role he brings together his research experience in smart grids, smart water networks, smart transport, and smart buildings. He has over 20 years of experience as an analyst and consultant on new technology trends including in-depth research in the areas of IT infrastructure, data analytics, knowledge management, public sector IT, and cleantech innovation.
Woods is regularly quoted in major publications including The Financial Times, The New York Times, and The Guardian, in addition to being a frequent speaker at industry conferences. He has worked on consultancy assignments to a wide range of clients, including public and private sector technology users and global IT players, as well as many small and growing technology companies. Before joining Navigant Research, Woods was government practice director at Ovum. Prior to joining Ovum, Woods worked as an analyst, developer, and project manager in public sector IT. Woods holds an MSc in information systems from the University of Brighton and a Ph.D. in English literature from the University of Sussex.
Will WinnPrincipal - SmartCore
Will began his career in sales and sales management at Aerotek where he was responsible for selling engineering services to organizations in the SouthEast. Will found his next opportunity in 1998 when he was sought out by GE Capital IT Solutions to develop and manage accounts. In this role, Will became an expert in building and IT systems.
Will was recruited to run a sales region for Dimension Data as a Regional Sales Manager with Dimension Data in 2001. Will was formally recognized by Dimension Data through his inclusion as a founding member in their Leadership Forum and Key Talent Groups. He also achieved induction into the exclusive President's Club during all six years of his business development career at Dimension Data.In October of 2008, Will along with two key business partners founded SmartCore to capitalize on the incredible opportunity in the Connected Real Estate market. Since then, Will has been responsible for driving many Smart Building implementations from a vast array for vertical markets, to include Commercial Real Estate, Healthcare, Hospitality, Finance, Manufacturing, Higher Education, K-12 Schools, Municipality and Federal markets. SmartCore was also recognized by Cisco Systems at the 2011 Partner Summit for three prestigious awards in regards to Connected Real Estate.
Industry Panelists
Eric WoodsResearch Director
Will WinnPrincipal
Q&A
• We welcome your questions!– Use Q&A window on right side– Submit to queue at any time– Ask “all panelists” – see “ask” option above text-entry
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Contact Us
For further information or copies of today’s presentation:
Visit www.wfs.com -or-
Email Jeff Brown: [email protected]
