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M&AM A R L I N & A S S O C I A T E S
E n t e r p r i s e D a t a &
An a l y t i c s
M A R K E T
U P D A T E
INVESTMENT BANKING AND STRATEGIC ADVISORY TO THE TECHNOLOGY, INFORMATION AND HEALTHCARE INDUSTRIES
We won’t be surprised if volatility continues in public equity and bond markets. The value of several Unicorns is likely to
fall a bit closer to earth – while remaining strong in a historical context. But we see m&a and investor demand continuing
quite strong for middle market companies that offer new exciting ways to manage and analyze massive amounts of data
including Internet-of-Things (IoT) analytics, predictive analytics, machine learning, outsourced analytics services and
vertically focused data services – regardless of what else is happening all around us. Wikibon, a community of
technology professionals, projects that spending on big data initiatives will exceed $33 billion in 2016, up from $27 billion
last year, and a recent Forbes survey notes that 90% of business leaders believe that big data will revolutionize their
business operations the same way the internet did.
There was turbulence in 2015 too, but through it all the m&a market continued to flourish. Among others, there were:
We have no idea how long the volatility in public equity and bond markets will continue for. What we do see is that the
world is changing – rapidly. The ability to use advanced analytic tools to help build a more effective business and
generate stronger profit is a siren song that, if anything, calls louder in these turbulent times. A growing group of VC
firms, private equity investors, and corporations have an idea of a future – and it involves Enterprise Data & Analytics.
Their desire to own a piece of this market while it is still nascent is strong and the availability of innovative companies,
cash, and debt at historically low interest rates doesn’t hurt.
It’s an interesting time to be in this market. We’re enjoying it. We are bullish on this space and are actively advising
sellers, buyers, and investors on strategic transactions. If you have questions, please feel free to contact me or Jeff
Trongone – our lead in this area.
Marlin & Associates is one of the most active firms advising buyers and sellers of U.S. and international middle-market firms that provide software, data,
and related services. The firm is based in New York City, with offices in San Francisco, CA, Washington, D.C., and Toronto, Canada. It has been the
recipient of numerous awards including “Boutique Investment Bank of the Year,” “Middle-Market Investment Bank of the Year,” "Middle-Market Financing
Agent of the Year – Equity," and “TMT Advisory Bank of the Year.” Marlin & Associates' team of professionals has advised over 200 information-
technology transactions.
After a very strong 2015, in which m&a activity by value soared to record levels – exceeding 2007 highs, 2016 has
started out with a series of earth tremors. Among other things, the price of oil (and several other commodities) declined
to lows not seen in more than a decade; the bottom seemed to drop out of the Chinese stock market; and the stock and
bond markets in the US and Europe slid in seeming sympathy. Recently, several high flying tech companies raised
capital at values lower than previously indicated. So what will 2016 bring?
DEAR CLIENTS AND
FRIENDS,
Welcome to our January 2016 Enterprise Data & Analytics Market Update
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/30/14. These companies are a sample of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in thesector. M&A calculates mean and median multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above
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Sector Comparison Snapshot
Sector Analyses
Data Analytics Services (DAS)
Data Analytics Software – Enterprise (DAS-E)
Data Analytics Software – Focused (DAS-F)
Proprietary Financial Data Analytics (PFDA)
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Merger & Acquisition Activity Trends
Capital Raising Activity Trends
Enterprise Data & Analytics
Enterprise Data & Analytics is a broad industry containing several sectors that encompass the
large and growing data assets used and generated by businesses, along with the related analytics
that enhance insight and drive better business decisions.
MARLIN & ASSOCIATES: MARKET UPDATE
JANUARY 2016
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 12/31/15. These companies are a
sample of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and
median multiples using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above. 03
Enterprise Value / Revenue
Enterprise Value / EBITDA
ENTERPRISE DATA & ANALYTICS
Sector Comparison Snapshot:
JANUARY 2016
0x 2x 4x 6x 8x
PFDA
DAS-F
DAS-E
DAS
2015E EV/Revenue LTM EV/Revenue 2016E EV/Revenue
0x 5x 10x 15x 20x 25x 30x
PFDA
DAS-F
DAS-E
DAS
2015E EV/EBITDA LTM EV/EBITDA 2016E EV/EBITDA
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 12/31/15. These companies are a
sample of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean and
median multiples using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above. 04
DATA ANALYTICS SERVICES
The Data Analytics Services (DAS) sector consists of information providers that
sell data, analytics, and information services to a broad array of institutions
(primarily non-financial).
The DAS price index declined in line with the market, pulled lower by Pearson and Forrester declinging by 11%
and 13%, respectively. The DAS sector consists of many firms growing less than 10% per year, but that offer
highly scalable data assets, and therefore trade at enterprise value multiples of 3.2x 2016E revenue and 12.2x
2016E EBITDA, on average. In 2016, on average, the group is expected to grow revenue by 3% and generate
EBITDA margins of 26%. Over the last five years, the DAS index growth is roughly in line with the broad market.
Market Commentary
Public Market Valuation Trends
Company Market Enterprise
(USD millions) Cap Value CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/30/14. These companies are a sample of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in thesector. M&A calculates mean and median multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above
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RECENT CAPITAL RAISES
Below is a selection of recent capital raises in the Enterprise Data & Analytics
Industry.
Date
Announced
Acquirer(s) /
Investor(s)Target / Issuer Description
12/24/15
RapidMiner (Cambridge, MA) raises $16mm in a funding round led
by NGP with participation from existing investors. The company
provides an open source predictive analytics platform that enables
enterprises to make enhanced business process decisions.
RapidMiner will use the funds for R&D and sales & marketing.
12/17/15
Signavio (Berlin, Germany) raises €31mm ($33.9mm) in a minority
investment round led by Summit Partners. Signavio provides
business process and decision management technology. The
company will use the funds to grow the business in Europe, North
America, and Asia.
12/16/15
Digital Guardian (Waltham, MA) raises $65mm in a funding round
from new investors LLR Partners, Mass Mutual Ventures, and the
venture capital unit of Siemens Financial Services. Digital
Guardian provides a data protection platform purpose built to stop
data theft. The company will use the funds to continue product
innovation and expand the company's global footprint.
12/15/15
Datamyne (Miami, FL) raises undisclosed debt from Praesidian
Capital and Kemper Corporation. Datamyne provides trade data-
based global business intelligence and analytical tools. The
company will use the funds to finance growth initiatives, including
its recent acquisition of Zepol Corporation.
12/15/15
RealityMine (Manchester, United Kingdom) raises $17mm in a
funding round led by Kennet Partners. The provider of mobile
market research technologies and consumer analytics will use the
funds to further technology advancements in the areas of mobile
and cross-platform measurement.
12/10/15
Steelhouse (Los Angeles, CA), a data-driven advertising software
company, raises $49mm in funding led by Mercato Partners with
participation from Staley Capital and Silicon Valley Bank. The
proceeds will be used for product development, hiring, and
marketing. Steelhouse expects to achieve run-rate revenue of
$130mm by end of 2015.
12/10/15
Factual (Los Angeles, CA) raises $35mm in a Series B funding
round led by a consortium of venture capitalists and individuals.
Factual aggregates raw data and curates it into simple packaged
data sets. The company has raised $62mm to date.
12/10/15
DataScience (Los Angeles, CA) raises $22mm in a Series B round
led by new investor Whitehart Ventures and returning investor
Greycroft Partners. The company will use the funds to grow its
team of data scientists and engineers. The investment extends the
$4.5mm Series A financing round led by Greycroft Partners.
12/10/15
SnapLogic (San Mateo, CA) raises $37.5mm in a funding round
led by Microsoft, Silver Lake Waterman, and existing investors.
The company offers "unified data and application integration
platform as a service." They company will use the funds to
accelerate growth and expand internationally.
12/8/15
Platfora (Palo Alto, CA) raises $30mm in a funding round led by
HSBC and Harmony Partners and existing investors. Platfora helps
business analysts comprehend data sets. The company plans to
use the funds for international expansion. Platfora has raised more
than $95mm to-date.
JANUARY 2016
12 investors
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/30/14. These companies are a sample of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in thesector. M&A calculates mean and median multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above
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Date
Announced
Acquirer(s) /
Investor(s)Target / Issuer Description
12/28/15
IHS (NYSE:IHS) agrees to acquire CarProof for $650mm CDN
(~$460mm). CarProof provides automotive vehicle history reports
to dealers, original equipment manufacturers, lenders, insurers,
governments, law enforcement agencies and consumers. In 2013,
IHS acquired CARFAX, the leading vehicle history expert for used
car buyers, sellers, and the automotive industry in the U.S. This
acquisition will largely expand market share.
12/22/15
Tyco (NYSE:TYC) agrees to acquire ShopperTrak for $175mm
valuing the company at an implied 2.3x LTM revenue.
ShopperTrak is a leading global provider of retail consumer
behavior insights and location-based analytics. The acquisition of
ShopperTrak will build on Tyco’s well established inventory
visibility and loss prevention solutions for retailers.
12/18/15
Microsoft (NASDAQ: MSFT) acquires Metanautix for an
undisclosed sum. Metanautix’s technology connects the “data
supply chain”, independent of the type, size, or location of an
organization’s data. The acquisition will to help customers connect
data for business insights.
12/16/15
RPX Corporation (Nasdaq:RPXC) agrees to acquire Inventus
Solutions for an undisclosed amount. Inventus, backed by
Clearlake Capital Group, provides litigation-support services
through its suite of bundled software technologies utilizing
streamlined data processing and review.
12/16/15
Bloomberg (New York, NY) agrees to acquire Barclays' Risk
Analytics and Index Solutions business ("BRAIS") for $787mm.
This acquisition will extend the complementary investments that
Bloomberg has made in the index business and integrate into
Bloomberg's analytics dashboards, portfolio analytics, order
management systems, and excecution management systems.
12/15/15
Cision (Chicago, IL) agrees to acquire PR Newswire from UBM for
$841mm, valuing the company at an implied 2.8x LTM revenue.
Cision, backed by private equity firm GTCR, also owns Gorkana
which it acquired in October 2014. The acquisition of PR Newswire
strengthens Cision’s service offerings for public relations
professionals.
12/9/15
Moody's Corporation (NYSE:MCO) agrees to acquire the
residential mortgage backed securities (RMBS) data and analytics
assets of BlackBox Logic for an undisclosed sum. Moody’s will
integrate BlackBox Logic’s loan-level RMBS data and technologies
into products of its Structured Analytics and Valuations (SAV) unit.
12/1/15
Blackboard (Washington, DC) acquires BlueCanary, a higher
education predictive analytics company, from Clairvoyant for an
undisclosed sum. The acquisition equips Blackboard with student
retention and performance monitoring tools and strengthens its
analytics portfolio.
11/24/15
LexisNexis, a subsidiary of RELX Group (LSE:REL), agrees to
acquire Lex Machina for an undisclosed sum. Lex Machina is a
leading provider of SaaS-based legal analytics solutions designed
to help lawyers predict outcomes of different legal strategies by
mining, tagging, categorizing, and enhancing Federal Court
dockets and documents.
11/20/15
Verisk Analytics (NASDAQ:VRSK) agrees to acquire The PCI
Group for an undisclosed sum. PCI is a leading consortium of five
specialist data and subscription research companies covering the
chemicals, fiber, films, and plastics sectors. PCI will become part
of Verisk’s Wood Mackenzie business it acquired in March of 2015.
RECENT MERGERS & ACQUISITIONS
Below is a selection of recent mergers & acquisitions in the Enterprise Data &
Analytics Industry.
JANUARY 2016
Risk Analytics andIndex Solutions
Note: Not a complete list
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CLIENTS CHOOSE MARLIN & ASSOCIATES TO ADVISE
THEM ON THEIR MOST IMPORTANT STRATEGIC MOVES
has invested in
Marlin & Associates acted as strategic and financial advisor to Aquiline Capital
Partners.
Dublin, Ireland
New York, NY
has been acquired by
Marlin & Associates acted as exclusive
strategic and financial advisor to Varden Technologies Inc.
Windsor, CT
Boston, MA
has been acquired by
Marlin & Associates acted as exclusive
strategic and financial advisor to Alacra, Inc.
Pa lo A lto, CA
New York, NY
rece ived an investment from
Marlin & Associates acted as exclusive
strategic and financial advisor to Trunomi.
Campbell, CA
JANUARY 2016
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/30/14. These companies are a sample of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in thesector. M&A calculates mean and median multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above
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Two transactions on which Marlin & Associates
advised were named as part of
The M&A Advisor’s “Deals-of-the Decade
Celebration
Acquisition International recognized Marlin &
Associates for the M&A Award USA TMT
Advisory Firm of the Year (2012, 2015)
The Global M&A Network recognized Marlin &
Associates for excellence in multiple deal
categories through its M&A Atlas Awards:
• Financial Technology Deal of the Year (2012, 2011)
• North America Small Mid Markets Corporate Deal of the Year
(2013)
• Entertainment & Media Deal of the Year (2011)
• Corporate M&A Deal of the Year (2010)
• Technologies Deal of the Year (2010)
* Firm-wide Awards
The M&A Advisor and The M&A Forum have
recognized Marlin & Associates for excellence
in multiple deal categories including:
• Boutique Investment Banking Firm of the Year (2014)*
• Healthcare and Life Science Deal of the Year (Over $100M
to $500M) (2013)
• Middle Market International Professional Services (B-to-B)
Deal of the Year (2013)
• Financial Services Deal of the Year (2013, 2012 and 2011
• Nominated for Middle Market Healthcare Services Deal of
the Year (2012)
• Information Technology Deal of the Year (2011)
• Middle Market Deal of the Year <$25M (2011)
• Corporate and Strategic Acquisition of the Year (2011)
• Middle Market Financial Services Deal of the Year
(2011 and 2010)
• Middle Market Information Technology Deal of the Year
(2011 and 2010)
• Middle Market International Financial Services Deal
of the Year (2013 and 2010)
• Middle Market International Information Technology Deal
of the Year (2010
• Middle Market Professional Services Deal of the Year (2010)
• Middle Market Financial Services Turnaround Deal of the
Year (2009)
• Middle Market Information Technology Turnaround
Deal of the Year (2009)
• Middle Market International Deal of the Year(2008)
• Middle Market Financial Services Deal of the Year (2008)
• Middle Market Technology Deal of the Year (2008)
• Middle Market Investment Banking Firm of the Year
(2008 and 2007)*
• Middle Market International/Cross Border Deal of the Year
(2007, Below $100M)
• Middle Market Financial Services Deal of the Year (2007,
Below $100M)
• Middle Market Financing Agent of the Year – Equity
(2007)*
• Middle Market Computer and Information Technology Deal
of the Year (2007, Below $100M)
• Middle Market Financing Deal of the Year - Equity (2007)
• Middle Market Financing - Financial Services Deal of the Year
(2007)
• Middle Market Financing - Computer, Technology and
Telecommunications Deal of the Year (2007)
The 451 Group, a noted independent
technology industry analyst company,
identified Marlin & Associates as a leader in
cross-Atlantic technology merger and
acquisition transaction advisory
SNL Financial, a market research
company, identified Marlin & Associates as
leading the most financial technology
transactions in 2009, in a tie with Citigroup
and Credit Suisse, and one of the top 10
advisors in 2010
“Boutique Investment Banking Firm of the Year (2014, 2015)”
PEERS AND INDUSTRY GROUPS RECOGNIZE MARLIN &
ASSOCIATES
Select Marlin & Associates Awards
JANUARY 2016
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/30/14. These companies are a sample of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in thesector. M&A calculates mean and median multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above
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Ken Marlin
Founder and Managing Partner of M&A
• Twice named to II’s tech 50
• Member Market Data Hall of Fame
• MD Veronis Suhler Stevenson
• CEO of Telesphere Corporation
• CEO of Telekurs (NA)
• EVP Bridge Information systems
• SVP at Dun & Bradstreet
• BA from the University of California
(Irvine)
• MBA from UCLA, post-MBA from New
York University
Jason Panzer
Chief Operating Officer of M&A
• 20+ years of M&A experience advising
technology and PE firms, globally
• VP Business Development at FactSet
• M&A attorney of Skadden, Arps, Slate,
Meagher and Flom
• CFO of JCF Group
• MBA from Columbia Business School
• J.D. from Fordham Law School
• CFA Charterholder Michael Maxworthy
• 18+ years of investment banking and
private equity experience
• Named twice to Dealer’s Digest and
recently M&A Advisor’s “40-Under-40”
• Founded Marlin & Associates with Ken
Marlin
• Formerly at Veronis Suhler Stevenson,
Morgan Stanley, and American
International Group
• BS from Binghamton University
Paul Friday
• 20+ years of investment banking
experience
• Focused on entrepreneurial
technology-based companies
• Formerly at Robertson Stephens and
PaineWebber (UBS)
• BS, Finance from Pennsylvania State
University
Afsaneh Naimollah
• 20+ years of M&A experience
• Founder of Chela Capital
• Global Head of Barclays’ Capital
Technology Group
• BA in Economics from Milton College
• MBA in International Finance from
• University of Wisconsin-Madison
• Post-MBA from Northwestern University
Tom Selby
• 12+ years of M&A experience
• VP of Business Development at
SunGard
• Founder of software company sold to
SunGard
• Started career designing trading
software for TD Bank
• BaSC, Engineering from University of
TorontoJonathan Kaufman
• 15+ years of corporate finance
experience
• Thought leader in payments technology
• 8+ years in investment banking at UBS
and Deutsche Bank
• BS from Union College
• MBA from University of Virginia’s
Darden School of Business
• Named to Deal’s Digest “40-Under-40”
George Beckerman
• 25+ years of investment banking/
strategic consulting
• Co-founder of MarketResearch.com
• Advisor at Dun & Bradstreet, R.R.
• Donnelly & Sons, and BDM
• Executive positions in Washington
• Post’s Legislate subsidiary and
Thomson Finacials’ legal research
business
• National Defense Education Fellow
at New York University’s Graduate
School of Public AdministrationJeffrey Trongone
• 10+ years on Wall Street
• Previously at Scotia Capital's Equity
Research
• Previously at Bear Stearns and
J.P. Morgan
• BSBA from Villanova University
• CFA Charterholder
MARLIN & ASSOCIATES’ SENIOR TEAM BRINGS EXTENSIVE
DEPTH, BREADTH AND INDUSTRY EXPERTISE TO OUR
CLIENTS
Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 4/30/14. These companies are a sample of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in thesector. M&A calculates mean and median multiples for the sector using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above
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