Monthly Business & Tech-Enabled Services Sector ......4 BUSINESS & TECH-ENABLED SERVICES SECTOR REPORT Notes: Source: Capital IQ and PitchBook. −Business & Tech-Enabled Services

1

BUSINESS AND TECH-ENABLED SERVICESSECTOR REPORT

January 2019

2

GCA BUSINESS & TECH-ENABLED SERVICES OVERVIEW

DEREK BELLManaging DirectorHead of Business & Tech-Enabled [email protected]

Representative Focus Areas

Digital Marketing, Performance Marketing, Account Based Marketing, Search Marketing, Influencer Marketing, Loyalty Marketing, Direct Marketing, Database Marketing, Experiential Marketing, Market Research

Diversified B2B Information Services, Financial / Credit Information Services, Specialized Information Services (Energy, Real Estate, Hospitality, Compliance, Auto, etc.)

Consulting, GRC Services, E-Discovery / Legal Services, Patent Services, HR Services, Corporate Training, Digital Transformation Services, IT & Cloud Services (Implementation, Managed Services, Software Development, VAR), BPO & KPO Services, Language / Localization Services, Print Services

Call Center, CRM, Billing & Claims Management / Processing, Accounts Receivable Management

MARKETING SERVICES

INFORMATION SERVICES

PROFESSIONAL & IT SERVICES

CUSTOMER CARE & CLAIMS SERVICES

Recent Business & Tech-Enabled Services Transactions

Key Contact

We Advised the Seller

Acquired byAcquired by


Acquired by


Investment in

We Advised TCVWe Advised LRN

Received a Significant Investment from


Acquired byAcquired by

We Advised the SellerWe Advised the Seller

Acquired by

Acquired by


Received an Investment from

We Advised Moneypenny

Acquired by

We Advised the SellerWe Advised the Seller

Acquired by


Acquired by

We Advised NorthEdge

Investment in


Acquired by

Information Services IT Services Corporate Training Digital Marketing IT Services CRM Services Information ServicesDigital Marketing Information Services

Risk Mgmt Services Software Services Patent Services IT Services Digital Marketing HR Solutions Digital MarketingMarketing Services IT Services

Acquired by


We Advised UKFast.Net

Received an Investment from


Acquired by

3

CASE STUDY: SALE OF ATTOM DATA SOLUTIONS TO LOVELL MINNICK PARTN ERS

GCA advised ATTOM Data Solutions, a leading provider of national real estate data and analytics, on its sale to Lovell Minnick Partners

TRANSACTION DETAILS

Closed

January 2019

SECTOR

Information Services

Real Estate Data Services

DEAL TYPE

M&A

Transaction Summary & Company Overview

▪ On January 8, 2019, Lovell Minnick Partners, a private equity firm specializing in financial and related business services companies, announced it has completed the acquisition of ATTOM Data Solutions, a leading provider of national real estate data and analytics

▪ Lovell Minnick acquired ATTOM from Renovo Capital and Rosewood Private Investments

▪ Headquartered in Irvine, California, ATTOM manages a comprehensive data platform that draws upon a wide range of sources to provide property tax, deed, mortgage, foreclosure, environmental risk, natural hazard and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population

▪ ATTOM licenses its data to companies in the real estate, mortgage, insurance, marketing and adjacent industries

▪ ATTOM's extensive property database is also used to power consumer-facing websites such as RealtyTrac.com, Homefacts.com and HomeDisclosure.com

Commentary

▪ Jason Barg, Partner, Lovell Minnick Partners, said:

− “ATTOM's data provides mission-critical insights to enterprise clients who seek to make well-informed business decisions with the benefit of historic, rich and near real-time data

− We're excited to partner with CEO Rob Barber and his team who have an excellent reputation for leadership and innovation in the real estate data and information services market”

▪ John Cochran, Partner, Lovell Minnick Partners, added:

− “ATTOM's management team has generated strong organic growth and successfully pursued accretive strategic opportunities

− We believe the Company's innovative technology platform, focus on superior data quality and customer service, and its recurring license revenue model position ATTOM extremely well for continued success in the space

− We are eager to support management in executing their strategic plan to build the leading technology platform in the real estate data industry”

Acquired by

We Advised ATTOM

4

BUSINESS & TECH-ENABLED SERVICES SECTOR REPORT

Notes:Source: Capital IQ and PitchBook.

− Business & Tech-Enabled Services sector saw over $4.9 billion in volume across 445 transactions in January 2019

− Only one large transaction was announced in January:

• DXC Technology’s acquisition of Luxoft

− Additional noteworthy private equity transactions not shown in the righthand table include:

• Periscope Equity investment in Power Digital Marketing

• BV Investment Partners acquisition of RKD Group

• Silver Oak Services Partners acquisition of Keystone Partners

• Kensington Capital (lead) investment in Simplus

• Century Park Capital Partners acquisition of MCCi

• Renovus Capital acquisition of Tempus Nova

• Gauge Capital acquisition of TVC Enterprises

• ABRY Partners investments in ADURO and Millennium Trust

• PennSpring Capital acquisition of Securus Contact Systems

• Century Equity Partners investment in Rimkus Consulting

• Goldman Sachs investment in Innovid

• Nonantum Capital Partners acquisition of ProVest

Executive Summary

Select M&A Transactions

Ann. Date Acquirer Target TEV ($MM)

1/31/19 NA

1/30/19(100% stock deal)

$163

1/23/19 NA

1/23/19 NA

1/23/19 $221

1/22/19 NA

1/18/19 ~$180

1/16/19($200MM Investment)

NA

1/15/19 NA

1/14/19 NA

1/8/19 NA

1/7/19 $1,978

1/3/19 $126

5

60%

70%

80%

90%

100%

110%

120%

130%

140%

Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19

BUSINESS & TECH-ENABLED SERVICES LTM STOCK PRICE PERFORMANCE

Notes:Source: Capital IQ.

Advertising & Marketing Services

Events & Exhibitions Information Services Consulting & Training HR Services Staffing & Recruiting IT & BPO Services Customer Care / CRM Services

(13.7%) (21.6%) 6.0% 26.8% 22.5% (12.5%) (1.0%) (21.7%)

LTM Share Price Performance

S&P 500

(4.0%)

6

BUSINESS & TECH-ENABLED SERVICES TRADING COMPARABLES

Notes:Multiples represent median values, except for HR Services, which reflects mean values. Source: Capital IQ.

Advertising & Marketing Services

Events & Exhibitions Information Services Consulting & Training HR Services Staffing & Recruiting IT & BPO Services Customer Care / CRM Services

9.0x / 1.5x 11.3x / 3.3x 16.5x / 5.5x 12.6x / 1.3x 16.3x / 3.6x 7.9x / 0.6x 12.6x / 2.3x 8.1x / 0.6x

2019E EBITDA / 2019E Revenue Multiple

EV / 2019E EBITDA EV / 2019E Revenue16.5x 16.3x

12.6x 12.6x11.3x

9.0x8.1x 7.9x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

InformationServices

HR Services Consulting &Training

IT & BPOServices

Events &Exhibitions

Advertising& Marketing

Services

CustomerCare / CRM

Services

Staffing &Recruiting

5.5x

3.6x3.3x

2.3x

1.5x1.3x

0.6x 0.6x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

InformationServices

HR Services Events &Exhibitions

IT & BPOServices

Advertising& Marketing

Services

Consulting &Training

CustomerCare / CRM

Services

Staffing &Recruiting

7

SELECTED RECENT BUSINESS & TECH-ENABLED SERVICES M&A ACTIVITYMarketing & Information Services

($MM)

EV / EBITDA EV / Revenue

Announced Date Acquirer Target Enterprise Value (EV) LTM NTM LTM NTM Target Description

Notes:Source: Capital IQ and Wall Street Estimates.(1) All 4 divisions are based in Germany.

1/30/2019 $163 10.7x NA 0.5x NAOnline adtech company that connects brands and audiences

through digital advertising and content distribution primarily

in the U.S.

12/21/2018 $105 8.8x NA 6.3x NAPersonal finance website that provides objective analysis on a

variety of financial topics including insurance and credit cards

12/18/2018 $150 NA NA 3.0x NA Full-service digital marketing agency

12/10/2018 $263 NA NA 7.5x 6.7xProvider of credit information and decision analytics in South

Africa, with operations across Sub-Saharan Africa

12/3/2018 S4 Capital $150 13.5x NA 3.7x NA

Programmatic advertising group that partners with major

brands

11/27/2018 $245 30.6x NA 2.8x NAProvides research-based advisory, consulting, and learning

solutions for B2B organizations and professionals globally

10/4/2018 $370 14.5x NA 2.4x NAOwns and operates an insurance comparison online

marketplace

9/25/2018 $811 35.9x 21.4x 5.0x 4.6xProvides multiplatform media and marketplace services to the

wedding, pregnancy, and parenting markets primarily in the

U.S.

9/20/2018 $4,750 NA NA NA NA Provides cloud-based engagement marketing software platform

9/4/2018 Getty Family $2,840 NA NA NA NACreates and distributes images, audio and video products,

documents, press kits, and other visual content to businesses

worldwide

8/30/2018 $263 37.8x 19.3x 5.5x 5.2xProvides commercial real estate market information and

anlytical tools to real estate professionals in the U.S.

8/8/2018 $6,675 13.1x 12.6x 3.7x 3.8x Provides commercial data, analytics, and insight on businesses

8/2/2018 $18 16.5x NA NA NAPrice Reporting Agency (PRA) for the global wood products

industry

7/30/2018 $123 NA NA 0.5x NAIpsos acquired 4 global divisions of GfK Research: Customer

Experience, Experience Innovatoin, Health, and Public Affairs (1)

7/27/2018 $45 NA NA 1.0x NA Provides digital advertising and marketing services

7/17/2018 $80 11.4x NA 2.5x NAFull-service healthcare marketing agency serving

biopharmaceutical, medical device, and diagnostics companies

8

SELECTED RECENT BUSINESS & TECH-ENABLED SERVICES M&A ACTIVITYMarketing & Information Services – continued

Notes:Source: Capital IQ and Wall Street Estimates.

($MM)



7/17/2018 $1,200 19.0x NA 6.5x NADesigns and develops a suite of ethics and compliance

software solutions

7/10/2018 S4 Capital $352 NA NA 2.7x NA

Netherlands-based creative digital production company serving

agencies worldwide

7/9/2018 $2,467 16.9x NA 7.3x NASwitzerland-based provider of sports-related live data and

digital content services

7/3/2018 $550 8.0x NA NA NAProvides marketing strategies and revenue-generating products

and services to the financial services industry

7/2/2018 $2,300 11.5x NA NA NA Provides database marketing services

7/2/2018 $778 NA NA 6.0x NAProvides construction cost analytics, estimating information,

pricing data, and procurement software and services

6/21/2018 $1,864 12.7x 9.8x 2.5x 2.5xOffers a range of Web services and products that enable small

businesses to establish, maintain, promote, and optimize their

online presence

6/20/2018 $34 NA NA 4.4x NAProvides competitive deposit and loan rate intell igence to bank

and credit union clients

6/19/2018 NA NA NA NA NAProvides business-critical insights over mobile, web, and

desktop platforms to oil and gas industries worldwide

6/15/2018 $32 10.9x NA 2.2x NAUK-based global digital subscription business that helps

brands, agencies and media platforms assess marketing

effectiveness across all channels

6/4/2018 $375+ ~20.0x NA NA NAProvides automated docket updates, breaking news, and expert

analysis for distressed debt investors, lawyers, and

restructuring professionals

5/21/2018 $1,855 NA NA NA NADevelops and provides market intell igence, data, and

technology solutions to participants in the global capital

markets in the U.S. and internationally

5/15/2018Exhibitions Business

$405 12.9x NA 3.8x NAUK-based organizer of market-leading B2B exhibitions,

including global exhibitions brands Bett and CWIEME

4/26/2018 $117 NM NM 2.5x 2.3xProvides cloud-based behavioral analytics for customer

service organizations

Mean 16.7x 15.8x 3.7x 4.2x

Median 13.1x 15.9x 3.3x 4.2x

9

SELECTED RECENT BUSINESS & TECH-ENABLED SERVICES M&A ACTIVITYProfessional, IT & BPO Services


($MM)



1/7/2019 $1,978 20.1x 14.7x 2.2x 2.1xProvides software development services and IT solutions to

multinational corporations worldwide

12/27/2018 $1,223 7.4x NA 1.4x NADenmark-based IT and software services provider with a strong

customer base among central and local governments

12/21/2018(Investment)

$513 16.2x NA NA NA Provides managed hosting and colocation solutions in the U.K.

12/10/2018 $2,500+ 16.7x 14.3x NA NAProvides payroll and production accounting solutions to the

entertainment industry in the U.S. and internationally

12/3/2018 $59 7.4x NA 2.3x NAAssists customers in managing the business immigration needs

of their international employees

11/26/2018 $1,000 NA NA NA NAPEO serving 8,400+ clients across all 50 states with its HR

solutions, employee benefits, payroll admin, and risk

management services

11/6/2018 $1,640 14.7x 9.1x 1.2x 1.0xProvides collaboration and technology solutions for large and

medium enterprises in the U.S.

10/22/2018 $69 NA NA NA 2.0xLondon-based provider of RPA, AI, crowd sourcing, and impact

sourcing solutions

10/17/2018(42% stake)

$1,100 NA NA NA NAProvides global tax services and software dedicated exclusively

to business taxes

10/9/2018(Citizen Engagement Centers)

$400 10.0x NA 0.6x NAIncludes certain assets of General Dynamics' large-scale,

citizen-engagement centers in the U.S. Federal civil ian market

10/4/2018 $550 NA NA 3.1x NAProvides software services and creates digital products and

solutions that connect brands with consumers

9/12/2018 $6,700 NA NA NA NAProvides a cloud-based platform for tech-enabled claims and

productivity management solutions to businesses in North

America

9/10/2018 $2,450 13.7x 14.7x 1.3x 1.3xProvides a range of technical services to the U.S. DOD, DOJ,

DOS, FAA, DHS, and space-related and intell igence community

agencies

8/28/2018 $2,650 NA NA NA NAProvides production solutions to television broadcasters, cable

networks, and event producers worldwide

8/3/2018 $480 ~20.0x NA NA NA Provides employee training for the food and retail sectors

7/22/2018 $3,542 13.4x 15.3x 3.7x 3.7xProvides digital transformation, IT, and KPO services

worldwide

10

SELECTED RECENT BUSINESS & TECH-ENABLED SERVICES M&A ACTIVITYProfessional, IT & BPO Services – continued


($MM)



7/16/2018 $410 NA NA 3.5x NAManages mission critical business applications for companies

and organizations in Norway and internationally

7/16/2018 $78 10.5x NA 1.1x NAProvides expert localization and technical translation services

for businesses in any fi le format and any language

6/28/2018 $2,534 7.4x 7.6x 0.9x 1.0xProvides customer management services to communications

and media, technology, financial services, and other vertical

markets worldwide

6/27/2018(Minority Stake for $250MM)

$1,000+ NA NA NA NAProvides consulting, product engineering, IT, and BPO services

to Global 1000 companies

6/25/2018DFLT and TAS Segments

$470 11.9x NA 1.5x NAProvides professional services to clients primarily in the

financial services industry

6/19/2018 NA NA NA NA NAProvides event technology services for the hotel, resort, and

conference center industry in the U.S., Canada, Mexico, the

Caribbean, Europe, and the United Arab Emirates

6/14/2018 $1,000 12.0x NA 2.2x NAIndia-based provider of BPO and customer experience

management services

5/23/2018 NA NA NA NA NAProvides moving and relocation services to corporate

customers, individual consumers, and military and government

agencies worldwide

5/21/2018(48% stake)

$2,000+ 18.0x NA 3.6x NAProvides full-l ifecycle product development services to

customers worldwide

5/10/2018 $1,100 NA NA NA NAGlobal provider of talent acquisition and management

solutions delivering value to clients through a portfolio of

outsourcing and consulting services

5/8/2018 $1,200 NA NA 7.0x NA Operates an online jobs and career community

5/1/2018 $385 NM NM 1.2x 1.4xProvides patent risk management and e-discovery services for

clients worldwide

5/1/2018 $240 NA NA NA NADba SCIO Health Analytics, provides healthcare analytics

solutions and services

4/24/2018 $150 11.2x NA 1.4x NAProvides cloud-based integrated recruiting, talent management,

and compensation management solutions

Mean 12.7x 12.6x 2.2x 1.8x

Median 12.0x 14.5x 1.5x 1.4x

11

GCA: A LEADING INDEPENDENT GLOBAL INVESTMENT BANKGlobal investment bank that provides strategic M&A and capital markets advisory services to growth companies and market leaders

GCA operates as GCA in America and Asia, and GCA Altium in Europe

NEW YORK

ZURICH

MILAN

FRANKFURT

MUNICH

TEL AVIVSAN FRANCISCO

LONDON

MANCHESTER

MUMBAI

OSAKA

SHANGHAI

SINGAPORE

TOKYO

NEW DELHI

NAGOYA

HO CHI MINH CITY

TAIPEI

Globally integrated

platform with 21

offices across

America, Asia and

Europe

Geographically balanced,

synergistic and complementary

sector focus areas

across the firm

Strong in key

growth sectors

such as Technology

and Industrials

Strong cross-border

capabilities and

deal flow with 35%

of all transactions

cross-border

400+professionals

375+ deals closed in the last 3 years

PARISLEEDS

FUKUOKA

Monthly Business & Tech-Enabled Services Sector ......4 BUSINESS & TECH-ENABLED SERVICES SECTOR REPORT Notes: Source: Capital IQ and PitchBook. −Business & Tech-Enabled Services

Documents