2Q19 SaaS MA Report

SEG SEG Snapshot:
Overview 2Q19 SaaS M&A Update

Table of Contents
3 Report Definitions
4 Brief SEG Overview
10 SaaS M&A Update
30 Appendix
Copyright © 2019 by SEG Capital Advisors, LLC. All Rights Reserved 2

Report Definitions
SaaS companies are defined as those companies that primarily offer their solutions via the cloud
SaaS and through a subscription or transaction-based pricing model
Software companies are defined as those companies that are deemed to be license model
Software businesses or may be in the early stages of converting to subscription-based models
EV Enterprise Value
TTM Trailing Twelve Months
YoY Year-Over-Year
QoQ Quarter-Over-Quarter

Brief SEG Overview
SEG Snapshot: 2Q19 SaaS M&A Update
Software Equity Group Overview
Unmatched Expertise | Extraordinary Results
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Years of Experience in Aggregate Transaction Value of Buyer Relationships
▪ Software Equity Group (SEG) provides BROAD NETWORK OF SOFTWARE INDUSTRY BUYERS & INVESTORS
unparalleled M&A advisory services for emerging
and established B2B software companies
▪ Exclusive focus on sell-side advisory services for
25+ years
▪ Services include:
▪ Strategic M&A
▪ Majority Recapitalizations
▪ Divestitures
▪ Board Advisory

SEG’s Select Sell-Side M&A Activity

SEG
RESEARCH
We constantly track transactions and SEG Snapshot: 1Q19 SaaS SEG Snapshot: 2019 Annual
M&A Update Software Industry Report
buyer appetite to aggressively create
competitive markets for our clients’
businesses. As always, our research is
complimentary.
CLICK TO ACCESS RESEARCH
SEG Snapshot: 3Q18 SaaS M&A SEG Snapshot: Supply Chain

Market Update Software M&A Activity

What Our Clients Say
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partners over the last 30 years, I consider my efficient, always available to answer any questions their proven understanding of our business, deep
experience with SEG to be the most enjoyable with the along the way, and worked hard to ensure a smooth industry expertise, and proven track record of creating
best outcome. The SEG team was a source of guidance process. Their relationships and deal execution skills very competitive processes. The SEG team did a
and leadership and I knew I was in great hands the were second to none and yielded a range of options phenomenal job keeping buyers engaged and moving
entire way. Their incredible effort led to a wonderful amongst the best possible buyers. We would aggressively through the process. All this resulted in a
outcome for our customers, employees, and recommend SEG to any company looking for M&A hugely successful outcome for the shareholders of
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relatable, and we had fun working together. Hiring SEG and beyond.” behind this success. They created value well in excess
was the best decision I have made in my career.” of their fee.”
Todd Collins Dana Zeff (Founder & CEO) and Justin Alanis
Founder & CEO of HemaTerra Steven Ozbun (President), LeaseLabs Founder & CEO of Rentlytics
SEG served as exclusive advisor to HemaTerra in its SEG served as exclusive advisor to LeaseLabs in its SEG served as exclusive advisor to Rentlytics in its
investment from The Riverside Company acquisition by RealPage acquisition by RealPage

SEG Client Videos
SEG Client Videos are a unique way to gain insight into the M&A process from former SEG clients. Check out our
recent videos from SEG clients Nexternal, Bigfoot, and Indatus. Keep an eye out as we continue to build a broader
library throughout 2019.

SaaS M&A Market Update
Summary: 2Q19 SaaS M&A
High-level review of 2Q19 key trends.
• The overall software M&A industry (including SaaS, software, internet, and mobile deals) remained strong through
the first half of 2019 and is on track to outperform 2018.
• The SaaS M&A market continued to roar, as each of the past four quarters posted above 250 transactions.
Valuations remained strong, as 2Q19 posted a median of 4.6x EV/Revenue, a high point for the SaaS M&A market.
• The composition of SaaS targets indicated that the majority of companies were not VC funded (60% of targets),
based in North America (76% of targets), and SMBs with less than 150 employees (59%).
• In 2Q19, there was an even mix of private equity firms and traditional strategic buyers driving M&A activity.
• CRM & Marketing deal volume increased approximately 27%, posting 47 deals in 2Q19, compared to 1Q19’s 37
deals.
• Healthcare, Real Estate, and Education were the most active verticals over the past three years.
• Select notable Healthcare transactions include The Riverside Company’s acquisition of HemaTerra
Technologies(1) and Champion Healthcare Technologies, Allscripts's acquisition of ZappRX, and JPMorgan
Chase’s acquisition of Instamed Communications.
Enjoy the report and feel free to reach out with any questions or to discuss our relevant market insights.
(1) SEG Transaction

Historical Software(1) Industry M&A Volume
In the broader software industry, M&A deal volume remained strong through the first half of 2019.
Software Industry M&A Deal Volume Rolling Average Deal Volume(3)
3000 SEG 700

Estimate(2) 642
600
2500
500
Number of Deals (TTM Average)

2000
400
Number of Deals
1500
300
1000
200
500
100
0 0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
(1) Includes SaaS, on-premise license model, internet, and mobile transactions.
(2) SEG Estimate is based on a 4-year CAGR of 4.0%.
(3) Rolling average deal volume is a TTM average.

2Q19 SaaS M&A Highlights: Deal Volume
SaaS M&A deal volume already surpassed the first half of 2018 and is on track to outperform last year’s deal volume.
Q1 Q2 Q3 Q4 Percent of Total Software M&A Deals
1200 38.0%
SEG
Estimate(1)
33.0%
1000
Percent of Total Software M&A Deals

28.0%
Number of SaaS M&A Deals
800
23.0%
600 18.0%
13.0%
400
8.0%
200
3.0%
0 -2.0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
(1) SEG Estimate is an annualized figure based on the first two quarters of 2019. We expect 2019 to reach 1,050 to 1,150 deals.

2Q19 SaaS M&A Highlights: Valuation(1)
M&A valuations reached a high point of 4.6x EV/Revenue in 2Q19, well above the trailing nine-month average.
5.0x
4.6x
4.5x
Median & Average (4.0x)(2)

4.0x
3.5x
Median TTM EV/Revenue Multiple(2)
3.0x
2.5x
2.0x
1.5x
1.0x
0.5x
0.0x
(1) Values are on a median TTM basis, indicating that each quarter includes 12 months of data in order to obtain a larger dataset.
(2) Median and average values are based on data from 2Q10 to 2Q19.

2Q19 SaaS M&A Highlights: Deal Count by Product Category(1) (Last 3 Years)
Over the past three years, CRM & Marketing, Analytics & Business Intelligence, and HR & Talent Management remained the top
three product categories in terms of deal count.
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19
CRM & Marketing 485
Analytics &
Business 317
Intelligence (BI)
HR & Talent
Management 259
Content / Document
Management & 204
BPM
Communications &
Collaboration 195
Security 148
(1) Chart only includes most active product categories which posted over 147 transactions in the past three years.

2Q19 SaaS M&A Highlights: Deal Count by Vertical(1) (Last 3 Years)
Over the past three years, Healthcare, Real Estate, and Education remained the top three verticals in terms of deal count.
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19
Healthcare 183
Real Estate 143
Education 119
Finance 105
Retail 51
Hospitality 44
(1) Chart only includes most active verticals which posted over 40 transactions in the past three years.

2Q19 SaaS M&A Highlights: Business Model Type
Targets with a vertical focus comprised approximately 38% of all SaaS transactions in 2Q19, with Healthcare remaining the most active vertical.
Business Model Type(1) Top Vertical Deals(2)
22.8%
Percent of Total Vertical Deals

Horizontal 14.1%
62%
8.7%
7.6%
Vertical 6.5%
38% 4.3%
Healthcare Finance Real Estate Education Public Sector Insurance
(3)
Select
Vertical
SaaS
Targets
(1) Business model type indicates the focus of the target. The target can either be horizontal and serving multiple industries or serving a specific
vertical market.
(2) Top vertical deals as a percent of all vertical SaaS deals in 2Q19.
(3) SEG Transaction.

Revenue Multiples – Last 3 Years
Over the last three years, medium to large targets (over $50M in revenue) were rewarded for scaling, posting the greatest EV/Revenue. In
addition, over a third of SaaS targets posted a multiple of 6.0x EV/Revenue or greater.
Revenue Multiple by Seller Revenue Revenue Multiple Distribution
35.5%
5.3x 5.2x
4.9x
(2)
4.0x
Median EV/Revenue Multiple
3.7x
Percent of Deals
15.9%
13.6%
12.7% 12.3%
6.8%
3.2%
<=$10M >$10M <=$20M >$20M <=$50M >$50M <=$100M >$100M <= 1.0x > 1.0x & > 2.0x & <= > 3.0x & <= > 4.0x & <= > 5.0x & <= > 6.0x
<= 2.0x 3.0x 4.0x 5.0x 6.0x
Seller Revenue TTM Revenue Exit Multiple Bins
(1) Last 3 years as of June 30, 2019.

(2) Typically, companies that scale are rewarded with higher EV/Revenue multiples. The $20-$50M range posted a comparatively low multiple (4.0x) due to select unprofitable targets with negative growth rates which drove the median multiple down.

2Q19 SaaS M&A Highlights: Buyer & Target Backing
Nearly 50% of all SaaS M&A targets in 2Q19 were acquired by private equity buyers(1). Further, buyers indicated strong interest in companies
with no VC funding, which comprised 60% of deals.
SaaS M&A Activity by Buyer Type SaaS M&A Activity by Target Ownership
Private
Strategic
10%
VC Funding
Private Equity 40%
Direct Publicly Traded
11% Strategic
39%
Equity Backed
No VC Funding
Strategic
60%
40%
(1) Private Equity Buyers includes Private Equity Direct and Equity Backed Strategic. Private Equity Direct includes private equity firms making platform acquisitions, while Equity Backed Strategic includes all strategic buyers backed by a private equity firm.

SaaS M&A Activity by Employee Count & Company Age (2Q19)
Nearly 60% of targets were SMBs with less than 150 employees, and approximately 45% were founded in the last 10 years.
Employee Count of Target Company Lifespan of Target Company
32.0%
21.6% 35.1% 1-50
51-100
Percent of Companies
101-150 19.0%
2.7% 151-200
13.4% 13.4%
2.7%
251-300
10.4%
2.7%
301-350
5.6% 6.1%
351-400
10.8%
>401
1-4 5-9 10-14 15-19 20-24 25-29 >29
10.8%
13.5% # of Years Since Company Founding
(1) 14% of SaaS targets reported its employee count.

(2) 98.9% of SaaS targets reported its founding year.

SaaS M&A Activity: By Region (2Q19)
North America comprised the largest percentage of SaaS M&A deals in 2Q19.
19.3% / 19.3%
75.5% / 78.1%
Target Region / Acquirer Region

Region(1) Target Acquirer
North America 75.5% 78.1%
Europe 19.3% 19.3%
Rest of World 5.2% 2.6%
(1) Values indicate the percent of acquisitions of both the target region and the acquirer region. Regions are based on the headquarters for each company.

Select Most Active Buyers of SaaS (Last 12 Months)
Buyer SaaS Sellers(1)
Other Select Active Buyers (4+ Transactions)
(1) Transactions listed may not include all deals by the buyer.

Notable Mega(1) SaaS Deals (2Q19)
Seller PC/
Buyer SaaS Seller EV (M) EV/Revenue Seller Description
Vertical
Provides BI & analytics and data
BI & Analytics / visualization software for businesses,
$14,578.6 12.2x
Horizontal government agencies and educational
institutions.
Provides clinical development and data

Data Mgmt. /
$5,817.6 8.8x management SaaS for the pharmaceutical
Life Sciences
and life sciences industry.
CRM & Marketing / Provides online marketing SaaS and

$4,400.0 2.0x
Horizontal services for businesses in the US.
Provides big data business intelligence (BI)

Analytics & BI /
$2,600.0 N/A analytics and visualization, data modeling
Horizontal
and discovery SaaS for businesses.
(1) Includes select deals greater than $1B EV.

Notable High Profile(1) SaaS Deals (2Q19)
Seller PC/
Vertical
Provides risk and investment portfolio

GRC /
$850.0 8.5x management SaaS for financial institutions,
Financial Services
asset managers and hedge funds.
Security / Provides machine learning-enabled threat

$780.0 12.0x
Horizontal intelligence SaaS for enterprises.
Provides environmental, health, safety and

GRC / quality management SaaS that enables
$570.0 N/A
Horizontal regulatory compliance and incidence
reporting for businesses.
Provides operations and facilities

Asset Mgmt. / management SaaS for the education, senior
N/A N/A
Horizontal living and healthcare industries, government
agencies and membership organizations.
Provides features for campaign automation,

CRM & Marketing / customer analytics, AI-based content
N/A N/A
Horizontal management, search engine optimization
and payments processing.
(1) Includes select deals between $500M - $1B EV.

Notable Mid-Market(1) SaaS Deals (2Q19)
Seller PC/
Vertical
Communications &
Provides IT asset and help desk management
$350.0 17.5x Collaboration /
SaaS for businesses.
Horizontal
Content & Document Provides record and document management,

$335.0 N/A Mgmt. / e-recording and transaction software and SaaS
Real Estate for the real estate sector.
Provides automated security attack simulation

Security / SaaS for enterprises, enabling the preventative
$250.2 N/A
Horizontal assessment of the effectiveness of existing
security controls.
Provides endpoint security software and SaaS

Security /
$234.0 N/A for the military, government entities and
Public Sector
commercial enterprises.
Content & Document Provides enterprise contract lifecycle

$215.0 N/A Mgmt. / management and related document creation
Horizontal SaaS.
(1) Includes select deals between $200M - $500M EV.

Notable Mid – Lower(1) Market SaaS Deals (2Q19)
Seller PC/
Vertical
Engineering & Project Provides software engineering management

$170.0 N/A Management / and data visualization SaaS to software
Horizontal developers.
Security / Provides zero trust network access and

$120.0 N/A
Horizontal authentication SaaS for enterprises.
Security / Provides cloud and appliance-based bot

N/A N/A
Horizontal detection and mitigation software.
Provides security risk management and related

Security /
N/A N/A analytics SaaS for businesses and government
Horizontal
entities.
Provides fleet management vehicle security,

Asset Management / tracking, scheduling and reporting SaaS for law
$83.9 1.8x
Horizontal enforcement agencies, service operators,
construction firms and other businesses.
(1) Includes select deals less than $200M EV.

APPENDIX
2Q19 Select SaaS Transactions
ENTERPRISE VALUE
DATE BUYER SELLER (M)
06/28/2019 Visa Verifi -
06/27/2019 Descartes Systems Group STEPcom Services $19.8
06/26/2019 AdRoll Group X-ID -
06/26/2019 ALSO Holding AllThingsTalk NV -
06/26/2019 Constellation Software CAKE -
06/26/2019 Thomas H. Lee Partners Nextech Systems -
06/25/2019 Pineapple Payments CardChamp -
06/25/2019 StorCentric Retrospect -
06/25/2019 The Jordan Company EA Holdings Aggregator -
06/25/2019 Uber Technologies Mighty AI -
06/25/2019 Validity AppBuddy -
06/25/2019 Visa Rambus (certain assets) $75.0
06/24/2019 Gary Jonas Computing CORVID PayGate -
06/24/2019 The Access Group Eazy Collect Services -
06/24/2019 Integrated Energy Services MACH Energy -
06/21/2019 Capital One Financial BlueTarp Financial -
06/21/2019 ClearCourse Partnership Intelligentgolf Limited -
06/21/2019 GI Partners Insurity -
06/20/2019 Bondware Smith Micro Software (certain assets) -
06/20/2019 DataRobot ParallelM -
06/20/2019 Druva CloudLanes -
06/20/2019 EquiSoft Big Brain Works -
(1) Source: Financial data provided by 451 M&A Knowledgebase (missing values represent data not applicable or publicly available).

ENTERPRISE VALUE
06/20/2019 Ex Libris RapidILL -
06/20/2019 MRI Software Dynamic Lead Solutions -
06/19/2019 Blue Prism Group Thoughtonomy $100.6
06/19/2019 data.world Capsenta -
06/19/2019 eSolutions Practice Insight -
06/19/2019 IFS AB Acumatica -
06/18/2019 ACTITO SmartFocus -
06/18/2019 iCIMS Jibe
06/18/2019 Intertrust Viteos Group $330.0
06/18/2019 UserZoom Technologies B601 V2 -
06/17/2019 GitHub Good Software -
06/17/2019 Main Capital Partners Assessio -
06/17/2019 Nordic Capital ArisGlobal -
06/17/2019 Tendril Networks FirstFuel Software -
06/14/2019 Accumen Halfpenny Technologies -
06/14/2019 Hub International Limited CBIS -
06/14/2019 Media and Games Invest PubNative -
06/14/2019 RM SoNET Systems $9.3
06/13/2019 Allscripts Healthcare Solutions ZappRx -
06/13/2019 AppOnboard 8Cell -
06/13/2019 CACI MooD Enterprises Limited -
06/13/2019 Dun & Bradstreet Lattice Engines -

ENTERPRISE VALUE
06/13/2019 SGS S.A. i2i Infinity -
06/13/2019 VMware Avi Networks -
06/13/2019 Zywave RateFactory -
06/12/2019 Dassault Systemes S.A. Medidata Solutions $5,817.6
06/12/2019 Media and Games Invest AppLift -
06/11/2019 Ares Management Corp. /Leonard Green & Partners L.P. Press Ganey Associates -
06/11/2019 Exterro Jordan Lawrence Group -
06/11/2019 Glantus Dynistics -
06/11/2019 H&R Block Wave Financial $405.0
06/11/2019 MIH PayU iyzico Odeme Hizmetleri $165.0
06/10/2019 Atrys Health Real Life Data -
06/10/2019 Cvent DoubleDutch -
06/10/2019 Ideagen Redland Business Solutions $20.1
06/10/2019 Logi Analytics Zoomdata -
06/10/2019 salesforce.com Tableau Software $14,578.6
06/07/2019 Truck-Lite Co. TrackPoint Systems -
06/06/2019 Alphabet Looker Data Sciences $2,600.0
06/06/2019 CVC Capital Partners SICAV-FIS S.A. Vitech Systems Group -
06/06/2019 EveryAction DonorTrends -
06/06/2019 Industrial Scientific Intelex Technologies $570.0
06/06/2019 RIB Software SE Building Systems Design Inc $42.0
06/06/2019 SimCorp A/S AIM Software $67.5

ENTERPRISE VALUE
06/06/2019 The Riverside Company Champion Healthcare Technologies Inc -
06/06/2019 Waystar PARO Decision Support -
06/05/2019 Elastic NV Endgame $234.0
06/05/2019 Epicor Software Corporation MechanicNet Group -
06/05/2019 Heidelberger Druckmaschinen AG Crispy Mountain -
06/05/2019 Learning Pool HT2 -
06/05/2019 Liquidnet Prattle Analytics -
06/05/2019 OmniSYS Rx-Net -
06/04/2019 Alogent Corporation IntelliEngines (certain assets) -
06/04/2019 Beckman Coulter Cytobank -
06/04/2019 Exact bouw7 -
06/04/2019 Flexera Software RISC Networks -
06/04/2019 Imperva Distil -
06/04/2019 Lisam Systems Perillon -
06/04/2019 Silverbear Decisions -
06/04/2019 Sublime Adledge -
06/04/2019 TEOCO Corporation CIQUAL Limited -
06/03/2019 ACI Worldwide Mindgate Solutions . -
06/03/2019 Calabrio Teleopti -
06/03/2019 Medallia Cooladata $76.0
05/31/2019 Gauge Capital irth Solutions -
05/31/2019 ManageBac Dynamic Internet Solutions -

ENTERPRISE VALUE
05/30/2019 Insight Venture Partners Recorded Future $780.0
05/30/2019 Lightspeed POS Chronogolf $7.6
05/30/2019 Lloyds Development Capital Texthelp -
05/30/2019 Zscaler Appsulate -
05/30/2019 Zuellig Pharma Pte Sqrdots Pte -
05/29/2019 Palo Alto Networks PureSec $47.0
05/29/2019 Pantheon Systems StagingPilot -
05/29/2019 Vista Equity Partners Management Black Mountain Systems -
05/28/2019 Absorb Software Prometheus Development -
05/28/2019 Beijing Shiji Information Technology Co MyCheck -
05/28/2019 FireEye Verodin $250.2
05/28/2019 Intuit Origami Logic -
05/28/2019 LinkedIn Corp. Drawbridge -
05/28/2019 Thoma Bravo Cority -
05/28/2019 Upland Software Daily Inches $45.0
05/27/2019 F24 AG One Voice AS -
05/27/2019 NetApp Cognigo -
05/24/2019 Scaleworks SearchSpring -
05/23/2019 Automattic Prospress -
05/23/2019 Intapp OnePlace Pte -
05/23/2019 MRI Software Engage Property Technology -
05/22/2019 AudienceView Ticketing Corporation Vendini -

ENTERPRISE VALUE
05/22/2019 ClearCourse Partnership LLP instaGiv -
05/22/2019 supplier.io CVM Solutions -
05/22/2019 Zendesk Smooch Technologies ULC -
05/21/2019 Freshworks Natero -
05/21/2019 KnowBe4 CLTRe AS -
05/21/2019 Paycor Nimble Software Systems -
05/21/2019 Resideo Technologies Whisker Labs (certain assets) -
05/21/2019 Shaker International Montage Talent -
05/20/2019 ABBYY TimelinePI -
05/20/2019 Lowe's Companies Boomerang Commerce (certain assets) -
05/20/2019 Pivotal Acquisition Corp. KLDiscovery Ontrack $800.0
05/20/2019 Professional Datasolutions CStorePro Technologies -
05/20/2019 VelocityEHS Spiramid -
05/17/2019 JPMorgan Chase & Co. Instamed Communications -
05/17/2019 Revenue Management Solutions I8 Health Solutions -
05/17/2019 Sumeru Equity Partners Criteria Corporation $56.0
05/17/2019 Webedia SAS Quill Content -
05/16/2019 Apptio Cloudability -
05/16/2019 Building Engines Real Data Management -
05/16/2019 CloudBees Rollout -
05/16/2019 Daxko SugarWOD -
05/16/2019 NICE Brand Embassy -

ENTERPRISE VALUE
05/16/2019 Providence Equity Partners GlobalTranz Enterprises -
05/16/2019 SugarCRM Salesfusion -
05/16/2019 Vertafore Computer Solutions & Software International (certain assets) -
05/15/2019 American Express Company Resy Network -
05/15/2019 Madison Dearborn Partners InMoment -
05/15/2019 PEC Safety Operations Veriforce -
05/15/2019 Procare Software Kinderlime -
05/15/2019 TransUnion TruSignal -
05/15/2019 Uniti Wireless Call Dynamics $1.0
05/15/2019 VMware BirRock -
05/14/2019 Brand Networks Clickable -
05/14/2019 Dolby Laboratories Voxeet -
05/14/2019 Sisense Periscope -
05/14/2019 Symphony Innovation Azima -
05/13/2019 Bentley Systems Keynetix -
05/13/2019 Descartes Systems Group CORE Transport Technologies NZ $21.0
05/13/2019 E2open Amber Road $415.4
05/13/2019 LightBox Digital Map Products -
05/13/2019 MiraMed Global Services Medac -
05/13/2019 Mitsubishi Electric Corp. ICONICS -
05/13/2019 Pegasystems InTheChat Communications -
05/13/2019 RLDatix iContracts -

ENTERPRISE VALUE
05/13/2019 ServiceNow Appsee (certain assets) -
05/13/2019 TEAM Software Lighthouse.io Inc -
05/13/2019 Wolters Kluwer ELM Solutions CLM Matrix -
05/10/2019 Turbonomic ParkMyCloud -
05/09/2019 ACI Worldwide Walletron -
05/09/2019 Avenu Insights & Analytics GRIDS Information Technologies -
05/09/2019 Bottomline Technologies BankSight Software Systems $2.8
05/08/2019 1Spatial Geomap-Imagis $7.8
05/08/2019 Acquia Mautic -
05/08/2019 Dynamo Software Preqin Solutions -
05/08/2019 Medallia Strikedeck -
05/08/2019 Pareteum Corporation Devicescape Software -
05/07/2019 MINDBODY Bowtie Labs -
05/07/2019 PayLease Zego -
05/07/2019 Square Eloquent Labs -
05/06/2019 Kaseya Limited ID Agent -
05/06/2019 Marlin Equity Partners Puzzel AS -
05/06/2019 Proofpoint Meta Networks $120.0
05/06/2019 salesforce.com Bonobot Technologies -
05/06/2019 Sphera Solutions SiteHawk -
05/03/2019 Clearlake Capital Group Dude Solutions -
05/03/2019 Tendril Networks EnergySavvy -

ENTERPRISE VALUE
05/02/2019 Aptean OPTIWARE -
05/02/2019 Booking Holdings Venga -
05/02/2019 Smartsheet Artefact Product Group -
05/01/2019 Broadridge Financial Solutions Rockall Technologies -
05/01/2019 Intercontinental Exchange Simplifile LC $335.0
05/01/2019 Pluralsight GitPrime $170.0
04/30/2019 Contractor Management Services Flexible Workforce -
04/30/2019 Dude Solutions New Energy Technology (certain assets) -
04/30/2019 Engage2Excel Rideau -
04/30/2019 Hu-manity Rights Betterpath -
04/30/2019 MakeMyTrip Private Limited Quest2travel.com India . -
04/29/2019 CNO Financial Group Web Benefits Design Corporation $66.0
04/29/2019 Valsoft Corp. Professional Economics Bureau of America -
04/26/2019 SolarWinds Corp. Passportal -
04/25/2019 CareDx OTTR Complete Transplant Management $16.0
04/25/2019 ESO Solutions eCore Software -
04/24/2019 Computer Programs and Systems iNetXperts $11.0
04/24/2019 Equifax PayNet -
04/24/2019 MongoDB Realm $39.0
04/24/2019 Omega Financial UnionWare -
04/24/2019 Rock Holdings Lendesk Technologies ULC -
04/24/2019 Sauce Labs Screener Technologies -

ENTERPRISE VALUE
04/23/2019 Constellation Real Estate Group TORCHx -
04/23/2019 Modo Labs Ulyngo -
04/23/2019 Squarespace Acuity Scheduling -
04/22/2019 Bow River Capital Partners AbsenceSoft -
04/22/2019 Upland Software PostUp $35.0
04/18/2019 CloudBees Electric Cloud -
(2)
04/18/2019 The Riverside Company HemaTerra Technologies -
04/17/2019 j2 Global SafeSend AS -
04/17/2019 j2 Global iContact Corporation (certain assets) -
04/17/2019 Learning Technologies Group Breezy HR -
04/17/2019 salesforce.com MapAnything -
04/17/2019 Xoriant Corporation CloudIO -
04/16/2019 Coupa Software Exari Group $215.0
04/16/2019 Formstack WebMerge -
04/16/2019 Just Eat Practi Technologies $8.8
04/16/2019 Marlin Equity Partners Skuid -
04/16/2019 Mastercard Vyze -
04/16/2019 symplr IntelliSoft Group -
04/15/2019 Advanced Computer Software Group Oyez Professional Services -
04/15/2019 CalAmp Synovia Solutions $50.0
04/15/2019 Vision Blue Ireland SamePage Group -
04/15/2019 West Corporation NSO Group AB -
(2) SEG Transaction

ENTERPRISE VALUE
04/14/2019 Publicis Groupe S.A. Epsilon $4,400.0
04/13/2019 Nadavon Capital Partners Club Speed -
04/12/2019 Integumen RinoCloud $3.9
04/11/2019 Certica Solutions TE21 -
04/11/2019 ClearDestination Jarca -
04/11/2019 Futuryng Declara -
04/11/2019 H.I.G. Capital Medusind Solutions -
04/11/2019 LiveRamp Faktor -
04/11/2019 Nordic Capital Signicat AS -
04/11/2019 SolarWinds Corp. Samanage $350.0
04/11/2019 Walmart Polymorph Labs (certain assets) -
04/10/2019 Aluf Holdings Interaqt -
04/10/2019 Applied Systems TechCanary -
04/10/2019 Audax Private Equity Astute -
04/10/2019 Deutsche BÃ¶rse AG Axioma $850.0
04/10/2019 GoDaddy Sellbrite -
04/10/2019 Primeritus Financial Services Consolidated Asset Recovery Systems -
04/10/2019 Primus Capital TrackVia -
04/10/2019 Schanti Partners Firepower Marketing -
04/10/2019 Sopra Banking Software SAB Ingenierie Informatique SA -
04/10/2019 STG Partners RedSeal -
04/09/2019 4C Insights iQ Media Group -

ENTERPRISE VALUE
04/09/2019 appScatter Group Airpush -
04/09/2019 Gemspring Capital Valant Medical Solutions -
04/09/2019 Netcore Solutions Quinto Technologies -
04/09/2019 Syndigo Content Analytics -
04/08/2019 Geotab BSM Technologies $83.9
04/08/2019 Infor Global Solutions Efficient Frontiers -
04/08/2019 Main Capital Partners HYPE Softwaretechnik -
04/08/2019 Renaissance Learning Early Learning Labs -
04/08/2019 Transaction Data Systems Pharm Assess -
04/04/2019 Alteryx ClearStory Data $20.0
04/04/2019 Centerbridge Partners IBM Corporation (certain assets) -
04/04/2019 Civica Group Asset Edge -
04/04/2019 Emerson Electric Integration Objects (certain assets) -
04/04/2019 Granicus Firmstep -
04/04/2019 Integrate.com Akkroo $34.0
04/03/2019 OutMatch The Devine Group -
04/02/2019 Broadway Technology Barracuda FX Limited -
04/02/2019 Community Brands Attendee Interactive -
04/02/2019 Instructure MasteryConnect -
04/02/2019 PrismHR AgileHR -
04/01/2019 Cegedim e-business BSV Electronic Publishing -
04/01/2019 Constellation Real Estate Group Mortgage Builder (certain assets) -

ENTERPRISE VALUE
04/01/2019 Evolve IP Jog.ai -
04/01/2019 Perion Network Septa Communications -

Unmatched Expertise | Extraordinary Results
About Our Firm:

SEG provides unparalleled M&A advisory services for emerging and established software companies. By focusing
exclusively on this underserved market segment for over 25 years, we have the knowledge and experience to
quickly determine clients’ business value drivers, position them well among our deep network of industry buyers
and investors, and aggressively negotiate top-tier valuations. These skills together with our commitment to
Contact Information excellence results in exceptional outcomes for our clients’ shareholders, employees, and customers.
(858) 509-2800
www.softwareequity.com Services:
Kris Beible Strategic M&A: Sell-side representation of emerging and established software companies.
Vice President
kbeible@softwareequity.com Majority Recapitalizations: Majority investments from software-focused private equity investors that look to
provide shareholder liquidity and growth capital to established software companies.
Molly Soltesz
Marketing Associate Divestitures: Sell-side representation of divisions of public and large private software companies.
msoltesz@softwareequity.com
Board Advisory: Strategic guidance and advice to business owners preparing for a future liquidity event,
whether that be months or years down the road.
Disclaimer
The information contained in this Report is obtained from sources that SEG Capital Advisors LLC (“SEG”) believes to be reliable. However, SEG makes no representations or warranties, express or implied, about the
accuracy, completeness or fairness of such information, or the opinions expressed herein. Nothing in this Report is intended to be a recommendation of a specific security or company or intended to constitute an offer to
buy or sell, or the solicitation of an offer to buy or sell, any security. Any person or entity reviewing this report (a) should conduct its own diligence and reach its own conclusions regarding its business transactions, (b)
should not rely upon any conclusions reached by SEG, and (c) should consult its own advisors regarding its tax, accounting, financial and/or business decisions. SEG or its affiliates may have an interest in one or more
of the securities or companies discussed herein. Financial data was provided by Capital IQ & 451 Research.
This Report may not be reproduced in whole or in part without the expressed prior written authorization of SEG or one of its affiliates.

2Q19 SaaS MA Report

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2Q19 SaaS MA Report

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SEG SEG Snapshot:

Overview 2Q19 SaaS M&A Update

4 Brief SEG Overview

10 SaaS M&A Update

Copyright © 2019 by SEG Capital Advisors, LLC. All Rights Reserved 2

TTM Trailing Twelve Months

Copyright © 2019 by SEG Capital Advisors, LLC. All Rights Reserved 3

25+ Billions 1,000s

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Copyright © 2019 by SEG Capital Advisors, LLC. All Rights Reserved 6

CLICK TO ACCESS RESEARCH

SEG Snapshot: 3Q18 SaaS M&A SEG Snapshot: Supply Chain

Copyright © 2019 by SEG Capital Advisors, LLC. All Rights Reserved 7

Copyright © 2019 by SEG Capital Advisors, LLC. All Rights Reserved 8

Copyright © 2019 by SEG Capital Advisors, LLC. All Rights Reserved 9

Copyright © 2019 by SEG Capital Advisors, LLC. All Rights Reserved 11

Software Industry M&A Deal Volume Rolling Average Deal Volume(3)

3000 SEG 700

Number of Deals (TTM Average)

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Q1 Q2 Q3 Q4 Percent of Total Software M&A Deals

Percent of Total Software M&A Deals

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Median & Average (4.0x)(2)

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CRM & Marketing 485

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Real Estate 143

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Business Model Type(1) Top Vertical Deals(2)

Percent of Total Vertical Deals

Healthcare Finance Real Estate Education Public Sector Insurance

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Revenue Multiple by Seller Revenue Revenue Multiple Distribution

(1) Last 3 years as of June 30, 2019.

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Copyright © 2019 by SEG Capital Advisors, LLC. All Rights Reserved 19

Employee Count of Target Company Lifespan of Target Company

21.6% 35.1% 1-50

(1) 14% of SaaS targets reported its employee count.

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Target Region / Acquirer Region

North America 75.5% 78.1%

Europe 19.3% 19.3%

Rest of World 5.2% 2.6%

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Other Select Active Buyers (4+ Transactions)

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Provides clinical development and data

CRM & Marketing / Provides online marketing SaaS and

Provides big data business intelligence (BI)

(1) Includes select deals greater than $1B EV.

Copyright © 2019 by SEG Capital Advisors, LLC. All Rights Reserved 23

Provides risk and investment portfolio

Security / Provides machine learning-enabled threat

Provides environmental, health, safety and

Provides operations and facilities

Provides features for campaign automation,

(1) Includes select deals between $500M - $1B EV.

Copyright © 2019 by SEG Capital Advisors, LLC. All Rights Reserved 24

Content & Document Provides record and document management,

Provides automated security attack simulation

Provides endpoint security software and SaaS

Content & Document Provides enterprise contract lifecycle