Beruflich Dokumente
Kultur Dokumente
1
Market Insights
3Sector Analysis
4Discussion
“Wall Street Beat: M&A, VC Funding Stay “M&A – The Best Investment Game
Hot in Town”
InfoWorld, September 2007 Moneyextra.com UK, May 2007
“Dry-Up in Debt Won’t Deter Tech “Series of small tech IPOs defy
Deals” market turmoil”
Barron’s, September 2007 MSNBC, August 2007
Credit crunch
Business as usual
Current Examples
Storage Management 17
Entertainment & Multimedia 15
EAI 14
Telecom 11
Knowledge Management 9
IT services (2)
Graphic modeling
1
Market Insights
3Sector Analysis
4Discussion
Britain continues to have the most aggressive European buyers, as they are in
nearly a quarter of current deal volume (all industries)
Euronext
15%
Private Equity
PE acquisitions at all time high, leading to some uneasiness about how
U.S. credit issues will affect things going forward
Intra-Country
42%
Cross Border
58%
IT services provider
Electronic invoicing
to government and
and legal spend
commercial
management solutions
organizations.
DataCert – U.S.
TechTeam – U.S.
CorpraSoft – U.S.
RL Phillips – U.S.
StepStone − Norway
Activision – U.S.
ExecuTRACK − Germany
DemonWare − Ireland
HR information systems
for middle market
enterprises
BPO – U.S.
HR Microsystems – U.S.
Corum Group Presentation ■ 20
International Buyers Remain Active
Brazil
A pioneer in the development of sophisticated real-time solutions
According to ABES and IDC, the IT market in Brazil in 2006 was approximately $16.2 billion
Brazil has emerged as a vibrant and globally recognized near-shore outsourcing destination
Brazil now supports almost 900,000 IT employees (end of 2006), 47% of Latin America’s
Mexico
According to AMITI, the IT market was 10.1 billion. USD$ in 2006
The market is growing three times faster than the general economy
Mexico had 429,600 IT professionals, 23% of LAM’s resources, of which 70% in software in 2006
Due to its proximity to the U.S., Mexico is becoming a preferred near-shore outsourcing destination
Corum Group Presentation ■ 22
Looking Back – Valuation Multiples
7.00
6.7
6.00
5.00
P/S Multiple
4.00
2.9 3.0 3.11
2.7 2.7
2.6 2.9 2.95
3.00 2.3 2.0 1.6 1.8 2.1 2.3 2.2 2.5
1.5 1.5
2.00
1.00
0.00
1H:98
2H:98
1H:99
2H:99
1H:00
2H:00
1H:01
2H:01
1H:02
2H:02
1H:03
2H:03
1H:04
2H:04
1H:05
2H:05
1H:06
2H:06
1H:07
Corum Group Presentation ■ 23
Public Valuation Multiples
Sector Q3:06 Q4:06 Q1:07 Q2:07 Q3:07 Y on Y Q to Q
Digital Media 2.74 x 2.59 x 1.92 x 2.07 x 2.12 x
Past Present:
Focus: Legacy extension, application Focus: Software Oriented Architecture,
integration, mainframe connectivity Web services
Players: Players:
Attachmate Attachmate
Candle BEA
Iona Candle
Jacada Iona
NEON Jacada
NetManage NEON
Seagull Software NetManage
SeeBeyond Seagull Software
Tarantella SeeBeyond
Tibco Software AG
Vitra Tarantella
WRQ Tibco
Vitra
EV/S Multiple Q2:05 − 1.15 x Webmethods
WRQ
1
Market Insights
3Sector Analysis
4Discussion
Enterprise Infrastructure
Internet Infrastructure
Internet Pure Plays
IT Services
Financial Services
Q1:05
Q2:05
Q3:05
Q4:05
Q1:06
Q2:06
Q3:06
Q4:06
Q1:07
Q2:07
Q3:07
Positive momentum in sector deal volume underscores current
interest and viability of space.
Enterprise Applications
Security
Engineering
Healthcare
Telecom
Q1:05
Q2:05
Q3:05
Q4:05
Q1:06
Q2:06
Q3:06
Q4:06
Q1:07
Q2:07
Q3:07
Deals are happening in these sectors, but slowing as many
buyers are “digesting” previous acquisitions.
45.00%
40.00%
35.00% Q3:06
30.00% Q4:06
Q1:07
25.00%
Q2:07
20.00%
Q3:07
15.00%
10.00%
5.00%
0.00%
Observations
Increase scale
Strategic spending billions
Market convergence
Absence of private equity
Observations
Current debt market has slowed this group
Fundraising at record highs
Strong focus on technology
PE firms looking at smaller opportunities, which may not require leverage
Substantial prior investment in tech, and many deals are synergistic adding to current portfolio
Look more like strategic buyers
Observations
Have more “breathing room” now that the PE community has slowed
Willing to pay high valuations, for the right deal
Product expansion through complementary technology acquisitions
Market convergence
Observations
Global expansion
Desire to enter U.S. markets
Local domain expertise
Active international buyer community
Q1:07
Q2:07
Q3:07
Q4.06
Sectors To Watch
Enterprise Applications
Internet Infrastructure
IT Services
SaaS Opportunities
+41 44 251 82 65
www.corumgroup.com