PDF Technology Monthly

[Pages:2]Technology Monthly

October 2018

IT Services

Target

IT Services

IT Services

Acquirer

Technology Headline Transactions

Acquisition Synopsis DXC Technology (NYSE: DXC), a global IT services provider, has acquired System Partners, an Australia based

provider of Salesforce consulting services The acquisition of System Partners, a Salesforce Platinum partner in Australia and New Zealand, builds on

DXC's digital transformation strategy and cloud-first focus

Deloitte, a global professional services company, has acquired CloudTrek, an Australia based Amazon Web Services (AWS) consultancy providing advisory, architecture, build and migration services to support cloud adoption and core technology transformation

The acquisition complements Deloitte's existing national capability and grows the firm's presence into Queensland, Western Australia

Cognizant, a global professional services company, has acquired the Advanced Technology Group, a provider of customer and revenue management consulting and implementation services focused on the Salesforce Platform

The acquisition bolsters Cognizant's quote-to-cloud capabilities

IT Services

Tailwind Capital, a US based private equity firm, has acquired CoreBTS, a US based networking, collaboration, security and data center solutions provider

Tailwind plans to support Core BTS' leadership team through targeted growth initiatives and a focused M&A strategy

IT Services

Latour Capital, a French private equity firm, has acquired a majority stake in Sogetrel (backed by Quilvest Private Equity), a French provider of communications network installations and integration services

The cash infusion will allow Sogetrel to continue their ambitious growth strategy, focused on completing acquisitions in both network integration and electronic security markets

Managed Services

Logicalis, a global IT solutions and managed services provider, has acquired Clarotech, a South African IP telephony cloud and managed services provider

This acquisition is part of an ongoing strategy to augment Logicalis' existing solutions and services business in South Africa

4.5x 4.0x 3.5x 3.0x 2.5x 2.0x 1.5x 1.0x 0.5x 0.0

21.0% 18.0% 15.0% 12.0%

9.0% 6.0% 3.0% 0.0% (3.0%) (6.0%)

Enterprise Value / LTM Revenue

Enterprise Value / LTM EBITDA

3.8x

20.0x 18.0x

18.5x

3.3x

16.0x

14.8x

2.3x 1.8x 1.3x

14.0x 12.1x 11.7x

12.0x

10.0x

10.0x

7.9x

8.0x

6.8x

6.0x

4.0x

0.3x

01.3.xHeadline Transactions2.0x

ITS Offshore ITS Managed IT Staffing Transaction Info

Services

Processing Services

VAR

0.0

ITS Offshore ITS Managed IT Staffing Transaction Info

VAR

Services

Processing Services

LTM Revenue Growth

LTM Gross & EBITDA Margins

15.1%

19.3%

70.0% 60.0%

55.4%

70% 61.7%

60%

11.4%

10.0%

50.0%

43.4%

50%

6.4%

4.5%

(3.0%)

ITS Offshore ITS Managed IT Staffing Transaction Info

Services

Processing Services

VAR

40.0% 30.0% 20.0% 10.0% 0.0%

33.0% 33.9% 27.9%

15.1% 11.7%

ITS

Offshore ITS Managed

Services

22.4% 3.4%

IT Staffing

28.8% 28.1%

Transaction Info Services Processing

40%

30%

12.8% 20% 10%

3.7% 0%

VAR

Note: EBITDA Margins in red

TEV / EBITDA

TEV / EBITDA Multiples Over Time

21.0x 19.0x 17.0x 15.0x 13.0x 11.0x

9.0x 7.0x 5.0x 3.0x

Q3 2015

Q4 2015

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Q2 2017

Q3 2017

Q4 2017

Q1 2018

Q2 2018

18.5x 14.8x 12.1x 11.7x 10.0x 7.9x 6.8x

Q3 2018

Transaction Processing

Info Services

Offshore ITS

IT Staffing

ITS

Managed Services

VAR

Annc. Date 9/26/2018 9/20/2018 9/18/2018 9/14/2018 9/12/2018

9/11/2018

Select Technology Transactions Announced in September 2018

Sector

Managed Services

Acquirer

Target

Flexera Holdings LP RightScale, Inc.

IT Services CGI Group Inc.

CKC AG

Managed Services

Claranet Limited

Xpeppers S.R.L.

IT Services Infosys Limited

FLUIDO LTD.

Information Services

MidOcean Partners Questex LLC

IT Services

InterVision Systems, LLC

Infiniti Consulting Group, LLC

Enterprise Value NA NA NA

$76M NA

NA

Comments Flexera Holdings, a US based software asset management firm (SAM), has acquired RightScale, a multi-

cloud management and cost optimization service provider The acquisition bolsters Flexera's core SAM business with cloud management tools

CGI Group (NYSE: GIB) (TSX: GIB.A), a global IT services and business consulting firm, has acquired CKC AG, a specialized provider of agile software development and managed services, with a focus on the automotive sector

With the acquisition, CGI strengthens its local client proximity model by adding two new locations in Brunswick and Halle, along with more than 300 highly qualified specialists to its current network

Claranet, an Italian managed services provider, has acquired Xpeppers, an Italian DevOps and cloud computing specialist

The acquisition will bolster Claranet's Amazon Web Services (AWS) offering and cloud outsourcing practice

Infosys (NYSE: INFY), a global IT professional services provider has acquired Fluido, a Nordic based Salesforce advisor and consulting partner

The acquisition will augment Infosys' enterprise cloud capabilities and footprint across Europe

MidOcean Partners, a US based private equity firm, has acquired Questex (backed by Shamrock Capital), a B2B information services provider that services the health and wellness, travel, life sciences and telecommunications sector

MidOcean plans to undertake an aggressive expansion plan, including organic growth and the acquisition of both new capabilities and assets in existing or compelling new sectors

InterVision (backed by Huron Capital), a US based IT Services firm has acquired the Infiniti Consulting Group, a US based IT consulting and cloud services provider

The acquisition will bolster Intervision's public services offering and marks the fourth bolt-on acquisition for InterVision (Bluelock, Independent Technology Group and Netelligent Corporation)

Selected TM Capital Technology Experience

TM Capital's Technology Contacts

ATLANTA BOSTON NEW YORK

3. TES Transactions

Bradford A. Adams Managing Director badams@

(617) 259-2203

Jarrad S. Zalkin Managing Director jzalkin@

(617) 259-2207

Kevin M. Atchue Vice President katchue@ (617) 259-2209



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