HW Cloud Managed Services and Hosting Solutions Introduction

Harris Williams (“HW”)

  • 25+ years and more than 1,000 closed transactions
  • 350+ professionals across eight offices globally
  • 170+ closed transactions in the last 24 months
  • 10 industry groups

Focused Advisory Services

  • Mergers and acquisitions (M&A)
  • Capital raises
  • Corporate divestitures

Consistent Recognition for Quality

screen_shot_2020-10-21_at_2.14.06_pm.png

HW Technology Group

  • 35+ dedicated Technology professionals
  • Technology offices include Boston, San Francisco, and London

Key Technology Themes

  • SaaS / Cloud
  • Data & Analytics
  • Digital Transformation
  • A.I. / Machine Learning

Horizontal Focus Sectors

  • Application Software
  • Cloud Managed Services and Hosting Solutions
  • Compliance Solutions
  • CRM and Marketing Automation
  • Human Capital Management
  • Infrastructure and Security Software
  • IT and Tech-Enabled Services
  • Marketing, Research, and Insights Software

Vertical Focus Sectors

  • Architecture, Engineering, and Construction Software
  • Education Technology and Services
  • Energy Technology
  • Facilities and Real Estate Software
  • Financial Technology and Payments
  • Government Technology
  • Healthcare IT
  • Industrial and Supply Chain Technology
  • Internet and eCommerce
  • Retail Technology

screen_shot_2021-01-21_at_11.31.02_am.png

Cloud Managed Services and Hosting Taxonomy

Web Hosting

Refers to a service in which a vendor offers the housing of business-to-business or business-to-consumer eCommerce websites via vendor-owned shared or dedicated servers and applications for enterprises at the provider-controlled facilities

Selected Market Participants

screen_shot_2021-01-21_at_11.32.22_am.png

Managed Services

Refers to the delivery of network, application, system and e-management services across a network to multiple enterprises, using a “pay as you go” pricing model

Selected Market Participants

screen_shot_2021-01-21_at_11.33.19_am.png

IT Outsourcing

Refers to the use of external service providers to effectively deliver IT-enabled business process, application service and infrastructure solutions for business outcomes

Selected Market Participants

screen_shot_2021-01-21_at_11.34.19_am.png

Selected HW Cloud Managed Services and Hosting Transactions

screen_shot_2021-01-21_at_11.35.04_am.pngProvider of a post-warranty alternative for storage, server and networking hardware maintenance for IT data centers

 

 

 

 

screen_shot_2021-01-21_at_11.35.49_am.pngProvider of mass hosting services for SMEs, including web hosting, domains, eCommerce and application solutions in the Benelux, Nordic countries and Switzerland

 

 

 

 

screen_shot_2021-01-21_at_11.36.28_am.pngProvider of services allowing SMEs to move their IT infrastructure and operations into the cloud, as well as providing end user support and consulting as part of a full-service IT offering

 

 

 

 

screen_shot_2021-01-21_at_11.37.10_am.pngProvider of web domains, shared web hosting and value-added services with leading positions in Sweden and the Czech Republic, and presence in Central Europe and the UK

 

 

 

 

screen_shot_2021-01-21_at_11.38.01_am.pngProvider of managed technology services with national scale in the US and the capability to design, deploy and support technology solutions from cable to cloud

 

 

 

 

screen_shot_2021-01-21_at_11.38.50_am.pngProvider of SME-focused hosting and cloud solutions, including domain and website hosting, email for smaller customers, and managed servers and applications for larger customers

screen_shot_2021-01-21_at_11.46.04_am.png

screen_shot_2021-01-21_at_11.46.44_am.png

screen_shot_2021-01-21_at_11.48.17_am.png

screen_shot_2021-01-21_at_11.49.18_am.png

screen_shot_2021-01-21_at_11.50.32_am.png

a)     Group weighted average stock price performance over the past year based on market capitalizations
b)     Managed Services indexed stock price performance includes Rackspace as of its IPO on August 5, 2020

Select Cloud Managed Services and Hosting M&A Transactions

screen_shot_2021-01-21_at_11.52.50_am.png

Infosys’ Acquisition of blue acorn iCi7

  • blue acorn is a US-based IT services provider
  • The company specializes in providing digital commerce, customer experience, eCommerce and experience-driven commerce services for Fortune 500 brands
  • The acquisition will further strengthen Infosys’ end-to-end customer experience offerings, enabling significant cross-technology capabilities and enhancing its competencies in the Adobe, Magento, Salesforce Commerce and Shopify ecosystems
screen_shot_2021-01-21_at_11.53.51_am.png

Clearlake’s Take-Private Acquisition of Endurance7

  • Endurance is a US-based global provider of cloud-based platform solutions for SMEs
  • The company has approximately 5 million subscribers across its portfolio of web hosting, presence, email marketing, domains, security, productivity and eCommerce solutions
  • The take-private acquisition provides Clearlake with a platform of global scale to consolidate a fragmented market as well as the opportunity to leverage its expertise to drive operational efficiencies
screen_shot_2021-01-21_at_11.55.21_am.png

Rackspace’s Acquisition of Bright Skies7

  • Founded in 2014, Bright Skies is a Germany-based provider of cloud services technology
  • The company is primarily focused on providing cloud-native services including managed services, digital transformation and data center modernization
  • The transaction will strengthen Rackspace’s presence in Germany, adding approximately 500 customers and 55 employees to its portfolio, more than doubling the size of its Multi-Cloud Professional Services segment in the region
screen_shot_2021-01-21_at_11.56.26_am.png

IT Relation’s Acquisition of Improsec7

  • Improsec is a Denmark-based cybersecurity and technical consulting solutions provider
  • The company provides independent cybersecurity services, spanning from technical offensive and defensive testing to strategic cybersecurity advisory services to private enterprises and public organizations
  • The acquisition enables IT Relation to expand its service offering as well as establish a strong platform in the rapidly growing and highly specialized cybersecurity services market
screen_shot_2021-01-21_at_11.57.21_am.png

GoDaddy’s Acquisition of Poynt7

  • Poynt is a US-based provider of digital payment processing solutions for SMEs
  • The company’s solutions are used by over 100,000 merchants, representing approximately $16 billion in annual gross merchandising volume
  • The acquisition enhances GoDaddy’s payment offering as well as advances its strategy to further monetize eCommerce uptake as it continues to focus on scaling its Online Store and commerce capabilities

IT & Tech-Enabled Services – Trading Comparables

Valuation1

As of December 31, 2020 ($ in millions)

screen_shot_2021-01-21_at_11.59.14_am.png

screen_shot_2021-01-21_at_11.59.57_am.png

IT & Tech-Enabled Services – Transaction Activity

Select Recent M&A Transactions7

screen_shot_2021-01-21_at_12.01.13_pm.png

screen_shot_2021-01-21_at_12.01.46_pm.png

screen_shot_2021-01-21_at_12.03.12_pm.png

IT & Tech-Enabled Services – Representative Landscape

Representative IT & Tech-Enabled Services providers

screen_shot_2021-01-21_at_12.04.22_pm.png

1. CapIQ; market data as of December 31, 2020

2. GlobeNewswire

3. Gartner

4. Gartner

5. PR Newswire

6. Gartner

7. Mergermarket