Harris Williams Overview

Harris Williams (“HW”) Global Advisory Platform

Key Facts

  • 25+ year history with over 130 closed transactions in the last 24 months
  • Approximately 280+ professionals across eight offices in the U.S. and Europe
  • Strategic relationships in India and China
  • 10 industry groups

 

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HW Technology, Media & Telecom (“TMT”) Group Focus Areas

Software / SaaS

  • Enterprise Software
  • Data and Analytics
  • Infrastructure Software
  • IT and Tech-Enabled Services
  • Telecom and Data Center Solutions

Internet & Digital Media

  • AdTech and Marketing Solutions
  • Consumer Internet
  • Digital Media, Content, and Gaming
  • eCommerce
  • Mobile

TMT Vertical Focus Areas

  • Education
  • Energy Technology
  • Fintech
  • Healthcare IT
  • Public Sector
  • Supply Chain and Logistics

 

Select HW Financial Technology Transactions

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HW Financial Technology (Fintech) Taxonomy

HW’s fintech practice is focused on companies with software and technology core to their value proposition and market position. 

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Select HW Financial Technology Transactions

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Harris Williams Fintech Ecosystem

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Case Study: Drillinginfo

HW’s TMT Group advised Drillinginfo on its pending acquisition by Genstar Capital.

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  • Drillinginfo is a leading provider of integrated software, data and analytics solutions to the global energy market.
  • Through an innovative SaaS platform, the company delivers business-critical insights across upstream, midstream and downstream markets, empowering exploration and production (E&P), oilfield services, midstream, utilities, trading and risk, and capital markets companies to be more collaborative, efficient and competitive.
  • Drillinginfo serves an entrenched and referenceable customer base of over 3,500 clients, from the largest global enterprises down to the smallest oilfield service providers.

Enterprise & Commercial Market Observations1

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Institutional & Consumer Market Observations1

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Select Fintech M&A Transactions1

screen_shot_2018-08-08_at_1.06.33_pm.pngIHS Markit’s Acquisition Of Ipreo

  • Ipreo is a global provider of market intelligence, data and analytics solutions to the capital markets sectorscreen_shot_2018-08-08_at_1.14.26_pm.png
  • With over 1,700 employees worldwide, Ipreo provides data, content, and services to over 3,500 clients that collectively comprise over 130,000 users around the globe
  • Ipreo is a highly complementary extension to IHS Markit’s existing financial services business and enables IHS Markit to continue its expansion into high-growth alternative sectors by providing a more comprehensive solution

screen_shot_2018-08-08_at_1.07.48_pm.pngPaypal’s Acquisition Of iZettle

  • iZettle is a Sweden-based provider of web and mobile payment applications and tools that enable small- and medium-sized businesses to easily accept digital payments
  • iZettle grew revenue at a CAGR of roughly 60% between 2015 and 2017 and expects its solutions to process over $6.0 billion in total payment volume in 2018
  • PayPal’s acquisition increases its in-store presence and will help fuel geographic expansion, particularly within the SMB market as payments continue to migrate to digital platforms

screen_shot_2018-08-08_at_1.09.08_pm.pngSovos Compliance’s Acquisition Of TrustWeaver

  • TrustWeaver is a leading provider of cloud-based software for electronic invoicing that enables businesses to authenticate and archive electronic documents for VAT audit purposes
  • TrustWeaver’s offering is differentiated by its embedded compliance-as-a-service model that has resulted in partnerships with more than 60 top financial systems, including SAP, IBM, and Coupa
  • The acquisition expands Sovos’ capabilities in procure-to-pay and B2B transaction automation, adds e-archiving and e-signature compliance functionality, and extends Sovos’ geographic reach

screen_shot_2018-08-08_at_1.10.29_pm.pngRealPage’s Acquisition Of ClickPay

  • ClickPay is a leading provider of integrated payment and accounts payable automation solutions for the real estate market
  • ClickPay’s platform services 2.3 million units across the multifamily, HOA, condominium, and co-op segments of the real estate market
  • RealPage’s acquisition of ClickPay adds significant payment transaction volume to its platform and expands its total addressable market by an estimated $1.0 billion through complementary HOA solutions

 

screen_shot_2018-08-08_at_1.11.45_pm.pngGreat Hill Partners’ Acquisition Of Connexeo

  • Connexeo is a global software-as-a service platform that provides business management software and payment solutions to education and community organizations
  • Connexeo serves tens of thousands of clients globally and has a strong presence in the US, Australia, and New Zealand
  • Great Hill’s investment will be used to fuel Connexeo’s growth, both organically and inorganically, in the highly-fragmented education and community administration software market

Fintech Acquisition Activity

Most Active Strategic Acquirers Of Fintech Assets By Volume4

  • The 10 most active strategic fintech consolidators have acquired over 168 companies since 2012.
  • This group completed 7 fintech acquisitions in the first two quarters of 2018, slightly behind the pace of acquisition activity in 2017 after a number of large players completed several transformative transactions

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Global Financial Software M&A Activity4

  • Across financial software, there were 98 M&A transactions closed in 2Q 2018, with private equity transactions representing 28% of total deal volume.
  • Strategic and financial acquirers continue to seek innovative financial technology solutions at a pace consistent with prior quarters, a steady trend that is underpinned by large, established vendors aiming to augment their capabilities, limit disintermediation, and drive internal operational efficiencies.

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Enterprise & Commercial Solutions – Landscape

Representative Enterprise & Commercial Solution Providers

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Vertical Specific Payments Solutions - Landscape

Representative Vertically-Focused Integrated SaaS And Payments Providers

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Enterprise & Commercial Solutions – Trading Comparables

Valuation1

As of June 30, 2018 ($ in millions)

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Enterprise & Commercial Solutions – Transaction Activity

Select Recent M&A Transactions1

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Select Recent Private Placement Transactions4

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Institutional Solutions – Landscape

Representative Institutional Solution Providers

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Institutional Solutions – Trading Comparables

Valuation1

As of June 30, 2018 ($ in millions)

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Institutional Solutions – Transaction Activity

Select Recent M&A Transactions1

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Select Recent Private Placement Transactions4

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Consumer Solutions – Landscape

Representative Consumer Solution Providers

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Consumer Solutions – Trading Comparables

Valuation1

As of June 30, 2018 ($ in millions)

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Consumer Solutions – Transaction Activity

Select Recent M&A Transactions1

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Select Recent Private Placement Transactions4

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*Denotes minority stake

Summary of Technology IPOs

Recent U.S. Technology IPO Activity (By Offering Size)1

  • After a slow 1Q 2018, technology IPO activity rebounded in 2Q, driven by strong market performance by technology stocks and continued investor demand for high-growth companies.
  • Notable technology IPOs in 2Q 2018 include DocuSign, Ceridian, and Carbon Black.

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Key Performance Metrics For Recent Software IPOs1

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Debt Market Overview

  • Median middle market LBO loan multiples through 1H 2018 were 5.4x leverage, remaining in line with the prior four quarters
  • Middle market LBO loan volume decreased slightly to $1.5 billion in 2Q 2018.screen_shot_2018-08-08_at_1.41.51_pm.png
  • Technology companies in the middle market were the largest recipients of LBO loans through 1H 2018, representing 25.1% of new issuance.
  • Median LBO debt percentages increased remained flat at 53% of total purchase price through 1H 2018.screen_shot_2018-08-08_at_1.42.49_pm_0.png
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Select HW TMT Transactions

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1. FactSet

2. PNC Capital Markets

3. S&P LCD stats

4. PitchBook

The information and views contained in this report were prepared by Harris Williams LLC (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities or financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The securities and financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

 

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.