Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Investor Presentation (July 2019)
54 slides from Canaccord Genuity's investor presentation, July 2019
Slide 1: Technology, Media, Marketing, and Information Services Industry Sectors
PRIVATE & CONFIDENTIAL Technology, Media, Marketing, and Information Services Industry Sectors July 2019 Driven by your success. For client and institutional use only, not for public dissemination
Slide 2: Agenda
1. About CG Petsky Prunier 2. Market Environment 3. Monthly M&A and Investment Activity by Industry Segment 4. Additional Information Driven by your success.
Slide 3: US Team and Global Team
US Team Jeff Barlow Sanjay Chadda Dan Coyne Andrew Pojani President, Canaccord Genuity Co-Head of US Investment Banking Co-Head of US Investment Banking Co-Head of US Technology Boston Co-Head of US Technology Boston Boston +1 617 371 3713 New York +1 617 371 3887 +1 617 788 1635 jbarlow@cgf.com +1
Slide 4: Advisory credentials across a wide range of outcomes
Agency & Collaboration Data & Info E-Commerce HCM Media Marketing Consulting & Digital Services ⚫ Advisory credentials across a wide range of outcomes Services FinTech Infrastructure Software Transformation AI Digital/ ⚫ Deep, extensive strategic & sponsor relationships CRM Mobile HCIT MarTech/AdTec
Slide 5: 245+ completed transactions, $45B+ capital raised
Agency & Collaboration Data & Info ⚫ 245+ completed transactions(1) E-Commerce HCM Media Marketing Services Consulting & Digital Services ⚫ Raised $45B+ capital(1) FinTech Infrastructure Software Transformation Digital/ ⚫ ~110 as bookrunner or lead manager(1) AI CRM Mobile ⚫ Unique access to global
Slide 6: Advisor league table rankings
2018 2016-2018 2014-2018 # of # of # of Rank Advisor Transactions Rank Advisor Transactions Rank Advisor Transactions 1 CG Petsky Prunier 27 1 CG Petsky Prunier 64 1 CG Petsky Prunier 105 2 Houlihan Lokey 12 2 Goldman Sachs 32 2 Goldman Sachs 56 2 JEGI 12 3 JEGI 29 3 Morgan Stanley 49 4 Morgan Stanl
Slide 7: Number of transactions by firm rank
# of Transact ions Rank Firm Name 2018 1 CG P et sky P runier 39 1 Raymond James Financial 39 3 Houlihan Lokey 32 4 William Blair 31 5 Moelis 20 5 Robert W Baird 20 7 Jefferies 18 8 Goldman Sachs 16 8 AGC Partners 16 8 Evercore Partners 16 8 JP Morgan 16 8 Duff & Phelps 16 13 Daiwa Securities Group
Slide 8: Top-ranked, global investment bank dedicated to digital advertising and marketing
• Top-ranked, global investment bank dedicated to digital advertising and marketing, e-commerce, digital media, technology, information, business services, and healthcare services industries ‒ Extensive sell-side M&A and capital raise expertise, with a transaction closing rate unmatched at our level
Slide 9: Market Environment
PRIVATE & CONFIDENTIAL Driven by your success. For client and institutional use only, not for public dissemination
Slide 10: Driven by your success.
4,500 $600 4,196 4,000 3,827 3,792 3,606 3,643 $493 $500 3,507 3,398 3,398 3,500 3,327 $452 $451 3,146 3,082 $434 3,172 2,806 3,000 2,720 2,833 $400 2,500 $303 $281 $286 $300 $268 1,880 2,000 1,778 $239 $198 $194 1,500 $200 $169 $158 1,422 $145 $146 1,000 $116 $104 $100 $64 500 $54 0 $0 2002 2003 20
Slide 11: $1B+ Deals and Strategic vs Financial Sponsor Transactions
$1B+ Deals (2) Strategic vs Financial Sponsor Transactions (2) 35 Strategic Financial Sponsor 30 28 300 26 25 250 223 220 1 22 192 # of Deals 20 184 20 200 170 35 34 171 18 18 # of Deals 22 144 29 39 15 150 20 114 10 8 100 188 186 170 141 145 124 5 50 10 47 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2
Slide 12: Major Indices 2014 – July 2019
Major Indices 2014 – July 2019 Major Indices July 2019, LTM 220.0% Summary Performance Summary Performance 150.0% NASDAQ 97.3% NASDAQ 6.6% 200.0% S&P 500 62.7% S&P 500 5.8% 140.0% DJIA 63.4% DJIA 5.7% Russell 2000 36.8% Russell 2000 (5.8%) 180.0% 130.0% FTSE 100 12.9% FTSE 100 (2.1%) 160.0% 120.0% 1
Slide 13: Select M&A transactions
Deal Value EV/LTM EV/LTM Premium Cash Mix % Announced Acquirer Target Segment ($mm) Revenue EBITDA (1 Month) 07/30/19 Takeaway.com Just-Eat plc Digital Media/Commerce $6,000 6.0x 29.5x 0.0% 07/30/19 Vacasa LLC Wyndham Vacation Rentals North America Digital Media/Commerce $162 100.0% 07/30/19 FNZ UK
Slide 14: Select private equity transactions
Deal Value EV/LTM EV/LTM Premium Cash Mix % Announced Acquirer Target Segment ($mm) Revenue EBITDA (1 Month) 07/30/19 Thoma Bravo, Inc. J.D. Power and Associates Information $1,900 14.1x 0.0% 07/29/19 EQT Partners Waystar [Bain Capital] Software 2,700 0.0% 07/26/19 Keensight Capital Smile SA Busines
Slide 15: Observations: private funding rounds
Observations: • Private markets remain active and open, particularly for the strongest companies • Exit environment (IPOs, M&A) constructive leading to more favorable private valuation discussions Date of Latest Latest Round of Latest Total Equity Company Segment Funding Funding ($mm) Valuation ($mm
Slide 16: Take-private transactions
Aggregate Last Twelve Months Date Company Name Country Segment Offering Value Revenue EBITDA Jun-19 Health Catalyst Inc. United States Software 100.0 NA NA May-19 EndeavorGroup Holdings, Inc. United States Traditional Media 100.0 3,903.1 350.8 Sep-18 Valtech SE United Kingdom Agency & Marketing Serv
Slide 17: IPO activity
Ini tia l Offeri ng Fi na l Pri ce Stock Pri ce a t Cl os e Stock Pri ce on % Cha nge from Da te Ti cker PPLLC Segment Compa ny Na me Country Pri ce Ra nge Per Sha re on 1s t Tra di ng Da y Jul 31, 2019 1s t Tra di ng Da y Jul -19 MDLA Softwa re Meda l l i a , Inc. Uni ted States $16.00-$18.00 21.00
Slide 18: Follow-on offerings
Pricing Amount Mkt Cap % Mkt % Premium/Discount to: Aftermarket Performance Observations: Issuer Date Offered ($mm) at Offer Cap @ Offer Primary Last Sale Filing Price Offer + 1 Day Offer/Current Anterix 07/16/19 $100.0 $693.9 14.4% 100.0% (4.4%) (3.9%) (1.7%) (1.1%) HealthEquity 07/09/19 $473.5 $3,
Slide 19: Monthly M&A and Investment Activity by Industry Segment
PRIVATE & CONFIDENTIAL Driven by your success. For client and institutional use only, not for public dissemination
Slide 20: Transaction Distribution
Transaction Distribution • A total of 667 deals was announced in July 2019, of which 293 were worth $30.4 billion in aggregate reported value • Software accounted for nearly 40 percent of transactions with 255 deals announced – 123 of which reported $7.4 billion in value • Business & IT Services was
Slide 21: Transaction Distribution
Transaction Distribution • M&A total deal value was up 5 percent in July 2019, compared with June • The largest transactions recorded during the month were: ‒ Rhone Capital’s $4.0 billion sale of Canada-based security services company Garda World Security to BC Capital Partners ‒ Bain Capital’s $3.1
Slide 22: Digital Media/Commerce segment
• Of the 98 transactions recorded in the Digital Media/Commerce segment in July, 63 were announced for $5.5 billion in reported value • E-commerce was the most active across all subsegments with 53 transactions announced, of which 37 were reported for $1.8 billion, including: ‒ Etsy’s $275 million p
Slide 23: US-Based Digital Media and Internet
($ in Millions, except stock price data) US-Based Digital Media and Internet Stock Price Change % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/E
Slide 24: Internationally-based Digital Media and Internet
($ in Millions, except stock price data) Internationally-based Digital Media and Internet Stock Price Change % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/
Slide 25: US-based e-commerce
($ in Millions, except stock price data) US-based e-commerce Stock Price Change % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA 1-800-FLOW
Slide 26: Internationally-based e-commerce
($ in Millions, except stock price data) Internationally-based e-commerce Stock Price Change % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterpri
Slide 27: Marketing Technology segment
• The Marketing Technology segment announced 94 transactions in July, of which 54 were reported for $4.4 billion in value • Excluding KKR’s $1 billion purchase of Corel and Cinven’s $1.5 billion acquisition of Jaggaer, select transactions include: ‒ HGGC’s purchase of typeface software Monotype Imag
Slide 28: US-based Marketing Technology
($ in Millions, except stock price data) US-based Marketing Technology Stock Price Change % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA
Slide 29: Internationally-based Marketing Technology
($ in Millions, except stock price data) Internationally-based Marketing Technology Stock Price Change % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenu
Slide 30: Digital Advertising segment
• A total of 21 transactions was announced in the Digital Advertising segment • Strategic transactions represented more than half of segment activity in July 2019 • Select transactions: ‒ The $750 million acquisition of mobile video advertising platform Vungle by The Blackstone Group ‒ Greater Pacif
Slide 31: US-based Digital Advertising
($ in Millions, except stock price data) US-based Digital Advertising Stock Price Change % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA A
Slide 32: Internationally-based Digital Advertising
($ in Millions, except stock price data) Internationally-based Digital Advertising Stock Price Change % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue
Slide 33: Agency & Marketing Services segment
• A total of 47 transactions was announced in the Agency & Marketing Services segment • Strategic transactions accounted for 85 percent of segment activity • In addition to the $3.1 billion acquisition of Kantar by Bain Capital, select transactions include: ‒ Marlin Equity Partners’ acquisition of l
Slide 34: Agency & Marketing Services comparables
($ in Millions, except stock price data) Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA Cello Health plc Uni
Slide 35: Marketing services comparables
($ in Millions, except stock price data) Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA Aimia Inc. Canada 2.
Slide 36: Traditional Media segment
• Of the 28 transactions recorded in the Traditional Media segment in July, five were reported for $530 million in aggerate value • B-to-B Media was the most active subsegment, accounting for more than one-third of segment activity • Select transactions from the segment included: ‒ The $300 million
Slide 37: Large Cap Diversified Media
($ in Millions, except stock price data) Large Cap Diversified Media Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value
Slide 38: Broadcast, Cable, and Satellite Television
($ in Millions, except stock price data) Broadcast, Cable, and Satellite Television Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue E
Slide 39: Out-of-Home Media
($ in Millions, except stock price data) Out-of-Home Media Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA AP
Slide 40: Software segment
• A total of 255 transactions was announced in the Software segment, of which 123 were valued at $7.4 billion • VC/Growth Capital investor transactions represented 50 percent of segment activity • Select transactions: ‒ Bain Capital’s $2.7 billion sale of healthcare revenue cycle management platform
Slide 41: Financial & Credit/Risk Management Software
($ in Millions, except stock price data) Financial & Credit/Risk Management Software Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue
Slide 42: HR Software
($ in Millions, except stock price data) HR Software Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA 51job, I
Slide 43: Engineering Software
($ in Millions, except stock price data) Engineering Software Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA
Slide 44: SaaS/Cloud Software
($ in Millions, except stock price data) SaaS/Cloud Software Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA
Slide 45: Information segment
• The Information Segment had 20 transactions, six of which reported $2.4 billion in value • The Healthcare Information subsegment accounted for more than one-third of segment activity throughout the month • In addition to the $1.9 billion purchase of J.D Power and Associates, select transactions fr
Slide 46: Financial & Credit/Risk Management Information
($ in Millions, except stock price data) Financial & Credit/Risk Management Information Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Reven
Slide 47: Marketing Information
($ in Millions, except stock price data) Marketing Information Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITD
Slide 48: Business & IT Services segment
• The Business & IT Services segment had 104 transactions announced, 10 of which were valued at $5.9 billion • IT Consulting transactions accounted for 50 percent of all transactions throughout the month with 53 deals announced • In addition to BC Partners’ acquisition of Garda World Security, selec
Slide 49: Consulting
($ in Millions, except stock price data) Consulting Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA Accenture
Slide 50: IT Consulting
($ in Millions, except stock price data) IT Consulting Stock Price Chg % From Equity Enterprise Value Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA
Slide 51: Outsourced Services
($ in Millions, except stock price data) Outsourced Services Stock Price Chg % From Equity Enterprise Value Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 07/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/E
Slide 52: Additional Information
PRIVATE & CONFIDENTIAL Driven by your success. For client and institutional use only, not for public dissemination
Slide 53: Sources and methodology
• All transaction information has been publicly reported and is sourced from national news publications, industry trade journals and blogs, and public announcements by companies and investors. • All trading data related to publicly-traded companies has been sourced from Capital IQ. *The information
Slide 54: Canaccord Genuity disclosures
Canaccord Genuity is the business name used by certain subsidiaries of Canaccord Genuity Group Inc., including Canaccord Genuity LLC, Canaccord Genuity Limited, and Canaccord Genuity, a division of Canaccord Genuity Group Inc. Canaccord Genuity Group Inc. is listed on the TSX and LSE. Research Polic
Canaccord Genuity Group — Investor Presentation (July 2019) on 6ix