Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Investor Presentation (August 2019)
54 slides from Canaccord Genuity's investor presentation, August 2019
Slide 1: Technology, Media, Marketing, and Information Services Industry Sectors
PRIVATE & CONFIDENTIAL Technology, Media, Marketing, and Information Services Industry Sectors August 2019 This is intended for client and institutional use only, and may not be Driven by your success. disseminated further
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, raised $45B+ capital
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: Rank Advisor CG Petsky Prunier
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: CG Petsky Prunier league table ranking
# 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: M&A and investment activity trends
4,500 $600 4,196 4,000 3,827 3,792 3,606 3,643 $500 3,507 $502(1) 3,398 3,398 3,500 3,327 $452 $451 3,146 3,082 $434 3,285(1) 2,806 3,000 2,720 2,833 $400 2,500 $303 $281 $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 2
Slide 11: $1B+ Deals and Strategic vs Financial Sponsor Transactions
$1B+ Deals Strategic vs Financial Sponsor Transactions 35 Strategic Financial Sponsor 30 28 300 26 24(2) 170(2) 25 250 223 1 22 220 # of Deals 20 192 20 200 184 35 34 18 18 170 # of Deals 16 22 39 144 15 150 29 20 113 10 100 188 186 16 170 141 145 124 5 50 97 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1
Slide 12: Major Indices
Major Indices 2014 – August 2019 Major Indices August 2019, LTM Summary Performance Summary Performance 220.0% 130.0% NASDAQ 97.3% NASDAQ (1.8%) S&P 500 62.7% S&P 500 0.9% 200.0% DJIA 63.4% DJIA 1.7% 120.0% Russell 2000 36.8% Russell 2000 (14.1%) 180.0% FTSE 100 12.9% FTSE 100 (3.0%) 110.0% 160.0% 1
Slide 13: Select M&A transactions over $100M
Deal Value EV/LTM EV/LTM Premium Cash Mix % Announced Acquirer Target Segment ($mm) Revenue EBITDA (1 Month) 08/30/19 Toshiba Lite-On Technology (SSD business) Technology 165 08/29/19 Accel Entertainment Grand River Jackpot Technology 100 100.0% 08/28/19 Temenos Kony Marketing Technology 559 08/28/1
Slide 14: Select M&A transactions $50-100M
Deal Value EV/LTM EV/LTM Premium Cash Mix % Announced Acquirer Target Segment ($mm) Revenue EBITDA (1 Month) 08/14/19 BC Partners Presidio Business & IT Services $1,324 0.7x 10.6x 14.1% 100.0% 08/07/19 KPS Capital Partners Esterline Interface Technologies Technology 190 08/07/19 Hackman Capital Part
Slide 15: Private financing observations
Observations: • Private markets remain active and open, particularly for the strongest companies • Exit environment (IPOs, M&A) constructive leading to more favorable private valuation discussions Date of Latest Latest Round of Latest Total Equity Company Segment Funding Funding ($mm) Valuation ($mm
Slide 16: IPO activity
Aggregate Last Twelve Months Date Company Name Country Segment Offering Value Revenue EBITDA Aug-19 Peloton Interactive, Inc. United States Digital Media/Commerce 500.0 915.0 (202.3) Aug-19 Cloudflare United States Software 483.0 192.7 (84.9) Aug-19 SmileDirect Club United States Digital Media/Comme
Slide 17: IPO pricing and aftermarket performance
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 Aug 30, 2019 1s t Tra di ng Da y Aug-19 DT Softwa re Dyna tra ce, Inc. Uni ted States $13.00-$15.00 16.00 $23.
Slide 18: Follow-on offerings
Pricing Amount Mkt Cap % Mkt % Premium/Discount to: Aftermarket Performance Observations: Issuer Date Offered ($mm) at Offer Cap @ Offer Primary Last Sale Filing Price Offer + 1 Day Offer/Current Workiva 08/13/19 $72.4 $2,631.0 2.8% 0.0% (1.4%) (9.2%) (8.3%) (14.5%) EVO Payments 08/13/19 $114.0 $2,4
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 682 deals was announced in August 2019, of which 303 were worth $44.8 billion in aggregate reported value • Software accounted for nearly 40 percent of transactions with 254 deals announced – 141 of which reported $19.1 billion in value • Digital Media/Commerce
Slide 21: Transaction Distribution: largest transactions
Transaction Distribution • M&A total deal value was up six percent in August 2019, compared with July • The largest transactions recorded during the month were: ‒ VMware’s acquisitions of software development platform Pivotal Software for $2.7 billion and cloud native workload security company Carbo
Slide 22: Digital Media/Commerce segment
• Of the 129 transactions recorded in the Digital Media/Commerce segment in August, 63 were announced for $6.8 billion in reported value • E-commerce was the most active across all subsegments with 52 transactions announced, of which 34 were reported for $5 billion, including: ‒ Farfetch’s $675 mill
Slide 23: US-Based Digital Media and Internet
($ 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 08/30/19 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 08/30/19 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 08/30/19 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 08/30/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterpri
Slide 27: Marketing Technology segment
• The Marketing Technology segment announced 95 transactions in August, of which 43 were reported for $4.5 billion in value • Select Marketing Technology transactions include: ‒ Thoma Bravo’s $1.6 billion sale of CRM platform iPipeline to Roper Technologies ‒ Syncourt’s $700 million acquisition of P
Slide 28: US-based Marketing Technology
($ 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 08/30/19 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 08/30/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenu
Slide 30: Digital Advertising segment
• A total of 19 transactions was announced in the Digital Advertising segment • Strategic transactions represented more than half of segment activity in August 2019 • Select transactions in the segment include: ‒ Centerbridge Partners’ $1.5 billion investment in healthcare-focused marketing and cust
Slide 31: US-based Digital Advertising
($ 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 08/30/19 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 08/30/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue
Slide 33: Agency & Marketing Services segment
• A total of 46 transactions was announced in the Agency & Marketing Services segment • Strategic transactions accounted for 85 percent of segment activity • Select transactions include: ‒ Dentsu’s acquisition of leading direct-to-consumer digital marketing agency MuteSix (A CG Petsky Prunier-Led Tr
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 08/30/19 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 08/30/19 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 24 transactions recorded in the Traditional Media segment in August, five were reported for $6.4 billion in aggerate value • B-to-B Media was the most active subsegment, accounting for more than one-third of segment activity • In addition to Gannett’s sale to New Media Investment Group and
Slide 37: Large Cap Diversified Media and B-to-B Media
($ 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 08/30/19 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 08/30/19 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 08/30/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA AP
Slide 40: Software segment
• A total of 254 transactions was announced in the Software segment, of which 141 were valued at $19.1 billion • VC/Growth Capital investor transactions represented more than 50 percent of segment activity • In addition to VMware’s purchases of Pivotal Software and Carbon Black, the acquisition of N
Slide 41: Financial & Credit/Risk Management Software
($ 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 08/30/19 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 08/30/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA 51job, I
Slide 43: Engineering and Infrastructure 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 08/30/19 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 08/30/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA
Slide 45: Information segment
• The Information Segment had eight transactions in August 2019 • Select transactions from the segment included: ‒ DMG Information’s $364 million sale of sensor-based energy market data company Genscape to Verisk ‒ The $10 million round of funding employee information platform Rimeto received from U
Slide 46: Financial & Credit/Risk Management Information
($ 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 08/30/19 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 08/30/19 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 107 transactions announced, 13 of which were valued at $3.8 billion • IT Consulting transactions accounted for 50 percent of all transactions throughout the month with 53 deals announced • In addition to BC Partners’ acquisition of Presidio, select transactio
Slide 49: Consulting
($ in Millions, except stock price data) Consulting Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 08/30/19 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 08/30/19 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 08/30/19 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: Methodology and data sources
• 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
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