Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Merger or Acquisition (October 2019)
54 slides from Canaccord Genuity's merger presentation, October 2019
Slide 1: Technology, Media, Marketing, and Information Services Industry Sectors
PRIVATE & CONFIDENTIAL Technology, Media, Marketing, and Information Services Industry Sectors October 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 Digital/ ⚫ Deep, extensive sponsor & strategic relationships AI 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 HCIT MarTech/AdTech Other Vertica
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: Canaccord Genuity transaction rankings
# of Transactions # of Transactions Rank Firm Name 2018 Rank Firm Name 2019 3Q YTD 1 Canaccord Genuity 39 1 Canaccord Genuity 27 1 Raymond James 39 2 Raymond James 26 3 Houlihan Lokey 32 3 William Blair 21 4 William Blair 31 4 JP Morgan 19 5 Moelis 20 5 Evercore 17 5 Robert W Baird 20 5 Jefferies 17
Slide 8: About CG Petsky Prunier
• 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 deal activity and value
4,500 $600 4,196 4,000 3,827 3,792 3,606 3,643 $500 3,507 3,398 3,398 3,500 3,327 $452 $451 3,277(1) 3,146 3,082 $434 $449(1) 3,000 2,720 2,806 2,833 2,804 $400 $374 2,500 $303 $281 $300 $268 1,880 2,000 1,778 $239 1,422 $198 $194 1,500 $200 $169 $158 $145 $146 1,000 $116 $104 $100 $64 500 $54 0 $0
Slide 11: $1B+ deals, strategic vs sponsor, premiums
$1B+ Deals Strategic vs Financial Sponsor Transactions 35 Strategic Financial Sponsor 30 28 300 26 25 22 250 223 220 20 # of Deals 19 192 20 18 18 200 184 35 34 170 # of Deals 22 156(2) 39 144 148 15 150 29 20 25 9(2) 10 100 188 186 170 141 145 52 5 3 124 123 50 6 46 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 12: Major Indices performance
Major Indices 2014 – October 2019 Major Indices October 2019, LTM 220.0% Summary Performance 130.0% Summary Performance NASDAQ 100.2% NASDAQ 3.2% 200.0% S&P 500 65.8% S&P 500 3.9% 120.0% DJIA 1.5% DJIA 64.5% 180.0% Russell 2000 35.8% Russell 2000 (6.6%) FTSE 100 7.9% 110.0% FTSE 100 (3.3%) 160.0% 10
Slide 13: Select M&A transactions
Deal Value EV/LTM EV/LTM Premium Cash Mix % Announced Acquirer Target Segment ($mm) Revenue EBITDA (1 Month) 10/29/19 Digital Realty Interxion Technology $7,300 12.8x 30.6x 100.0% 10/29/19 Future PLC TI Media Limited Traditional Media 181 0.6x 100.0% 10/29/19 Banijay Group S.A.S Endemol Shine Group
Slide 14: Select private equity transactions
Deal Value EV/LTM EV/LTM Premium Cash Mix % Announced Acquirer Target Segment ($mm) Revenue EBITDA (1 Month) 10/30/19 PPF Group Central European Media Enterprises Traditional Media 2,100 3.0x 8.6x 14.7% 100.0% 10/30/19 Quadrant Private Equity QMS Media Limited Traditional Media 291 1.8x 8.1x 100.0%
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 Oct-19 Sprout Social United States Marketing Technology 100.0 74.6 21.0 May-19 EndeavorGroup Holdings, Inc. United States Traditional Media 100.0 3,903.1 350.8 Sep-18 Valtech SE United Kingdom Agency & Marke
Slide 17: Recent IPO 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 Oct 31, 2019 1s t Tra di ng Da y Sep-19 PTON Softwa re Pel oton Intera ctive, Inc. Uni ted States $26.00-$29.0
Slide 18: Follow-on offerings
Pricing Amount Mkt Cap % Mkt % Premium/Discount to: Aftermarket Performance Observations: Issuer Date Offered ($mm) at Offer Cap @ Offer Primary Last Sale Filing Price Offer + 1 Day Offer/Current Internap Corp 10/19/18 $40.0 $222.7 18.0% 100.0% (14.0%) (14.0%) (5.8%) (74.9%) Opera 09/20/19 75.0 1,16
Slide 19: Monthly M&A and Investment Activity by 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 802 deals was announced in October 2019, of which 325 were worth $28.7 billion in aggregate reported value • Software accounted for nearly 40 percent of transactions with 313 deals announced – 164 of which reported $9.6 billion in value • Business & IT Services
Slide 21: Transaction Distribution: largest deals
Transaction Distribution • M&A total deal activity in October 2019 increased 14 percent from September, marking the most active month in the 12 month period • The largest transactions recorded during the month were: ‒ Thoma Bravo’s $3.8 billion acquisition of UK-based cybersecurity company Sophos Gr
Slide 22: Digital Media/Commerce segment
• Of the 95 transactions recorded in the Digital Media/Commerce segment in October, 52 were announced for $5.8 billion in reported value • Excluding the acquisition of Ticketek, select Digital Media/Commerce transactions include: ‒ Vitruvian Partners’ acquisition of UK-based vacation home booking pl
Slide 23: US-Based Digital Media and Internet
($ 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 10/31/19 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 10/31/19 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 10/31/19 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 10/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterpri
Slide 27: Marketing Technology segment
• The Marketing Technology segment announced 115 transactions in October, of which 52 were reported for $5.4 billion in value • Segment activity increased 24 percent in October, compared with September 2019 • In addition to Platinum Equity’s purchase of Cision, select Marketing Technology transactio
Slide 28: US-based Marketing Technology
($ 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 10/31/19 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 10/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenu
Slide 30: Digital Advertising segment
• A total of 20 transactions was announced in the Digital Advertising segment • Strategic transactions represented more than half of segment activity in October 2019 • Select transactions in the segment include: ‒ The $400 million round of funding mobile marketing company ironSource raised from CVC
Slide 31: US-based Digital Advertising
($ 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 10/31/19 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 10/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue
Slide 33: Agency & Marketing Services segment
• A total of 56 transactions was announced in the Agency & Marketing Services segment • Strategic transactions accounted for more than 90 percent of segment activity • Select transactions include: ‒ The pending acquisition of digital transformation company Rightpoint Consulting by Genpact (A CG Pets
Slide 34: Agency & Marketing Services trading multiples
($ in Millions, except stock price data) Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 10/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA Cello Health plc Uni
Slide 35: Marketing services and data trading multiples
($ in Millions, except stock price data) Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 10/31/19 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 37 transactions recorded in the Traditional Media segment in October, nine were reported for $5.1 billion in aggerate value • Entertainment Media was the most active subsegment, accounting for more than one-third of segment activity • In addition to the acquisitions of Endemol Shine Group a
Slide 37: Large Cap Diversified Media and B-to-B Media
($ 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 10/31/19 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 10/31/19 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 10/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA AP
Slide 40: Software segment
• A total of 313 transactions was announced in the Software segment, of which 164 were valued at $9.6 billion • VC/Growth Capital investor transactions represented more than 50 percent of segment activity • In addition to Thoma Bravo’s acquisition of Sophos Group, transactions in the segment include
Slide 41: Financial & Credit/Risk Management Software
($ 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 10/31/19 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 10/31/19 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 10/31/19 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 10/31/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA
Slide 45: Information segment
• The Information Segment had 13 transactions in October 2019 • Select transactions from the segment included: ‒ The $53 million round of funding workforce data network Brightfield raised from Sapphire Ventures, MissionOG, CapitalOne Growth Ventures, and Telescope Partners ‒ Crunchbase’s $30 million
Slide 46: Financial & Credit/Risk Management Information
($ 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 10/31/19 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 10/31/19 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 153 transactions, 28 of which were valued at $1.7 billion • IT Consulting’s 69 transactions accounted for more than one-third of all segment activity • In addition to the acquisition of Crisis Prevention Institute, select transaction from the segment include:
Slide 49: Consulting
($ in Millions, except stock price data) Consulting Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 10/31/19 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 10/31/19 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 10/31/19 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 Genu ity 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 Poli
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