Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Investor Presentation (June 2019)
54 slides from Canaccord Genuity's investor presentation, June 2019
Slide 1: Technology, Media, Marketing, and Information Services Industry Sectors
PRIVATE & CONFIDENTIAL Technology, Media, Marketing, and Information Services Industry Sectors June 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 ⚫ Advisory credentials across a wide range of outcomes E-Commerce Infrastructure MarTech & Marketing Services Consulting & Digital AdTech Services Transformation ⚫ Executed transactions up to $1B+ in value FinTech IOT Digital/ Vertical AI CRM Mobile ⚫ Deep, extensi
Slide 5: 245+ completed transactions since 2012
Agency & Collaboration Data & Info ⚫ 245+ completed transactions since 2012 E-Commerce Infrastructure MarTech & AI Marketing CRM DevOps Infrastructure Internet Marketing Services Consulting & Digital Services ⚫ Raised $45B+ capital AdTech FinTech IOT Collaboration Data, Information Transformation HC
Slide 6: League table rankings: 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: Refinitiv rankings of US M&A advisors
# 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: 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: Technology M&A activity over time
4,500 $600 4,196 4,000 3,827 3,792 $504 3,606 3,643 $500 3,507 3,398 3,398 3,500 3,327 $452 $451 3,146 3,082 $434 3,138 2,806 3,000 2,720 2,833 $400 2,500 $303 $281 $300 $268 1,880 2,000 $249 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+ technology deals and strategic vs sponsor transactions
$1B+ Technology Deals Strategic vs Financial Sponsor Transactions 35 Strategic Financial Sponsor 30 28 300 26 25 250 223 1 22 220 # of Deals 20 192 20 18 18 200 184 35 34 170 # of Deals 22 39 144 15 150 29 20 10 100 188 186 170 141 145 5 50 124 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2018
Slide 12: Major indices performance
Major Indices 2014 – June 2019 Major Indices June 2019, LTM 220.0% 140.0% Summary Performance Summary Performance NASDAQ 93.2% NASDAQ 5.8% 200.0% 130.0% S&P 500 60.6% S&P 500 7.9% DJIA 61.8% DJIA 9.4% 180.0% Russell 2000 36.1% 120.0% Russell 2000 (5.3%) FTSE 100 10.5% FTSE 100 (1.6%) 160.0% 110.0% 1
Slide 13: Selected M&A transactions in June 2019
Deal Value EV/LTM EV/LTM Premium Cash Mix % Announced Acquirer Target Segment ($mm) Revenue EBITDA (1 Month) 06/27/19 HealthEquity WageWorks Business & IT Services $2,047 2.4x 9.0x 2.5% 100.0% 06/26/19 Extreme Networks Aerohive Networks Technology 272 1.4x 32.0% 100.0% 06/25/19 Trax Technology Solut
Slide 14: Selected M&A transactions (continued)
Deal Value EV/LTM EV/LTM Premium Cash Mix % Announced Acquirer Target Segment ($mm) Revenue EBITDA (1 Month) 06/26/19 TDR Capital BCA Marketplace Digital Media/Commerce $2,490 0.6x 12.7x 06/11/19 Leonard Green & Partners Press Ganey Holdings Business & IT Services 4,000 06/10/19 Apollo Shutterfly Di
Slide 15: Private funding observations and latest rounds
Observations: • Private markets remain active and open, particularly for the strongest companies • Exit environment (IPOs, M&A) constructive leading to more favorable private valuation discussions Date of Latest Latest Round of Latest Total Equity Company Segment Funding Funding ($mm) Valuation ($mm
Slide 16: Recent IPOs and offerings
Aggregate Last Twelve Months Date Company Name Country Segment Offering Value Revenue EBITDA Jun-19 Medallia United States Marketing Technology 100.0 336.6 (41.8) Jun-19 Health Catalyst Inc. United States Software 100.0 NA NA May-19 EndeavorGroup Holdings, Inc. United States Traditional Media 100.0
Slide 17: IPO pricing and aftermarket performance
Ini ti a 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 Jun 28, 2019 1s t Tra di ng Da y Jun-19 WORK Softwa re Sl a ck Technol ogi es , Inc. Uni ted Sta tes $24.00 3
Slide 18: Follow-on offerings
Pricing Amount Mkt Cap % Mkt % Premium/Discount to: Aftermarket Performance Observations: Issuer Date Offered ($mm) at Offer Cap @ Offer Primary Last Sale Filing Price Offer + 1 Day Offer/Current InterXion 06/26/19 $291.0 $5,254.9 5.5% 100.0% (0.5%) (3.1%) 3.1% 1.3% Iteris 06/14/19 28.8 170.2 16.9%
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: deals announced in June 2019
Transaction Distribution • A total of 640 deals was announced in June 2019, of which 308 were worth $45.2 billion in aggregate reported value • Software accounted for nearly 40 percent of transactions with 250 deals announced – 140 of which reported $12.1 billion in value • Business & IT Services wa
Slide 21: Transaction Distribution: M&A deal value
Transaction Distribution • M&A total deal value was up 34 percent in June 2019, compared with the last 12 month average • Significant transactions completed during the month included: ‒ The acquisition of Medidata Solutions, a cloud software for clinical trials, by Dassault Systemes for $5 billion ‒
Slide 22: Digital Media/Commerce segment
• Of the 106 transactions recorded in the Digital Media/Commerce segment in June, 68 were announced for $9.7 billion in reported value • E-commerce was the most active across all subsegments with 53 transactions announced, of which 37 were reported for $6.2 billion, including: ‒ The purchase of book
Slide 23: US-Based Digital Media and Internet
($ 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 06/28/19 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 06/28/19 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 06/28/19 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 06/28/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterpri
Slide 27: Marketing Technology segment
• The Marketing Technology segment announced 74 transactions in June, of which 45 were reported for $3.9 billion in value • Select transactions: ‒ The sale of video advertising analytics platform Data Plus Math to LiveRamp for $150 million ‒ The acquisition of mobile campaign analytics platform TapH
Slide 28: US-based Marketing Technology
($ 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 06/28/19 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 06/28/19 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 June 2019 • Select transactions: ‒ The sale of personal finance product finding and comparison platform MyBankTracker to QuinStreet ‒ The acquisiti
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 06/28/19 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 06/28/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue
Slide 33: Agency & Marketing Services segment
• A total of 33 transactions was announced in the Agency & Marketing Services segment • Strategic transactions accounted for 80 percent of segment activity • Select transactions: ‒ The sale of UK-based media buying and analytics company SearchStar to Welocalize ‒ The acquisition of direct mail solut
Slide 34: Agency and Marketing Services trading comparables
($ in Millions, except stock price data) Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 06/28/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA Cello Health plc Uni
Slide 35: Marketing services trading comparables
($ in Millions, except stock price data) Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 06/28/19 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 22 transactions recorded in the Traditional Media segment in June, four were reported for $611 million in aggergate value • B-to-B Media was the most active subsegment, accounting for 50 percent of segment activity • Select transactions from the segment included: ‒ TEGNA’s acquisition of se
Slide 37: Large Cap Diversified Media and B-to-B Media
($ 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 06/28/19 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 06/28/19 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 06/28/19 52WK High Value Value Revenue EBITDA EBITDA Margin Revenue Growth Enterprise Value/Revenue Enterprise Value/EBITDA AP
Slide 40: Software segment
• A total of 250 transactions was announced in the Software segment, of which 140 were valued at $12.1 billion • VC/Growth Capital investor transactions represented 58 percent of segment activity • Select transactions: ‒ The acquisition of environmental health and quality management software develop
Slide 41: Financial & Credit/Risk Management Software
($ 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 06/28/19 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 06/28/19 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 06/28/19 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 06/28/19 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, six of which reported $6.2 billion in value • The Healthcare Information subsegment accounted for more than one-third of segment activity throughout the month • Select transactions from the segment included: ‒ The $205 million round of funding workforce
Slide 46: Financial & Credit/Risk Management Information
($ 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 06/28/19 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 06/28/19 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 123 transactions announced, 33 of which were valued at $12.4 billion • IT Consulting transactions accounted for 50 percent of all transactions throughout the month with 61 deals announced • Select transaction from the segment include: ‒ Hexaware Technologies’
Slide 49: Consulting
($ in Millions, except stock price data) Consulting Stock Price Chg % From Equity Enterprise Last Twelve Months Last Twelve Months Multiples Company Name Headquarters 06/28/19 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 06/28/19 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 06/28/19 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 notes
• 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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