Sectorwatch: Salesforce Partners

23
Sectorwatch: Salesforce Partners July 2018

Transcript of Sectorwatch: Salesforce Partners

Page 1: Sectorwatch: Salesforce Partners

Sectorwatch:Salesforce PartnersJuly 2018

Page 2: Sectorwatch: Salesforce Partners

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Salesforce PartnersJuly 2018

Sector Dashboard [4]

Public Basket Performance [5]

Operational Metrics [7]

Valuation Comparison [10]

Recent Deals [13]

Appendix [14]

7 Mile Advisors appreciates the opportunity to present this confidential information to the Company. This document is meant to be delivered only inconjunction with a verbal presentation, and is not authorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of the document. Alldata cited in this document was believed to be accurate at the time of authorship and came from publicly available sources. Neither 7 Mile Advisors nor 7MSecurities make warranties or representations as to the accuracy or completeness of third-party data contained herein. This document should be treated asconfidential and for the use of the intended recipient only. Please notify 7 Mile Advisors if it was distributed in error.

Page 3: Sectorwatch: Salesforce Partners

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Overview

7MA provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally. We advise on M&A and private capital transactions, and provide market assessments and benchmarking. As a close knit team with a long history together and a laser focus on our target markets, we help our clients sell their companies, raise capital, grow through acquisitions, and evaluate new markets. We publish our sectorwatch, a review of M&A and operational trends in the industries we focus.

Dashboard• Summary metrics on the sector

• Commentary on market momentum by

comparing the most recent 12-month

performance against the last 3-year

averages.

Public Basket Performance• Summary valuation and operating metrics for

a basket of comparable public companies

Valuation Comparison• Graphical, detailed comparison of valuation

multiples for the public basket

Recent Deals• The most recently announced deals in the

sector

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Dashboard

Operating Metrics

Valuation

Revenue Growth Momentum

0.005 1 - year revenue growth compared to revenue growth

average for last 3 years

Pricing / Gross Margin Momentum

-0.1% 1 - year gross profit % compared to gross profit %

average for last 3 years

Profitability Momentum

-0.3% 1 - year EBITDA % compared to EBITDA % average for

last 3 years

Current revenue growth rate exceeds the average of the last 3 years by this

amount, indicating that market momentum is increasing

Current gross profit margin is less than the average of the last 3 years gross

profit margins, indicating customer pricing power

Current EBITDA margin is less than the average of the last 3 years EBITDA

margins, which may signal further consolidation

7.7%

20.8%

34.7%

0% 10% 20% 30% 40%

Median LTM Rev. Growth %

Median LTM EBITDA Margin %

Median LTM GP Margin %

2.6x

13.5x

16.0x

25.8x

0x 10x 20x 30x

Median TEV / LTM Revenue

Median TEV / LTM EBITDA

Median TEV / LTM EBIT

Median Price / LTM Earnings

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Public Basket

Company TEV $mLTM Rev

$m

Rev Growth

YoY GP %EBITDA

%TEV / Rev X

TEV / EBITDA

X # FTEsRev / FTE $k

Perficient, Inc. 1,005 483 5% 35% 12% 2.1 18.0 3,024 160

HCL Technologies Limited 18,369 7,838 12% 34% 23% 2.5 10.9 120,081 65

Capgemini SE 24,468 15,360 2% 26% 13% 1.6 12.9 199,698 77

Infosys Limited 38,812 11,119 7% 35% 27% 3.5 13.1 204,107 54

Cognizant Technology Solutions Corporation 43,817 15,176 10% 38% 21% 2.9 13.9 260,000 58

Accenture plc 104,155 38,574 13% 31% 16% 2.7 16.6 425,000 91

Tata Consultancy Services Limited 105,545 18,660 8% 44% 27% 5.7 21.2 394,998 47

International Business Machines Corporation 167,679 80,056 1% 46% 21% 2.1 10.1 366,600 218

Average 62,981 23,408 7% 36% 20% 2.9 14.6 246,689 96

Median 41,314 15,268 8% 35% 21% 2.6 13.5 232,054 71

share price as of 16Jul18

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Public Basket Valuation Trends

Public EBITDA Multiples over Time

Public Revenue Multiples over Time

12.4x

2.5x

0x

2x

4x

6x

8x

10x

12x

14x

16x

Oct

-13

Jan

-14

Ap

r-1

4

Jul-

14

Oct

-14

Jan

-15

Ap

r-1

5

Jul-

15

Oct

-15

Jan

-16

Ap

r-1

6

Jul-

16

Oct

-16

Jan

-17

Ap

r-1

7

Jul-

17

Oct

-17

Jan

-18

Ap

r-1

8

Jul-

18

TEV/EBITDA - Median TEV/Revenue - Median

TEV/EBITDA - Average TEV/Revenue - Average

0.0x0.5x1.0x1.5x2.0x2.5x3.0x

Oct

-13

Jan

-14

Ap

r-1

4

Jul-

14

Oct

-14

Jan

-15

Ap

r-1

5

Jul-

15

Oct

-15

Jan

-16

Ap

r-1

6

Jul-

16

Oct

-16

Jan

-17

Ap

r-1

7

Jul-

17

Oct

-17

Jan

-18

Ap

r-1

8

Jul-

18

TEV/Revenue - Median TEV/Revenue - Average

0x

5x

10x

15x

Oct

-13

Jan

-14

Ap

r-1

4

Jul-

14

Oct

-14

Jan

-15

Ap

r-1

5

Jul-

15

Oct

-15

Jan

-16

Ap

r-1

6

Jul-

16

Oct

-16

Jan

-17

Ap

r-1

7

Jul-

17

Oct

-17

Jan

-18

Ap

r-1

8

Jul-

18

TEV/EBITDA - Median TEV/EBITDA - Average

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Operational Metrics

LTM Gross Profit Margin % LTM EBITDA %

- 10% 20% 30% 40%

Median

Perficient, Inc.

Capgemini SE

Accenture plc

International BusinessMachines Corporation

Cognizant TechnologySolutions Corporation

HCL TechnologiesLimited

Tata ConsultancyServices Limited

Infosys Limited

- 20% 40% 60%

Median

Capgemini SE

Accenture plc

HCL Technologies Limited

Perficient, Inc.

Infosys Limited

Cognizant Technology SolutionsCorporation

Tata Consultancy ServicesLimited

International Business MachinesCorporation

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Operational Metrics

LTM Revenue Growth %LTM Revenue per

Full Time Employee x 000’s

- 4% 8% 12% 16% 20%

Median

International Business MachinesCorporation

Capgemini SE

Perficient, Inc.

Infosys Limited

Tata Consultancy ServicesLimited

Cognizant Technology SolutionsCorporation

HCL Technologies Limited

Accenture plc

$- $100 $200 $300

Median

Tata Consultancy ServicesLimited

Infosys Limited

Cognizant Technology SolutionsCorporation

HCL Technologies Limited

Capgemini SE

Accenture plc

Perficient, Inc.

International Business MachinesCorporation

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Operational Metrics

Accounts Receivable TurnoverAverage Days

Sales Outstanding

0x 2x 4x 6x 8x 10x

Median

Tata ConsultancyServices Limited

Capgemini SE

Infosys Limited

HCL Technologies Limited

Cognizant TechnologySolutions Corporation

Perficient, Inc.

Accenture plc

International BusinessMachines Corporation

0 20 40 60 80 100

Median

International BusinessMachines Corporation

Accenture plc

Perficient, Inc.

Cognizant TechnologySolutions Corporation

HCL TechnologiesLimited

Infosys Limited

Capgemini SE

Tata ConsultancyServices Limited

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Valuation

TEV / LTM Revenue TEV / LTM EBITDA

0x 2x 4x 6x 8x 10x

Median

Capgemini SE

Perficient, Inc.

International BusinessMachines Corporation

HCL TechnologiesLimited

Accenture plc

Cognizant TechnologySolutions Corporation

Infosys Limited

Tata ConsultancyServices Limited

0x 10x 20x 30x

Median

International BusinessMachines Corporation

HCL TechnologiesLimited

Capgemini SE

Infosys Limited

Cognizant TechnologySolutions Corporation

Accenture plc

Perficient, Inc.

Tata ConsultancyServices Limited

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Valuation

TEV / LTM EBIT Price / LTM Earnings

0x 10x 20x 30x

Median

HCL TechnologiesLimited

International BusinessMachines Corporation

Infosys Limited

Capgemini SE

Cognizant TechnologySolutions Corporation

Accenture plc

Tata ConsultancyServices Limited

Perficient, Inc.

0x 10x 20x 30x 40x 50x

Median

Infosys Limited

International BusinessMachines Corporation

Capgemini SE

Accenture plc

Tata ConsultancyServices Limited

Cognizant TechnologySolutions Corporation

Perficient, Inc.

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Valuation

Historical Valuation Multiples versus Gross Profit

Historical Valuation Multiples versus Revenue Growth Rate

10x 11x 13x 13x 14x 17x 18x 21x

45.6%

34.3%

26.5%

34.8%

38.3%

31.4% 34.6%

44.2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0x

5x

10x

15x

20x

25x

LTM

GP

%

EBIT

DA

(x)

EBITDA(x) LTM GP%

10x 11x 13x 13x 14x 17x 18x 21x

0.8%

12.4%

2.0%

7.3%

9.7%

12.8%

4.9%

8.1%

0%

2%

4%

6%

8%

10%

12%

14%

0x

5x

10x

15x

20x

25x

LTM

RG

R%

EBIT

DA

(x)

EBITDA(x) LTM RGR%

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Recent TransactionsDate Target Buyer / Investor

Total Transaction

Value Target

Revenue TEV /

Revenue TEV /

EBITDA

10Jul18 SWC Technology Partners, Inc. BDO USA, LLP - - - -

28Jun18 RO Innovation, Inc. Qvidian Corporation 14.25 6.00 2.4x -

28Jun18 Sybit GmbH itelligence AG - - - -

12Jun18 Gap Consulting Ltd Incremental Group Limited - - - -

6Jun18 Scribe Software Corporation TIBCO Software Inc. - - - -

5Jun18 Third Wave Consulting Inc. Deloitte Digital - - - -

1Jun18 Information Systems Management, Inc. SWK Technologies, Inc. - - - -

8Apr18 Red Sky Solutions FMT Consultants, LLC - - - -

1Mar18 Sonnick Partners LLC Pamlico Capital - - - -

13Nov17 cDecisions Limited PricewaterhouseCoopers LLP - - - -

20Sep17 Pierry, Inc. Wunderman Limited - 14.50 - -

8Sep17 Apttus Corporation PremjiInvest; International Business Machines Corp., Investment Arm; K1 Investment Management, LLC; ICONIQ Capital, LLC; Salesforce Ventures

- - - -

22Aug17 Summa Technologies, Inc. CGI Group Inc. - - - -

26Jul17 Crma Holdings LLC Virsys12, LLC - - - -

18Jul17 Appiphony, LLC Salesforce Ventures; SI Trailblazer Fund - - - -

18Jul17 PatronManager, LLC Providence Equity Partners LLC - - - -

7Jul17 InfoTrellis Inc. Mastech Digital, Inc. 55.00 22.00 - -

6Jul17 Pendo.io, Inc. Battery Ventures; MeriTech Capital Partners; Core Capital Partners; Spark Capital Partners, LLC; IDEA Fund Partners; Contour Venture Partners; Salesforce Ventures

25.00 - - -

7Jun17 Phase One Consulting Group, Inc. Accenture Federal Services LLC - - - -

15May17 Media Hive Accenture plc - - - -

8May17 Perspectium Corporation TVC Capital, LLC 8.00 - - -

5May17 Terminus Software, LLC Edison Partners; HubSpot, Inc.; Knoll Ventures Inc.; Arthur Ventures; Hyde Park Venture Partners; Vine Street Ventures; Atlanta Ventures; Atlanta Student Fund; High Alpha

10.30 - - -

26Apr17 VanDamme Associates, Inc. Community Brands - - - -

20Apr17 Spanning Cloud Apps, LLC Insight Venture Partners LLC - - - -

12Apr17 Govenda, LLC Digital Evolution Group LLC - - - -

3Apr17 Blue Acorn, LLC Beringer Capital; Beringer Capital Fund III L.P. - - - -

27Mar17 Day1 Solutions LLC Deloitte Digital - - - -

23Mar17 ITELIOS SAS Cap Gemini S.A. (nka:Capgemini SE) - - - -

2Feb17 MapAnything, Inc. Columbus Nova; Greycroft; Harbert Venture Partners, LLC; Salesforce Ventures; ServiceNow Ventures

33.10 - - -

24Jan17 Sequence LLC salesforce.com, inc. 26.00 - - -

20Oct16 Appirio Inc. Wipro Limited 500.00 196.00 2.6x -

4Oct16 ACF Solutions, LLC (nka:ACF Solutions, An Attain Company)

Attain, LLC - - - -

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APPENDIX:

Public Basket

Constituents

7 Mile Advisors appreciates the opportunity to present this confidential information to the Company. This document is meant to be delivered only inconjunction with a verbal presentation, and is not authorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of the document. Alldata cited in this document was believed to be accurate at the time of authorship and came from publicly available sources. Neither 7 Mile Advisors nor 7MSecurities make warranties or representations as to the accuracy or completeness of third-party data contained herein. This document should be treated asconfidential and for the use of the intended recipient only. Please notify 7 Mile Advisors if it was distributed in error.

Salesforce PartnersJuly 2018

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Public Basket

Perficient, Inc.

Perficient, Inc. provides information technology and management

consulting services in the United States. The company designs,

builds, and delivers solutions using middleware software

products developed by third-party vendors. Its solutions include

portals and collaboration, such as searchable data systems,

collaborative systems for process improvement, transaction

processing, unified and extended reporting, and other services;

and platform implementations services, including application

server selection, architecture planning, installation and

configuration, clustering for availability, performance assessment

and issue remediation, security, and technology migrations. The

company also offers management consulting services in the

areas of organizational change management, business analytics,

project management, process excellence, and other; and cloud

services comprising architecture, business value and health

checks assessments, strategy and road maps, and vendor

evaluation and selection services. Perficient, Inc. was founded in

1997 and is headquartered in St. Louis, Missouri.

Date Key Development Headline7/15/18 Perficient, Inc. (NasdaqGS:PRFT) acquired Stone Temple

Consulting Corporation.

0x

1x

2x

3x

Revenue Multiples - Perficient, Inc.

TEV/Revenue Average

0x

10x

20x

30x

EBITDA Multiples - Perficient, Inc.

TEV/EBITDA Average

0x

20x

40x

60x

P/E Multiples - Perficient, Inc.

P/E Average

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Public Basket

HCL Technologies Limited

HCL Technologies Limited provides software, business process

outsourcing, and information technology (IT) infrastructure

services worldwide. The company offers IT infrastructure

management, cloud computing, data center, managed

mainframe and maintenance, network, service integration and

management, and workplace services, as well as autonomics

and orchestration services, products, and platforms. It also

provides digital consulting, application development and platform

engineering, platforms, business analytics, business assurance

and testing, and application maintenance services; SAP

landscape transformation, system conversion, and new

implementations of on-premises and cloud platform solutions;

Oracle business consulting, implementation, upgrades,

managed, and migration services; and Microsoft customer

relationship management, cloud, analytics, infrastructure, and

workplace innovation services. HCL Technologies Limited was

founded in 1976 and is headquartered in Noida, India.

Date Key Development Headline6/26/18 HCL Technologies Limited (NSEI:HCLTECH) signed a definitive

agreement to acquire Hönigsberg & Düvel Datentechnik GmbH

for €30 million.

6/1/18 JDA and HCL Technologies Announce Alliance Agreement for

JDA Commerce, SofTechnics, and PRM Solutions

5/2/18 HCL Seeks Acquisitions

0x

2x

4x

6x

8x

Revenue Multiples - HCL Technologies

Limited

TEV/Revenue Average

0x

5x

10x

15x

20xEBITDA Multiples - HCL Technologies Limited

TEV/EBITDA Average

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Public Basket

Capgemini SE

Capgemini SE provides consulting, technology, and digital

transformation services. It addresses clients’ opportunities in the

world of cloud, digital, and platforms, as well as enables

organizations to realize business ambitions through an array of

services from strategy to operations. The company’s Consulting

Services segment offers strategy and transformation consulting

services primarily in digital transformation that enhance the

performance of organizations based on intimate client

relationships, and the knowledge of client industries and

processes. Its Technology & Engineering Services segment

provides assistance and support to internal IT teams of client

companies. The company’s Application Services segment

designs, develops, implements, and maintains IT applications,

including system integration and application maintenance

services. Its Other Managed Services segment integrates,

manages, and/or develops client’s IT infrastructure systems, as

well as provides transaction, on-demand, and/or business

process outsourcing services. Capgemini SE was founded in

1967 and is based in Paris, France.

Date Key Development Headline6/21/18 Capgemini Seeks Acquisitions in India

6/6/18 Capgemini SE (ENXTPA:CAP) entered into an agreement to

acquire Leidos Cyber, Inc.

0x

1x

2x

3xRevenue Multiples - Capgemini SE

TEV/Revenue Average

0x

5x

10x

15x

20xEBITDA Multiples - Capgemini SE

TEV/EBITDA Average

0x

6x

12x

18x

24x

30xP/E Multiples - Capgemini SE

P/E Average

Page 18: Sectorwatch: Salesforce Partners

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Public Basket

Infosys Limited

Infosys Limited, together with its subsidiaries, provides

consulting, technology, and outsourcing services in North

America, Europe, India, and internationally. It provides business

information technology services, including application

development and maintenance, independent validation,

infrastructure management, and business process management

services, as well as engineering services, such as engineering

and life cycle solutions; and consulting and systems integration

services comprising consulting, enterprise solutions, systems

integration, and advanced technologies. The company’s

products include Finacle, a banking solution that provides

analytics, core banking, consumer e-banking, corporate e-

banking, Islamic banking, mobile banking, origination, payments,

SME enable, treasury, wealth management, and youth banking

solutions. Infosys Limited was founded in 1981 and is

headquartered in Bengaluru, India.

Date Key Development Headline7/5/18 Infosys Limited Partners with Siemens to Develop Advanced IoT

Engineering Solutions on MindSphere

5/29/18 Infosys Limited (NSEI:INFY) completed the acquisition of

Wongdoody Holding Company, Inc.

5/2/18 Infosys and Astound Partner to Deliver Better Service Experience

Through an AI Enhanced Enterprise Service Management Café

4/18/18 Infosys Mulls Acquisitions

4/13/18 Infosys Seeks Sell Of Panaya and Skava

0x

1x

2x

3x

4x

5xRevenue Multiples - Infosys Limited

TEV/Revenue Average

0x

5x

10x

15x

20xEBITDA Multiples - Infosys Limited

TEV/EBITDA Average

0x

10x

20x

30x

40x P/E Multiples - Infosys Limited

P/E Average

Page 19: Sectorwatch: Salesforce Partners

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Public Basket

Cognizant Technology Solutions Corporation

Cognizant Technology Solutions Corporation, a professional

services company, provides consulting and technology, and

outsourcing services worldwide. The company operates through

four segments: Financial Services; Healthcare; Products and

Resources; and Communications, Media and Technology. It

offers business, process, operations, and technology consulting

services; application design and development, and systems

integration services; application testing, consulting, and

engineering services; and enterprise information management

services. The company was founded in 1994 and is

headquartered in Teaneck, New Jersey.

Date Key Development Headline5/6/18 Cognizant Technology Solutions Eyes Acquisition

5/1/18 Cognizant Technology Solutions Corporation (NasdaqGS:CTSH)

acquired Hedera Consulting BVBA.

4/18/18 Cognizant Technology Solutions Corporation (NasdaqGS:CTSH)

completed the acquisition of Bolder Healthcare Solutions LLC

from Bolder Capital, LLC and The Edgewater Funds.

3/11/18 Cognizant Technology Solutions Corporation (NasdaqGS:CTSH)

agreed to acquire Bolder Healthcare Solutions LLC from Bolder

Capital, LLC and The Edgewater Funds.

11/29/17 Cognizant Technology Solutions Corporation (NasdaqGS:CTSH)

completed the acquisition of Netcentric AG.

0x

2x

4x

6x

8x

10xRevenue Multiples - Cognizant Technology

Solutions Corporation

TEV/Revenue Average

0x

10x

20x

30x

40xEBITDA Multiples - Cognizant Technology

Solutions Corporation

TEV/EBITDA Average

0x

15x

30x

45x

60xP/E Multiples - Cognizant Technology

Solutions Corporation

P/E Average

Page 20: Sectorwatch: Salesforce Partners

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Public Basket

Accenture plc

Accenture plc provides consulting, technology, and outsourcing

services worldwide. Its Communications, Media & Technology

segment provides professional services that help clients

accelerate and deliver digital transformation, and enhance

business results through industry-specific solutions for

communications, media, and high tech industries, as well as for

software platforms. The company’s Financial Services segment

offers services that address profitability pressures, industry

consolidation, regulatory changes, and the need to continually

adapt to new digital technologies. This segment serves clients in

banking, capital markets, and insurance industries. Its Health &

Public Service segment provides research-based insights and

offerings, including consulting services and digital solutions to

help clients deliver social, economic, and health outcomes.

Accenture plc was founded in 1989 and is based in Dublin,

Ireland.

Date Key Development Headline7/11/18 Accenture plc (NYSE:ACN) acquired Kogentix Inc.

6/30/18 Accenture Reportedly Seeks Acquisitions

6/7/18 Accenture plc (NYSE:ACN) entered into an agreement to acquire

designaffairs GmbH.

6/4/18 SAP SE to Team with Accenture, Capgemini and Deloitte to

Accelerate Customer Adoption of SAP S/4Hana(R) Cloud in

Target Industries

5/22/18 Accenture plc (NYSE:ACN) agreed to acquire HO

Communication.

0x

1x

2x

3x

4xRevenue Multiples - Accenture plc

TEV/Revenue Average

0x

5x

10x

15x

20x

25x

30xEBITDA Multiples - Accenture plc

TEV/EBITDA Average

0x

15x

30x

45xP/E Multiples - Accenture plc

P/E Average

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Public Basket

Tata Consultancy Services Limited

Tata Consultancy Services Limited provides information

technology (IT) and IT enabled services worldwide. The

company offers CHROMA, a cloud-based talent management

solution that enables organizations to drive transformational

employee experiences; ignio, a cognitive automation system;

iON, an assessment solution; TAP, a cloud solution, including

TAP contract management, purchasing, accounts payable, and

supplier management solutions; and TCS MasterCraft, a digital

platform to automate and manage IT processes. It also provides

customer intelligence and insight solutions to deliver

personalized retail, banking, and communications experiences;

Intelligent Urban Exchange, an enterprise software to accelerate

smart city transportation, water, and energy programs for cities;

OPTUMERA, a digital merchandising suite. Tata Consultancy

Services Limited is a subsidiary of Tata Sons Limited.

Date Key Development Headline6/19/18 NCR Corporation and Tata Consultancy Services Limited Enter

into Strategic Alliance

6/15/18 TCS Seeks Acquisitions

4/22/18 Tata Consultancy Services Open To Acquisitions In Digital Space

3/5/18 Virgin Atlantic Extends Strategic Partnership with Tata

Consultancy Services Limited

10/26/17 Tata Consultancy Services and ACORD Collaborate on Digital

Transformation Enhancements for the Insurance Industry

0x

2x

4x

6x

8x

10xRevenue Multiples - Tata Consultancy

Services Limited

TEV/Revenue Average

0x

10x

20x

30x

40xEBITDA Multiples - Tata Consultancy

Services Limited

TEV/EBITDA Average

0x

10x

20x

30x

40x

50xP/E Multiples - Tata Consultancy Services

Limited

P/E Average

Page 22: Sectorwatch: Salesforce Partners

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Public Basket

International Business Machines Corporation

International Business Machines Corporation operates as an

integrated technology and services company worldwide. Its

Cognitive Solutions segment offers Watson, a cognitive

computing platform that interacts in natural language, processes

big data, and learns from interactions with people and

computers. This segment also offers data and analytics

solutions, including analytics and data management platforms,

cloud data services, enterprise social software, talent

management solutions, and solutions tailored by industry; and

transaction processing software that runs mission-critical

systems in banking, airlines, and retail industries. International

Business Machines Corporation was founded in 1911 and is

headquartered in Armonk, New York.

Date Key Development Headline7/16/18 IBM, Banca Carige Launches Dock a USD 500 Million US Joint

Venture

6/14/18 International Business Machines Corporation (NYSE:IBM)

acquired Oniqua Pty Ltd. from ASCO Holdings Limited.

6/7/18 Intellect Design Arena Limited and International Business

Machines Corporation to Deliver Seamless Digital Transformation

Transformation to the Large Banks with IBM Cloud

4/26/18 Host Hotels & Resorts, Inc. Announces Joint Development

Agreement with IBM Research

2/22/18 Industrial Realty Group, LLC completed the acquisition of the

Rochester, Minnesota technology campus of International

Business Machines Corporation (NYSE:IBM) for $33.9 million.

0x

1x

2x

3x

4x

5x

Revenue Multiples - International Business

Machines Corporation

TEV/Revenue Average

0x

6x

12x

18x

24x

30x

EBITDA Multiples - International Business

Machines Corporation

TEV/EBITDA Average

0x

10x

20x

30x

40x

50x

P/E Multiples - International Business

Machines Corporation

P/E Average

Page 23: Sectorwatch: Salesforce Partners

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Contact Information7MA provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally.

We advise on M&A and private capital transactions, and provide market assessments and benchmarking. As a close-

knit team with a long history together and a laser focus on our target markets, we help our clients sell their

companies, raise capital, grow through acquisitions, and evaluate new markets. Securities offered through 7M

Securities LLC.

Leroy Davis, Partner 704.899.5962 [email protected]

Tripp Davis, Partner 704.899.5762 [email protected]

Andy Johnston, Partner 704.899.5961 [email protected]

Tom Dinnegan, Managing Director 310. 426.2410 [email protected]

Ben Lunka, Managing Director 704.496.2995 [email protected]

Jeff Stoecklein, Managing Director 312.373.3737 [email protected]

Kristina Sergueeva, Director 704.899.5149 [email protected]

Neil Churman, Director 704.899.5960 x 121 [email protected]

John Cooper, Director 704.973.3996 [email protected]

Tim Frye, Director 704.973.3994 [email protected]

Casey Augustine, Business Development - Manager 704.973.3999 [email protected]

Nicholas Prendergast, Financial Analyst 704.899.5960 [email protected]

Ariail Siggins, Marketing Director 704.899.5960 x 123 [email protected]

Sydney Larese, Associate 704.899.5960 [email protected]

Marty Johnson, Associate 704.899.5960 [email protected]

Rory Julyan, Associate 704.899.5960 [email protected]

Garth Martin, Associate 704.899.5960 x 109 [email protected]

Chevonese Dacres, Analyst 360.499.1502 [email protected]