Shea & Company Annual Software Market Review - 2007

Annual Infrastructure & Application Software Market Review 

2007 

399 Boylston Street Michael H.M. Shea 

Floor 11 

Managing Director 

Boston, Massachusetts 02116 617.896.2255 

mshea@shea-co.com 

Confidential and proprietary information, unauthorized distribution strictly prohibited. 

Chris Pingpank 

Associate 

617.896.2218 

cpingpank@shea-co.com 

Brad McCarthy 

Analyst 

617.896.2245 

bmccarthy@shea-co.com

Contents 

2007 Software Acquisitions p. 2 

2007 M&A Transaction Data p. 7 

Public Company Participants & Consolidation by Segment p. 13 

Most Active Public Consolidation Players p. 17 

Equity Trading Multiples by Software Segment p. 21 

Equity Trading Multiples by Comparable Subsets p. 26 

Software IPO Data p. 27 

Software IPO Pipeline p. 28 

proprietary & confidential 

1

2007 Infrastructure & Application Software Acquisitions 

($ millions) 

Announced Target Acquirer Target Segment & Description Price 

12/27/07 Document Sciences Corp. EMC Content Management - Document output management software $85 

12/26/07 TimeSpring Double-Take IT Security - Continuous data protection n/a 

12/21/07 Solid Information Technology IBM Content Management - In-memory database software n/a 

12/17/07 NSB Retail Systems Epicor ERP & Vertical Applications - Software solutions and services for the specialty retail market $287 

12/06/07 Arsenal Digital Solutions IBM IT Security - On-demand data protection n/a 

12/06/07 MetaLINCS Seagate Content Management - E-discovery n/a 

12/06/07 Moniforce Oracle Systems & Network Management - Software for monitoring the availability and performance of any web application n/a 

12/05/07 PassGo Technologies Quest Software IT Security - Access and identity management solutions n/a 

12/04/07 Reef Point Systems NexTone Communications Communications - Mobile access universal convergence gateway provider n/a 

12/04/07 Spotlight Data Metastorm Business Intelligence - Process data collection and analysis n/a 

12/03/07 Systems & Software Harris Computer Systems ERP & Vertical Applications - Customer information systems for municipal and investor-owned utilities n/a 

11/13/07 Saber Corporation EDS ERP & Vertical Applications - Software and services to US state and local government entities $452 

11/12/07 Cognos IBM Business Intelligence - Enterprise business intelligence $4,900 

11/12/07 Provision Networks Quest Software Systems & Network Management - Enterprise-grade presentation and desktop virtualization solutions n/a 

11/05/07 EqualLogic Dell Storage Management - High performance storage area network solutions optimized for virtualization $1,400 

11/05/07 Vontu Symantec IT Security - Data loss prevention solutions that combine endpoint and network-based technology $350 

11/01/07 Securent Cisco IT Security - Policy management software for enterprises n/a 

10/31/07 Deploy Solutions Kronos ERP & Vertical Applications - Selection and hiring solutions n/a 

10/31/07 Stratify Iron Mountain ERP & Vertical Applications - Electronic discovery services for the legal market $158 

10/30/07 Voyence EMC Systems & Network Management - Provider of network configuration and change management solutions n/a 

10/29/07 GCS (asset sale) Microsoft ERP & Vertical Applications - Enterprise-class health information systems n/a 

10/25/07 Provilla Trend Micro IT Security - Intelligent endpoint solutions for data leak prevention $17 

10/25/07 Visual Sciences Omniture Business Intelligence - Real-time analytics applications $394 

10/24/07 Interlace Systems Oracle ERP & Vertical Applications - Strategic operational planning software n/a 

10/24/07 NovusCG IBM Storage Management - Software for assessing and optimizing storage in multi-vendor environments n/a 

10/23/07 Meridio Holdings Autonomy ERP & Vertical Applications - Enterprise records management software $41 

10/23/07 Navini Networks Cisco Communications - Personal plug-n-play broadband wireless access solutions $330 

10/22/07 MarketRx Cognizant Technology ERP & Vertical Applications - Analytics and software services to global life sciences companies $135 

10/22/07 Network Physics OPNET Technologies Systems & Network Management - Application performance management $10 

10/17/07 YASU Technologies SAP Content Management - Business rules management systems n/a 

10/09/07 LogicalApps Oracle Systems & Network Management - Automated governance, risk and compliance controls management solutions n/a 

Source: Company releases, Wall Street research, Shea & Company 


2

2007 Infrastructure & Application Software Acquisitions continued 

($ millions) 


10/08/07 Emprisa Networks BMC Software Systems & Network Management - Smart network compliance, change and configuration management and automation n/a 

10/08/07 SafeBoot McAfee IT Security - Enterprise security software vendor focusing on data protection via encryption and access control $350 

10/07/07 Business Objects SAP Business Intelligence - Business intelligence software $5,964 

10/05/07 Castek Software i-flex solutions ERP & Vertical Applications - Strategic business software for property and casualty insurance n/a 

10/04/07 Berkeley Data Systems EMC Storage Management - Online information backup and recovery services n/a 

09/28/07 3Com Bain Capital Network Infrastructure - Secure voice and data networking solutions for enterprises $2,200 

09/27/07 Latigent Cisco Business Intelligence - Web-based business intelligence and analytics reporting solutions n/a 

09/20/07 Network General NetScout Systems Systems & Network Management - IT management solutions designed to integrate & simplify troubleshooting and management $205 

09/20/07 Procuri Ariba ERP & Vertical Applications - On demand supply management solutions $101 

09/18/07 Cognio Cisco Communications - Wireless spectrum analysis and management for wireless networks n/a 

09/18/07 Sphera SWsoft Systems & Network Management - Automation, provisioning, virtualization, & management software n/a 

09/17/07 Longview Solutions Exact Software ERP & Vertical Applications - Corporate performance management software solutions n/a 

09/12/07 Cluster File Systems Sun Microsystems O/S, Development Tools & Deployment - Parallel file system provider n/a 

09/11/07 Dunes Technologies VMware Systems & Network Management - IT process orchestration software for virtual environments n/a 

09/07/07 Zimbra Yahoo ERP & Vertical Applications - Email and collaboration software $350 

09/06/07 FUZZY! Informatik Business Objects ERP & Vertical Applications - Data quality solutions including cleansing address data and creating directory content n/a 

09/05/07 Applix Cognos Business Intelligence - Business intelligence solution, with strategic planning, forecasting, reporting & analytics $306 

09/05/07 Catalyst International CDC Software ERP & Vertical Applications - Supply chain execution solutions and services n/a 

08/31/07 Bridgestream Oracle ERP & Vertical Applications - Software used to map business relationships within an organization $35 

08/29/07 Parlano Microsoft ERP & Vertical Applications - Enterprise group chat application n/a 

08/27/07 PlassoTech Autodesk ERP & Vertical Applications - Supplier of analysis and simulation software for the mechanical design market n/a 

08/22/07 WebDialogs IBM Communications - Web conferencing and communications services n/a 

08/21/07 Hart InterCivic (asset sale) Manatron Content Management - Records Management Solutions Business $5 

08/20/07 ClamAV SourceFire IT Security - Open source gateway anti-virus and anti-malware project n/a 

08/15/07 XenSource Citrix Systems Systems & Network Management - Enterprise-class virtual infrastructure solutions built on the open source Xen hypervisor $500 

08/13/07 Senforce Technologies Novell IT Security - Endpoint security management n/a 

08/09/07 Tablus EMC Content Management - Data loss prevention solutions n/a 

08/06/07 Acopia Networks F5 Networks Systems & Network Management - High-performance, intelligent file virtualization $210 

08/06/07 Skymatter Limited Autodesk ERP & Vertical Applications - 3D brush-based modeling software n/a 

08/03/07 Princeton Softech IBM Content Management - Data archiving, test data management, data privacy and data classification and discovery software n/a 

08/02/07 ASAP Software Dell IT Security - Licensing and e-commerce services for software publishers $340 



3


($ millions) 


08/02/07 CheckFree Fiserv IT Security - Web application security assessment software and services $4,400 

07/31/07 Hyland Software Thoma Cressey Content Management - Enterprise content management solutions n/a 

07/30/07 H-G Holdings Concur Technologies ERP & Vertical Applications - Services on-demand for expense management including payment, compliance & analytics $160 

07/23/07 Neoware HP Systems & Network Management - Thin client computing solutions that centralize desktop management $214 

07/23/07 Opsware HP Systems & Network Management - Data center automation $1,600 

07/19/07 RealOps BMC Software Systems & Network Management - Run Book Automation software that accelerates execution of critical operational functions n/a 

07/18/07 Authorize.Net CyberSource ERP & Vertical Applications - IP-based payment gateway solutions for merchants $565 

07/18/07 Bharosa Oracle IT Security - Software that helps combat online identity theft and fraud n/a 

07/18/07 SilverBack Technologies Dell Systems & Network Management - Service delivery platform provider for remote monitoring and management of IT n/a 

07/16/07 DataMirror IBM Content Management - Technology that identifies and captures data that has been added, updated or deleted $161 

07/09/07 Postini Google IT Security - On demand communications security and compliance solutions $625 

07/03/07 ZANTAZ Autonomy Content Management - Content archiving and electronic discovery solutions and software as a service $375 

07/02/07 Actimize NICE Systems ERP & Vertical Applications - Transactional risk management software for the financial services industry $280 

06/21/07 ScriptLogic Quest Software Systems & Network Management - Systems lifecycle management solutions for Windows-based networks $90 

06/19/07 SPI Dynamics HP IT Security - Web application security assessment software and services n/a 

06/18/07 SecureWave PatchLink IT Security - Unified policy enforcement for management and monitoring of endpoint device and application use n/a 

06/12/07 SOA Software (services unit) Zensar Systems & Network Management - Enterprise class SOA management, security, and governance solutions $25 

06/11/07 Telelogic IBM O/S, Development Tools & Deployment - Software development solutions for aerospace, defense & telecom industries $745 

06/08/07 Plant Solutions Aspen Technology ERP & Vertical Applications - Software and professional services for process companies n/a 

06/08/07 Stratature Microsoft Content Management - Master-data management n/a 

06/06/07 Watchfire IBM IT Security - Software and service to help ensure the security and compliance of websites n/a 

06/05/07 Engyro Microsoft Systems & Network Management - Software solutions to integrate, consolidate, and simplify IT operations n/a 

06/05/07 PeakStream Google O/S, Development Tools & Deployment - Tools for writing software that can take advantage of multicore processors n/a 

06/04/07 Verid EMC IT Security - Consumer authentication services n/a 

05/31/07 NavisWorks Autodesk ERP & Vertical Applications - Software that enables 3D digital designs in the construction, plant & marine design markets $25 

05/29/07 ProactiveNet BMC Software Systems & Network Management - Software that diagnoses & resolves performance issues for web & client/server apps $37 

05/20/07 Inxight Software Business Objects Content Management - Software solutions for unstructured information discovery n/a 

05/16/07 Acxiom Silver Lake ERP & Vertical Applications - Technology to create and deliver customer and information management solutions $3,000 

05/15/07 Agile Software Oracle ERP & Vertical Applications - Product lifecycle management software solutions $301 

05/14/07 Cybertrust Verizon Business IT Security - Global information security services n/a 



4


($ millions) 


05/14/07 MaXware SAP IT Security - Identity management software n/a 

05/14/07 Wicom Communications SAP Communications - All-IP contact center and enterprise communications software n/a 

05/08/07 OutlookSoft SAP Business Intelligence - Unified, real-time corporate performance management solutions n/a 

05/04/07 Acucorp Micro Focus Intl O/S, Development Tools & Deployment - Application development solutions that solve mission-critical business issues n/a 

05/04/07 webMethods Software AG O/S, Development Tools & Deployment - Business integration and optimization software $418 

05/03/07 Scene7 Adobe ERP & Vertical Applications - Image server software to create digital images for ecommerce, email, ecatalogs and print n/a 

05/03/07 ScreenTonic Microsoft Communications - Mobile communication and marketing solutions n/a 

05/01/07 Blue Agave Software i2 Technologies Business Intelligence - Active performance management applications n/a 

05/01/07 Spotfire TIBCO Business Intelligence - Interactive, visual data analytics applications and services $195 

05/01/07 Vectra Corporation CDC Software IT Security - Information security consulting services, managed services and enterprise security solutions n/a 

04/30/07 Covelight Systems Radware IT Security - Real-time, application-independent online management solutions n/a 

04/30/07 Right Media Yahoo not software - Online advertising exchange $850 

04/26/07 SurfControl Websense IT Security - On demand and software-based web and email security solutions $359 

04/24/07 Cartesis Business Objects Business Intelligence - Finance and performance management software $300 

04/24/07 Lodestar Oracle ERP & Vertical Applications - Applications that address business processes which span the enterprise for energy companies n/a 

04/24/07 MetaMatrix Redhat Content Management - Software designed to integrate all of the information assets of an enterprise n/a 

04/24/07 VA Software (SourceForge) Collabnet O/S, Development Tools & Deployment - Collaborative software development solutions n/a 

04/18/07 Actaris Metering Systems Itron ERP & Vertical Applications - Meters and associated systems for the electricity, gas, water and heat markets $1,700 

04/18/07 AppForge Oracle O/S, Development Tools & Deployment - Mobile application development and a mobile applications platform n/a 

04/18/07 Xign JPMorgan Chase ERP & Vertical Applications - Business-to-business on-demand financial settlement solutions n/a 

04/16/07 FundsXpress First Data Corp ERP & Vertical Applications - Internet-based financial services to financial institutions nationwide n/a 

04/13/07 DoubleClick Google not software - Digital marketing technology and services $3,100 

04/12/07 ImageRight Vertafore Content Management - Insurance-specific document management and workflow solutions n/a 

04/12/07 Mobius Allen Systems Group Content Management - Comprehensive software solutions for enterprise archiving and records management $144 

04/10/07 Koral Salesforce.com Content Management - Content collaboration platform that enables companies to manage documents, email & web pages n/a 

04/10/07 LogicBlaze IONA Technologies Systems & Network Management - Open source SOA and Web 2.0 platform that provides a scalable SOA environment n/a 

04/06/07 Embarcadero Thoma Cressey Systems & Network Management - Strategic data management solutions $200 

04/05/07 SSB SIA not software - Processor of debit and credit card payments n/a 

04/02/07 Workbrain Infor Global Solutions ERP & Vertical Applications - Software that helps large organizations deploy and manage their workforces $158 

03/27/07 Ruesch International Travelex ERP & Vertical Applications - Currency payments and related services $440 



5


($ millions) 


03/23/07 Kronos Hellman & Friedman ERP & Vertical Applications - Solutions that automate employee-centric processes, as well as tools to optimize the workforce $1,721 

03/23/07 Tangosol Oracle Systems & Network Management - Data grid solutions enabling enterprises to predictably scale mission-critical applications n/a 

03/22/07 Tabblo HP Content Management - Web-based software designed to make printing from the web easier and more convenient n/a 

03/19/07 Sharp Analytics iCrossing Business Intelligence - Analysis of complex data including data-mining, statistical modeling and datamart creation n/a 

03/15/07 MapInfo Pitney Bowes Content Management - Location intelligence solutions $377 

03/15/07 WebEx Cisco not software - On-demand applications for collaborative business on the web $2,900 

03/13/07 NeoPath Networks Cisco Systems & Network Management - File storage virtualization solutions n/a 

03/09/07 Amcom Software 2ndWave Software Communications - Enterprise software systems for mission critical communications n/a 

03/09/07 CrossBorder Solutions Thomson Corporation ERP & Vertical Applications - Enterprise tax software solutions for multinational companies n/a 

03/07/07 Marketics Technologies WNS Holdings Business Intelligence - Marketing analytics and data management services for integrating and analyzing customer data $65 

03/06/07 iConclude Opsware Systems & Network Management - IT process automation software $54 

03/05/07 SafeNet Vector Capital IT Security - Information security utilizing encryption technologies to protect communications, IP and digital identities $634 

03/01/07 Hyperion Oracle Business Intelligence - Business performance management software $2,706 

02/26/07 Applimation (Integra product) LogicalApps Systems & Network Management - Configuration managemnet, access control and transaction monitoring n/a 

02/26/07 PolyServe HP Systems & Network Management - Consolidates Linux and Microsoft Windows servers and storage into scalable utilities n/a 

02/21/07 Reactivity Cisco Systems & Network Management - Network security appliances that enable the safe deployment of services-based apps $135 

02/15/07 Aceva Technologies SunGuard ERP & Vertical Applications - Receivables management software solutions n/a 

02/14/07 Corillian CheckFree ERP & Vertical Applications - Solutions that enable financial service providers to deploy internet-based financial services $216 

02/13/07 FileKeeper Yosemite Storage Management - Protection for Windows notebooks and desktops using continuous data protection solutions n/a 

02/12/07 Witness Systems Verint Business Intelligence - Workforce optimization software and services $894 

02/06/07 Valyd Software RSA IT Security - Software solutions that secure enterprise data n/a 

02/05/07 Bristol Technology HP Business Intelligence - Business process monitoring and analysis solutions n/a 

01/29/07 Altiris Symantec Systems & Network Management - Management software which enables businesses to manage network-based endpoints $825 

01/29/07 Softek IBM Storage Management - Data mobility software which allows enterprises to migrate data held on any storage hardware n/a 

01/18/07 Mincom Limited Francisco Partners ERP & Vertical Applications - ERP and asset management software $248 

01/17/07 Celequest Cognos Business Intelligence - Business intelligence dashboard solution sold as an appliance or via a SaaS model n/a 

01/17/07 Secure Software Fortify Software IT Security - Analyzes source code for security flaws with particular strength in Rational development environments n/a 

01/16/07 Target Software Blackbaud ERP & Vertical Applications - Database management and donor relationship software for nonprofits $62 

01/04/07 IronPort Systems Cisco IT Security - Messaging security appliances, focusing on enterprise spam and spyware protection $830 

01/02/07 Carreker CheckFree ERP & Vertical Applications - Electronic payments technology which captures and processes a digital image of a paper check $169 



6

2006 – 2007 Software M&A Transaction Data 

($ millions) 

Consideration Equity Enterprise EV / Revenue P/E Ratio 

Date Target Acquirer % Cash % Stock value value LTM Current yr Fwd yr Current yr Fwd yr 

12/27/07 Document Sciences Corp. EMC 100.0% 0.0% $87 $85 2.2x - - - - 

12/17/07 NSB Retail Systems Epicor 100.0% 0.0% $322 $287 3.2x - - - - 

11/13/07 Saber Corporation EDS 100.0% 0.0% - $452 - - - - - 

11/12/07 Cognos IBM 100.0% 0.0% $5,000 $4,900 4.8x 4.7x 3.9x 29.3x 24.4x 

11/05/07 EqualLogic Dell 100.0% 0.0% $1,418 $1,400 12.3x - - - - 

11/05/07 Vontu Symantec 100.0% 0.0% - $350 - - - - - 

10/31/07 Stratify Iron Mountain 100.0% 0.0% - $158 - - - - - 

10/25/07 Provilla Trend Micro - - - $17 4.1x - - - - 

10/25/07 Visual Sciences Omniture 13.2% 86.8% $404 $394 4.9x 4.8x 4.0x 31.0x 21.9x 

10/23/07 Meridio Holdings Autonomy - - - $41 - - - - - 

10/22/07 MarketRx Cognizant Technology - - - $135 - - - - - 

10/22/07 Network Physics OPNET Technologies 100.0% 0.0% - $10 - - - - - 

10/08/07 SafeBoot McAfee 100.0% 0.0% - $350 - - - - - 

10/07/07 Business Objects SAP 100.0% 0.0% $6,816 $5,964 4.2x 4.0x 3.5x 36.1x 28.9x 

09/28/07 3Com Bain Capital 100.0% 0.0% $2,129 $2,200 1.7x 1.7x 1.6x 44.4x 28.8x 

09/20/07 Network General NetScout Systems 73.2% 26.8% - $205 - - - - - 

09/20/07 Procuri Ariba 54.0% 46.0% $93 $101 - - - - - 

09/05/07 Applix Cognos 100.0% 0.0% $339 $306 5.0x 4.4x 3.6x 34.2x 27.8x 

08/31/07 Bridgestream Oracle - - - $35 35.0x - - - - 

08/21/07 Hart InterCivic (asset sale) Manatron 100.0% 0.0% - $5 - - - - - 

08/15/07 XenSource Citrix Systems - - - $500 - - - - - 

08/06/07 Acopia Networks F5 Networks 100.0% 0.0% - $210 - - - - - 

08/02/07 ASAP Software Dell - - - $340 - - - - - 

08/02/07 CheckFree Fiserv 100.0% 0.0% $4,686 $4,400 4.7x 4.1x 3.7x 26.8x 22.5x 

07/30/07 H-G Holdings Concur Technologies 100.0% 0.0% - $160 - - - - - 

07/23/07 Neoware HP 100.0% 0.0% $334 $214 2.3x 2.2x 2.0x 133.8x 70.7x 

07/23/07 Opsware HP 100.0% 0.0% $1,673 $1,600 14.8x 11.4x 8.9x 173.7x 49.9x 

Note: Includes only transactions for which data was publicly available 



7

2006 – 2007 Software M&A Transaction Data continued 

($ millions) 



07/18/07 Authorize.Net CyberSource 22.1% 77.9% $688 $565 6.6x 8.1x 6.6x 52.5x 38.2x 

07/16/07 DataMirror IBM 100.0% 0.0% $179 $161 3.3x 2.9x 2.6x 17.4x 15.9x 

07/09/07 Postini Google 100.0% 0.0% - $625 - - - - - 

07/03/07 ZANTAZ Autonomy 100.0% 0.0% - $375 3.8x - - - - 

07/02/07 Actimize NICE Systems 80.0% 20.0% - $280 - - - - - 

06/21/07 ScriptLogic Quest Software 100.0% 0.0% - $90 4.5x - - - - 

06/12/07 SOA Software (services unit) Zensar 100.0% 0.0% - $25 - - - - - 

06/11/07 Telelogic IBM 100.0% 0.0% $781 $745 3.3x 3.1x 2.9x 25.9x 23.7x 

05/31/07 NavisWorks Autodesk 100.0% 0.0% - $25 - - - - - 

05/29/07 ProactiveNet BMC Software - - $40 $37 - - - - - 

05/16/07 Acxiom Silver Lake 100.0% 0.0% $2,244 $3,000 2.2x 2.1x - 28.8x - 

05/15/07 Agile Software Oracle 100.0% 0.0% $495 $301 2.3x 2.1x 1.8x nm nm 

05/04/07 webMethods Software AG 100.0% 0.0% $546 $418 2.1x 2.0x 1.8x nm 54.3x 

05/04/07 Acucorp Micro Focus Intl 100.0% 0.0% $41 - - - - - - 

05/01/07 Spotfire TIBCO 100.0% 0.0% - $195 4.3x - - - - 

04/30/07 Covelight Systems Radware 100.0% 0.0% $16 - - - - - - 

04/26/07 SurfControl Websense 100.0% 0.0% $400 $359 3.0x - - - - 

04/24/07 Cartesis Business Objects 100.0% 0.0% - $300 2.4x - - - - 

04/18/07 Actaris Metering Systems Itron 100.0% 0.0% - $1,700 - - - - - 

04/12/07 Mobius Allen Systems Group 100.0% 0.0% $197 $144 1.6x 1.5x - 91.4x - 

04/06/07 Embarcadero Thoma Cressey 100.0% 0.0% $274 $200 3.4x 3.0x - 33.3x - 

04/02/07 Workbrain Infor Global Solutions 100.0% 0.0% $201 $158 1.6x 1.6x 1.5x 59.9x 24.5x 

03/27/07 Ruesch International Travelex - - - $440 - - - - - 

03/23/07 Kronos Hellman & Friedman 100.0% 0.0% $1,762 $1,721 $3 2.6x 2.2x 25.5x 19.0x 

03/15/07 MapInfo Pitney Bowes 100.0% 0.0% $458 $377 2.2x 2.1x 1.8x 31.6x 28.5x 

03/07/07 Marketics Technologies WNS Holdings 100.0% 0.0% - $65 - - - - - 

03/05/07 SafeNet Vector Capital 100.0% 0.0% $712 $634 2.2x 2.0x - 21.0x - 




8


($ millions) 



03/01/07 Hyperion Oracle 100.0% 0.0% $3,192 $2,706 3.3x 2.9x - 27.8x - 

02/21/07 Reactivity Cisco 100.0% 0.0% - $135 - - - - - 

02/14/07 Corillian CheckFree 100.0% 0.0% $241 $216 3.5x 3.3x 3.1x - - 

02/12/07 Witness Systems Verint 100.0% 0.0% $1,025 $894 4.2x 3.5x 3.2x 16.8x 15.1x 

01/29/07 Altiris Symantec 100.0% 0.0% $1,000 $825 3.6x 3.3x 3.1x 30.8x 28.4x 

01/18/07 Mincom Limited Francisco Partners 100.0% 0.0% - $248 - - - - - 

01/16/07 Target Software Blackbaud 100.0% 0.0% - $62 - - - - - 

01/04/07 IronPort Systems Cisco - - - $830 - 8.3x - - - 

01/02/07 Carreker CheckFree 100.0% 0.0% $206 $169 1.5x 1.4x - 20.2x - 

12/21/06 EVault Seagate 100.0% 0.0% - $185 - - - - - 

11/30/06 Digital Insight Intuit 100.0% 0.0% $1,443 $1,350 5.7x 5.5x 4.9x 39.1x 42.2x 

11/29/06 LVL7 Systems Broadcom 100.0% 0.0% - $62 - - - - - 

11/29/06 Revivio Symantec 100.0% 0.0% - $20 - - - - - 

11/20/06 Comergent Technologies Sterling Commerce 100.0% 0.0% - $155 - - - - - 

11/02/06 Stellent Oracle 100.0% 0.0% $424 $354 2.7x 2.6x 2.4x 27.9x 20.1x 

11/01/06 Avamar Technologies EMC 100.0% 0.0% - $165 - - - - - 

10/23/06 Indus International Vista Equity Partners 100.0% 0.0% $232 $203 1.7x 1.6x 1.4x 42.8x 17.5x 

10/23/06 MetaSolv Software Oracle 100.0% 0.0% $219 - - - - - - 

10/16/06 Open Solutions Carlyle & Providence Equity 100.0% 0.0% $868 $1,300 3.8x 3.3x 2.8x 37.4x 25.4x 

10/16/06 FormScape Bottomline Technologies 77.3% 22.7% - $22 - - - - - 

10/03/06 SilverStorm Technologies QLogic 100.0% 0.0% - $60 - - - - - 

09/28/06 Infravio WebMethods 100.0% 0.0% - $38 - - - - - 

09/18/06 Network Intelligence EMC 100.0% 0.0% - $175 - 7.0x - - - 

09/05/06 Click Commerce Illinois Tool Works 100.0% 0.0% $298 $292 4.0x 3.5x 3.1x 15.8x 14.2x 

08/29/06 Terrascale Technologies Rackable Systems 100.0% 0.0% - $38 - - - - - 

08/23/06 Internet Security Systems IBM 100.0% 0.0% $1,254 $1,034 3.1x 3.0x 2.8x 28.4x 25.7x 

08/10/06 FileNET IBM 100.0% 0.0% $1,600 $1,150 2.6x 2.5x 2.3x 31.3x 27.1x 




9


($ millions) 



08/08/06 Reynolds and Reynolds Universal Computer 100.0% 0.0% $2,719 $2,800 2.9x - - - - 

08/03/06 MRO Software IBM 100.0% 0.0% $740 $586 2.6x 2.5x 2.3x 28.2x 23.8x 

07/25/06 WatchGuard Technologies Francisco Partners 100.0% 0.0% $224 $151 2.0x 2.1x 1.8x nm nm 

07/25/06 Mercury HP 100.0% 0.0% $5,189 $4,568 5.2x 4.9x 4.5x 31.6x 27.0x 

07/05/06 Hummingbird Ltd. Open Text 100.0% 0.0% $489 $395 1.5x 1.4x - 15.5x - 

06/29/06 RSA Security EMC 100.0% 0.0% $2,335 $2,100 6.5x 5.7x 4.8x 49.7x 37.3x 

06/07/06 nLayers EMC 100.0% 0.0% - $50 - - - - - 

06/06/06 Onyx M2M Holdings - - - $92 1.6x 1.6x 1.4x - - 

06/01/06 Demantra Oracle 100.0% 0.0% - $40 - 2.5x 1.5x - - 

05/18/06 Whale Communications Microsoft - - $75 $75 - - - - - 

05/14/06 SSA Global Technologies Infor Global Solutions 100.0% 0.0% $1,539 $1,608 2.2x 2.0x 1.9x 18.3x 15.6x 

05/09/06 Kashya EMC 100.0% 0.0% $153 $153 - - - - - 

05/08/06 Reflectent Software Citrix Systems - - - $17 - - - - - 

04/27/06 NetIQ AttachmateWRQ 100.0% 0.0% $496 $305 1.6x 1.7x 1.5x 168.6x 89.3x 

04/27/06 Systems Union Group Infor Global Solutions 100.0% 0.0% $378 $398 2.0x - - - - 

04/27/06 LANDesk Avocent 50.0% 50.0% $400 $416 5.0x - - - - 

04/24/06 Manugistics JDA Software 100.0% 0.0% $211 $247 1.4x 1.4x 1.3x 125.0x 20.8x 

04/13/06 Cybermation CA 100.0% 0.0% - $75 - 2.5x - - - 

04/12/06 Portal Software Oracle 100.0% 0.0% $220 $160 1.6x 1.6x 1.4x nm nm 

04/10/06 JBoss Red Hat 40.0% 60.0% $420 $393 - - - - - 

03/17/06 Identify Software Ltd. BMC Software 100.0% 0.0% - $150 - - - - - 

03/01/06 Fuego BEA Systems 100.0% 0.0% - $88 - 5.3x - - - 

01/19/06 Actional Progress 100.0% 0.0% $36 $32 - - - - - 

01/09/06 Systinet Mercury 100.0% 0.0% $105 $98 - 4.1x - - - 

01/05/06 Wily Technology CA 100.0% 0.0% - $375 - 5.2x - - - 

01/04/06 Datastream Infor Global Solutions 100.0% 0.0% $216 $158 1.6x 1.5x - 20.9x - 




10

2006 – 2007 Software M&A Transaction Data – Summary 

($ millions) 


% Cash % Stock value value LTM Current yr Fwd yr Current yr Fwd yr 

Mean - all deals 95.9% 4.1% $1,021.7 $634.4 4.1x 3.4x 2.9x 45.2x 30.3x 

Median - all deals $420.0 $231.3 3.0x 2.8x 2.5x 31.0x 25.5x 

< $250 

Mean 91.9% 2.0% $151.1 $105.5 3.7x 2.2x 1.4x 45.4x 18.7x 

Median $188.1 $92.0 1.7x 1.6x 1.4x 27.1x 16.7x 

$250 - $500 

Mean 90% 10% $419.3 $358.9 3.0x 3.0x 2.5x 46.4x 36.6x 

Median $412.1 $358.9 2.7x 2.4x 2.1x 31.0x 27.8x 

$500 - $1000 

Mean 89% 11% $824.3 $689.3 3.8x 4.4x 3.6x 29.2x 25.8x 

Median $760.6 $634.0 3.5x 3.3x 3.1x 27.0x 23.8x 

> $1000 

Mean 100.0% 0.0% $2,307.1 $2,527.8 4.9x 4.0x 3.7x 41.9x 28.8x 

Median $1,717.7 $1,910.7 3.8x 3.3x 3.5x 31.3x 27.0x 

IT Security 

Mean 100.0% 0.0% $1,212.8 $722.6 3.6x 4.6x 3.3x 31.5x 28.5x 

Median $556.0 $350.0 3.1x 4.1x 3.2x 27.6x 25.7x 

Strategic - Mean 100.0% 0.0% $1,461.1 $769.8 4.3x 5.6x 3.7x 34.9x 28.5x 

Financial - Mean 100.0% 0.0% $468.0 $392.5 2.1x 2.0x 1.8x 21.0x nm 

ERP & Vertical Applications 

Mean 95.2% 4.8% $747.8 $566.0 4.4x 2.7x 2.5x 39.6x 24.1x 

Median $310.1 $231.3 2.4x 2.1x 1.9x 28.8x 22.3x 

Strategic - Mean 93.5% 6.5% $607.3 $417.3 5.5x 3.0x 2.7x 46.8x 27.8x 

Financial - Mean 100.0% 0.0% $1,008.8 $1,049.5 2.3x 2.1x 2.0x 33.4x 20.4x 

Information Management 

Mean 94.5% 5.5% $1,470.7 $959.4 3.2x 3.1x 3.0x 32.5x 23.3x 

Median $441.2 $364.6 3.3x 2.9x 3.2x 30.1x 24.4x 

Strategic - Mean 94.2% 5.8% $1,568.6 $1,002.3 3.3x 3.2x 3.0x 27.2x 23.3x 

Financial - Mean 100.0% 0.0% $197.2 $143.9 1.6x 1.5x nm 91.4x nm 

Infrastructure 

Mean 95.7% 4.3% $884.5 $469.9 5.0x 3.9x 3.3x 80.3x 46.5x 

Median $420.0 $175.0 3.5x 3.1x 2.5x 38.9x 39.3x 

Strategic - Mean 95.3% 4.7% $866.9 $428.2 5.9x 4.4x 3.9x 79.2x 42.3x 

Financial - Mean 100.0% 0.0% $385.2 $252.3 2.5x 2.3x 1.5x 100.9x 89.3x 




11

2006 – 2007 Software M&A Transaction Analysis 

By Transaction Size: 2006 – 2007 ($ millions) 

# of Deals 

60 

50 

40 

30 

20 

10 

0 

7 

47 

1 

22 

Financial 

Strategic 

1 

8 

5 

13 

Aggregate Deal Value 

$50,000 

$40,000 

$30,000 

$20,000 

$10,000 

$0 

$1,262 

$4,751 

$305 

$7,951 

$634 

$5,570 

$9,829 

$35,672 

Average EV / Rev (current year) 

6.0x 

5.0x 

4.0x 

3.0x 

2.0x 

1.0x 

0.0x 

3.0x 

1.9x 

3.1x 

1.7x 

4.8x 4.9x 

2.3x 

2.0x 

< $250 $250 - $500 $500 - $1000 > $1000 

< $250 $250 - $500 $500 - $1000 > $1000 

< $250 $250 - $500 $500 - $1000 > $1000 

Deal Value 

Deal Value 

Deal Value 

By Target Segment: 2006 – 2007 ($ millions) 

# of Deals 

40 

35 

30 

25 

20 

15 

10 

5 

0 

2 

15 

5 

27 

1 

19 

3 

31 

Aggregate Deal Value 

$25,000 

$20,000 

$15,000 

$10,000 

$5,000 

$0 

$144 

$8,396 $505 

$785 

$19,045 

$13,273 

$10,777 $10,849 

Average EV / Rev (current year) 

6.0x 

5.0x 

4.0x 

3.0x 

2.0x 

1.0x 

0.0x 

5.6x 

3.0x 

2.0x 2.1x 

3.2x 

1.5x 

4.4x 

2.3x 

IT Security 

ERP & Vertical 

Applications 

Information 

Management 


IT Security 


Applications 

Information 

Management 


IT Security 


Applications 

Information 

Management 





12

Public Company Participants & Consolidation by Segment 

(including those acquired since 2002) 

($ millions) 

Enterprise Value 

Category Enterprise Value Acquirer of Acquisitions 



Global Diversified 

Microsoft $ 295,109 

Cisco Systems 190,219 

IBM 174,431 

Hewlett Packard 135,557 

Oracle 105,807 

SAP AG 60,832 

EMC 43,537 

Content Management $ 5,309 

Open Text $ 1,849 

Interwoven 476 

Vignette 282 

Convera 127 

Documentum EMC 1,686 

FileNET IBM 1,150 

Hummingbird Ltd. Open Text 395 

MapInfo Pitney Bowes 377 

Stellent Oracle 354 

Verity Autonomy 308 

Captiva Software EMC 307 

IXOS AG Open Text 210 

DataMirror IBM 161 

Mobius Allen Systems Group 144 

Plumtree Software BEA Systems 132 

Document Sciences Corp. EMC 85 

Business Intelligence $ 17,703 

Business Objects [a] $ 5,759 

Cognos [a] 4,769 

Omniture 1,769 

Fair Isaac 1,619 

Informatica 1,357 

MicroStrategy 1,219 

SPSS 720 

Actuate 325 

Visual Sciences [a] 321 

Pegasystems 218 

Keynote Systems 160 

ILOG S.A. 139 

Iona Technogies 30 

Business Objects [a] SAP 5,964 

Cognos [a] IBM 4,900 

Hyperion Oracle 2,706 

Witness Systems Verint 894 

GEAC Computer Golden Gate Capital 815 

HNC Software Fair Isaac 671 

Ascential Software IBM 655 

Systems Union Group Infor Global Solutions 398 

Visual Sciences [a] Omniture 394 

Applix Cognos 306 

[a] Acquisition pending 


13

Public Company Participants & Consolidation by Segment continued 


($ millions) 





ERP & Vertical Applications $ 24,781 

Sage Group $ 6,510 

Salesforce.com 6,114 

NetSuite 2,363 

Lawson 1,539 

Concur 1,423 

Blackbaud 1,210 

Synchronoss Technologies 1,006 

Ultimate Software 984 

Deltek 904 

JDA Software 751 

Ariba 746 

Kenexa 719 

Epicor Software 676 

Manhattan Associates 643 

SuccessFactors 586 

Rightnow Technologies 542 

Art Technology Group 463 

Taleo 432 

PROS 404 

DemandTec 396 

I2 Technologies 327 

Guidance Software 258 

QAD 236 

Retalix 214 

Interactive Intelligence 212 

Chordiant 183 

American Software 129 

Unica 123 

SumTotal 87 

Callidus Software 75 

ERP & Vertical Applications (continued) $ 24,781 

Siebel Systems Oracle 3,610 

Acxiom Silver Lake 3,000 

Reynolds and Reynolds Universal Computer 2,800 

Kronos Hellman & Friedman 1,721 

SSA Global Technologies Infor Global Solutions 1,608 

i-flex solutions Oracle 1,579 

J.D. Edwards PeopleSoft 1,381 

Digital Insight Intuit 1,350 

Open Solutions Carlyle Group & Providence E 1,300 

Aspect Communications Concerto Software 793 

MRO Software IBM 586 

Authorize.Net CyberSource 565 

Retek Oracle 546 

Intentia International Lawson Software 460 

FreeMarkets Ariba 357 

MAPICS Infor Global Solutions 315 

Agile Software Oracle 301 

Click Commerce Illinois Tool Works 292 

NSB Retail Systems Epicor 287 

Mincom Limited Francisco Partners 248 

Manugistics JDA Software 247 

Corillian CheckFree 216 

Indus International Vista Equity Partners 203 

Carreker CheckFree 169 

Portal Software Oracle 160 

Workbrain Infor Global Solutions 158 

Datastream Infor Global Solutions 158 

Concerto Software Golden Gate Capital 145 

Onyx M2M Holdings 92 

E.piphany SSA Global 89 

Extensity GEAC Computer 46 


14



($ millions) 





IT Security $ 13,426 

Symantec $ 18,121 

Verisign 7,955 

McAfee 4,542 

CheckPoint 4,503 

Websense 871 

Secure Computing 791 

SonicWALL 357 

Sourcefire 131 

CheckFree Fiserv 4,400 

NetScreen Technologies Juniper Networks 4,000 

RSA Security EMC 2,100 

Internet Security Systems IBM 1,034 

SafeNet Vector Capital 634 

Intertrust Philips / Sony 453 

SurfControl Websense 359 

Cyberguard Secure Computing 295 

WatchGuard Technologies Francisco Partners 151 

Network Access & Acceleration 

Citrix Systems $ 7,023 

Blue Coat Systems 3,114 

F5 Networks 2,990 

Riverbed Technology 2,915 

Packeteer 209 

Radware 169 

Network Infrastructure $ 2,200 

Juniper Networks $ 18,609 

Aruba Networks 1,528 

Extreme Networks 225 

3Com Bain Capital 2,200 

O/S, Dev. Tools & Deployment $ 12,960 

Adobe $ 23,425 

Sun Microsystems 11,099 

BEA Systems [a] 5,415 

Red Hat 3,402 

Software AG 2,398 

Sybase 2,179 

TIBCO Software 1,397 

Progress Software 1,225 

Novell 996 

Wind River Systems 557 

Borland Software 228 

Mercury HP 4,568 

Macromedia Adobe 3,258 

Rational Software IBM 1,581 

Serena Software Silver Lake 1,080 

Telelogic IBM 745 

webMethods Software AG 418 

Allaire Macromedia 360 

PalmSource Access Company 324 

SeeBeyond Sun Microsystems 317 

Merant Serena 310 

[a] Acquisition pending 


15



($ millions) 





Storage Management $ 13,134 

Network Appliance $ 8,259 

Data Domain 1,913 

CommVault Systems 809 

FalconStor Software 664 

Isilon Systems 401 

Double-Take Software 373 

Veritas Software Symantec 11,911 

Legato Systems EMC 1,223 

Systems & Network Management $ 5,427 

VMware $ 35,071 

CA 13,575 

BMC Software 5,714 

Compuware 2,002 

Quest Software 1,441 

BladeLogic 721 

Netezza 678 

Netscout Systems 338 

Opnet Technologies 160 

Opsware HP 1,600 

Altiris Symantec 825 

Micromuse IBM 705 

Peregrine Systems HP 381 

Concord Communications CA 349 

NetIQ AttachmateWRQ 305 

Niku CA 285 

Neoware HP 214 

Embarcadero Thoma Cressey 200 

Marimba BMC Software 185 

BindView Symantec 174 

NetSolve Cisco 129 

Visual Networks Fluke Networks 75 


16

Most Active Public Consolidation Players 

($ millions) 

Consideration Equity Enterprise 

Date Target % Cash % Stock value value 

EMC Total acquired value: $7,275 

12/27/07 Document Sciences Corp. 100.0% 0.0% $87 $85 

10/30/07 Voyence - - - - 

10/04/07 Berkeley Data Systems - - - - 

08/09/07 Tablus - - - - 

06/04/07 Verid - - - - 

11/01/06 Avamar Technologies 100.0% 0.0% - $165 

09/18/06 Network Intelligence 100.0% 0.0% - $175 

06/29/06 RSA Security 100.0% 0.0% $2,335 $2,100 

06/19/06 ProActivity - - - - 

06/07/06 nLayers 100.0% 0.0% - $50 

05/11/06 Interlink Group - - - - 

05/09/06 Kashya 100.0% 0.0% $153 $153 

03/07/06 Authentica - - - - 

10/21/05 Captiva Software 100.0% 0.0% $334 $307 

08/15/05 Rainfinity - - $100 $100 

12/21/04 SMARTS 100.0% 0.0% - $260 

12/20/04 System Management ARTS - - $260 $260 

10/22/04 Allocity - - $10 $10 

10/12/04 Dantz Development Corporation - - $46 $46 

12/15/03 VMware 100.0% 0.0% - $635 

10/14/03 Documentum 0.0% 100.0% $1,953 $1,686 

07/08/03 Legato Systems 0.0% 100.0% $1,295 $1,223 

04/15/03 Astrum Software - - - - 

09/25/02 Prisa Networks - - $20 $20 

HP Total acquired value: $7,266 

07/23/07 Neoware 100.0% 0.0% $334 $214 

07/23/07 Opsware 100.0% 0.0% $1,673 $1,600 

06/19/07 SPI Dynamics - - - - 

03/22/07 Tabblo - - - - 

02/26/07 PolyServe - - - - 

02/05/07 Bristol Technology - - - - 

07/25/06 Mercury 100.0% 0.0% $5,189 $4,568 

02/07/06 OuterBay Technologies - - - - 

11/30/05 Trustgenix - - - - 



HP (continued) 

09/19/05 AppIQ - - - - 

09/19/05 Peregrine Systems 100.0% 0.0% $425 $381 

03/11/04 TruLogica - - - - 

02/04/04 Consera Software - - - - 

02/04/04 Novadigm - - $139 $139 

11/11/03 Persist Technologies - - - - 

09/03/03 Talking Blocks - - - - 

07/23/03 PipeBeach - - - - 

07/04/03 Baltimore Technologies, SelectAccess - - $14 $14 

07/25/01 StorageApps 0.0% 100.0% - $350 

IBM Total acquired value: $12,193 

12/21/07 Solid Information Technology - - - - 

12/06/07 Arsenal Digital Solutions - - - - 

12/06/07 NovusCG - - - - 

11/12/07 Cognos 100.0% 0.0% $5,000 $4,900 

08/22/07 WebDialogs - - - - 

08/03/07 Princeton Softech - - - - 

07/16/07 DataMirror 100.0% 0.0% $179 $161 

06/11/07 Telelogic 100.0% 0.0% $781 $745 

06/06/07 Watchfire - - - - 

01/29/07 Softek - - - - 

12/05/06 Consul - - - - 

11/28/06 Vallent 100.0% 0.0% - - 

08/23/06 Internet Security Systems 100.0% 0.0% $1,254 $1,034 

08/10/06 FileNET 100.0% 0.0% $1,600 $1,150 

08/03/06 MRO Software 100.0% 0.0% $740 $586 

08/02/06 Webify - - - - 

05/18/06 Rembo Technology - - - - 

05/08/06 Unicom Solutions - - - - 

05/02/06 BuildForge - - - - 

03/16/06 Language Analysis Systems - - - - 

02/08/06 Viacore - - - - 

01/25/06 CIMS Labs - - - - 

12/21/05 Micromuse 100.0% 0.0% $865 $705 

Note: “Total acquired value” includes only transactions for which data was publicly available 


17

Most Active Public Consolidation Players continued 

($ millions) 



IBM (continued) 

11/01/05 iPhrase Technologies - - - - 

10/18/05 DataPower Technologies - - - - 

08/02/05 DWL - - - - 

07/19/05 PureEdge Solutions - - - - 

06/23/05 Meiosys - - - - 

06/16/05 Isogon - - - - 

05/10/05 Gluecode Software 100.0% 0.0% - - 

03/14/05 Ascential Software 100.0% 0.0% $1,136 $655 

01/07/05 Systems Research and Development - - - - 

01/01/05 Genelco Software Solutions - - - - 

12/13/04 KeyMRO - - - - 

10/12/04 SystemCorp - - - - 

08/26/04 Venetica - - - - 

08/17/04 Maersk Data - - - - 

07/14/04 AlphaBlox - - - - 

06/22/04 Cardonet - - - - 

04/01/04 Candle 100.0% 0.0% - $350 

03/09/04 Trigo Technologies - - - - 

12/17/03 Green Pasture Software - - - - 

11/13/03 Productivity Solutions - - - - 

10/14/03 CrossAccess - - - - 

09/30/03 Sector7 USA - - - - 

07/15/03 Aptrix - - - - 

05/14/03 Think Dynamics - - - - 

12/06/02 Rational Software 100.0% 0.0% $2,082 $1,581 

09/03/02 Access360 - - - - 

08/29/02 TrelliSoft - - - - 

06/24/02 Metamerge - - - - 

02/07/02 Phase Forward - - - - 

Microsoft Total acquired value: $2,961 

10/29/07 GCS (asset sale) - - - - 

08/29/07 Parlano - - - - 

06/08/07 Stratature - - - - 

06/05/07 Engyro - - - - 



Microsoft (continued) 

05/03/07 ScreenTonic - - - - 

07/18/06 Winternals Software - - - - 

05/22/06 Softricity - - - - 

05/18/06 Whale Communications - - $75 $75 

05/04/06 Massive - - - - 

05/03/06 DeepMetrix - - - - 

04/26/06 AssetMetrix - - - - 

04/03/06 ProClarity - - - - 

03/17/06 Vexcel - - - - 

03/07/06 Apptimum - - - - 

03/07/06 Onfolio - - - - 

02/13/06 MotionBridge - - - - 

12/15/05 United Management Technologies - - - - 

11/03/05 Byte Taxi - - - - 

11/02/05 Media-Streams.com - - - - 

09/19/05 Alacris - - $11 $11 

08/30/05 Teleo - - - - 

07/20/05 FrontBridge Technologies - - - - 

03/10/05 Groove Networks - - - - 

02/08/05 Sybari Software - - - - 

12/16/04 GIANT Company Software - - - - 

11/16/04 Vintela - - - - 

04/26/04 ActiveViews - - - - 

06/10/03 GeCAD Software - - - - 

03/01/03 Pelican Software - - $1 - 

02/19/03 Connectix - - - - 

01/21/03 PlaceWare - - $200 - 

10/22/02 Vicinity - - $90 $90 

09/24/02 Rare - - $375 $375 

09/10/02 XDegrees - - - - 

05/20/02 Sales Management Systems - - - - 

05/07/02 Navision 100.0% 0.0% $1,335 $1,210 



18


($ millions) 



Oracle Total acquired value: $24,105 

12/06/07 Moniforce - - - - 

10/24/07 Interlace Systems - - - - 

10/09/07 LogicalApps - - - - 

08/31/07 Bridgestream - - - $35 

07/18/07 Bharosa - - - - 

05/15/07 Agile Software 100.0% 0.0% $495 $301 

04/24/07 Lodestar - - - - 

04/18/07 AppForge - - - - 

03/23/07 Tangosol - - - - 

03/01/07 Hyperion 100.0% 0.0% $3,192 $2,706 

11/02/06 SPL WorldGroup - - - - 

11/02/06 Stellent 100.0% 0.0% $424 $354 

10/23/06 MetaSolv Software 100.0% 0.0% $219 - 

10/09/06 Sunopsis - - - - 

08/23/06 Sigma Dynamics - - - - 

06/13/06 Telephony@Work - - - - 

06/01/06 Demantra 100.0% 0.0% - $40 

04/24/06 YaData - - - - 

04/18/06 Net4Calls - - - - 

04/12/06 Portal Software 100.0% 0.0% $220 $160 

02/15/06 Hotsip - - - - 

02/14/06 Sleepycat Software - - - - 

01/18/06 360Commerce - - - - 

12/21/05 TempoSoft - - - - 

11/16/05 OctetString - - - - 

11/16/05 Thor Technologies - - - - 

10/07/05 Innobase Oy - - - - 

09/20/05 G-Log - - - - 

09/12/05 Siebel Systems 70.0% 30.0% $5,850 $3,610 

08/02/05 Context Media - - - - 

08/02/05 i-flex solutions 100.0% 0.0% $1,490 $1,579 

07/05/05 ProfitLogic - - - - 

06/14/05 TripleHop - - - - 

06/09/05 TimesTen - - - - 

03/21/05 Retek 100.0% 0.0% $648 $546 



Oracle (continued) 

03/02/05 Oblix - - - - 

06/14/04 Collaxa - - $12 $12 

05/20/04 Phaos Technology - - $8 $8 

01/22/04 SiteWork Solutions - - - - 

06/11/03 FileFish - - - - 

06/06/03 PeopleSoft 100.0% 0.0% $9,182 $7,555 

01/15/02 Indicast - - - - 

SAP Total acquired value: $6,125 

10/17/07 YASU Technologies - - - - 

10/07/07 Business Objects 100.0% 0.0% $6,816 $5,964 

05/14/07 MaXware - - - - 

05/14/07 Wicom Communications - - - - 

05/08/07 OutlookSoft - - - - 

07/10/06 Praxis Software Solutions - - - - 

05/17/06 Frictionless Commerce - - - - 

04/03/06 Virsa Systems - - - - 

11/22/05 Khimetrics - - - $160 

09/19/05 SAP Triversity - - - - 

06/22/05 Lighthammer Software Development - - - - 

02/08/05 Virtual Locality - - $1 $1 

01/12/05 iLytix Systems AS - - - - 

07/13/04 A2i - - - - 

03/13/02 SAP Manage - - - - 

Symantec Total acquired value: $14,892 

11/05/07 Vontu 100.0% 0.0% - $350 

01/29/07 Altiris 100.0% 0.0% $1,000 $825 

11/29/06 Revivio 100.0% 0.0% - $20 

11/06/06 Company-i - - - - 

02/07/06 Relicore - - - - 

01/03/06 IMlogic - - - - 

10/03/05 BindView 100.0% 0.0% $209 $174 

09/22/05 WholeSecurity - - - - 

08/16/05 Sygate Technologies - - - - 



19


($ millions) 



Symantec (continued) 

12/16/04 Veritas Software 0.0% 100.0% $13,550 $11,911 

12/01/04 Platform Logic - - - - 

09/17/04 LIRIC Associates - - - - 

09/16/04 @stake - - - - 

08/31/04 KVault Software [a] 100.0% 0.0% - $225 

07/14/04 Invio Software [a] 100.0% 0.0% - $35 

07/01/04 TurnTide - - - - 

05/19/04 Brightmail 100.0% 0.0% $370 $343 

01/07/04 Ejasent [a] 100.0% 0.0% - $59 

10/27/03 OnTechnology 100.0% 0.0% $103 $89 

10/20/03 SafeWeb 100.0% 0.0% - $20 

09/23/03 PowerQuest - - - - 

07/01/03 Nexland - - - - 

12/29/02 Jareva [a] 100.0% 0.0% - $66 

12/19/02 Precise Software [a] 100.0% 0.0% $540 $400 

07/17/02 Recourse Technologies 100.0% 0.0% - $135 

07/17/02 Riptech 100.0% 0.0% - $145 

07/17/02 SecurityFocus 100.0% 0.0% - $75 

07/02/02 Mountain Wave 100.0% 0.0% - $20 

01/08/02 The Kernal Group [a] - - - - 


[a] Acquired by Veritas prior to Symantec acquisition 


20

Trading Multiples by Segment 

($ millions) 

Share Price Market Enterprise Projected Revenue [a] EV / Revenue Projected EPS [a] P/E Multiple 

Company (12/31/07) Value Value CY07E CY08E Growth % CY07E CY08E CY07E CY08E Growth % CY07E CY08E 

Global Diversified 

Microsoft $ 34.53 $ 326,390 $ 295,109 $ 57,468 $ 62,445 8.7% 5.1 x 4.7 x $ 1.79 $ 1.91 6.7% 19.3 x 18.1 x 

Cisco Systems 33.01 208,185 190,219 37,657 43,233 14.8% 5.1 4.4 1.48 1.69 14.2% 22.3 19.5 

IBM 108.86 152,933 174,431 97,718 102,370 4.8% 1.8 1.7 6.97 7.98 14.5% 15.6 13.6 

Hewlett Packard 51.84 138,819 135,557 106,805 113,461 6.2% 1.3 1.2 3.08 3.48 13.0% 16.8 14.9 

Oracle 20.51 108,001 105,807 19,966 22,577 13.1% 5.3 4.7 1.11 1.30 17.1% 18.5 15.8 

SAP AG 51.47 64,698 60,832 14,540 16,431 13.0% 4.2 3.7 2.25 2.60 15.6% 22.9 19.8 

EMC 21.37 50,890 43,537 13,071 14,768 13.0% 3.3 2.9 0.69 0.84 21.7% 31.0 25.4 

Mean $ 49,604 $ 53,612 10.5% 3.7 x 3.3 x $ 2.48 $ 2.83 14.7% 20.9 x 18.2 x 

Median 37,657 43,233 13.0% 4.2 3.7 1.79 1.91 14.5% 19.3 18.1 

Business Intelligence 

Business Objects $ 61.37 $ 6,050 $ 5,759 $ 1,500 $ 1,691 12.7% 3.8 x 3.4 x $ 1.95 $ 2.35 20.5% 31.5 x 26.1 x 

Cognos 57.28 4,916 4,769 1,057 1,240 17.2% 4.5 3.8 1.96 2.40 22.4% 29.2 23.9 

Omniture 29.49 1,932 1,769 143 219 53.5% 12.4 8.1 0.20 0.41 105.0% nm 71.9 

Informatica 16.87 1,575 1,357 387 445 15.1% 3.5 3.1 0.72 0.74 2.8% 23.4 22.8 

MicroStrategy 102.31 1,295 1,219 358 399 11.7% 3.4 3.1 4.84 5.88 21.5% 21.1 17.4 

Fair Isaac 25.70 1,293 1,619 813 840 3.3% 2.0 1.9 1.66 1.89 13.9% 15.5 13.6 

SPSS 43.13 867 720 287 312 8.9% 2.5 2.3 1.54 1.86 20.8% 28.0 23.2 

Visual Sciences 15.38 331 321 82 91 12.0% 3.9 3.5 0.59 0.75 27.1% 26.1 20.5 

Keynote Systems 14.48 268 160 70 80 15.0% 2.3 2.0 (0.28) 0.13 nm nm nm 

Mean $ 522 $ 591 16.6% 4.3 x 3.5 x $ 1.46 $ 1.82 29.2% 25.0 x 27.4 x 

Median 358 399 12.7% 3.5 3.1 1.54 1.86 21.1% 26.1 23.0 

Notes: 

Enterprise value equals equity value, plus debt, less cash 

P/E multiples in excess of 100x are considered to be not meaningful 

[a] Wall Street consensus estimates 



21

Trading Multiples by Segment continued 

($ millions) 



Content Management 

Open Text $ 31.45 $ 1,651 $ 1,849 $ 669 $ 708 5.9% 2.8 x 2.6 x $ 1.77 $ 2.00 13.0% 17.8 x 15.7 x 

Interwoven 14.44 674 476 222 249 11.9% 2.1 1.9 0.57 0.69 21.1% 25.3 20.9 

Vignette 17.77 476 282 187 196 4.9% 1.5 1.4 0.91 0.93 2.2% 19.5 19.1 

Mean $ 359 $ 384 7.6% 2.1 x 2.0 x $ 1.08 $ 1.21 12.1% 20.9 x 18.6 x 

Median 222 249 5.9% 2.1 1.9 0.91 0.93 13.0% 19.5 19.1 

ERP & Vertical Applications 

Salesforce.com $ 54.43 $ 6,678 $ 6,114 $ 741 $ 1,030 39.0% 8.3 x 5.9 x $ 0.13 $ 0.32 146.2% nm x nm x 

Sage Group 4.23 5,523 6,510 2,354 2,521 7.1% 2.8 2.6 0.27 0.30 9.9% 15.4 14.0 

NetSuite 39.18 2,515 2,363 108 159 47.0% 21.9 14.9 (0.10) 0.13 nm nm nm 

Lawson 9.74 1,774 1,539 799 864 8.1% 1.9 1.8 0.29 0.40 37.9% 33.6 24.4 

Concur 33.47 1,583 1,423 146 213 45.8% 9.8 6.7 0.41 0.48 17.1% 81.6 69.7 

Blackbaud 26.75 1,213 1,210 255 298 16.9% 4.7 4.1 0.83 1.03 24.1% 32.2 26.0 

Synchronoss Technologies 33.35 1,094 1,006 123 167 36.0% 8.2 6.0 0.71 0.91 28.2% 47.0 36.6 

Ultimate Software 36.34 1,009 984 151 184 21.6% 6.5 5.4 0.71 0.70 -1.4% 51.2 51.9 

Ariba 10.84 876 746 303 350 15.6% 2.5 2.1 0.30 0.54 80.0% 36.1 20.1 

Kenexa 32.24 832 719 182 221 21.6% 4.0 3.2 1.15 1.39 20.9% 28.0 23.2 

JDA Software 20.83 732 751 366 380 3.8% 2.1 2.0 1.32 1.48 12.1% 15.8 14.1 

Manhattan Associates 27.84 725 643 341 374 9.7% 1.9 1.7 1.33 1.51 13.5% 20.9 18.4 

Deltek 14.79 672 904 276 313 13.5% 3.3 2.9 0.68 0.77 13.2% 21.8 19.2 

SuccessFactors 11.60 671 586 65 110 70.7% 9.1 5.3 (1.73) (1.63) nm nm nm 

Epicor Software 11.20 663 676 421 459 9.1% 1.6 1.5 0.84 0.97 15.5% 13.3 11.5 

Rightnow Technologies 18.30 632 542 111 138 24.4% 4.9 3.9 (0.39) - nm nm nm 

DemandTec 15.85 469 396 54 75 38.2% 7.3 5.3 (0.30) 0.25 nm nm 63.4 

PROS 16.98 444 404 62 79 27.8% 6.6 5.1 0.41 0.47 14.6% 41.4 36.1 

Guidance Software 12.37 292 258 78 99 27.0% 3.3 2.6 0.07 0.24 242.9% nm 51.5 

Mean $ 365 $ 423 25.4% 5.8 x 4.4 x $ 0.36 $ 0.54 45.0% 33.7 x 32.0 x 

Notes: 


Median 182 221 21.6% 4.7 3.9 0.41 0.48 17.1% 32.2 24.4 





22


($ millions) 



IT Security 

Symantec $ 20.39 $ 20,136 $ 18,121 $ 5,679 $ 6,015 5.9% 3.2 x 3.0 x $ 1.11 $ 1.24 11.7% 18.4 x 16.4 x 

Verisign 34.25 7,762 7,955 1,494 1,646 10.1% 5.3 4.8 1.02 1.36 33.3% 33.6 25.2 

McAfee 36.84 6,086 4,542 1,293 1,427 10.4% 3.5 3.2 1.74 1.89 8.6% 21.2 19.5 

CheckPoint 25.05 5,707 4,503 724 791 9.3% 6.2 5.7 1.58 1.74 10.1% 15.9 14.4 

Websense 20.24 932 871 226 309 37.0% 3.9 2.8 0.90 1.13 25.6% 22.5 17.9 

Secure Computing 10.08 679 791 258 294 13.9% 3.1 2.7 0.31 0.46 48.4% 32.5 21.9 

SonicWALL 8.95 586 357 198 226 14.1% 1.8 1.6 0.29 0.38 31.0% 30.9 23.6 

Sourcefire 8.96 234 131 57 69 21.1% 2.3 1.9 0.09 0.25 177.8% 99.6 35.8 

Mean $ 1,241 $ 1,347 15.2% 3.7 x 3.2 x $ 0.88 $ 1.06 43.3% 34.3 x 21.8 x 

Median 491 550 12.2% 3.4 2.9 0.96 1.19 28.3% 26.7 20.7 

Network Access & Acceleration 

Citrix Systems $ 39.98 $ 7,952 $ 7,023 $ 1,372 $ 1,611 17.4% 5.1 x 4.4 x $ 1.52 $ 1.63 7.2% 26.3 x 24.5 x 

F5 Networks 39.43 3,465 2,990 561 715 27.4% 5.3 4.2 0.85 1.14 34.1% 46.4 34.6 

Blue Coat Systems 82.64 3,260 3,114 271 371 37.0% 11.5 8.4 1.00 1.36 36.0% 82.6 60.8 

Riverbed Technology 42.87 3,147 2,915 231 356 54.1% 12.6 8.2 0.64 0.76 18.8% 67.0 56.4 

Radware 16.45 325 169 89 104 17.2% 1.9 1.6 (0.30) 0.16 nm nm nm 

Packeteer 7.90 289 209 142 166 17.1% 1.5 1.3 (0.15) 0.20 nm nm 39.5 

Mean $ 444 $ 554 28.4% 6.3 x 4.7 x $ 0.59 $ 0.88 24.0% 55.6 x 43.2 x 

Median 251 363 22.4% 5.2 4.3 0.75 0.95 26.4% 56.7 39.5 

Notes: 






23


($ millions) 



Network Infrastructure 

Juniper Networks $ 36.64 $ 19,961 $ 18,609 $ 2,813 $ 3,431 22.0% 6.6 x 5.4 x $ 0.85 $ 1.12 31.8% 43.1 x 32.7 x 

3Com 4.89 1,955 1,884 1,281 1,361 6.2% 1.5 1.4 0.11 0.21 90.9% 44.5 23.3 

Aruba Networks 20.03 1,637 1,528 175 264 50.9% 8.8 5.8 0.12 0.40 233.3% nm 50.1 

Extreme Networks 3.90 450 225 353 378 7.1% 0.6 0.6 0.10 0.23 130.0% 39.0 17.0 

Mean $ 1,155 $ 1,358 21.6% 4.4 x 3.3 x $ 0.30 $ 0.49 121.5% 42.2 x 30.8 x 

Median 817 869 14.5% 4.0 3.4 0.12 0.32 110.5% 43.1 28.0 

O/S, Development Tools & Deployment 

Adobe $ 42.73 $ 25,380 $ 23,425 $ 3,158 $ 3,577 13.3% 7.4 x 6.5 x $ 1.61 $ 1.83 13.7% 26.5 x 23.3 x 

Sun Microsystems 18.13 15,022 11,099 13,926 14,507 4.2% 0.8 0.8 0.89 1.22 37.1% 20.4 14.9 

BEA Systems 15.78 6,663 5,415 1,523 1,668 9.5% 3.6 3.2 0.69 0.77 11.6% 22.9 20.5 

Red Hat 20.84 4,161 3,402 490 604 23.2% 6.9 5.6 0.66 0.83 25.8% 31.6 25.1 

Sybase 26.09 2,885 2,179 1,016 1,082 6.5% 2.1 2.0 1.65 1.84 11.5% 15.8 14.2 

Software AG 87.85 2,505 2,398 917 1,127 22.9% 2.6 2.1 4.69 5.88 25.5% 18.7 14.9 

Novell 6.87 2,434 996 960 949 -1.2% 1.0 1.0 0.19 0.21 10.5% 36.2 32.7 

TIBCO Software 8.07 1,573 1,397 566 636 12.4% 2.5 2.2 0.35 0.42 20.0% 23.1 19.2 

Progress Software 33.68 1,531 1,225 486 513 5.6% 2.5 2.4 1.74 1.91 9.8% 19.4 17.6 

Wind River Systems 8.93 780 557 330 371 12.6% 1.7 1.5 0.32 0.48 50.0% 27.9 18.6 

Borland Software 3.01 219 228 273 272 -0.6% 0.8 0.8 (0.20) 0.01 nm nm nm 

Mean $ 2,149 $ 2,300 9.9% 2.9 x 2.6 x $ 1.14 $ 1.40 21.5% 24.2 x 20.1 x 

Median 917 949 9.5% 2.5 2.1 0.69 0.83 16.8% 23.0 18.9 

Notes: 






24


($ millions) 



Storage Management 

Network Appliance $ 26.38 $ 9,333 $ 8,259 $ 3,161 $ 3,891 23.1% 2.6 x 2.1 x $ 1.16 $ 1.50 29.3% 22.7 x 17.6 x 

Data Domain 35.51 2,042 1,913 117 199 70.1% 16.4 9.6 (0.11) 0.08 nm nm nm 

CommVault Systems 18.97 888 809 184 232 26.1% 4.4 3.5 0.52 0.75 44.2% 36.5 25.3 

FalconStor Software 13.26 723 664 76 102 33.4% 8.7 6.5 0.29 0.43 48.3% 45.7 30.8 

Isilon Systems 7.33 496 401 97 125 29.6% 4.2 3.2 (0.24) (0.11) nm nm nm 

Double-Take Software 18.56 440 373 83 103 25.0% 4.5 3.6 0.61 0.73 19.7% 30.4 25.4 

Mean $ 619 $ 775 34.5% 6.8 x 4.8 x $ 0.37 $ 0.56 35.4% 33.8 x 24.8 x 

Median 107 162 27.9% 4.5 3.5 0.41 0.58 36.8% 33.5 25.4 

Systems & Network Management 

VMware $ 92.42 $ 35,755 $ 35,071 $ 1,331 $ 2,059 54.7% 26.4 x 17.0 x $ 0.80 $ 1.15 43.8% nm x 80.4 x 

CA 24.95 12,887 13,575 4,143 4,287 3.5% 3.3 3.2 1.06 1.13 6.6% 23.5 22.1 

BMC Software 35.64 7,193 5,714 1,666 1,745 4.8% 3.4 3.3 1.75 1.95 11.4% 20.4 18.3 

Compuware 8.12 2,324 2,002 1,213 1,223 0.8% 1.7 1.6 0.60 0.64 6.7% 13.5 12.7 

Quest Software 17.52 1,807 1,441 623 687 10.2% 2.3 2.1 0.82 0.88 7.3% 21.4 19.9 

BladeLogic 27.90 801 721 67 93 37.6% 10.7 7.8 0.07 0.21 200.0% nm nm 

Netezza 13.39 801 678 114 161 40.9% 5.9 4.2 (0.04) 0.10 nm nm nm 

Netscout Systems 11.16 447 338 124 222 79.0% 2.7 1.5 0.16 0.41 156.3% 69.8 27.2 

Opnet Technologies 12.05 251 160 99 117 18.2% 1.6 1.4 0.13 0.10 -23.1% 92.7 nm 

Mean $ 1,042 $ 1,177 27.7% 6.4 x 4.7 x $ 0.59 $ 0.73 51.1% 40.2 x 30.1 x 

Median 623 687 18.2% 3.3 3.2 0.60 0.64 9.4% 22.5 21.0 

Notes: 






25

Trading Multiples by Comparable Subsets 

($ millions) 



SaaS 

Salesforce.com $ 54.43 $ 6,678 $ 6,114 $ 741 $ 1,030 39.0% 8.3 x 5.9 x $ 0.13 $ 0.32 146.2% nm x nm x 

Red Hat 20.84 4,161 3,402 490 604 23.2% 6.9 5.6 0.66 0.83 25.8% 31.6 25.1 

Omniture 29.49 1,932 1,769 143 219 53.5% 12.4 8.1 0.20 0.41 105.0% nm 71.9 

Concur 33.47 1,583 1,423 146 213 45.8% 9.8 6.7 0.41 0.48 17.1% 81.6 69.7 

Blackboard 42.48 1,283 1,275 237 276 16.4% 5.4 4.6 0.87 1.16 33.3% 48.8 36.6 

Ultimate Software 36.34 1,009 984 151 184 21.6% 6.5 5.4 0.71 0.70 -1.4% 51.2 51.9 

Kenexa 32.24 832 719 182 221 21.6% 4.0 3.2 1.15 1.39 20.9% 28.0 23.2 

Rightnow Technologies 18.30 632 542 111 138 24.4% 4.9 3.9 (0.39) - nm nm nm 

Mean $ 298 $ 392 31.6% 7.6 x 5.7 x $ 0.59 $ 0.76 49.5% 48.3 x 46.4 x 

Median 182 221 23.2% 6.9 5.6 0.66 0.70 25.8% 48.8 44.3 

High Growth 

VMware $ 92.42 $ 35,755 $ 35,071 $ 1,331 $ 2,059 54.7% 26.4 x 17.0 x $ 0.80 $ 1.15 43.8% nm x 80.4 x 

Salesforce.com 54.43 6,678 6,114 741 1,030 39.0% 8.3 5.9 0.13 0.32 146.2% nm nm 

Blue Coat Systems 82.64 3,260 3,114 271 371 37.0% 11.5 8.4 1.00 1.36 36.0% 82.6 60.8 

Riverbed Technology 42.87 3,147 2,915 231 356 54.1% 12.6 8.2 0.64 0.76 18.8% 67.0 56.4 

NetSuite 39.18 2,515 2,363 108 159 47.0% 21.9 14.9 (0.10) 0.13 nm nm nm 

Data Domain 35.51 2,042 1,913 117 199 70.1% 16.4 9.6 (0.11) 0.08 nm nm nm 

Omniture 29.49 1,932 1,769 143 219 53.5% 12.4 8.1 0.20 0.41 105.0% nm 71.9 

Aruba Networks 20.03 1,637 1,528 175 264 50.9% 8.8 5.8 0.12 0.40 233.3% nm 50.1 

Concur 33.47 1,583 1,423 146 213 45.8% 9.8 6.7 0.41 0.48 17.1% 81.6 69.7 

Synchronoss Technologies 33.35 1,094 1,006 123 167 36.0% 8.2 6.0 0.71 0.91 28.2% 47.0 36.6 

Websense 20.24 932 871 226 309 37.0% 3.9 2.8 0.90 1.13 25.6% 22.5 17.9 

BladeLogic 27.90 801 721 67 93 37.6% 10.7 7.8 0.07 0.21 200.0% nm nm 

Netezza 13.39 801 678 114 161 40.9% 5.9 4.2 (0.04) 0.10 nm nm nm 

SuccessFactors 11.60 671 586 65 110 70.7% 9.1 5.3 (1.73) (1.63) nm nm nm 

DemandTec 15.85 469 396 54 75 38.2% 7.3 5.3 (0.30) 0.25 nm nm 63.4 

Netscout Systems 11.16 447 338 124 222 79.0% 2.7 1.5 0.16 0.41 156.3% 69.8 27.2 

Notes: 





Mean $ 252 $ 375 49.5% 11.0 x 7.4 x $ 0.18 $ 0.40 91.8% 61.7 x 53.4 x 

Median 133 216 46.4% 9.4 6.4 0.15 0.41 43.8% 68.4 58.6 


26

Software IPO Pricing & Performance Data 

2006 – 2007 ($ millions) 

Current Trading Data Valuation at IPO Stock Performance 

Share price Market Enterprise EV / Revenue Market Enterprise EV / Revenue Revenue % of 

Company (12/31/07) Value Value CY07E CY08E IPO Date Share Price Value Value CY07E CY08E Growth % change 52wk High 

NetSuite $ 39.18 $ 2,515 $ 2,363 21.9 x 14.9 x 12/19/07 $ 26.00 $ 1,669 $ 1,517 21.9 x 14.9 x 47.0 % 50.7 % 85.2 % 

SuccessFactors 11.60 671 586 9.1 5.3 11/19/07 10.00 579 494 9.1 5.3 70.7 16.0 76.0 

Deltek 14.79 672 904 3.3 2.9 10/31/07 18.00 818 996 3.3 2.9 13.5 (17.8) 79.4 

VMware 92.42 35,755 35,071 26.4 17.0 08/13/07 29.00 10,992 10,542 27.5 18.5 48.5 218.7 99.9 

DemandTec 15.85 469 396 7.3 5.3 08/09/07 11.00 323 252 7.3 5.4 34.9 44.1 77.3 

BladeLogic 27.90 801 721 10.7 7.8 07/24/07 17.00 464 385 10.8 8.0 34.9 64.1 90.1 

Netezza 13.39 801 678 5.9 4.2 07/18/07 12.00 701 606 5.9 4.6 30.4 11.6 76.2 

PROS 16.98 444 404 6.6 5.1 06/28/07 11.00 297 261 6.6 5.2 26.3 54.4 87.3 

Data Domain 35.51 2,042 1,913 16.4 9.6 06/26/07 15.00 777 668 17.6 10.8 62.3 136.7 97.3 

Starent Networks 22.78 1,476 1,476 12.0 8.9 06/05/07 12.00 777 628 12.0 8.9 35.3 89.8 94.5 

Aruba Networks 20.03 1,637 1,528 8.8 5.8 03/26/07 11.00 876 778 9.3 6.0 54.2 82.1 84.0 

BigBand Networks 5.14 341 201 1.1 1.2 03/14/07 13.00 842 700 0.9 0.7 26.4 (60.5) 23.8 

Sourcefire 8.96 234 131 2.3 1.9 03/09/07 15.00 370 273 2.1 1.6 32.5 (40.3) 47.6 

Double-Take Software 18.56 440 373 4.5 3.6 12/15/06 11.00 255 206 4.7 3.8 22.5 68.7 95.7 

Isilon Systems 7.33 496 401 4.2 3.2 12/14/06 13.00 863 765 3.5 2.1 63.2 (43.6) 25.7 

Guidance Software 12.37 292 258 3.3 2.6 12/13/06 11.50 260 230 3.5 2.7 32.8 7.6 69.1 

Allot Communications 4.85 111 34 1.0 0.8 11/16/06 12.00 265 181 0.7 0.5 37.2 (59.6) 41.1 

Acme Packet 12.59 794 667 5.9 4.4 10/12/06 9.50 572 470 6.0 4.5 33.9 32.5 58.7 

CommVault Systems 18.97 888 809 4.4 3.5 09/22/06 14.50 648 603 4.6 3.7 24.1 30.8 91.0 

Riverbed Technology 42.87 3,147 2,915 12.6 8.2 09/20/06 9.75 670 576 19.0 12.4 53.7 339.7 86.7 

Omniture 29.49 1,932 1,769 12.4 8.1 06/27/06 6.50 354 295 13.9 9.2 50.7 353.7 76.5 

Synchronoss Technologies 33.35 1,094 1,006 8.2 6.0 06/15/06 8.00 259 198 10.1 8.1 25.0 316.9 69.4 

Corel 10.70 276 423 1.7 1.6 05/02/06 16.00 392 449 2.3 2.3 2.7 (33.1) 74.5 

Mean 8.3 x 5.7 x 8.8 x 6.2 x 37.5 % 72.3 % 74.2 % 

Median 6.6 5.1 6.6 5.2 34.9 44.1 77.3 

Notes: 




27

Software IPO Pipeline 

($ millions) 

Company Stage First Filing Date Ticker IPO Date Range Price Market Cap at IPO Revenue (TTM) Net Income (TTM) 

RiskMetrics SEC Review 09/19/07 RISK n/a n/a n/a n/a $ 161 $ 

25 

Varolii SEC Review 09/14/07 VRLI n/a n/a n/a n/a 59 (5) 

ArcSight SEC Review 09/11/07 ARST n/a 9 - 11 n/a n/a 70 0 

Aprimo SEC Review 09/10/07 MKTG n/a n/a n/a n/a 59 1 

Convio SEC Review 08/30/07 CNVO n/a n/a n/a n/a 40 (14) 

Synacor SEC Review 08/02/07 SYNC n/a n/a n/a n/a 29 (3) 

Initiate Systems S-1 Filed 11/13/07 INXX n/a n/a n/a n/a 42 12 

Note: 

In a typical IPO process, the offering progresses through three key milestones: the initial filing of the S-1 (prospectus); an amended version of the S-1 following comments from the SEC; and pricing the 

offering and issuing shares to the public market. 


28

Shea & Company, LLC 

Merger & Acquisition 

Advisory 

Corporate Development & 

Strategy 

Capital Raising 

Shea & Company has a wealth of experience 

with buy-side and sell-side M&A as well as 

divestitures and other structures 

Our focus on “outsourced corporate 

development” is ideal for emerging software 

leaders facing tough strategic challenges 

We provide thoughtful advice in private and 

public market capital raising transactions 

without the conflicts of interest endemic to 

large investment banks 

Who 

Who 

we 

we 

are 

are 

and 

and 

what 

what 

we 

we 

do 

do 

• Launched in 2005 to provide corporate development & strategy consulting, M&A and financial advisory services to 

emerging and established leaders in enterprise, infrastructure and technical software 

• Our clients are organizations facing robust corporate development challenges in a rapidly-changing and highly turbulent 

industry 

• New stages in the technology lifecycle 

• Emerging market categories 

• Competitive threats or partnering opportunities 

• Issues of value creation versus realization 

• Founder Michael Shea has spent over 12 years working with emerging leaders in software, as well as with the industry’s 

largest and most established companies 

• Shea & Company is based in Boston and since its inception has undertaken projects with clients on both coasts of the U.S., 

in Canada and in Europe, as M&A advisor in both sell and buy-side capacity 


29

Notable Transactions 

Financial terms not disclosed 

January 2008 


November 2006 

$153,000,000 

May 2006 


July 2005 

has been acquired by 




Shea & Company served as the exclusive 

financial advisor to Onaro 


financial advisor to SPL WorldGroup 


financial advisor to Kashya 


financial advisor to ProfitLogic 

Transaction Overview 

• On January 3, 2008, NetApp announced 

the acquisition of Boston-based Onaro, a 

privately-held provider of storage service 

management software 

• The combination will allow NetApp to 

deliver storage service management 

(SSM), enabling their customers to 

increase service quality, performance and 

compliance by managing storage as a 

service 


• On November 3, 2006, Oracle announced 

the acquisition of San Francisco-based SPL 

WorldGroup, a provider of utility billing 

software 

• The merger will allow the combined 

companies to deliver an end-to-end 

revenue management solution for investorowned 

and public sector utilities, 

governments and other taxing authorities 


• On May 5, 2006 EMC announced the 

acquisition of Israel-based Kashya, a 

privately-held provider of disaster recovery 

software and appliances 

• The addition of Kashya’s best-of-breed 

Continuous Data Protection (CDP) and 

Continuous Remote Replication (CRR) 

technology strengthens EMC’s position as 

the leading storage hardware and software 

vendor 


• On July 5, 2005, Oracle announced the 

acquisition of Boston-based ProfitLogic, a 

privately held provider of retail profit 

optimization software 

• The combination of Oracle’s recentlyacquired 

Retek automation software with 

ProfitLogic’s RPO technology will create 

the first complete customer insight driven 

enterprise platform for retailers 

Significance of Transaction 

• For NetApp, this transaction signals a 

continued strengthening of the company's 

storage and data management software 

portfolio 

• Onaro provides a strong platform on which 

NetApp can expand its solutions in 

enterprise SAN management, building on 

the company’s core strengths in Network 

Attached Storage (NAS) 


• The acquisition of SPL brought Oracle into 

the utility vertical, and was the largest and 

most significant transaction in the 

consolidation of the industry, including 

Oracle (SPL, Lodestar), Constellation (AUS, 

Cayenta, Harris) and Mincom (Conversant) 

• The acquisition enables Oracle to provide 

fully-integrated ERP and CIS, with valueadded 

features like asset management, 

outage management and workforce 

mobility 


• Kashya’s rich portfolio of heterogeneous 

replication software enhances EMC’s broad 

set of capabilities for host-based 

replication and vitalizing and safeguarding 

data 

• Kashya’s R&D operation will form the core 

of a new EMC Israel Software Development 

Center 


• With the acquisition of ProfitLogic in 

combination with the company’s Retek 

transaction, Oracle has put itself in 

position to dominate the fast growing 

market within the retail vertical 

• The combination will enable Oracle to 

accelerate ProfitLogic’s ability to drive 

dramatic financial improvement for a 

larger set of leading retailers 


30

Shea & Company Annual Software Market Review - 2007

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