Cybersecurity Market Review

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Cybersecurity M&A: A Closer Look At Deal Value & Multiples Cybersecurity M&A Activity Since 2010 With Disclosed Transaction Values And Multiples. M&A By Deal Size M&A By Valuation Multiples (EV / LTM Rev) 55% 0.35 50% 45% 40% 47% 97 0.30 0.25 28% 30% 24% 35% 30% 25% $213M Median Deal Size For >10x 0.20 0.15 29 32 25 18% 19 20% 15% 10% 5% 14% 28 16% 33 11% 22 6% 7% 12 15 0.10 0.05 22 11 0% >$0M - $50M $50M - $100M $100M - $250M $250M - $500M $500M - $1B $1B+ 0.00 >0.0 - 3.0x 3.0x - 5.0x 5.0x - 10.0x 10.0x+ § § The median exit enterprise value for Cybersecurity exits since 2010 was $65.0M M&A exits in Cybersecurity are typically below $100M – 61%+ of the time § Valuations for M&A exits in Cybersecurity vary for many reasons – growth, market leadership, customer validation, technology and team § Exits above $1B are rare representing 7% of all deals (5 public, 7 private and 3 spin-out) § Exits >10x are a minority (18%) where the buyers are typically cash rich and willing to pay what it takes (median cash balance of the buyers at time of acquisition was $2.9B and median market cap was $18.3B) Source: Momentum Partners, 451 Research, Capital IQ. Buyers 38
Notable Cybersecurity M&A Transactions Cybersecurity M&A Transactions With Disclosed Transaction Values. Date Target Buyer Enterprise Value ($M) TTM Revenue ($M) EV / Revenue 09/19/16 Infoblox Vista Equity Partners 1,254.3 358.3 3.5x 09/07/16 McAfee TPG Capital 4,200.0 - - 08/26/16 PhenixID Clavister Holding 11.5 1.1 10.5x 08/24/16 Return Path, Email Fraud Protection Division Proofpoint 18.0 - - 08/17/16 Modulo Security SAI Global 5.2 - - 08/17/16 Sypris Electronics, Cyber Security Solutions Analog Devices 42.0 - - 07/26/16 Appcito A10 Networks 6.5 - - 07/25/16 OpenLimit WISeKey 20.4 13.1 1.6x 07/22/16 Damballa Core Security Technologies 9.0 - - 07/19/16 Confer Technologies Carbon Black 100.0 - - 07/13/16 Imprivata Thoma Bravo 488.5 131.1 3.7x 07/7/16 AVG Technologies AVAST Software 1,463.0 430.6 3.4x 06/29/16 IDscan Biometrics GB Group 60.8 10.3 5.9x 06/28/16 Cloudlock Cisco 293.0 − 10.0x+ 06/12/16 BlueCoat Symantec 4,722.2 598.3 7.9x 06/07/16 AccelOps Fortinet 32.0 − − 06/01/16 Ping Identity Corporation Vista Equity Partners 600.0 − − 05/05/16 Advanced Security Consulting Falanx Group 0.8 − − 04/27/16 ANXeBusiness Open Text 104.0 − − 04/18/16 CSIdentity Experian 360.0 − − Source: Capital IQ, 451 Research. 39
Page 1 and 2: 1 Cybersecurity Market Review Q3 2
Page 3 and 4: Momentum Partners Advisors & Dealma
Page 5 and 6: Q3 2016: Market Update And Observat
Page 7 and 8: Private Equity ’s Cybersecurity T
Page 9 and 10: Cybersecurity IPO Insights Large Pr
Page 11 and 12: CYBERscape: The Cybersecurity Lands
Page 13 and 14: 1
Page 15 and 16: Momentum’s Watch List: Q4 2015 to
Page 17 and 18: 1 acquires acquires acquires $1.3
Page 19 and 20: Oracle Acquires Palerra To Boost It
Page 21 and 22: Proofpoint Acquires ReturnPath, Ema
Page 23 and 24: Avast Acquires AVG With Financial S
Page 25 and 26: 1 $40.0M $40.0M $30.0M $32.0M Seri
Page 27 and 28: Raises $40M In Series C Financing.
Page 29 and 30: Raises $32.0M Venture Round. Descri
Page 31 and 32: Raises $27.5M In Venture Round. Com
Page 33 and 34: StackPath StackPath Raises $180 Mil
Page 35 and 36: M&A Activity in Cybersecurity
Page 37: Cybersecurity M&A Activity: Deal Vo
Page 41 and 42: Notable Cybersecurity M&A Transacti
Page 47 and 48: Financing Activity Since 2010 Cyber
Page 49 and 50: Venture Capital Activity Venture Ca
Page 67 and 68: Cybersecurity Sector vs Benchmark P
Page 69 and 70: Severe Decline In Correlation Of Va
Page 71 and 72: Public Company Analysis: Trading Me
Page 73: 15 Advise. Network. Invest. Moment

Cybersecurity Market Review

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