The document summarizes M&A trends in the technology sector in 2011. It finds that deal volume, transaction size, and valuations have rebounded after the economic downturn. Cash reserves are at record levels among major tech companies, which will lead to continued consolidation through acquisitions. Both the number of deals and average deal size are expected to increase in 2011 compared to 2010. Private equity firms have returned to technology markets and will be major players in M&A activity.

1. 2011
World Tech M&A Report
www.corumgroup.com

2. Introduction
Deal volume, transaction size and valuations for software, Traditional technologies in Enterprise, Horizontal, Vertical
IT and related technologies have rebounded. 2011 has and Infrastructure markets will see continued consolidation.
started with momentum. Mobile, Tablets, and Apps, unknown a few years ago, will
be a large source of transactions. Of course there are firms
The recovery trend will continue as global financial markets that just need to re-invent, or they will fall by the wayside.
remain strong, IPO’s are up, with cash reserves at record
levels. Major strategic acquirers are being pressed to solidify The Corum Group Annual World Tech M&A Report
their positions in Cloud, Gaming and Social Networking follows. It is prepared by Corum’s research staff, and covers
against Private Equity, which has returned to the market, the basic drivers of tech M&A including financial markets,
accounting for many of the largest deals last year. In leading buyers, cash reserves, and overall M&A metrics
addition, there are other bidders emerging, including newly in the Corum Index. Notable transactions are detailed, as
minted public companies from the East, as well as many are trends for 26 market segments in six major categories
well-funded private firms such as Facebook. - Horizontal, Vertical, Consumer, Infrastructure, Internet
and IT Service as detailed below.
Major Category Market Segment
Business Intelligence (BI) Human Resource/Capital (HR and HCM)
Communications (Horizontal) Supply Chain Management (SCM)
Horizontal Application Software
Content Management (CM) Enterprise Resource Planning (ERP)
Customer Relationship Management (CRM) Other Horizontal
A/E/C (Architecture, Engineering, Construction) Government
Vertical Application Software Energy and Environment Healthcare
Financial Services Other Vertical
Consumer Application Software Digital Content Video Games
Communications (Infrastructure) Storage
Development Tools Systems Management
Infrastructure Software Legacy / Software Oriented Architecture (SOA) Virtualization
Network Management
Security
Internet Infrastructure Pure Play
IT Services and BPO (No subsectors)
Page 1

3. Markets Up for 2011
Markets Percentage Change in Markets in 2010
The technology industry is trading
The technology trading 35% 2010
at 30% above its value since 2007,
at 30% above 2007, NASDAQ S&P TECH 500 DOW JONES
NASDAQ S&P TECH 500 DOW JONES
outperforming the overall Dow and
outperforming and 30%
Nasdaq as reflected in the market
Nasdaq as market
25%
chart. Tech took off in Q2 2010,
chart. Tech 2010,
riding out a market downturn in
riding out in
20%
August, then accelerating through the
August, then the
end of 2010 into 2011.
end of 2010 15%
10%
Tech Stock Movers
Tech 5%
The Tech Stock Movers table
The Tech table
highlights the percentage of price
highlights price 0%
JAN
FEB
MAR
APR
MAY
JUNE
JULY
AUG
SEP
OCT
NOV
DEC
Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10
changes in select companies with over
changes in over
-5%
$1 billion market capitalization.
$1 billion
-10%
Netflix, the largest mover in stock
Netflix, the stock
value, has become the preferred
value, has preferred
streaming content vendor across
streaming across
a wide array of platforms. Netflix
a wide array Netflix
Amazon
Amazon 36.31% % Price Change
NetSuite Inc. Inc.
NetSuite 55.88% 2010 Stock Movers
now spans beyond PC and mobile to
now spans to Apple Inc. Inc.
Apple 56.39%
2010 Stock Movement
include gaming consoles like Xbox
include gaming Xbox VanceInfo Technologies Inc. Inc.
VanceInfo Technologies 81.31%
360 and PS3.
360 and PS3. salesforce.com, inc. Inc.
salesforce.com, 85.17%
VMware, Inc. Inc.
VMware, 119.37%
Considering its sector, IT Services,
Considering Services, LogMeIn
LogMeIn 122.30%
VanceInfo’s move is a surprise.
VanceInfo’s surprise. Baidu.com, Inc. Inc.
Baidu.com, 142.52%
VanceInfo is representative of a new
VanceInfo new F5 F5 Networks, Inc.
Networks, Inc. 153.60%
breed of Chinese competitor.
breed of OpenTable Inc Inc.
OpenTable 177.49%
Netflix
Netflix 226.40%
Nokia declined more than 20 percent.
Nokia declined percent. Nokia
Nokia -20.30%
The company stood out as a flop
The company flop Hewlett-Packard Company
Hewlett-Packard Company -17.03%
Company Year Ago Cash Current Cash %Change
among 2010 smartphone competitors,
among 2010 competitors, Cisco
Cisco -15.50%
MSFT $29,910 $43,250 44.6%
battered down by continued pressure
battered down pressure Adobe Systems Incorporated
Adobe Systems Incorporated -14.93%
CSCO $35,000 $38,920 11.2%
from Apple and Android.
from Apple Microsoft Corporation
Microsoft Corporation -8.20%
GOOG $19,340 $33,380 72.6%
DellDell Inc.
Inc. -4.67%
AAPL $24220 $25,620 5.8%
Google Inc. Inc.
Google -2.52%
Keep an eye on Microsoft–rumor has
Keep an eye has ORCL $12,620 $23,640 87.3%
Yahoo! Inc. Inc.
Yahoo!
it they may put their OS into the new
it they may new -0.18%
IBM $12,530 $11,100 -11.4%
Nokia phone release.
Nokia phone HPQ $13,590 $10,930 -19.6%
EMC $7,260 $6,650 -8.4%
SAP $2,703 $3,740 38.4%
YHOO $3,880 $2,820 -27.3%
Cash Up
Cash CA $1,275 $2,540 99.2%
SYMC $2,220 $2,260 1.8%
Companies with cash either need to engage in stock
Companies need to engage in stock
buybacks, issue dividends or make acquisitions. Thus, 2011
buybacks, acquisitions. Thus, 2011 Cash Reserves (in millions)
should be a banner year for M&A with record coffers
should be M&A with record coffers
among the high tech leaders who are also the major buyers.
among the are also the major buyers. them to pick up the pace of acquisitions inin 2011. Cisco is a
them to pick up the pace of acquisitions 2011. Cisco is a
similar scenario.
similar scenario.
Microsoft, as seen in the Cash Reserves chart, is sitting
Microsoft, Reserves chart, is sitting
on the largest war chest (over $43 billion) -- part of which
on the largest billion) part of which Google isiscash rich and should continue its sizzling pace asas
Google cash rich and should continue its sizzling pace
was raised in convertible debt in 2010 when interest rates
was raised 2010 when interest rates the M&A leader. HP’s cash stores were depleted inin 2010 due
the M&A leader. HP’s cash stores were depleted 2010 due
were low. As Microsoft sat at the bottom of the acquisition
were low. bottom of the acquisition to multiple big deals, including the acquisitions ofof 3PAR,
to multiple big deals, including the acquisitions 3PAR,
leader board for 2010, with a flat stock price, we expect
leader board stock price, we expect ArcSight and Palm, but HP should not be counted out.
ArcSight and Palm, but HP should not be counted out.
Page 2 2
Page

4. Total Deal Volume vs. Total Deal Value
$457b
$457b
$432b
$432b
Software M&A - 2002-2011
$373b
4500
4500
$373b
The M&A market returned in 2010 - as seen in
4029
4029 $301b
$301b $225b
$225b
4000
4000
$226b
$226b
3640
3640
$150b
$200b
$200b this chart, the last 8 years were mapped for both
$150b
3212
3500
3500
deal volume (vertical bars) and annual deal value
3500
3500 3040
3040 3015
3015
3008
3212
3008
(line chart).
3000
3000 $83b
$83b
$62b
$62b
2081
2081
2500
2500
1921
1921 With stock prices rising, cash reserves at record levels,
2000
2000 1508
1508 and heated global competition, volume and value will
1500
1500
continue to trend up in 2011.
1000
1000
500
500
Expect Strategic deals to lead the way, with Mega
0
2002 2003
2003 2004
2004 2005
2005 2006
2006 2007
2007 2008
2008 2009
2009 2010
2010 2011 Deals setting the pace due to the resurgence of
2002 2011
Private Equity after a hiatus in 2008/09.
Deal Volume
Deal Volume Dollar Volume
Dollar Volume
Top Acquirers: 2010
26
15
11
9 8 8
6 6
5 5 5 2
3 3
While this list isn’t definitive (CA and EMC are missing), IBM had their highest volume year on record with 15 deals,
what’s notable is that there are new entrants to the M&A though Google led the pack with a record 26 acquisitions
leader board, private firms Facebook, Zynga, and Twitter. for 2010. Most remarkable for Google–transactions were
often small and fairly far-ranging technology. They are
Facebook is comfortable staying private and they are continuing this trend into 2011 with three acquisitions in
making acquisitions: 11 in 2010, most of which were the first month.
completed in the latter half of 2010. With the cash they are
generating, Facebook started 2011 by immediately making On the opposite end of the spectrum, Microsoft has sat
acquisitions. Additionally, watch out for Groupon; with a on the sidelines with only 2 acquisitions in Q4, the lowest
war chest of $950 million, they may move to consolidate the number from them in a single year.
“mass discount” market in 2011.
Page 3

5. The Annual Corum Index of Tech M&A Metrics shows The transactions that led the market last year were Intel
that we are up in volume, number of deals, and Mega Deals acquiring McAfee for $7.6B, the acquisition of Sybase by
this past year. Mega Deals are important as they lead the SAP for around $6B, and EMC buying Isilon Systems for
market; we refer to them as a “ripple” indicator. When the around $2.3B.
strategic and private equity giants do $1B+ acquisitions, it
sends a clear message to the small and mid-market players One of the most important aspects of 2010 was the re-
that it’s safe to be doing deals and spending money. emergence of Private Equity (PE) which had been very
active prior to the recession. Carlyle Group
2009
2009 2010
2010 Change
Change spent $6.5B in telecom infrastructure with
acquisitions of CommScope and Syniverse.
# of Transactions 3008 3212 6.8% Other major transactions were SkillSoft,
# of Mega Deals 32 41 28.1% Vertafore, and Novell. We expect PE to
Largest Deal $6,400 $7,680 20.0% be an even bigger factor in 2011 as there is
nearly $500 billion in uncommitted funds,
% Sub-$100m 24% 19% -20.8%
not counting sovereign equity.
Private Equity Deals 97 119 22%
Private Equity Value $13,318 $25,793 93%
# VC backed Exits 398 474 19.1% Corum Index
All Cash (announced) 44% 58%
M&A Metrics
% Targets were Public 18% 13%
% Public Buyers 47% 51%
Aggregate Growth (six markets)
Q4:08 Q1:09 Q2:09 Q4:09 Q1:10 Q2:10 Q3:10 Q3:11
EV/EBITDA 6.63x 5.99x 8.07x 10.13x 10.55x 9.87x 10.48x 11.48x
Q4:08 Q1:09 Q2:09 Q4:09 Q1:10 Q2:10 Q3:10 Q3:11
EV/S 1.28x 1.08x 1.37x 1.77x 1.77x 1.76x 2.23x 3.23x
EV/EBITDA 6.63x 5.99x 8.07x 10.13x 10.55x 9.87x 10.48x 11.48x
EV/S 1.28x 1.08x 1.37x 1.77x 1.77x 1.76x 2.23x 3.23x
Corum divides the tech industry into six broad markets: the charts will show show a bump-up the higher multiples
of the charts will a bump-up due to due to the higher
Horizontal, Vertical, Consumer, Infrastructure, Internet, in the East. the East.
multiples in
and IT Services, which are further broken down into 26
sub-sectors. The major groupings are represented by the After the trough of the recession in late ‘08/early ‘09, we
6 logos on the left of the chart. Multiples in this report are came back dramatically with EV/S multiples of 2.7x and
in median values, not averages. EV/EBITDA multiples currently trading at a healthy 12.5x.
From the bottom in Q1 ’09, both multiples more than
Note that the most recent numbers include the newly public doubled, and we expect that they will continue back up in
companies in Asia as they are aggressive global competitors 2011 as they are still short of the peaks registered in 2007.
and buyers. With the recent addition ofof these firms, some
buyers. With the recent addition these firms, some of
Page 4

6. g-10 Sep-10 Oct-10 Nov-10 Dec-10
Horizontal Appl
69 x
27 x
2.94 x
10.74 x
3.07 x
11.89 x
2.99 x
12.41 x
3.37 x
17.17 x
Horizontal Applicatio
Horizontal Application Software
Horizontal Application Software Market
Horizontal Application Software
Horizontal Application Softwa
Horizontal Application Software
Horizontal Application Softwa Business Intelligence Huma
Business Intelligence Human Resources
Horizontal Application Software Ma
EV/S
EV/S 4.21 x 4.21 x
EV/S EV/S
EV/EBITDA 20.39 x EV/EBITDA
EV/EBITDA 20.39 x EV/EB
Horizontal Application Informatica Corp.Software Ma
Horizontal Application Market Corp
 Software
Horizontal Intelligence ApplicationResources Inc. MarketSCM 
Horizontal  Software
Business Application Software Market
 Kenexa
Human MicroStrategy Corp.
Informatica
Software Market
Horizontal  Taleo Corp.
Business Intelligence Human Resources SCM
EV/S  MicroStrategy Inc. x
Application
EV/S Business Intelligence 4.21 x Human Resources 3.89 EV/S 
SCM
Software Market
Software
EV/S 4.21 x Business Intelligence
EV/S 3.89 x Human Resources
EV/S 2.68 x SCM
Communications ERP
EV/EBITDA Intelligence
Business Business Intelligence
EV/S 20.394.21 x EV/EBITDA Resources
x Human
EV/S 30.393.89 x
x SCM SCM
EV/EBIT
EV/S
EV/EBITDA 20.39 x EV/S EV/EBITDA 4.21 x x
30.39 EV/SHuman Resources
EV/EBITDA
EV/S x 13.42
3.90 3.89 x EV/S EV/S
EV/S EV/S 4.214.21 x
x EV/S Resources
Communications
EV/S
EV/EBITDA 3.89 x 3.89 x
17.17 x 30.39 x
EV/S
EV/EBITDA EV/S
ERP
 EV/EBITDA HumanCorp. 20.39 x Resources  EV/EBITDA Commerce30.39 x EV/EBITDA  EV/E
EV/EBITDA Business IntelligenceHuman Resources EV/EBITDA
EV/EBITDA Informatica Resources Human 20.39 x 20.39 x EV/EBITDA
Kenexa Corp. 30.39 Inc. x EV/EBIT
Human SCM
SP
n Software Market
Business Intelligence SCM
 Informatica Corp. Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 x
Business IntelligenceBusiness IntelligenceEV/S Corp.
 Kenexa 4.21 x
EV/EBITDA SCMSPS
 
EV/EBITDA x
n Software Market 20.39 x 30.39 xLawson EV/E
SCM
4.21 EV/S 3.89 x
EV/S Amdocs Ltd.EV/S 3.89 x 3.90
EV/S
 2.68 xEV/S
Soft
g-10 Sep-10 Oct-10
Dec-09 Jan-10 Feb-10 Mar-10
Nov-10 Dec-10 EV/S MicroStrategy Inc. EV/S
EV/S
 InformaticaInformatica EV/EBITDA xx  EV/EBITDA Corp.Corp.2.68 x
  4.21Informatica Corp.
 TaleoEV/EBITDA x
EV/S
Corp. EV/EBITDA Taleo x Corp. 30.39 x
 EV/SManhattan Associates  SPS Comme
 Kenexa EV/EBITDA  Ma
x 
Inc. 2.68 x SP
Kenexa Communications 17.17 xOraclexEV/EB
EV/EBITDA 11.67 x 10.76 x 11.16 x Inc. 12.07 x 11.39EV/EBITDA 10.49 x 9.27 x  10.74 x 11.89 x 12.41 x 17.17 x
 x MicroStrategy EV/S x Corp. x
x EV/S 4.21 x
20.39 Corp. 20.393.89 3.89 x
  Kenexa Corp.
 Nuance
30.39
EV/S EV/EBITDA  Corp
13.42
2.25 12.71 x 11.95 x
EV/EBITDA Informatica Corp. Inc.30.39 x
EV/EBITDA
60 x 1.95 x 1.90 1.98 x x
EV/EBITDA  MicroStrategy Inc.
20.39 x 20.39
 MicroStrategy
EV/EBITDA
2.23 x  2.49 x 2.69 x Informatica 2.99 x Kenexa
 Taleo Corp. Corp.
 Kenexa
 Taleo Corp. 13.42 x
EV/EBITDA x
30.39 EV/EBITDA 13.42
 Manhattan A 

69 x 9.90 x EV/S x
10.15 x x 11.41 x  MicroStrategy Inc.x Corp. 3.37 x Corp.Taleo Corp.  SPS Commerce SPS Comme
2.419.502.48 x 2.42 x 2.11 x 2.24 x 2.12 x  Informatica Corp.  2.94 x 3.07    Kenexa Corp.  Inc.  Ma
SCM  Informatica Corp.  MicroStrategyCorp.  Taleo Corp. Content Mgmt. Corp.
 Informatica Corp.
Communications Inc.
 MicroStrategy  Kenexa Inc.
 MicroStrategy Inc. ERP Taleo
 Kenexa Corp.  TaleoCommerceSPS Commerce Manhattan
 SPS Corp. Ltd.
Amdocs  Manhattan Associates Inc. As
 Inc.  Inc.
CRM
Communications  MicroStrategy ERP MicroStrategy  Taleo Corp.  Taleo Corp. CRM
Inc. Inc.
Communications ERP Manhattan Associates Inc. Associates Inc.
  Manhattan CRM
3.90 x 3.90 x ERPERP Nuance Communications CRM 
EV/S 2.82 x
3.89 x EV/S 2.68 x EV/S Communications EV/S EV/SEV/S 2.55 x2.55 x EV/S EV/S CRM
SCM EV/S
SCM 3.90 x Communications
EV/S
Communications Communications ERP2.55 x EV/EBITDA
EV/S
ERP CRM
9.28 x 3.62 x
CRM
0.39 x EV/EBITDA 13.42 x Communications
EV/EBITDA EV/EBITDA ERP
17.17 x EV/EBITDA
17.173.90 x x
ERP x EV/EBITDA 11.86 x EV/EBITDA CRM
3.90 EV/S CRM OpenxText Corp. 2.5511.862.55 x x EV/EBIT
SCM Communications Communications ERP CRM
3.89 3.89 x
x EV/S EV/EBITDA
EV/S 2.68 x 2.68 x17.17 x EV/S EV/S
EV/S EV/EBITDA EV/S 3.90 x 3.90 x x
11.86
EV/S EV/S 2.55
EV/S
EV/EBITDA
 EV/S x2.55 x EV/S
38.25 3.62 x EV/S
EV/S
3.89 x EV/S 2.68 x EV/S EV/S EV/S x 3.90 3.90 x Ltd.
EV/S Amdocs EV/S3.90 x x
17.17 x
2.55 2.55 x Software 11.86 x x
EV/SLawson
EV/S EV/S Inc.3.62 3.62 x EV/S
2.55 xRightNow Te
30.39 x EV/EBITDA 13.42 x  17.17
EV/EBITDA x  11.86
EV/EBITDA Mgmt. EV/EBITDA
Content x  38.25
EV/EBITDA x
 EV/EBITDA EV/EBITDA x Communications  EV/EBITDA Corp.EV/EBITDA Inc.11.86 xInc.  EV/E
EV/EBITDA EV/EBITDA x
17.17
0.39 x x
30.39 EV/EBITDA Commerce Inc.EV/EBITDA
 SPS Amdocs13.42 x 13.42 x
EV/EBITDA EV/EBITDA
EV/EBITDAAmdocs Ltd.17.17 17.17 x 11.86 x EV/EBITDA x Software 11.86 x  xSalesforce.c
Lawson Rig
EV/EBIT

 SPS Commerce Inc. Ltd.  Lawson Amdocs Ltd.EV/EBITDA
EV/EBITDA  Software Inc. x SoftwareOracle Software Inc.
17.17 x
 Amdocs Ltd.
 Nuance 17.17
 Lawson
 RightNow Technologies 38.25 x EV/E
11.86
EV/EBITDA
 Lawson
EV/EBITDA

EV/S Inc.
38.25 x
11.86 x
2.82 RightNow Tec

 RightNow Technologies Inc.
 Manhattan Associates Inc.  Inc.
 SPS CommerceAssociates Amdocs Ltd.   Amdocs CommunicationsCommunicationsSoftwareRightNow Technologies Inc.9.28 x OtherRig
 Manhattan Inc.
 SPS Commerce Inc. Amdocs Communications
Nuance  Nuance
 Nuance Communications   Nuance Ltd. Content Mgmt. Software Inc. Corp.EV/EBITDACorp. Salesforce.com Salesforce.co
 AmdocsLawson
 OracleLtd.  Ltd.
Corp. OracleLawson  RightNow Horizontal  Sa
  Oracle Corp. Software Inc.
 Lawson  Lawson Software Inc. Technologies Inc.
 Oracle  Inc.
 Salesforce.com  
 Manhattan Associates Inc.  AmdocsOracle Corp.  Oracle Corp.  Salesforce.com Salesforce.com
 Nuance Communications
 Nuance Communications  Ltd.
 Nuance Communications  Oracle Corp.  Lawson Software Inc.

 
 Manhattan Associates Inc.  Nuance Communications2.82 x  Oracle Corp. EV/S  Sa
CRM
CRM  Nuance Communicationsx Horizontal OtherHorizontal Other
Content Mgmt.
EV/S
Content Mgmt.
Content Mgmt. EV/EBITDA 9.28
 Oracle Corp. Other
Horizontal Other Text Corp.
Open Horizontal
Horizontal Other
EV/EBITDA 
Horizont
CRM Content Mgmt. 3.62 x Content Mgmt. Content Mgmt. EV/S EV/S 3.81 x
2.55 x EV/S EV/S 2.82 x
EV/S 2.82 x EV/S EV/S 3.81 x EV/S
EV/EBITDA x Hori
3.81
Horizont
2.55 2.55 x
x x EV/S
EV/S 3.62 x 3.62 x
EV/S EV/S
Content 2.82 x
EV/S 2.82 x Mgmt. Open x2.82
 9.28 Text
Corp. 9.28 x
EV/EBITDA Mgmt. EV/EBITDA x EV/S EV/EBITDA 3.81 x 24.07 x Navi
 Trimble
g-10 x Sep-10
11.86
11.86
CRM Oct-10
EV/EBITDA
EV/S
EV/EBITDA Nov-10 38.25 xDec-10
38.25 x 2.82 x Content
EV/EBITDA 9.28 x EV/EBITDA EV/EBITDA
24.07 x EV/EBIT24.07 x Hori
1.86 x EV/EBITDA Content Mgmt.
9.28 x
24.07 xConcur Tech
 EV/S
69 x
re Inc.
2.55 x 0.72 EV/EBITDA Technologies Inc. 3.62 x 9.28 x
EV/S 0.70 x
x  RightNow
EV/EBITDA0.87 x
38.25
2.53 x x EV/EBITDA
EV/S  9.28 x
 Open Text Corp. Open Text Corp.x x
EV/S 2.822.82
EV/EBITDA EV/S
 Trimble Navigation Ltd. Navig
 Trimble
re Inc. 10.29 x  RightNow Technologies Inc. x Open Text Corp.Open Text Corp.
 EV/S EV/S
 Trimble Navigation Ltd. Techn
 Trimble Navigation Ltd. Technologies EV/EBIT
80 x  Salesforce.com x
10.04 x 5.54 7.58 2.82 x  Concur  Concur EV/E
Inc.
c.
1.86 x  Salesforce.com Text Corp. xInc.
 RightNow Technologies
EV/EBITDA
 Open
38.25  EV/EBITDA
EV/EBITDA Text Corp.
Open
EV/EBITDA
9.289.28 x
x
9.28 x
 Trim
 Concur Technologies Inc. EV/E
 Concur Technologies Inc.
 Trimble Navigation Ltd.
c.  Salesforce.com
HorizontalTechnologies
Avid Other
 RightNow Technologies Inc.
Horizontal Other  Open Text Corp.
 Open Text Corp.  Concur Technologies Inc.  Co 
 Trim
EV/S 3.81 x  Open Text Corp. 

 Salesforce.com
EV/S
EV/EBITDA
3.81 x
24.07 x  Co
Corum Group Presentatio
Corum Group Presentation ■ 26 Group Presentatio
Corum
g-10 Sep-10
Horizontal OtherNov-10
Oct-10
EV/EBITDA 24.07 xDec-10
The Horizontal Application Software Market is one of the Concur, the enterprise travel expense management solution, 
20 x 2.50 EV/S 2.67 x Navigation Ltd. 2.87 x x
x  Trimble
11 x
top performers. 2.71 x are a large number of
There
x  TrimblexNavigation Inc.
12.18
3.81
10.67Horizontal Other 12.46 xLtd. 13.57 x
SaaS companies is currently the second highest valued pure SaaS company.
 Concur Technologies
in Concur
 this group with subscription, recurring revenue streams,
EV/EBITDA Technologies Inc. 24.07 x Concur has been among the deal laggards theCorum Group Presentation
last few ■ 2
EV/S 3.81 x
predictable revenue streams, or web-delivered solutions. years, but started 2011 with the acquisition of Tripit–a
EV/EBITDA 24.07 x
 Trimble Navigation Ltd. 26
Corum Group Presentation ■
brilliant strategic move.
At Concuris SalesForce.com–they have set the bar and
the top
 Trimble Technologies Inc.
Corum Group Presentation ■ 26
 Navigation Ltd.
escalated the whole SaaS trend while completely changing This section cannot be reviewed without mentioning SAP.
theConcur Technologies Inc. that end, they acquired
 landscape of the CRM space. To SAP maintains strong multiples and a favorable market
Jigsaw in 2010 as part of their Cloud 2 strategy. On their position relative to their big stateside competitors. SAP had
heels is RightNow who started the year by acquiring Q-Go
Corum Group Presentation ■ 26 the second largest tech deal of last year, spending $6.1B
in the Netherlands. on Sybase, adding a complementary unit to their enterprise
Corum Group Presentation ■ 26
offering to manage and analyze a broad array of enterprise
Recently, the biggest SaaS growth story has been in the data, but, more importantly, to provide a mobile outlet for
broad HR world, especially by SuccessFactors and Taleo. data access and updates in real time.
SuccessFactors acquired Inform for its Business Execution
Suite, and Taleo bought Learn.com to move into the SaaS Moving down the ERP food chain, there are 10 or 12
learning space. Both firms will be making more acquisitions mid-tier public players. It’s crowded with a lot of vertical
this year, further challenging the traditional license model differentiation in their product portfolios: Lawson, Epicor,
companies. CDC, NetSuite, and QAD among them. We expect to see
continued consolidation in this space in 2011, especially as
the top-tier players like Microsoft and Oracle have such
huge cash reserves.
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