UK Software Sector. Quarterly Report. First Quarter 2009

Transcription

1 UK Software Sector Quarterly Report First Quarter 009

2 UK Software Sector Valuation Metrics Share Price ( ) Market Net Enterprise Revenue Company -Apr-09 Cap () Debt () Value ( m) CY09E ( m) CY008 CY009 CY008 CY009 FY08/09 FY09/0 CY008 CY009 Selected UK Software Large EV/Revenue EV/EBITDA Revenue Growth EBITDA Margin Sage.8,0 69,059,. x. x 9.9 x 8.9 x 0.9%.8%.%.9% Autonomy.,9 (88), x 5.9 x.5 x. x.8%.7% 9.% 5.% Playtech.7,06 (8), x 8. x.6 x. x.%.9% 67.8% 7.0% Average 6. x 5. x.7 x 0.5 x.6% 8.8% 6.7% 9.% Selected UK Software Mid Misys x. x 8.7 x 6.7 x.5%.0% 7.6% 7.8% Aveva Group (0) x.7 x. x.9 x.8% -8.% 8.% 5.% Micro Focus (5) x.9 x 8.5 x 7. x.9%.9% 9.6% 9.6% Average. x.9 x 7. x 6. x 9.8% 8.6%.8% 0.8% Selected UK Software Small Fidessa () 0.6 x. x 8. x 7. x 6.9% 0.9% 9.6% 8.6% SDL.0 55 () 7. x. x 8. x 7.7 x 8.% 8.% 7.0% 6.9% Kofax.9 00 (5) x 0. x.5 x. x 8.%.8% 0.6% 0.% Microgen ().0 x.0 x.7 x.8 x 0.0% 6.% 0.6% 0.% Craneware. 59 (6) 7. x.5 x.7 x 9.9 x.0% 8.7%.% 5.8% Alterian (6) 9. x. x 8.0 x.9 x.9% 9.% 5.8%.% Kewill x 0.8 x 5.9 x 5. x 5.5% 9.9%.9% 5.5% IDOX 0. 7 () 5.0 x.0 x.0 x.8 x.5%.0%.9% 5.9% System C Healthcare (5) x 0.8 x 5.8 x.6 x.5%.% 6.9% 7.5% StatPro x.7 x 6.8 x 5.9 x.% 0.5% 6.8% 8.7% Average. x. x 6.8 x 5.7 x.% 0.0% 8.% 9.% () Fully diluted basis - treasury method () Net financial debt plus pension liabilities plus minority interests

3 UK Software Sector Value Drivers EV/EBITDA.0 x The Value of Scale.0 x 0.0 x 8.0 x 6.0 x.0 x.0 x 0.0 x M'gen Sys' C Craneware StatPro Kewill Alterian IDOX SDL Playtech Aveva Group Kofax Micro Focus Fidessa Autonomy Revenue CY09E ( m) Note: Bubble size depicts Enterprise Value EV/EBITDA.0 x 0.0 x 8.0 x Sage The Value of Growth Playtech SDL Fidessa Autonomy Micro Focus Craneware 6.0 x.0 x.0 x IDOX Kofax Microgen StatPro Kewill Alterian 0.0 x 0.0%.0%.0% 6.0% 8.0% 0.0%.0%.0% 6.0% 8.0% 0.0% Revenue Growth (FY09/FY0)

4 Selected UK Software Sector M&A Transactions (Q 009) Date Target Acquirer Acquirer Deal Value Revenue Target Description Comments Nationality ($m) () Multiple () Publicly Quoted Targets Mar-09 Thirdforce LearnVantage Ireland x e-learning solutions PP MBO Mar-09 Pilat Media Global Sintec Media Israel x Media industry solutions Feb-09 Eidos Square Enix Japan 0.5 x Entertainment software Private Targets Feb-09 Plain Software Company Avia Investments UK n/a n/a Healthcare solutions Feb-09 WKD Solutions CDC Software US n/a n/a Supply chain event management Feb-09 Eden Origin Telephonetics UK +. () n/m SOA solutions Feb-09 Televisual Data Miles UK n/a n/a Content management solutions Jan-08 SpeedSix Software GenArts US n/a n/a Visual effects software Jan-08 Background Tokheim France n/a n/a Service station solutions 60% stake Jan-08 Commodities Software Brady UK + () n/m Metals industry solutions Jan-08 Applied Information Mgmt Aspect Software US n/a n/a Employee performance mgmt software Asset purchase () Equity value () EV to Revenue (last FY) () Earn-out Based on deal announcement date UK targets only Excludes minority stakes

5 UK Software M&A Deal Volumes by Acquirer Nationality 60 Quarterly M&A Deal Volumes (UK Software Targets) Deals Other EU US UK Q 05 Q 05 Q 05 Q 05 Q 06 Q 06 Q 06 Q 06 Q 07 Q 07 Q 07 Q 07 Q 08 Q 08 Q 08 Q 08 Q 09 Q 009 deals down 66% versus Q 008 Based on deal announcement date UK targets only Excludes minority stakes

6 UK Software Sector Share Price Performance Large Caps Month Months Yr Yrs FTSE All Share 9% % -% -7% Autonomy % 9% 5% 9% Playtech 5% % % 0% Sage Group % 8% -% -9% FTSE All Share Autonomy Playtech Sage Group 0 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Mid Caps Month Months Yr Yrs FTSE All Share 9% % -% -7% Aveva Group 7% 0% -5% -5% Micro Focus 7% % % 6% Misys 5% 5% -% -0% FTSE All Share Aveva Group Micro Focus Misys 0 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Small Caps Month Months Yr Yrs FTSE All Share 9% % -% -7% Alterian 7% 9% -7% -50% Fidessa 7% 55% % -6% Microgen % 5% % 0% Kewill -% -5% -9% -0% Kofax -% -7% -% -9% SDL % 8% 9% -% System C 0% 9% 6% 0% IDOX 5% % 5% 9% StatPro 7% 65% -0% -% Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 FTSE All Share Alterian Fidessa Microgen Kewill Kofax SDL System C IDOX StatPro 5

7 US Software Sector Valuation Metrics Share Price ($) Market Net Enterprise Revenue EV/Revenue EV/EBITDA Revenue Growth EBITDA Margin Company -Apr-09 Cap () Debt () Value ($m) CY09E ($m) CY008 CY009 CY008 CY009 FY08/09 FY09/0 CY008 CY009 Selected US Software Large Microsoft ,8 (,808) 6,75 60,57.7 x.7 x 6.7 x 6.8 x -0.%.%.0% 9.8% Oracle ,058 (56) 00,00,5. x. x 8.8 x 8.6 x.% 0.9% 9.% 50.% CA 8. 9,77 (5) 9,5,87. x. x 6.7 x 6. x 0.9% 0.7%.%.6% BMC Software.65 6,55 (6) 5,88,97. x. x 8.0 x 7.7 x 8.5%.7% 9.7% 9.8% Salesforce.com 0.7 5,0 (88),8,9.9 x. x n/m n/m.8%.0% 9.%.0% Average. x. x 7.6 x 7. x.0% 5.5%.5% 5.% Selected US Software Mid Novell.87, (980) x 0. x.7 x.5 x -6.7%.6%.6% 5.6% Quality Systems 50.99,5 (67), x.9 x 7. x. x.6% 8.%.%.6% Advent Software () x. x 8.0 x. x 9.% 0.0% 8.7%.5% Fair Isaac x.5 x 5.9 x 6. x -.%.9%.%.5% Lawson Software (7) x. x 7.8 x 7. x -.% -.9%.% 5.% Average. x. x 0. x 9.0 x.9% 5.8% 0.6%.% Selected US Software Small Manhattan Associates (89) x. x 5. x 7.7 x -.% 7.5% 6.0%.% Vocus (9) x. x. x 0.5 x 9.%.% 9.5%.0% Epicor Software x. x 7. x 8. x -7.9%.9% 5.%.9% Actuate.78 6 (8) x.7 x 8.5 x 8.6 x -.6%.8% 9.6% 0.% Pervasive Software. 80 () x 0.8 x. x.6 x.8% 0.0% 9.0% 6.% Average. x. x 7.5 x 7.9 x -.% 5.9% 7.9% 7.% () Fully diluted basis - treasury method () Net financial debt plus pension liabilities plus minority interests 6

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