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Tech M&A Outlook and Valuation Analysis
- 1. TECH M&A
Prepared for Bloomberg, L.P.
MARCH 2012
Disclaimer:
Informa0on
is
furnished
on
as
is
basis.
No
warranty,
wri;en
or
implied
as
to
the
accuracy
of
the
data.
Not
responsible
for
typographical
or
reproduc0on
errors.
Not
an
offering
to
buy
or
sell
securi0es
of
any
kind.
Does
not
represent
investment
advice
in
any
form.
contact +1 (888) 801-3644 info@mgiresearch.com www.mgiresearch.com © 2011 MGI Research, LLC
- 3. Tech Valuations on a Relative Basis
EPS
EPS
Sales
growth
growth
growth
Performance
P/Free
Dividend
past
5
next
5
past
5
Performance
(Year
To
Analyst
Name
Market
Cap
P/E
PEG
P/S
P/Cash
Cash
Flow
Yield
years
years
years
(Year)
Date)
Recom
Stocks
$
Basic
Materials
5,745,395
11.33
1.00
1.00
15.79
49.26
2.61%
6.85%
11.34%
13.53%
-‐6.60%
9.73%
2.25
597
$
Conglomerates
227,323
14.04
0.82
1.29
7.76
20.18
1.73%
5.38%
17.15%
5.56%
-‐1.14%
11.06%
1.92
20
$
Consumer
Goods
3,001,555
18.09
1.51
1.08
10.06
44.44
2.38%
10.64%
12.01%
7.64%
9.44%
8.46%
2.22
413
$
Financial
4,233,702
12.16
1.11
1.49
1.67
7.28
2.57%
-‐3.46%
10.91%
5.18%
-‐11.69%
13.86%
2.31
1,044
$
Healthcare
2,245,531
16.64
1.80
1.80
8.11
20.25
2.49%
12.58%
9.26%
13.36%
9.44%
5.68%
2.19
556
$
Industrial
Goods
1,303,965
16.46
1.16
1.02
6.30
25.23
2.12%
4.13%
14.20%
4.56%
-‐1.59%
11.19%
2.19
351
$
Services
3,263,588
18.17
1.25
0.82
12.17
22.92
1.51%
13.21%
14.52%
10.53%
9.79%
10.13%
2.21
906
$
Technology
5,278,141
15.98
1.27
1.73
6.68
17.98
2.14%
17.61%
12.58%
15.91%
1.08%
10.62%
2.22
907
$
UJliJes
753,724
15.68
2.89
1.23
17.23
83.99
4.03%
4.99%
5.42%
3.91%
8.94%
0.57%
2.51
125
3/9/12 © 2012 MGI Research, LLC 3
- 4. Valuation (EV/Sales) vs. Growth (Avg.PYQ)
Filter Settings
- Normalized Quarter: (201112)
3/9/12 © 2012 MGI Research, LLC 4
- 5. TECH M&A OUTLOOK
• BUYERS
– High
Cash,
Low-‐Med
Debt,
High
ValuaJon.
Low-‐Med
Growth
– Looking
for
topline
growth,
regardless
of
profitability
or
valuaJon
– Filling
Out
a
FuncJonal
or
Geographic
“Hole”
in
Cloud
CompuJng,
Cloud
Management/Security,
SaaS,
Storage,
Big
Data,
Mobile
App
Tools
– E.G.
IBM,
Oracle,
SAP,
DELL,
EMC,
GOOG,
Infor,
CA
– HP
likely
to
stay
away
from
large
deals,
needs
to
absorb
EDS
and
AUTN
– CRM
to
target
companies
within
its
ecosystem
• POTENTIAL
SELLERS
– Small-‐Med
SaaS
firms,
e.g.
CNQR,
KNXA,
CTCT,
CSOD,
ULTI,
SPSC,
SQI,
TRAK
– Prior
generaJon
sobware/Internet
firms:
ARBA,
MANH,
JDAS,
BMC
– Cloud
Tech:
CTXS,
RHT,
FFIV,
RVBD,
AKAM
– Healthcare
IT,
Government/EducaJon
Sobware
and
Services,
Big
Data,
Mobile
Apps
Tools
Cos.
• FALLEN
HEROS
&
UNLIKELY
DEALS
– NOK,
RIMM,
YHOO,
SYMC,
N
3/9/12 © 2011 MGI Research, LLC 5
- 6. MGI RESEARCH - CONTACT
• New
York,
San
Francisco,
London
• +1
888
801-‐3644
• info@mgiresearch.com
• www.mgiresearch.com
• Tw:
@mgiresearch
3/9/12 © 2011 MGI Research, LLC 6
