Cherry Tree & Associates | February 2018

Cherry Tree has been tracking trends and activity in the Technology Enabled Business Services (TEBS) space for more than 15 years, including the TEBS 100, which is a broad index of 100 publicly-traded TEBS companies.

The four segments of the TEBS 100 are: Software Business Process Services Information Services Infrastructure Services

Each issue of this newsletter highlights transactions involving TEBS companies, as well as performance metrics for the TEBS 100. Cherry Tree also produces quarterly TEBS updates and an annual research report which are available for download:

Download the Q4 2017 TEBS Quarterly Update

Download the 2018 Annual TEBS Research Report

Cherry Tree has more than 30 years of experience working with businesses in the TEBS space, originally as an investor and now as a provider of investment banking services. Our clients include companies seeking to sell their businesses or divest non-core assets, as well as strategic and financial buyers looking to make acquisitions.  Contact Mik Gusenius at  mgusenius@cherrytree.com with any questions.

NOTABLE TRANSACTIONS – FEBRUARY 2018

HGGC To Buyout HelpSystems For $1.2 billion... Private equity firm HGGC LLC has agreed to acquire a controlling stake in HelpSystems, valuing the U.S. information technology management software company at more than $1.2 billion, including debt,... Read more tech.mn Shake up in business travel as Amex GBT moves to buy HRG Big consolidation in the travel management space this morning as Amex Global Business Travel has agreed to buy rival Hogg Robinson Group for around £400 million. The deal, which is subject to antitrust and other regulatory approval, is expected... Read more www.tnooz.com Cars.com Acquires 2 Tech Companies for $165M Cars.com acquired two digital startups Wednesday for $165 million in cash. Chicago-based Cars.com (NYSE: CARS) announced it has bought both Dealer Inspire and Launch Digital Marketing, two local companies that provide digital tools to automotive... Read more www.americaninno.com Quad acquires Dallas marketing firm Quad/Graphics Inc. said Wednesday it has acquired Ivie & Associates, a Dallas-based provider of onsite marketing services for major retailers and one of the fastest-growing privately held companies in the United States. Ivie is a family-owned... Read more www.jsonline.com

Granicus Acquires Government Website Builder Government websites are not like other websites. Except for a very small group, most people visiting a city's website are there for a very specific purpose. So how, then, does a city build a website to serve those specific purposes? That's the... Read more www.govtech.com Latest Carbonite acquisition adds Mozy backup Carbonite continued its acquisition spree this week by buying Mozy, one of its oldest cloud backup competitors. The Carbonite acquisition of Mozy from a... Read more searchdatabackup.techtarget... Fintech Temenos to Acquire Fidessa Group for $1.96... Swiss Fintech Temenos has agreed to buy UK based Fidessa Group in a deal that currently stands at $1.96 billion. Temenos is a provider of banking software and the company claims that more than 2000 firms around the globe, including 41 of the top... Read more www.crowdfundinsider.com R1 to Acquire Intermedix In today's climate, medical professionals are looking to reduce costs while improving patient results. That is one of drivers attracting buyers, including R1 RCM Inc. (Nasdaq: RCM), to healthcare data providers. R1 has reached a deal to acquire... Read more www.themiddlemarket.com

TEBS 100 INDEX PERFORMANCE

TEBS 100 INDEX METRICS

For a confidential conversation about your company's strategic alternatives for exiting, merging, acquiring, or obtaining venture financing, please contact Mik Gusenius. Prepared by: Mik Gusenius, Director mgusenius@cherrytree.com Phone: 952.253.6005 www.cherrytree.com 

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis. Our firm specializes in serving middle market companies and their owners, whether private, public, or divisions of larger corporations.

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Important Disclosures The information included in this publication has been obtained from public sources, and is not based upon private or confidential Cherry Tree information. Cherry Tree gathers its data from sources it considers reliable. However, it does not guarantee the accuracy or completeness of the information provided within this publication. Any opinions presented reflect the current judgment of the authors and are subject to change. Cherry Tree makes no warranties, expressed or implied, regarding the accuracy of this information or any opinions expressed by the authors. Officers, directors, partners of Cherry Tree and Cherry Tree proprietary investment funds may have positions in the securities of the companies discussed, and certain affiliates of Cherry Tree may recommend to specific clients the purchase and sale of securities discussed in the publication. This publication does not constitute a recommendation with respect to the securities of any company discussed herein, and it should not be construed as such. Cherry Tree or its affiliates may from time to time provide investment banking or related services to these companies. Like all Cherry Tree employees, the authors of this publication receive compensation that is affected by overall firm profitability. We undertake no obligation to update any information in this publication. The TEBS Performance Index is a hypothetical index, and does not reflect an actual investment portfolio. Comparisons between the TEBS Index and other indices are for illustrative purposes only. Correlations in performance information for the TEBS Performance Index and other indices should not be relied upon as indicative of risks involved in owning or holding a portfolio of securities similar to the TEBS Performance Services Index. Past performance should not be relied upon as indicative of future performance.