Information Technology Services Newsletter
 
January 2017
 
M&A deal volume strong in 2016, but slightly below record 2015
Quarterly M&A Commentary
  • In 2016, US M&A volume was lower than the record setting 2015. US merger and acquisition transactions reached a record $2.055 trillion in 2015, but saw a modest retreat in 2016 as $1.719 trillion in M&A deals took place, according to data from S&P Global Market Intelligence. The recent results marked the fourth consecutive year that US M&A deal value topped the $1 trillion mark.[1]
  • M&A activity in the knowledge-intensive services sector continued to remain strong in Q4, but deal volumes in the IT services market segments were relatively flat compared to the previous quarter.[2] After a brief lull in November, momentum picked up in December, reflecting enthusiasm about the election results, as well as representing the traditional year-end push to wrap up deals.[3]
  • As we continue to report, buyers are generally seeking scale and predictability with managed services and recurring revenues. Integrators with cloud computing services and security offerings appear to be popular targets with attractive EBITDA multiple.
  • Staffing buyer trends appear to include moves that improve their operating models through automation. In Q4 2016, a number of deals were related to staffing firms beefing up their technology and digital capabilities. Notable transaction examples were Yoh acquiring Dreamjobs and Advanced acquiring Staffing Robot.
  • Systems integration services market buyers are seeking scale and efficiencies in the distribution, installation, and maintenance of increasingly complex technologies, especially those with recurring revenue in the form of managed services, hosting and cloud services. Notable examples are Connection's acquisition of GlobalServe, TekLinks acquisition of Nashville-based Guidant Partners, and Contegix acquisition of Admo.net Web Services.
  • The cyber security landscape is becoming increasingly complex, and many companies are seeking services to help with implementation of the right solutions in the context of a multitude of technology offerings, varying vendor strategies, and their internal IT challenges and priorities. Examples of notable security related services transactions for the quarter included Accenture Federal acquiring Defense Point, Synopsys acquiring Cigital, and Veritas acquiring Coalfire, a leader in cybersecurity risk management and compliance services. Security segment EBITDA multiples continue to lead all other IT services segments with 12.1x EBITDA.
  • Private equity activity in IT Services appears to be increasing. A few notable examples include KKR acquiring Optiv, Southfield Capital partnering with Ntiva, and Pamplona Capital Management acquiring Logicworks from Seaport Capital. M/C Partners, a private equity firm focused exclusively on the communications, media, and information technology sectors, acquired two companies, Thrive Networks and Corporate IT Solutions. Thrive and Corporate will be merged to form a managed IT services provider in the Northeast under the Thrive brand.
     
[1] S&P Global Market Intelligence, January 2017
[2] Equiteq, Q4 2016 Market Update, January 2017
[3] Mergers & Acquisitions, M&A Conditions Index (MACI), January 2017
Notable Transactions

October 2016
Soha Systems acquired by Akamai Technologies
Security
Akamai Technologies (NASDAQ: AKAM) acquired Soha Systems, an innovator in enterprise secure access delivered as a service. Soha was named one of Gartner's Cool Vendors in Cloud and Emerging Technology, Security, 2016. Akamai plans to extend its portfolio of Cloud Networking Solutions. By offering businesses secure, cloud-based application access control, Akamai aims to simplify and improve remote and mobile access to enterprise resources, while at the same time minimize the exposed attack surface.
 
October 2016
Appirio acquired by Wipro
Consulting
Wipro (NYSE: WIT, NSE: WIPRO), acquired Appirio, a global cloud services company that creates next generation worker and customer experiences for $500 million. Established in 2006, Appirio is headquartered in Indianapolis with offices in San Francisco, Dublin, London, Jaipur, and Tokyo and has 1,250 employees worldwide.  Wipro's acquisition of Appirio will create one of the world's largest cloud transformation practices, a game changer in today's as-a-service and digital economy. Appirio also brings to Wipro, Topcoder, a leading crowdsourcing marketplace connecting over a million designers, developers and data scientists around the world with customers.
 
November 2016
Collaborative Consulting acquired by CGI Group
Consulting
CGI Group (NYSE: GIB), a leading provider of information technology and business processing services, acquired Collaborative Consulting. With a head office in Boston, MA and nearly 400 professionals, Collaborative generates annualized revenue of approximately $76 million and brings skills, experience and deep relationships in high-growth, in-demand IT services that improve usability, functionality and performance of digital technology and information management systems for its clients. This deal complements CGI's proximity model, further augmenting its relationships and supplementing CGI's footprint in the Boston metro area as well as the surrounding New England region. Collaborative will enhance and accelerate CGI's position as a leading provider of digital transformation services to meet growing demand, particularly benefitting the commercial sector.
 
December 2016
Alsbridge acquired by ISG
Outsourcing and Consulting
Information Services Group (ISG) (NASDAQ: III) acquired Alsbridge, a U.S.-based sourcing, automation and transformation advisory firm, to create a new industry powerhouse in technology research, advisory and digital transformation services. The "new" ISG will serve more than 700 blue-chip clients - including 75 of the 100 largest enterprises in the world - up 35 percent from ISG alone, and its global team will grow by approximately 20 percent, to 1,300 research and advisory professionals.
   
December 2016
Optiv Security acquired by KKR
Security
Optiv Security, a market-leading provider of end-to-end cyber security solutions, was acquired by KKR (NYSE: KKR), a leading global investment firm. KKR announced the signing of a definitive agreement under which KKR will acquire a majority stake in Optiv. The company is being acquired from a group of private investors, including a private equity fund managed by Blackstone (NYSE: BX), which will maintain a minority interest in Optiv along with Optiv management. Other selling shareholders include Investcorp and Sverica.
IT Services Performance Index

Cherry Tree monitors the IT services market, including deal rationale, volume and multiples. The IT Services Performance Index is a group of 57 publicly traded companies representing each of the market segments. In Q4 2016, the IT Services index modestly outperformed the S&P 500 fueled mostly by post-election share price increases.


 
Contact Cherry Tree for a complete listing of the most current IT Services Index.


PUBLIC COMPS - Median Statistics

Median enterprise value (EV) multiples for publicly traded IT services companies improved slightly in the quarter compared to the prior quarter. 1-Year revenue growth slowed from 8.3% last quarter to 7.1% this quarter In the Staffing segment, LTM EBITDA increased from 7.8x to 9.2x. In the Consulting segment, median LTM EBITDA multiples rose from 10.9x to 11.8x. [4]
Median EVs for publicly traded companies in the index are summarized below by segment.



[4] Cherry Tree Research and (hypothetical) IT Services Performance Index, December 2016

Q4 2016 Select Transactions
 
Date
Target
Acquirer
Segment
Target Description
Link
10/03/2016
Frontica Business Solutions
Cognizant (Nasdaq: CTSH)
Outsourcing
Frontica Business Solutions provides staffing, consulting, technology, and other outsourcing services.
10/03/2016
MSI International
CorTech
Staffing
MSI International operates as a recruiting company globally.
  Link
10/03/2016
Cutting Edge Staffing
Decton
Staffing
Cutting Edge Staffing is a staffing company that specializes in recruiting candidates for various business types.
10/03/2016
TeraMach
Pivot Technology Solutions (TSX: PTG)
Integration
TeraMach operates as an IT services company.
10/03/2016
Wondersauce
Project
Digital
Wondersauce operates as a digitally led integrated advertising agency in New York.
10/03/2016
SCS
Sikich
Integration
SCS specializes in Microsoft Dynamics for the manufacturing, distribution, agriculture and retail industries.
10/04/2016
Soha Systems
Akamai Technologies (Nasdaq: AKAM)
Security
Soha Systems provides cloud-based enterprise-grade application security services to developers, IT/security teams, and CIOs.
10/04/2016
ACF Solutions
Attain
Consulting
ACF Solutions provides salesforce-based cloud solutions for higher education institutions and nonprofit organizations.
  Link
10/04/2016
Falcon Consulting Group
Avaap
Consulting
Falcon Consulting Group  offers healthcare consulting services, specializing in Epic Systems implementations.
10/04/2016
CD Group
Denovo Ventures
Consulting
CD Group specializes in JD Edwards consulting and managed services.
  Link
10/04/2016
Avastone Technologies
Heartland Business Systems
Integration
Avastone Technologies is an app development company specializing in Microsoft Dynamics, CRM, collaboration, cloud and implementation services.
  Link
10/05/2016
Defense Point Security
Accenture
Security
Defense Point Security offers cyber security services to commercial and federal government clients in the United States.
  Link
10/05/2016
Advanced Technologies Group
Jones Lang LaSalle (NYSE: JLL)
Consulting
Advanced Technologies Group provides information consulting services to the healthcare and higher education industries in the United States.
  Link
10/05/2016
Database Specialists
TriCore Solutions
Consulting
Database Specialists provides Oracle consulting, database administration (DBA), and remote DBA managed services for companies with mission-critical Oracle database systems.
  Link
10/06/2016
CustomerContactChannels (C3)
Everstone Group; Sunrise BPO
Outsourcing
C3 provides contact center and outsourced customer management solutions.
  Link
10/06/2016
24 Seven
Morgan Stanley Private Equity
Staffing
24 Seven provides talent recruitment services worldwide.
  Link
10/06/2016
Convey Health Solutions
New Mountain Capital
Outsourcing
Convey Health Solutions provides healthcare technology and business process outsourcing solutions.
  Link
10/10/2016
Jobhuk
Compunnel Software Group
Staffing
Jobhuk owns and operates a marketplace that provides recruitment services for recruiters and employers worldwide.
  Link
10/11/2016
Stroz Friedberg
Aon
Security
Stroz Friedberg provides cyber-security consultancy worldwide.
  Link
10/11/2016
Synaptic Solutions
Preferred Systems Solutions
Consulting
Synaptic Solutions provides software development consulting services and solutions to the intelligence community.
  Link
10/12/2016
Copier Business Solutions
Loffler Companies
Integration
Copier Business Solutions sells and services hardware products.
  Link
10/12/2016
GlobalServe
PC Connection (Nasdaq: CNXN)
Integration
GlobalServe provides international IT equipment supply chain services for procurement, deployment, and service solutions.
  Link
10/13/2016
Vaco Technology Services
Advanced Network Solutions
Outsourcing
Vaco Technology Services provides help desk support and IT management services.
  Link
10/13/2016
Bluetube
Perficient (Nasdaq: PRFT)
Consulting
Bluetube provides digital transformation consulting services with expertise in enterprise mobile apps.
  Link
10/13/2016
Triad Retail Media
WPP (LSE: WPP)
Digital
Triad Retail Media creates, manages, and operates digital retail media programs for retailers, brand advertisers, and shoppers on Websites, mobile devices, and in-store TVs.
  Link
10/17/2016
ProKarma
The Carlyle Group (Nasdaq: CG)
Integration
ProKarma provides IT solutions in the United States and internationally.
  Link
10/17/2016
Starpoint Solutions
Yoh Services
Consulting
Starpoint Solutions provides project, staffing, and career solutions and services.
  Link
10/19/2016
Triton Datacom
ADDvantage Technologies Group (Nasdaq: AEY)
Integration
Triton Datacom distributes new and refurbished Cisco networking products and equipment.
  Link
10/19/2016
GreyCastle Security
Assured Information Security
Security
GreyCastle Security provides cybersecurity services.
  Link
10/20/2016
Appirio
Wipro (BSE: 507685)
Consulting
Appirio provides a cloud services platform that offers enterprise crowdsourcing services.
  Link
10/21/2016
nfrastructure Technologies
Zones
Integration
Infrastructure Technologies helps enterprises design, build, and operate mission-critical technology infrastructure.
  Link
10/24/2016
Masergy Communications
Berkshire Partners
Integration
Masergy Communications owns and operates a cloud networking platform that delivers hybrid network, managed security, and cloud unified communication solutions to enterprises worldwide.
  Link
10/24/2016
Integrity Consulting Solutions
WeiserMazars
Consulting
Integrity Consulting Solutions provides management consulting and technology services to higher education, financial services, life sciences, federal, state, and local markets.
  Link
10/25/2016
FortyCloud
FireMon
Security
FortyCloud provides information security services to organizations, securing IT infrastructure located on top of the cloud.
  Link
10/26/2016
Amadeus Consulting Group
Exadel
SDO
Amadeus Consulting Group provides custom software development services.
  Link
10/26/2016
Accunet Solutions
Red River Computer Company
Integration
Accunet Solutions provides systems integration and IT consulting services.
  Link
10/27/2016
The BITS Group
Cognosante
Consulting
The BITS Group provides IT services and solutions to the US Department of Veterans Affairs and the US Department of Defense.
  Link
10/27/2016
Xtium
Evolve IP
Integration
Xtium provides disaster recovery, desktop as a service, managed cloud hosting, and managed online backup services.
  Link
10/31/2016
ComfortHost
Cloud Equity Group
Outsourcing
ComfortHost provides shared hosting services, SSD private virtual servers, and SSD dedicated servers in the United States and Europe.
  Link
11/01/2016
APG Technologies
Altamira Technologies
Consulting
APG Technologies provides software solutions, systems, and security engineering services to the US Government.
  Link
11/01/2016
Boulder Technology
Centerline Solutions
SDO
Boulder Technology provides Web, mobile, and desktop app development services, as well as software design services for startups and early-stage businesses.
  Link
11/02/2016
TeamSoft
Peoplelink
Staffing
TeamSoft provides IT staffing services in the United States.
  Link
11/02/2016
Contegix
Strattam Capital
Integration
Contegix provides cloud computing, colocation, and managed hosting solutions.
  Link
11/03/2016
Axis41
Merkle
Digital
Axis41, a digital marketing agency, provides services ranging from branding and campaigns to Web development and marketing automation.
  Link
11/04/2016
CenturyLink, Data Centers and Colocation Business
BC Partners; Medina Capital Advisors
Outsourcing
CenturyLink, Data Centers and Colocation Business comprises data centers.
  Link
11/04/2016
Easy Solutions
BC Partners; Medina Capital
Security
Easy Solutions is a security provider that focuses on the detection and prevention of electronic fraud across various devices, channels, and clouds.
  Link
11/04/2016
Collaborative Consulting
CGI Group (NYSE: GIB)
Consulting
Collaborative Consulting provides IT services through the use of strategy and technology.
  Link
11/07/2016
NodeServ
Cloud Equity Group
Outsourcing
NodeServ provides hosting services.
  Link
11/07/2016
Eagle Point Software Corporation, Autodesk Business
IMAGINiT Technologies
Integration
The Autodesk Business of Eagle Point Software comprises of Autodesk implementation, consulting and training services.
  Link
11/07/2016
Datalink (Nasdaq: DTLK)
Insight Enterprises (Nasdaq: NSIT)
Integration
Datalink provides data center services and solutions in the United States.
  Link
11/07/2016
Collabramind
NWN
Integration
Collabramind, a Cisco contact center specialist, is engaged in the planning, design, architecture, and implementation of routing, switching, security, and collaboration solutions.
  Link
11/07/2016
Cigital and Codiscope
Synopsys (Nasdaq: SNPS)
Security
Cigital and Codiscope provide software security managed and professional services, and complementary security tools.
  Link
11/08/2016
Staffing Robot
Advanced Medical Personnel Services
Staffing
Staffing Robot provides Website design, development, and marketing services for staffing and recruiting companies.
11/08/2016
Gridstone
Motorola Solutions (NYSE: MSI)
SDO
Gridstone specializes in developing cloud-based mobile applications.
  Link
11/09/2016
Machina Research
Gartner (NYSE: IT)
Consulting
Machina Research provides market intelligence and strategic insight on Internet of Things (IoT), Machine-to-Machine (M2M), and big data opportunities.
  Link
11/09/2016
Nashco Consulting
Accenture (NYSE: ACN)
Integration
Nashco Consulting, a Canada-based company, provides consulting, design, and implementation services for ServiceNow.
  Link
11/10/2016
Test Direct
QualiTest
Consulting
Test Direct provides IT testing and quality assurance services for private and public sectors in the United Kingdom.
  Link
11/10/2016
ServPartners
STONE Resource Group
Staffing
ServPartners provides network based staffing services.
  Link
11/10/2016
DayNine
Accenture (NYSE: ACN)
Integration
DayNine is a leading global Workday consulting and deployment services provider.
  Link
11/11/2016
Virtual Security Research
NCC Group (LSE: NCC)
Security
Virtual Security Research, provides information, network, and application security consulting services to clients mainly in the technology and financial services sectors.
  Link
11/11/2016
NSC Technologies
White Wolf Capital
Staffing
NSC Technologies provides staffing and workforce management solutions for marine, energy, commercial, logistics, and industrial marketplaces.
  Link
11/14/2016
Apptix
Fusion Telecommunications (Nasdaq: FSNN)
Integration
Apptix, a cloud services provider, offers hosted business communication, collaboration, and IT solutions to SOHO and Fortune 500 businesses.
  Link
11/14/2016
L4
Globant (NYSE: GLOB)
Digital
L4 provides digital products consulting, design, development, and quality assurance services.
  Link
11/14/2016
Integrio Technologies
Sysorex (Nasdaq: SYRX)
Integration
Integrio Technologies provides IT network integration and engineering solutions and services.
  Link
11/15/2016
Siege Technologies
Nehemiah Security
Security
Siege Technologies provides defensive cyber security solutions for private and government sectors in the United States.
  Link
11/15/2016
Ardent Support Technologies
Park Place Technologies
Integration
Ardent Support Technologies is a third-party support provider for data center hardware.
  Link
11/16/2016
Procopy Office Solutions
FlexPrint
Integration
Procopy Office Solutions offers document imaging products and solutions in Arizona.
  Link
11/16/2016
Two Shea Consulting
Revel Consulting
Staffing
Two Shea Consulting operates as a technology consulting, recruiting, and staffing company that serves business-to-business clients in the Bay Area.
  Link
11/17/2016
Nuspire Networks
ABRY Partners
Security
Nuspire Networks provides managed network security services to companies worldwide.
  Link
11/17/2016
BuzzShift
Ivie & Associates
Digital
BuzzShift operates as a digital strategy agency.
  Link
11/29/2016
Mirabeau
Cognizant (Nasdaq: CTSH)
Digital
Mirabeau operates as a digital marketing and customer experience agency that specializes in travel and hospitality, financial services, retail, and B2B sectors in the Netherlands and internationally.
  Link
11/29/2016
Distributed Systems Services
Contegix
Integration
Distributed Systems Services provides managed technology services.
  Link
11/29/2016
Praxis Information Science
Weidenhammer Systems
Consulting
Praxis Information Science develops e-commerce solutions.
  Link
11/29/2016
Karmarama
Accenture (NYSE: ACN)
Digital
Karmarama, an integrated advertising agency in the United Kingdom, provides CRM services; digital services, such as designing, building, and improving Websites; and content services, including TV production and content creation.
  Link
11/30/2016
Paramore
Osborn Barr
Digital
Paramore, a digital agency, develops Websites and digital media campaigns.
  Link
11/30/2016
Ntiva
Southfield Capital Partners
Outsourcing
Ntiva provides managed IT services for SMBs.
  Link
12/01/2016
Alsbridge
Information Services Group
Outsourcing
Alsbridge operates as a benchmarking, sourcing, and transformation advisory company for Fortune 500 companies.
  Link
12/01/2016
Marathon Consulting
Netsurit
Consulting
Marathon Consulting offers IT consultancy services including strategy, systems design, and ongoing support.
  Link
12/01/2016
LShift
Oliver Wyman
SDO
LShift provides software development and IT consulting services.
  Link
12/01/2016
ThinkASG
Sirius Computer Solutions
Consulting
ThinkASG provides IT services, specializing in IBM-based infrastructure.
  Link
12/02/2016
Delex Fairfax Integrated Security Systems
AllCom Global Services
Security
Delex Fairfax Integrated Security Services provides IT security and electronic security integration services.
  Link
12/02/2016
Continuum
LSC Communications (NYSE: LKSD)
Integration
Continuum provides print management solutions.
  Link
12/05/2016
The Stamford Group
Allegis Group
Staffing
The Stamford Group, a recruitment agency, provides sourcing solutions.
  Link
12/05/2016
WP Curve
GoDaddy (NYSE: GDDY)
Integration
WP Curve provides WordPress support services to customers in the United States and internationally.
  Link
12/06/2016
Optiv Security
KKR
Security
Optiv Security provides cyber security solutions to plan, build, and run security programs.
  Link
12/06/2016
DreamJobs
Yoh Services
Staffing
DreamJobs designs and implements sourcing strategies, recruiting systems, processes, and methodologies to help customers recruit and hire talent.
  Link
12/07/2016
Thrive Networks
M/C Partners
Outsourcing
Thrive Networks provides outsourced IT services for small and midsize businesses in the greater Boston area.
  Link
12/07/2016
Atidan
Razor Technology
Consulting
Atidan provides collaborative, portal, information management, search and retrieval, business intelligence, security, and cloud services.
  Link
12/07/2016
Guidant Partners
TekLinks
Integration
Guidant Partners provides managed IT infrastructure services to mid-market clients in the United States.
  Link
12/07/2016
Pivot Point Consulting and Greythorn
Vaco Healthcare
Consulting
Pivot Point Consulting and Greythorn provide electronic health record implementation, training, optimization, project management and strategic advisory services.
  Link
12/08/2016
All In Media
DTS
Digital
All In Media develops and supplies smartphone apps and broadcast systems for the broadcasting industry worldwide.
  Link
12/08/2016
Corporate IT Solutions
M/C Partners
Integration
Corporate IT Solutions provides planning, designing, integrating, operating, and optimizing networking and system solutions.
  Link
12/08/2016
Sentient Interactive
W2O Group
Digital
Sentient Interactive provides digital marketing services.
  Link
12/12/2016
Keystroke Creative
MapAnything
Consulting
Keystroke Creative provides technology and software consulting to the small and medium sized business market.
  Link
12/12/2016
Dattatec.com
Web.com (Nasdaq: WEB)
Outsourcing
Dattatec.com provides web hosting, cloud servers, dedicated servers, email marketing, and domains services in Latin America.
  Link
12/13/2016
Admo.net
Contegix
Integration
Admo.net provides cloud and managed services.
  Link
12/14/2016
Prolific Interactive
Omnicom Group (NYSE: OMC)
Digital
Prolific Interactive provides mobile strategy, design, and engineering services.
  Link
12/14/2016
Mokriya
Nagarro
Digital
Mokriya develops enterprise mobile applications and software solutions for mobile and IoT.
  Link
12/14/2016
e2x
OLR
Consulting
e2x engages in the deployment, modification, and platform optimization of Oracle eCommerce solutions.
  Link
12/14/2016
Logicworks
Pamplona Capital Management
Integration
Logicworks provides managed hosting and cloud computing services leveraging Amazon Web Services.
  Link
12/15/2016
Annik
LiquidHub
Consulting
Annik, a data and analytics solutions company, helps businesses to leverage their data assets.
  Link
12/15/2016
Code Computer Love
WPP (LSE: WPP)
Digital
Code Computer Love operates as a digital marketing and communications agency in the United Kingdom.
  Link
12/16/2016
Adaptra
Cognizant (Nasdaq: CTSH)
Consulting
Adaptra provides consulting, business transformation and IT services in Australia.
  Link
12/16/2016
BMC Group
Randstad (ENXTAM: RAND)
Staffing
BMC Group provides consultancy and management solutions.
  Link
12/19/2016
Edaptive Systems
ManTech (Nasdaq: MANT)
Consulting
Edaptive Systems provides IT solutions primarily to federal health agencies.
  Link
12/19/2016
Arismore
Accenture (NYSE: ACN)
Security
Arismore provides enterprise architecture and information systems security solutions to companies and governments in France.
  Link
12/20/2016
Sonoma Consulting
Halo Group
Consulting
Sonoma Consulting operates as an IT consulting and executive search company.
  Link
12/20/2016
Digital Operative
transcosmos
Digital
Digital Operative operates as digital marketing agency.
  Link
12/21/2016
Veris Group
Coalfire Systems
Security
Veris Group provides cybersecurity services for large public and private organizations in the United States.
  Link
12/23/2016
WDEV
Ebix (Nasdaq: EBIX)
Integration
WDEV provides IT consulting services for the insurance market in Brazil.
  Link

 
Cherry Tree 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.
 
Led by IT industry veterans, our team will work with you to evaluate your company's strategic alternatives and determine how trends in IT services affect your prospects.

Prepared by: Elmer Baldwin, Managing Director, ebaldwin@cherrytree.com , 952.253.6001
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 IT Services Performance Index is a hypothetical index, and does not reflect an actual investment portfolio. Comparisons between the IT Services Index and other indices are for illustrative purposes only. Correlations in performance information for the IT Services 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 IT Performance Services Index. Past performance should not be relied upon as indicative of future performance.

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