Cherry Tree & Associates | December 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 a research report which are available for download:

View the Q4 2018 TEBS Quarterly Update

View the TEBS Research Report

Cherry Tree has more than 15 years of experience working with businesses in the TEBS space. 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 – December 2018

HiGro Group Portfolio Company DRS Imaging acquires docuLynx The HiGro Group LLC, through its portfolio company DRS Imaging Services, LLC, has acquired a majority of the assets of docuLynx Inc., a leading provider of Document Management Software and Services. Read more www.marketwatch.com Cherry Tree & Associates served as exclusive investment banking advisor to docuLynx in the transaction. SPS Commerce Acquires CovalentWorks SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail cloud services, today announced the acquisition of CovalentWorks, a provider of cloud-based ... Read more globenewswire.com DataBank Acquires LightBound LightBound was established in 1994 as one of Indiana's first Internet service providers, and gradually expanded into colocation, voice, connectivity and cloud services, with two data centers - codenamed Capital and Pillar - opened in 2003 and... Read more www.datacenterdynamics.com Equifax® Canada Acquires JLR Inc. "This is a strong fit for Equifax Canada and reinforces our strategic focus on delivering innovative products and solutions to the Canadian mortgage industry," said Lisa Nelson, president of Equifax Canada. Equifax Canada provides comprehensive... Read more www.digitaljournal.com

MINDBODY to Be Acquired by Vista Equity Partners MINDBODY has entered into a definitive billion-dollar agreement to be acquired by private equity firm Vista Equity Partners, San Francisco, the companies announced Dec. 24 . Read more www.clubindustry.com LendingTree, Inc. to Acquire ValuePenguin LendingTree, Inc. (NASDAQ: TREE) announced today that it has entered into a definitive agreement to acquire Value Holding Inc., the parent company of ValuePenguin.com Read more www.prnewswire.com Windstream/Arvig Fiber Deals Valued at $60 Million Windstream divested or will divest more than $60 million in assets through an agreement to sell some of its dark fiber to Minnesota-based rural telecom provider Arvig Enterprises. The Windstream Arvig deal will include two transactions. In the... Read more www.telecompetitor.com Ascensus Expands Pacific Northwest Footprint Ascensus, whose technology and expertise helps millions of people save for retirement, education, and healthcare, has entered into an agreement to acquire Moran Knobel. Read more www.prnewswire.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.