Cherry Tree & Associates | May 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 Q1 2018 TEBS Quarterly Update

Download the 2018 Annual 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 – May 2018

Recruit Holdings acquires Glassdoor for $1.2 billion The job-hunting website Glassdoor has been bought for $1.2 billion in what is one of the largest U.S. tech acquisitions of 2018. Recruit Holdings, a large Japanese human resources company that owns other job sites like Indeed, spent ten figures... Read more www.recode.net KKR Buys Bain's BMC in Deal Said to Be Worth $8.3 Billion KKR & Co. agreed to acquire BMC Software Inc. in a deal that valued the information technology management provider at about $8.3 billion including debt, according to a person familiar with the matter... Read more www.bloomberg.com Roper Technologies (ROP) Set to Acquire PowerPlan for $1.1B Roper Technologies ROP recently announced that it has entered into a definitive agreement to acquire PowerPlan - a major provider of software and solutions from private equity firm, Thoma Bravo. This $1.1 billion all-cash deal is expected to... Read more finance.yahoo.com Deluxe Acquires LogoMix in $43M Deal Deluxe, a service provider aimed at small businesses and financial institutions, is expanding its ability to provide logo designs and other small business branding and marketing services through the purchase of LogoMix. The $43 million... Read more tcbmag.com

Adobe to acquire Magento for $1.68B Adobe announced today that it was acquiring Magento for $1.68 billion. The purchase gives Adobe a missing e-commerce platform piece that works in B2B and B2C contexts and should fit nicely in the company's Experience Cloud. Read more techcrunch.com PayPal confirms that it is buying payments startup... PayPal is taking its biggest bet yet on point-of-sale transactions, small businesses and markets outside of the U.S. as it looks to raise its game against Square, Stripe and others in the world of payments: The company has confirmed that it is... Read more techcrunch.com Iron Mountain Enters Amsterdam Data Center Market With... Boston-based storage and information management services company Iron Mountain this week announced acquisition of the EvoSwitch Neverlands data center business for $235 million. The deal gives it a presence in Metropolitan Region Amsterdam (MRA), ... Read more www.datacenterknowledge.com Intercontinental Exchange Acquires TMC Bonds, Bolstering ... Intercontinental Exchange has made its latest splash in the mergers and acquisition space. The global operator of exchanges and clearing houses has entered into an agreement to acquire TMC Bonds LLC for a sum of $685 million in cash... Read more www.financemagnates.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.