Cherry Tree & Associates | June 2020

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 Q2 2020 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 – June 2020

Orion Acquires Zodiac Systems Orion Innovation, a global business and technology services firm that provides digital transformation and product development services, announced the acquisition of Zodiac Systems ("Zodiac"), a video service delivery software company. Read more martechseries.com AE Industrial Partners Acquires NuWave Solutions AE Industrial Partners announced that it has acquired a majority interest in NuWave Solutions. NuWave will be a new standalone platform for AEI as the firm expands its Defense & Government Services reach into the advanced analytics and AI domains. Read more intelligencecommunitynews.com GI Partners Acquires Majority Stake in Blue Stream Fiber GI Partners in partnership with the company's CEO, Joe Canavan, has acquired a majority stake in Blue Stream Fiber, which provides gigabit-speed broadband, as well as video and voice services to residential and commercial customers. Read more www.capacitymedia.com Cboe Global Markets Acquires Trade Alert Cboe Global Markets, Inc, one of the world's largest exchange holding companies, announced it has acquired the business of Trade Alert, LLC, a real-time alerts and order flow analysis service provider based in New York. Read more www.tradersmagazine.com

ServiceNow Acquires Sweagle ServiceNow has acquired Sweagle, a provider of a repository for collecting configuration data that makes it easier to manage IT environments at scale. Sweagle complements a DevOps initiative ServiceNow launched late last year. Read more devops.com Zip Co to Acquire QuadPay Zip Co to acquire "Buy Now, Pay Later" provider QuadPay. The acquisition implies an enterprise value of approximately $269M for QuadPay. The deal is set to give Zip access to the world’s largest retail market. Read more financefeeds.com VMware Acquires Network Security Firm Lastline VMware is acquiring network security firm Lastline. Lastline provides threat detection services mostly focused on the network level, but they range from malware analysis to intrusion detection and network traffic analysis. Read more techcrunch.com Mastercard to Acquire Data Provider Finicity Mastercard is set to acquire Finicity, the provider of real-time access to financial data, for $825M. The addition of Finicity’s technology will strengthen Mastercard's open banking platform to allow and safeguard more financial services choices. Read more www.pymnts.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 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.