Signal Hill

Signal Hill Sector Update: IT Security 2012

STRONG 2011 SUGGESTS MORE GAINS AHEAD
Security M&A transaction volumes grew each quarter of 2011, ultimately ending Q4 with a solid $1.8 billion in enterprise value and a record 35 announced deals. For the full year 2011, median deal value/trailing revenue multiples rose to 3.8x, the highest since 2007. Dollar volumes also reached their highest point since 2007, excluding an unusually strong 2010 driven by the Intel-McAfee transaction, the largest sector acquisition ever. Although public share prices in the sector declined 10% last year, an improving IPO environment and forecasts of rising growth in sector spending suggest better price performance in 2012. Recent IPOs include AVG (consumer anti-malware) and Imperva (data security), while recent S-1 filings include Avast Technologies (consumer antimalware), Infoblox (network control) and Splunk (log management). Marquee 2011 deals included: Thoma Bravos $917 million acquisition of public company Blue Coat Systems (traffic security and management), for 2.0x trailing revenue, a 51% premium over the 30-day trading price; IBMs $575 million acquisition of Q1 Labs (SIEM and vulnerability management) for 8.8x trailing revenue; Dells $612 million acquisition of SecureWorks (managed security) for 5.1x trailing revenue.
Figure 1:ITSecurityDealVolume,2011 $2,000 $1,800 $1,600 $1,400 2011 Security Deal Volume ($mm) 2011 # Security Deals

Don More Managing Director (917) 621-3664 dmore@signalhill.com

40 35 30 25

$1,200 $1,000 $800 $600 1Q11 2Q11 3Q11 4Q11 20 15 10

Source:SignalHill Figure 2:ITSecurityM&AData,byQuarter,Q42010-Q42011(includesGRC) Source:SignalHill Totalnumberofdeals Percentchangeoverprioryear Totalannouncedenterprisevalue($M) Percentchangeoverprioryear MedianDealSize Percentchangeoverprioryear MedianEV/TTMRevenueMultiple Percentchangeoverprioryear Q4 2010 Q1 2011 29 19 $837.1 $64.0 1.9x -34.5% $687.1 -17.9% $30.1 -52.9% 5.1x 168.4% Q2 2011 Q3 2011 Q4 2011 31 26 35 63.2% $907.5 32.1% $29.3 -2.9% 3.8x -25.5% -16.1% 34.6% $989.6 $1,775.5 9.0% $20.0 -31.7% 2.4x -36.8% 79.4% $19.8 -1.3% 4.1x 70.8%

Figure 3:ITSecurityM&AData,2008-2011(includesGRC) Source:SignalHill Totalnumberofdeals Percentchangeoverprioryear Totalannouncedenterprisevalue($M) Percentchangeoverprioryear MedianDealSize Percentchangeoverprioryear MedianEV/TTMRevenueMultiple Percentchangeoverprioryear 2008 70 $3,976 $25.0 2.1x 2009 81 15.7% $3,220 -19.0% $35.0 40.0% 3.0x 42.9% 2010 112 38.3% $16,902 425.0% $70.0 100.0% 2.4x -20.0% 2011 111 -0.9% $4,360 -74.2% $21.0 -70.0% 3.8x 58.3%

IN THIS ISSUE: IT Security Sector Update 2012 2 3 Non-Security Buyers Drive Sector M&AActivity Largest ITSecurity Transactions 4 5 Major ITSecurity Growth Drivers and Beneficiaries ITSecurity Subsector Analysis 10 About Signal Hill

IT Security Sector Update 2012

www.signalhill.com

IT Security Sector Update

2012

Non-Security Buyers Drive Sector M&A Activity

Public non-security IT buyers (e.g. Cisco, IBM, Oracle) continually shape sector M&A, representing 71% of security transaction volume since 2008, and are buyers in every six of 10 deals. Most mega acquisitions are led by non-security buyers e.g. EMC-RSA, HP-Arcsight, Intel-McAfee. Such activity reflects, and creates, the reality that security is an essential ingredient to selling core IT products. Security buyers (e.g. Check Point, Sophos,Sourcefire) consummate many acquisitions as well, but they tend to be smaller and constitute less than 20% of sector deal volume. While financial buyers constitute only 10% of sector deal volume, their influence and typical deal size are growing.
Figure 4:ITSecurityM&AbyBuyerTypeSince2008

Dollar Deal Volume

Number of Deals

Source:SignalHill

We expect large non-security IT buyer activity to rise as a percentage of total deals in 2012-13. More than ever, IT vendors seek opportunities to differentiate, diversify and sell more core products - and view security as a way to achieve these goals. Security also enhances growth: research from IDC and others show that security spending consistently grows at 2-3x the rate of overall IT spending. In recognition of this, HP, IBM, RSA/EMC and Dell recently announced plans to reorganize and expand their security divisions, building upon recent platform purchases. In 2011, IBM also represented three of the 10 largest sector acquisitions. Our checks suggest those gearing up to augment their sector presence include Cisco, Juniper, Microsoft and Oracle, among others, as well as large defense contractors and IT services firms. To stay competitive, pure-play security companies will remain prolific acquirers of mostly smaller targets that fill technology gaps or add adjacencies. With the exception of Symantec and McAfee (now part of Intel), acquisitions by security vendors are 2.5x and 4.5x smaller on average than those by non-security and financial buyers, respectively. Large deals are unusual for security pure-plays as they find it difficult to justify the cost and risk of entering segments outside their specialty. Larger acquisitions by pure-plays typically occur in the context of market consolidation, e.g. L-1 Identity Solutions roll-up of biometrics firms and the Websense-SurfControl (Signal Hill represented SurfControl) web/email filtering merger. We see financial buyers potentially driving the biggest change to the security landscape in 2012-13 as they become more active and visible. Thoma Bravo has been the most notable example, completing three going-private acquistions (Entrust, SonicWALL, Blue Coat) and one post S-1 filing acquisition (Tripwire) in security over the past two years. Our discussions with PE firms indicate more have plans to invest in divestitures, going-privates and roll-ups this year. Their goal is to fix and consolidate middling players and create newly IPOable companies.

Signal Hill

Figure 5:ITSecurityLargestM&ATransactionsbyEnterpriseValue,2011 Source:SignalHill Date Announced 08-Dec-11 Enterprise Value ($M) $916.7 EV/TTM Revenue Multiple 2.0x

Seller Buyer BlueCoat ThomaBravoLLC/ Systems,Inc. InvestorGroup

Description ProvidesWANandWebtrafficmanagementappliancesandsoftware. BlueCoathardwareandsoftwareprovidefeaturesforWebcontent filtering,anti-dataleakage,anti-malwareandapplicationandnetwork performancemanagement. ProviderofSecurity-as-a-Servicesolutionsthatincludemanagedsecurityservices,securityandriskconsultingandthreatintelligence. Providessecurityinformationandeventmanagement(SIEM) softwarethatincludesfeaturesforriskandlogmanagement,network activityandapplicationmonitoringanduseractivitymonitoring. Providesmaster-datamanagementandanalysissoftwarethat enablesintelligenceorganizationsandbusinessesgloballyto preventcriminalterroristactivities. Providese-discoverysoftwareforthepurposesofGRCmanagement forbusinesses,governmentagenciesandlawfirmsthatprovides featuresforlegalholdautomation,datacollectionandanalysisand reporting. Providesriskanalyticssoftware,contentandadvisoryservicesthat areusedbybanks,investmentandinsurancebusinessestohelp assessrisk,addressregulatoryrequirementsandmakemore insightfulbusinessdecisions. Providesenterprisefile-integritymonitoringsoftwarethatdetects changesinsecuritypoliciesforcompliancepurposesforbusinesses globally. Providesunifiedthreatmanagement(UTM)securitygateway hardwareandsoftwareforbusinesses,educationalinstitutionsand governmentagenciesglobally.Alsoprovidesmanagedemailstorage services. Providesenterprisenetworksecurityinformationandevent management(SIEM),securitylogmanagement,intrusionprevention andanti-dataleakagesystemsandsoftware. ASaaSproviderofemailarchiving,complianceandhosting.By hostingemailarchiveswithLiveOffice,customerscanmigratefrom theircurrentprovidertoacloudproviderwithouthavingtodealwith thepossibilityoflosingsensitiveinformation.

04-Jan-11 04-Oct-11

SecureWorks, Dell,Inc. Inc. Q1Labs IBMCorporation

$612.0 $575.0

5.1x 8.8x

31-Aug-11

i2Inc.

IBMCorporation

$500.0

5.9x

19-May-11

Clearwell Systems,Inc.

Symantec Corporation

$390.0

7.0x

1-Sep-11

Algorithmics

IBMCorporation

$387.0

2.4x

5-May-11

TripwireInc.

ThomaBravoLLC

$225.0

2.6x

6-May-11

AstaroGmbH SophosPlc &Co.KG

$170.0

3.8x

4-Oct-11

NitroSecurity

McAfee/Intel

$160.0

4.0x

16-Jan-12

LiveOfficeLLC Symantec

$115.0

NA

IT Security Sector Update

2012

Major ITSecurity Growth Drivers and Beneficiaries

We believe that sector demand growth will increase in 2012-13. Primary drivers include: Broadening threat vectors resulting from movement of computing to collaborative, cloud and mobile usage models. This requires security technologies and approaches adapted to open, remote and dynamic IT infrastructures. The oft-used phrase today BYOD bring your own device refers to the challenges of managing heterogeneous mobile device security in the workplace. Mal-doers have gained in capabilities, and consequently, security measures in place are becoming insufficient. In 2011, 25% of companies reported five or more data breaches, according to a survey by Ponemon Institute. Symantec found in a recent study that cyber attacks rose 400% in 2011. APT, or advanced persistent threats, relates to newgeneration malware, often deployed by criminal gangs or hostile state actors, to steal money or intelligence online. Slow adaptation by consumers and organizations to the new security challenges. As an example, more than threequarters of small-to-mid-sized U.S. businesses have no formal internet security policy, even though most have experienced breaches, according to a 2011 Zogby poll. This highlights the growing security gap, i.e. the rising vulnerability of people, data and IT assets that will require more and smarter security investment. These drivers suggest the rate of sector spending growth will rise over time. Greater demand will be supported by an improving economic environment, loosened budgetary restrictions (often in place since the financial downturn of 2008), and rising pain associated with frequent breaches. Areas benefitting most from sector spending growth fulfill at least one of the following criteria: Address security challenges associated with mobile, collaboration/social media and the cloud; Add a management and intelligence layer to security products, e.g. security event and risk managers; Simplify security and reduce costs by combining functionality into suites, UTM appliances or managed services; Serve emerging markets, where IT demand growth is highest and security investment to date is lowest.
Figure 6:SelectHighGrowthSecurityDemandAreas

Source:IDC,Gartnerandotherpublicdata

Signal Hill

ITSecurity Subsector Analysis

Governance, Risk & Compliance (GRC): Regulation sprawl continues, with 13 cyber-security bills introduced in the U.S. Congress alone in 2011. This is pushing demand for compliance analytics and automation platforms to support continuous risk monitoring and management. Consequently, GRC players will see higher levels of investment and deal activity in 2012-13. Already this year, SAI Global acquired Compliance 360 (a Signal Hill client), a SaaS GRC platform. GRC-related deals of note in 2011 included IBMs $387 million acquisition Algorithmics, a performance and risk analytics firm; Infors acquisition of Approva (a Signal Hill client) to control and audit access to sensitive applications; and Symantecs purchase of e-discovery software vendor Clearwell.
Figure 7:SelectGRCM&ATransactions,2011 Source:SignalHill Date Announced 23-Dec-11 Enterprise Value ($M) $5.1 EV/TTM Revenue Multiple 4.3x

Seller Proquis Limited

Buyer ideagenplc

Description Providesregulatorycompliancemanagementsoftware,withfeatures fordocumentmanagement,auditing,equipmentcontrol,supplier controlandanalysis. DevelopsworkplacecompliancemanagementSaaStoenable enterprisestocommunicateandeducateemployeesonregulations, track-training,andreportactionsinordertomaintaincompliance withSarbanesOxleylegislation. ProviderofGRCanddocumentmanagementsoftwareasaservice forSMEsandnonprofitorganizationsthatcentralizesboarddocuments, collaborationtoolsandmandatedandregulatedserviceswith respecttocorporategovernanceactivities. Providescontinuouscontrolsmonitoringsoftwareforthepurposesof governance,riskandcompliance(GRC)managementinarangeof sectors. Providesriskanalyticssoftware,contentandadvisoryservicesthat areusedbybanks,investmentandinsurancebusinessestohelp assessrisk,addressregulatoryrequirementsandmakemore insightfulbusinessdecisions. Providesmaster-datamanagementandanalysissoftwarethat enablesintelligenceorganizationsandbusinessesgloballyto preventcriminalterroristactivities. Providese-discoverysoftwareforthepurposesofGRCmanagement forbusinesses,governmentagenciesandlawfirmsthatprovides featuresforlegalholdautomation,datacollectionandanalysisand reporting.

7-Nov-11

Interactive IDOXplc DialoguesNV

$3.0

0.9x

26-Oct-11

Boardsuite Corp.

AumentoCapitalII Corporation

$15.4

30.0x

7-Sep-11

Approva Corporation Algorithmics

Infor/Lawson SoftwareAmericas, Inc. IBMCorporation

NA

1-Sep-11

$387.0

2.4x

31-Aug-11

i2Inc.

IBMCorporation

$500.0

5.9x

19-May-11

Clearwell Systems,Inc.

Symantec Corporation

$390.0

7.0x

IT Security Sector Update

2012

Mobile Security: Rapidly proliferating use of smart pads/phones with dual-purpose use in business and the home is creating intense interest around mobile management solutions, particularly those relating to security. Gartner has projected worldwide mobile application store revenue to be several billion dollars in 2011. Accompanying mobile usage growth, IDC predicts mobile security spending to increase from $407 million in 2010 to $1.9 billion in 2015. While mobile security M&A deals to date have been small, most investment in the segment is occurring in-house at larger vendors and also through early-stage venture funding. We believe the velocity of change in the segment will drive several break-out mobility transactions in 2012-13. In fact, in March 2012, Symantec announced the acquisition of mobile security manager Odyssey Software, at an estimated doubled-digit revenue multiple.
Figure 8:SelectMobileSecurityM&ATransactions,2011 Source:SignalHill Date Announced 20-Dec-11 Enterprise Value ($M) EV/TTM Revenue Multiple NA

28-Nov-11

Seller Buyer SRAIntl/ KoolSpan,Inc. SecureMobile Applications Suite Whisper Twitter,Inc. Systems Smart ExclaimMobility, Solutions,Inc. Inc. Inquisitive MindsInc. ITAgents HTCCorporation

NA

Description TheOneVaultVoiceandOneVaultMessengerproductsfromSRA, whicharemobilevoiceandSMStextmessagedatasecurity softwareapplicationsforuseonAndroidandBlackBerrysmart phones. DevelopsRedPhone,whichcreatesencryptedphonecallssonoone canlistenintousers'conversation,andTextSecure,aservicethat alsoencryptsusers'textmessages. DeveloperofSmrtGuard,asmartphoneapplicationthatprovides featuresforanti-malwareandanti-virus,onlinedatabackup, applicationprivilegescontrol,andGPS-baseddevicelocation. DeveloperofZoodles,akids-friendlybrowserdesignedtogive childrenasafeandeducationalbrowsingenvironmentforWindows, Mac,iOSandAndroid. DeveloperofAndroidandSymbiansmartphoneanti-theftsoftware thatenablesbusinessandconsumerstolocatestolenphonevia GSMandGPSsignalsanddata. Providesoperatorswithwhite-labelapplicationsthatsubscriberscan usetoreportSMSspam,checkthevalidityofadownloadedapp, andbenotifiedsecurelybytheirmobilenetworkoperatoriftheir handsetisdetectedtobecompromised. Developsanddistributesmanagementandsecuritysoftwarefor smartphonesandmobiledevices Developerofmobileenterprisesecuritysoftwareandsolutionsand mobiledevicemanagementproductsfortheAndroidoperating system.

28-Oct-11

NA

18-Oct-11

$13.0

NA

22-Sep-11

AVASTSoftware a.s. AdaptiveMobile

NA

22-Jun-11

Sentry Wireless

NA

02-May-11 14-Feb-11

UbitexxGmbh ResearchinMotion Limited ThreeLaws Mobility,Inc. (3LM) MotorolaMobility Holdings,Inc.

$6.0 -

6.7x NA

Signal Hill

Identity and Access Management (IAM): Authentication, authorization and provisioning are critical to effective security and compliance, and fundamental to all forms of web and network interactions. Segment spending is predicted to grow from $3.9 billion in 2010 to $6.2 billion in 2015, according to IDC. IAM is becoming even more important given growth in online banking, movement of IT to the cloud and incorporation of social media into the enterprise. Deals of note in 2011 included the acquisition of password management vendor e-DMZ (a Signal Hill client) by Quest Software, and the acquisition of Nordic Edge ABby Intel Corporation.
Figure 9:SelectIAMM&ATransactions,2011 Source:SignalHill Date Announced 18-Jan-11 Enterprise Value ($M) $39.3 EV/TTM Revenue Multiple 7.1x

Seller NordicEdge AB

Buyer IntelCorporation

Description Providesidentityandaccessmanagementsolutions.

27-Apr-11

IdenTrust,Inc. PolarisSoftware LabLtd.

$23.5

2.8x

17-Nov-11 8-Sep-11

Avenda Systems Identity Networks

ArubaNetworks, Inc. MeruNetworks, Inc.

$20.0 -

NA NA

ProviderofdigitalidentityauthenticationsolutionsincludingPLOT,a rulesetforidentityauthenticationthatensuresidentitiesareissued, validated,andutilizedinastandardizedwayinsideandoutsidea financialinstitution. Providesnetworkaccesssolutionsforuserandendpoint authenticationandpostureassessment. Developerofsecureguestanddeviceaccessmanagementsolutions thatprovidesecure,policybased,wiredandwirelessnetwork accessforguestsandemployeesthatbringtheirowndevicesinto theenterprise. Providesbiometricfingerprintidentificationsoftwareand sensor-basedsystems. Developsvirtualdirectoryandidentitymanagementsoftwaresolutions forenterprise,telecommunication/carrier,andfinancialclients. TheTotalPrivilegeAccessManagement(TPAM)Suitefrome-DMZ incorporatesprivilegedpasswordmanagement,applicationpassword management,privilegedsessionmanagement,andprivileged commandmanagement. Developerofcloud-basedstorageservicesincludingtheKeepVault securebackupserviceandKeepSyncsoftwarewhichsynchronizes ausersidentityacrossmultipledevices.

15-Aug-11

S.I.C. Bio-Key BiometricsInc. International,Inc. SymlabsInc. e-DMZ Security,LLC QuestSoftwareInc. QuestSoftware, Inc.

NA

06-Jun-11 14-Feb-11

NA NA

09-Jan-12

Proxure,Inc.

Authentec

NA

IT Security Sector Update

2012

Cloud Security: Security concerns are often cited by surveys as the primary obstacle to faster adoption of cloud-based computing. Most often, the safety of cloud data storage and of multi-tenant hosted environments are questioned. In addition, security vendors seek to deliver their own solutions over the cloud for greater flexibility at a lower cost. IDC estimates that cloud security spending will increase from $1.2 billion in 2010 to $4.3 billion by 2015, a 30% CAGR. Notable cloud-related security deals in 2011 include Salesforce.coms acquisition of cloud encryption vendor Navajo Systems; VMwares purchase of NeoAccel and McAfees acquisition of Sentrigo.
Figure 10:SelectCloudSecurityM&ATransactions,2011 Source:SignalHill Date Announced 01-Dec-11 Enterprise Value ($M) EV/TTM Revenue Multiple NA

Seller Buyer Bsecure AVGTechnologies Technologies, Inc. SecureInfo Corporation KratosDefense& SecuritySolutions, Inc.

Description Providerofcloud-basedinternetfilteringandparentalcontrol softwareforuseonWindowsandMacintoshpersonalcomputers. Acybersecurityfirmthatoffersstrategicadvisory,operationalcybersecurityandcybersecurityriskmanagementservicesandisa recognizedleaderintherapidlyevolvingfieldsofCloudSecurity, ContinuousMonitoringandCyberSecurityTraining. Providerofcloud-basedcomplianceautomationsoftwarethat providescompanieswithaseriesofcompliancetoolstoassistin managingtheirdisclosure,tracking,surveillanceandreporting needs,andmoreefficientlymanageemployeecompliance. Acloudbasedenergyperformancemanagementandenergy consolidationproductthatenablesorganizationstocaptureand analyzeenergyusagedataforthepurposesofcompliancewith carbonfootprintregulationsandcostcontainment. Providesencryptiongatewaysystemsforuseinsecuringdatastored inSaaSandcloudcomputingenvironments. Developeroftechnologythatallowsfullapplicationlevelsecurityin cloudenvironmentsbyprotectingapplicationsfromoutsiderand administratorattacks. AnITservicescompanythatprovidessecurecloudsolutionsto theU.S.governmentintheareasofcloudcomputing,network consolidationandvirtualization,dataanalyticsandcybersecurity. Developscloud- ased,personalsecurityproductsthathelppeople b protecttheirprivacyandidentity. Offersasuiteofdatabasesecuritytechnologiesincludingvulnerability management,databaseactivitymonitoring,databaseaudit,and virtualpatchingensuringdatabasesareprotectedwithout impactingperformanceoravailability. Providerofsecuritysolutionsforcloudcomputing.Thecompanyis bestknownforitsSSLVPN-PlusproductandrelatedICAA&TSSL technology.

15-Nov-11

$19.5

NA

28-Oct-11

Compliance11, TheCharles Inc. Schwab Corporation ENXSuite InforGlobal Solutions

NA

19-Oct-11

NA

26-Aug-11 23-Aug-11

Navajo Systems Comsecware

salesforce.com AFORESolutions, Inc. TASC,Inc.

NA NA

03-Jun-11

TexelTek

NA

18-May-11 23-Mar-11

SafetyWeb Sentrigo,Inc.

ExperianPlc McAfee

NA NA

14-Jan-11

NeoAccelInc. VMware,Inc.

NA

Social Networking Security: The rising danger of malware and identity theft in social media has placed social security in the spotlight. Signal Hill tracked its first four social media security deals in the space recently (Dasient/Twitter, Whisper Systems/Twitter, Unsubscribe.com/TrustedID, and Garlik/Experian), and over the past year, a number of internet security companies began marketing suites of products designed to protect social media users. Social media is expected to become a much bigger part of enterprise operations, according to Gartner, with social networking services acting as the primary means of interpersonal communications in 20% of businesses by 2014. As social media continues to grow at a torrid pace and expands within the business world, more investment will be required in social security.

Signal Hill

SIEM: Security information and event management (SIEM) hit the spotlight this past year as IBM and Intels McAfee simultaneously announced acquisitions of Q1 Labs and Nitrosecurity, respectively. SIEM, and its adjacencies log management, configuration management and GRC, are important to IT infrastructure vendors as they add the ability to intelligently analyze large volumes of event data regarding internal/external security and compliance threats to larger organizations. SIEM is part of the big data investment trend witnessed since at least the beginning of 2011, whereby organizations seek to do more with large volumes of information. CA, Juniper, Oracle and SAP are among big IT vendors that have been rumored to be seeking SIEM targets.
Figure 11:SelectSIEMM&ATransactions,2011 Source:SignalHill Date Announced 12-Jun-11 Enterprise Value ($M) $612.0 EV/TTM Revenue Multiple 5.1x

Seller Buyer SecureWorks, Dell Inc. Q1Labs IBMCorporation

Description ProviderofSecurity-as-a-ServicesolutionsincludeManagedSecurityServices,SecurityandRiskConsultingServicesandThreat Intelligence. Developerofsoftwarethatcollectsandanalyzesinformationfrom hundredsofsourcesacrossanorganization.Itssecurityinformation andeventmanagement(SIEM)softwarealsohelpsITstaffand auditorsmanagethetrackingofsecurityincidentsandmodelrisk. Providesenterprisefile-integritymonitoringsoftwarethatdetects changesinsecuritypoliciesforcompliancepurposesforbusinesses globally. Providerofsecurityinformationandeventmanagement(SIEM) softwarethatprovidecompletevisibilityandsituationalawarenessto protectcriticalinformationandinfrastructure. Providesenterprisesecurityinformation,eventandlogmanagement softwareforbusinesses.Alsoprovidesrelatedeventmanagement analysisandUSBdriveendpointsecuritysoftware.

4-Oct-11

$575.0

8.8x

11-May-11

TripwireInc.

ThomaBravoLLC

$225.0

2.6x

4-Oct-11

NitroSecurity

Intel/McAfee

$160.0

4.0x

23-Jun-11

TriGeo Network Security,Inc.

SolarWinds,Inc.

$35.0

3.9x

IT Security Sector Update

2012

About Signal Hill

Signal Hill is a privately-held investment banking partnership with a sole focus on growth companies. Our professionals have deep expertise in Information Technology, Media & Internet, Telecom Services & Internet Infrastructure, Communications, Education & Business Services, and Healthcare Services. Signal Hill has more than 50 professionals across five offices in Baltimore, Nashville, New York, Reston and San Francisco (SanBruno). Scott Wieler Chairman swieler@signalhill.com Mathew Dahl Managing Director mdahl@signalhill.com Don More Managing Director dmore@signalhill.com Chase Sanders Managing Director csanders@signalhill.com Bart Shaeffer Director bshaeffer@signalhill.com Justin Puccio Vice President jpuccio@signalhill.com Baltimore Nashville N e w Yo r k Reston San Francisco Ira D. Cohen Managing Director icohen@signalhill.com J. Adam Hitt Managing Director ahitt@signalhill.com Jeff Nahley Managing Director jnahley@signalhill.com Matthew Shilling Managing Director mshilling@signalhill.com Franklin E.W.Staley Director fstaley@signalhill.com Greg Ager Managing Director gager@signalhill.com Howard Loewenberg Managing Director hloewenberg@signalhill.com Michael Parent Managing Director mparent@signalhill.com Joel Strauch Managing Director jstrauch@signalhill.com David Dolan Vice President ddolan@signalhill.com Justin Balciunas Managing Director jbalciunas@signalhill.com John MacDonald Managing Director jmacdonald@signalhill.com Henry Sage Managing Director hsage@signalhill.com Douglas Webster Managing Director dwebster@signalhill.com Matt Fiore Vice President mfiore@signalhill.com

Signal Hill Disclaimer The information in this report has been obtained from sources believed to be reliable, but Signal Hill makes no representation as to the accuracy or completeness of such information or any opinions expressed herein. Signal Hill may provide, or may seek to provide advisory services to one or more companies mentioned herein. In addition, employees of Signal Hill may own or may purchase securities in one or more companies mentioned in this report. Signal Hill has no obligation and will not undertake to update, modify or amend this report for any reason, including for errors subsequently discovered. This report is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities. 2012 Signal Hill. All rights reserved.

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has merged with

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November 2011

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