Technology Enabled Business Services (TEBS) Newsletter

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 index, which is a broad index of 100 publicly-traded companies. The four segments of the TEBS 100 are:
  • Software
  • Business Process Services
  • Information Services
  • Infrastructure Services 
Each issue of the newsletter highlights transactions involving TEBS companies. Performance metrics for the TEBS 100 are tracked and published in each edition of the newsletter.

Cherry Tree also produces a quarterly TEBS report, the 2017 Q2 update  is available here.

Notable Transactions - August 2017

Descartes Acquires MacroPoint
Descartes Systems Group (TSX:DSG, NASDAQ:DSGX), a provider of SaaS-based logistics management solutions, has acquired MacroPoint, a provider of location-based truck tracking and predictive freight capacity data content, for approximately $107 million (8.6x revenue).  Article
Verisk Analytics to Acquire Sequel
Verisk Analytics (NASDAQ:VRSK), a provider of predictive analytics and decision support solutions, and London-based Sequel, a provider of insurance and reinsurance software, have entered into a definitive agreement under which Sequel will be acquired by Verisk at a purchase price of £250 million (9.6x revenue, 20.8x EBITDA). Article

Valassis to Acquire MaxPoint Interactive
Business Process Services
Valassis, a provider of multi-channel media solutions, and MaxPoint Interactive (NASDAQ:MXPT), a provider of digital marketing technology, have entered into a definitive agreement under which MaxPoint will be acquired by Harland Clarke Holdings, the parent company of Valassis, for $13.86 per share in cash, or $108 million in enterprise value (0.7x revenue)Article

Blackhawk Network Acquires CashStart
Business Process Services
Blackhawk Network Holdings (NASDAQ:HAWK), a provider of promotion and incentive program management solutions, has acquired CashStar, a provider of digital gift card commerce solutions, for approximately $175 million in cashArticle

Fusion to Acquire Birch Communications' Cloud and Business Services
Infrastructure Services
Fusion Telecommunications International (NASDAQ:FSNN), a provider of integrated cloud solutions, and Birch Communications, a provider of communications, network, cloud, and IT services, have entered into a definitive agreement under which Fusion will acquire Birch's Cloud and Business Services business in an all-stock transaction in which Birch shareholders will roll their equity, valued at approximately $280 million, into common equity of the combined entity. Article
Cisco to Acquire Springpath
Infrastructure Services
Cisco Systems (NASDAQ:CSCO) has agreed to acquire Springpath, a provider of hyperconvergence software, for $320 million in cash and additional retention-based incentivesArticle
The Advisory Board Company to Sell Health Care and Education Businesses
Information Services
The Advisory Board Company (NASDAQ:ABCO), a provider of research, technology, and consulting to health care organizations and education institutions, has entered into a definitive agreement to sell its health care business for $1.3 billion to Optum, a provider of health services, and a definitive agreement to sell its education business to Vista Equity Partners for $1.6 billionArticle

Verisk Analytics to Acquire LCI
Information Services
Verisk Analytics (NASDAQ:VRSK), a provider of predictive analytics and decision support solutions, and LCI, a provider of risk insight, prediction, and management solutions for banks and creditors, have entered into a definitive agreement under which LCI will be acquired by Verisk at a purchase price of $151 million. Article

TEBS 100 Performance 

Contact Cherry Tree for a complete listing of the most current TEBS 100 Index.

TEBS 100 Metrics
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.

Prepared by:
Mik Gusenius,  Director
952.253.6005 (direct)
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.

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