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 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 a quarterly TEBS report - a download of the Q3 2017 report is available here.

Cherry Tree has more than 30 years of experience working with businesses in the TEBS space, originally as an investor and now as a provider of investment banking services. 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 - October 2017

BroadSoft to be Acquired by Cisco
Software
BroadSoft (Nasdaq:BSFT) has agreed to be acquired by Cisco (Nasdaq:CSCO) for $2.3 billion (5.4x Revenue). BroadSoft provides cloud-based unified communications solutions.  Article

TMX Group to Acquire Trayport from ICE
Software
Intercontinental Exchange (NYSE:ICE) has agreed to sell trading software provider Trayport to TMX Group (TSX:X) for $721 million (9.5x Revenue, 18.3x EBITDA). ICE acquired Trayport in December 2016, but UK regulators forced a sale after ruling that the deal hurt competition.  Article

Intralinks to be Acquired by Siris Capital Group
Business Process Services
Less than 12 months after acquiring IntraLinks, Synchronoss (Nasdaq:SNCR) has agreed to sell the virtual data room provider to Siris Capital for $1 billion (3.4x Revenue). Siris had also explored acquiring all of Synchronoss, but ultimately settled on acquiring IntraLinks and taking a minority position in Synchronoss.  Article

ADP Acquires Global Cash Card
Business Process Services
Automatic Data Processing (Nasdaq:ADP) has acquired Global Cash Card, a provider of pay cards and other electronic payments that allows employers to pay employees through alternative methods.  Article

Vista Equity Partners Acquires Datto
Infrastructure Services
Vista Equity Partners has acquired Datto, a provider of cloud storage. Datto will be merged with existing Vista portfolio company Autotask. Datto had raised $100 million in funding and was reportedly valued at $1 billion in their 2015 round of funding.  Article

Gigamon to be Acquired for $1.6 Billion
Infrastructure Services
Activist investor Elliott Management has agreed to acquire Gigamon (NYSE:GIMO) for $1.6 billion (4.4x Revenue). Gigamon is a provider of network monitoring solutions used in data centers.  Article

TransUnion Acquires eBureau
Information Services
TransUnion has acquired St. Cloud, MN-based eBureau for an undisclosed amount. eBureau provides custom analytics solutions for credit risk and anti-fraud applications.  Article

Onvia to be Acquired by Deltek
Information Services
Deltek has agreed to acquire Onvia (Nasdaq:ONVI) for approximately $70 million (2.6x Revenue). The purchase price represents a 98% premium to the company's previous closing price. Onvia provides commerce intelligence for the Business-to-Government marketplace.  Article
TEBS 100 Index Performance


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



TEBS 100 Index 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
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.