SEGSNAPSHOT SupplyChainSoftwareM&AActivity 2017 2 AboutOurFirm: SEGprovidesunparalleledM&Aadvisoryservicesforemergingand establishedsoftwarecompanies.Byfocusingexclusivelyonthis underservedmarketsegmentforover25years,wehavethe knowledgeandexperiencetoquicklydetermineclients’business valuedrivers,positionthemwellamongourdeepnetworkof industrybuyersandinvestors,andaggressivelynegotiatetop-tier valuations.Theseskillstogetherwithourcommitmenttoexcellence resultsinexceptionaloutcomesforourclients’shareholders, employeesandcustomers. StrategicM&A:Sell-siderepresentationofemergingand establishedsoftwarecompanies. MajorityRecapitalizations:Majorityinvestmentsfromsoftware- focusedprivateequityinvestorsthatlooktoprovideshareholder liquidityandgrowthcapitaltoestablishedsoftwarecompanies. Divestitures:Sell-siderepresentationofdivisionsofpublicand largeprivatesoftwarecompanies. BoardAdvisory:Strategicguidanceandadvicetobusinessowners preparingforafutureliquidityevent,whetherthatbemonthsor yearsdowntheroad Services PleasecontactKrisBeibleat kbeible@softwareequityformoreinformation. SupplyChainSoftware M&AExperience BroadNetworkofSupply ChainSoftwareBuyers Etc... SUMMARY SUPPYCHAINSOFTWAREM&AACTIVITY 56supplychainsoftwareM&Atransactionswere announcedduring2016,representinga33%increasein volumeover2015.Basedonstrongdealactivityin1Q17, weexpectsupplychainsoftwareM&Avolumewillgrow ~20%in2017andapproach70transactionsduringtheyear. SaaSM&Adealsaccountedfor54%of2016transactions during2016.ThisrepresentsthefirstperiodinwhichSaaS M&Avolumehasoutpacedon-premisesoftwareM&Avolume inthesupplychaincategory.Incomparison,SaaSM&Aactivity accountedfor35%oftransactionvolumeacrossallproduct categoriesduring2016. LedbyDescartesSystems,6buyershaveaccountedforover 30supplychainsoftwareacquisitionsinrecentyears.Other mostactivebuyersincludeWiseTechGlobal,E2Open,Proactis Group,HighJumpSoftwareandBasware. Shipping&TransportationMgmt.accountedfor35%of allcategorytransactionsoverthepastfiveyears,whilesupply chainfinanceandcollaborationtakessecondplace,at26%. PrivateEquitycontinuestoplayakeyrolein drivingM&Avolumethroughplatformandstrategic“tuck-in” acquisitions.Notableprivateequitybackedstrategicbuyers includeAptean,BluJaySoftware,E2Open,Elemica,Infor, HighJumpSoftware,andJaggaer. Copyright2017bySEGCapitalAdvisors,LLC.AllRightsReserved 3 SupplyChainM&AActivity FollowingthreeyearsofmodestM&Agrowth,supplychain managementM&Aactivitygrew33%in2016,posting56 dealsduringtheyear Basedonastrong1Q17,SEGisprojecting2017SCMM&A activitytogrow20%year-over-yearandnearlyreach70 transactions SoftwareprovidersintheShipping&Transportation management,andFinance&Collaborationsegmentshave beenthemostsoughtafterM&Atargets SaaStargetsaccountedforthemajorityof2016&1Q17 transactions SupplyChainCategories 4 Copyright2017bySEGCapitalAdvisors,LLC.AllRightsReserved 21232326 32 171719 30 36 20132014201520162017Projection OnPremiseSaaS SupplyChainSoftwareM&AVolume PlanningM&Atransactionsconsistofsoftwarecompaniesproviding solutionsfordemandsensing,supplychainoptimization,designand modeling,andsales&operationsplanning Finance&CollaborationM&Atransactionsincludesupplychain integration,connectivity,collaboration,sourcingandprocurement offerings Shipping&TMSM&Atransactionsconsistofsoftwarecompanies providingtoolsforshipping,freightmanagement,transportation managementandlogistics Inventory&WMSM&Atransactionsconsistofsoftwarecompanies providingtoolswarehousemanagement,inventorymanagement,yard management OtherM&Atransactionsconsistofsoftwarecompaniesprovidingtools forsupplychainqualityandcompliancemanagement,broadersuite offerings,andothersolutionsnotincludedinprecedingcategories 14% 10% 35% 26% 15% Other SupplyChainPlanning Shipping&TMS Finance&Collaboration Inventory&WMS