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HR Software and Services Monthly
March 2015
HR Software & Services Update
Salient Transactions
Vector Capital Acquires Saba Software for $270M in Cash
• Vector offered $9 per share for Saba, which provides cloudbased intelligent talent management solutions
• Saba was delisted from the Nasdaq in April 2013; known for
investing in undervalued public companies, Vector jumped at the
chance to acquire one of the larger players in the rapidly growing
human capital management software market
DHR International Bids to Acquire CTPartners for $66M
• DHR International announced a bid to acquire CTPartners for
$7 per share in a hostile, unsolicited proposal
• CTPartners provides retained executive search services
worldwide; its shares have fallen from $20 per share in
December on allegations of sexual harassment
Major Indices & Exchange Rates
Close as of
2/27/2015
% Change
1 Month 12 Month
Dow Jones Industrial Average
NYSE Composite Index
NASDAQ Composite Index
AMEX Composite Index
S&P 500 Index
Russell 2000 Index
18,214.42
11,082.10
4,987.89
2,521.11
2,110.74
1,239.11
6.1%
5.2%
7.6%
3.7%
5.8%
6.3%
11.6%
6.3%
15.8%
0.4%
13.5%
4.7%
Euro / USD
Japanese Yen / USD
British Pound / USD
0.8919
119.6600
0.6473
0.7%
1.9%
(2.8%)
23.1%
17.2%
8.4%
Marsh & McLennan’s Mercer Unit Invests $74.7M in
Benefitfocus
• Mercer purchased 2.82 million shares at $26.50 per share
• Deal is part of an expanded strategic relationship with Mercer’s
talent, health, retirement and investment consulting business
HR Software & Services News
Interest Rates
U.S. Private Sector Employment Rose by 213,000 Jobs in
January
U.S. private sector employment rose by approximately 213,000 jobs
in January when compared to December, according to ADP. Small
businesses added 78,000 jobs in January, medium-sized
businesses added 95,000 jobs, and large businesses added 40,000
jobs. The service-providing sector added approximately 183,000
jobs, and the goods-providing sector added approximately 31,000
jobs
As of
2/27/2015
U.S. Prime Rate
U.S. Treasury - 10 years
ICE LIBOR - USD - 3 Month
Federal Funds Overnight Rate
3.250%
2.010%
0.262%
0.070%
Bps Change
1 Month 12 Month
0.00
33.00
0.85
2.00
0.00
(65.00)
2.60
2.00
U.S. Producer Price Index for Employment Services Rose 2.4%
YoY in January to a Level of 107.6
The U.S. Producer Price Index for employment services rose 2.4%
year-over-year (“YoY”) in January to a level of 107.6, according to
the U.S. Bureau of Labor Statistics.
The industry includes
employment placement agencies, temporary help services,
executive search services and professional employer organizations
*Historical data has been adjusted from previous versions to account for a change in the data source to accurately reflect the comparison of current and historical periods
Disclosure: KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., Member
NYSE/FINRA/SIPC, and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc.and its licensed securities
representatives, who may also be employees of KeyBank N.A.. Banking products and services are offered by KeyBank N.A..
This report was not issued by our research department. The information contained in this report has been obtained from sources deemed to be reliable but is not represented to be complete, and it
should not be relied upon as such. This report does not purport to be a complete analysis of any security, issuer, or industry and is not an offer or a solicitation of an offer to buy or sell any securities.
This report is prepared for general information purposes only and does not consider the specific investment objectives, financial situation and particular needs of any individual person or entity.
1
HR Software and Services Monthly
March 2015
HR Software & Services Headlines
02/20
Approximately 32% of CFOs said they would be more productive if they gave their employees greater autonomy at
work, according to a survey by Robert Half Management Resources. Only 13% feared performance would decline if
they gave workers more control, while 55% of respondents felt it would not have any impact. Giving employees
greater autonomy has the added benefit of making managers more productive, as per Robert Half. When staff have
the freedom to decide how their work gets accomplished, they develop management skills earlier in their careers, and
leaders can devote more time to strategic planning and other initiatives (Staffing Industry Analysts, 02/20/15).
02/20
Businesses are discovering different ways of measuring return on investment on wellness programs, according to the
National Business Group on Health and Optum. Employers use six metrics to track how wellness programs are
working, including health and wellness engagement, absenteeism and job satisfaction. As wellness programs evolve,
employers have shifted from a focus on cost to other areas like increased employee productivity and how wellness
impacts the company overall. The top three reasons for having wellness programs include reducing health risks,
managing or reducing health care costs, and improving employee productivity (Employee Benefit News, 02/20/15).
02/19
Of companies looking to purchase new talent management software, 67% were driven by a keen interest in
performance management capabilities, either for the first time or as a replacement for existing solutions, according to
Bersin by Deloitte. Similarly, Software Advice discovered that 44% of its respondents planned to increase their
investments in the same area. In a comprehensive review of the entire human resources market in 2014, Software
Advice found that small businesses most commonly sought to automate personnel tracking (36%), applicant tracking
(35%) and performance review (over 20%) (Business 2 Community, 02/19/15).
02/19
Performance management has become an increasingly critical business concern for today’s organizations, and
historical systems are not perceived as adequately supporting next-generation practices, according to Bersin by
Deloitte. Close to 30% of the large organizations polled admitted that their performance management systems were
more than seven years old. Of those replacing existing software, 75% sought to replace a standalone performance
management application with an integrated suite solution. The majority of organizations surveyed (74%) use one
software solution for their performance management system (Business 2 Community, 02/19/15).
02/19
Law firms looking to staff out their human resource work to professional employer organizations (“PEOs”) face a
number of potential ethical landmines, but a new set of guidelines released by the New York City Bar Association
outlines four steps firms can take to avoid trouble. The NYCBA says firms can use PEOs — which allow companies to
outsource their payroll, human resources, and other employee management needs — so long as they are vigilant
about the potential for such arrangements to compromise independent professional judgment, confidentiality
obligations, conflict of interest protections and prohibitions against sharing fees with non-lawyers (Law360, 02/19/15).
02/18
The Canadian Staffing Index, a measure of staffing activity in Canada, fell to a reading of 98 in January, a decrease of
6% from the 104 reading in the year-ago period. The index fell 3% sequentially from the December index value of
101. Throughout 2014, there was a trend of modest year-over-year declines in the index according to Staffing Industry
Analysts. While the index reading was down 6% year-over-year, there was one less working day in 2015 than in 2014,
which accounts for a portion of the index’s decline. The index is based upon reported billed hours for temporary
staffing from a survey of leading staffing firms (Staffing Industry Analysts, 02/18/15).
2
HR Software and Services Monthly
March 2015
HR Software & Services Headlines
02/18
For years, recruitment process outsourcing (“RPO”) was viewed as an efficiency play with big companies tapping
outside vendors to hire entry-level people as quickly and cheaply as possible. Today’s RPOs are being brought in
specifically to unearth the hard-to-find talent that companies need to fill highly specialized and critically important roles.
RPOs are moving up the value chain, according to the Information Services Group, a market intelligence firm. Of late,
RPOs have focused on attracting the right candidates to their clients’ organizations (Workforce.com, 02/18/15).
02/17
According to the 2014 Healthcare Benefits Trends Benchmark Study report conducted by the Healthcare Trends
Institute, 91.3% of respondents’ companies offered employee health benefits. The majority of employee health benefit
programs offered by respondents’ companies include PPO (47.9%), family (44.1%), prescription drug (41.4%), and
high-deducible health plan (30.8%). Of those whose companies offered employee health benefits, 39.5% of
respondents indicated that their company offered only one health insurance plan, 28.1% reported offering two health
plan options, while 22.4% offered three health plan options (InsuranceNewsNet.com, 02/17/15).
02/17
The number of work-from-home and other remote work opportunities has increased over the last three years,
according to a survey by Accountemps, a division of Robert Half International. Approximately 36% of surveyed CFOs
said the number of work-from-home and other remote work opportunities has increased, while only 3% reported a
decline in the last three years. Larger companies outpace smaller firms in telecommuting; 68% of CFOs at companies
with more than 1,000 employees see remote work opportunities on the rise, compared to 34% of CFOs at companies
with 20 to 49 employees (Staffing Industry Analysts, 02/17/15).
02/13
Technology trends like intelligent hardware, digital platforms, personalization and analytics are driving businesses
forward, according to Accenture. Wellness providers like ShapeUp, VirginPulse and Limeade holistically approach
employee wellness and engagement, using sensors that integrate with mobility, while platform-based companies are
capturing the digital economy’s opportunities for growth and profits. The “on-demand” and contract labor markets are
prime examples of how platforms have impacted HR and the workforce, with Elance-oDesk, Freelancer.com, and
software developer-community sites like GitHub and StackOverflow leading the charge (HREOnline, 02/13/15).
02/11
Recruitment process outsourcing (RPO) was integral to 50% of multi-service HR outsourcing contracts in 2014,
according to BPO provider arvato’s quarterly U.K. outsourcing index. In 2013, such services were frequently procured
separately. HR services, including recruitment, benefits administration and payroll outsourcing, accounted for 20% of
outsourcing deals signed in the U.K. in 2014, with the index identifying $193.5 million of HR outsourcing contracts in
2014. The most active purchasers of these services were companies providing business services, accounting for 32%
of deals, followed by manufacturers (16%) and energy & utilities companies (13%) (Recruiter, 02/11/15).
02/05
As organizations look to improve the competency and skills of their workers, learning management system (LMS)
technology can help improve their efforts. Larger organizations with more employees are likely to train them uniformly,
and more often also have the resources to devote to this function. Across organizations of various sizes, most believe
the main purpose of the learning management system is employee development training (46%) or compliance-related
learning (29%). The finance, insurance and real estate sectors use LMS technology extensively, primarily to comply
with regulations and teach employees how to do so (Smart Data Collective, 02/05/15).
3
HR Software and Services Monthly
March 2015
Industry Fundamentals
Market-Indexed Prices (12 Month Indexed Prices as of February 27, 2015)
20%
15%
Index
1 Month
12 Month
5.8%
6.1%
7.6%
6.3%
13.5%
11.6%
15.8%
4.7%
S&P 500 Index
Dow Jones Industrial
NASDAQ Composite
Russell 2000
15.8%
13.5%
11.6%
Indexed Price (% )
10%
5%
4.7%
0%
(5%)
(10%)
(15%)
28-Feb-14
30-Apr-14
30-Jun-14
S&P 500 Index
31-Aug-14
Dow Jones Industrial
31-Oct-14
31-Dec-14
NASDAQ Composite
28-Feb-15
Russell 2000
HR Sector Indices vs. S&P 500 (12 Month Relative Share Price Returns as of February 27, 2015)
50%
40%
Indexed Price (% )
30%
Index
1 Month
12 Month
5.8%
13.0%
12.8%
8.3%
4.2%
8.3%
13.5%
(12.7%)
13.5%
6.7%
18.4%
(11.6%)
S&P 500 Index
HR Technology
HR Outsourcing
HR Staffing & Services
HR Benefits and Risk Consulting
SaaS
20%
18.4%
13.5%
13.5%
10%
6.7%
0%
(11.6%)
(12.7%)
(10%)
(20%)
(30%)
(40%)
28-Feb-14
S&P 500 Index
30-Apr-14
HR Technology
30-Jun-14
HR Outsourcing
31-Aug-14
31-Oct-14
HR Staffing & Services
31-Dec-14
HR Benefits and Risk Consulting
Source: Capital IQ
HR Technology: WDAY, ULTI, CEB, CSOD, CALD, BNFT, HSTM, DHX, MWW, TSX:HGN
HR Outsourcing: ADP, AON, PAYX, HRB, TW, BOVESPA:QUAL3, WAGE, NSP, CBZ, BBSI
HR Staffing & Services: SWX:ADEN, ENXTAM:RAND, RHI, MAN, LSE:HAS, ASGN, LSE:MPI, KFY, ENXTAM:USG, TBI, KFRC, KELY.A, CDI, HSII, CTG
HR Benefits and Risk Consulting: MMC, AJG, WSH, LSE:JLT, TSX:MSI, AIM:JLF
SaaS: CRM, NOW, N, GWRE, DWRE, RP, MKTO, LOGM, CVT, SPSC, IL, TXTR, FUEL, TNGO, SQI
Note: PAYC, PCTY and TNET began trading within the past year and are not included in 12 month calculations
28-Feb-15
SaaS
4
HR Software and Services Monthly
March 2015
Industry Fundamentals
Relative Valuation (12 Month EV / Revenue Valuations as of February 27, 2015)
12.0x
11.0x
Enterprise Value / Revenue
10.0x
9.0x
Index Averages
HR Technology
HR Outsourcing
HR Staffing & Services
HR Benefits and Risk Consulting
SaaS
1 Month
12 Month
4.2x
3.0x
0.7x
2.3x
5.5x
4.8x
3.0x
0.7x
2.3x
5.9x
8.0x
7.0x
6.0x
5.6x
5.0x
4.2x
4.0x
3.0x
3.0x
2.0x
2.3x
1.0x
0.7x
0.0x
28-Feb-14
30-Apr-14
HR Technology
30-Jun-14
HR Outsourcing
31-Aug-14
31-Oct-14
HR Staffing & Services
31-Dec-14
HR Benefits and Risk Consulting
28-Feb-15
SaaS
Relative Valuation (12 Month EV / EBITDA Valuations as of February 27, 2015)
50.0x
45.0x
Enterprise Value / EBITDA
40.0x
Index Averages
HR Technology
HR Outsourcing
HR Staffing & Services
HR Benefits and Risk Consulting
SaaS
1 Month
12 Month
14.0x
14.7x
11.0x
12.8x
36.0x
14.0x
14.4x
11.0x
12.8x
33.6x
38.3x
35.0x
30.0x
25.0x
20.0x
14.4x
13.8x
12.8x
11.0x
15.0x
10.0x
5.0x
0.0x
28-Feb-14
30-Apr-14
HR Technology
30-Jun-14
HR Outsourcing
31-Aug-14
HR Staffing & Services
31-Oct-14
31-Dec-14
HR Benefits and Risk Consulting
Source: Capital IQ
HR Technology: WDAY, ULTI, CEB, CSOD, CALD, BNFT, HSTM, DHX, MWW, TSX:HGN
HR Outsourcing: ADP, AON, PAYX, HRB, TW, BOVESPA:QUAL3, WAGE, NSP, CBZ, BBSI
HR Staffing & Services: SWX:ADEN, ENXTAM:RAND, RHI, MAN, LSE:HAS, ASGN, LSE:MPI, KFY, ENXTAM:USG, TBI, KFRC, KELY.A, CDI, HSII, CTG
HR Benefits and Risk Consulting: MMC, AJG, WSH, LSE:JLT, TSX:MSI, AIM:JLF
SaaS: CRM, NOW, N, GWRE, DWRE, RP, MKTO, LOGM, CVT, SPSC, IL, TXTR, FUEL, TNGO, SQI
Note: PAYC, PCTY and TNET began trading within the past year and are not included in 12 month calculations
28-Feb-15
SaaS
5
HR Software and Services Monthly
March 2015
HR Software & Services Public Trading Statistics (As of February 27, 2015)
EV as a multiple of
($ in millions except stock price)
Company
Current
Price
52 Week
% of 52
High
Week High
Market
Cap
Enterprise
Value
Revenue
LTM
LTM
EBITDA
% Margin
Revenue
LTM
NTM
EBITDA
Revenue
EBITDA
Total Rev
Growth
HR Technology
Workday, Inc.
$85.50
$116.40
73.5%
$15,989
$14,624
$788
($156)
NM
18.6x
NM
12.8x
NM
68.0%
The Ultimate Software Group, Inc.
164.65
170.34
96.7%
4,671
4,563
506
74
14.5%
9.0x
NM
7.4x
29.9x
23.3%
Corporate Executive Board Co.
78.21
80.43
97.2%
2,618
3,009
909
206
22.7%
3.3x
14.6x
3.1x
12.2x
10.8%
Cornerstone OnDemand, Inc.
31.97
61.85
51.7%
1,712
1,655
264
(38)
NM
6.3x
NM
4.9x
NM
42.4%
Benefitfocus, Inc.
32.56
72.69
44.8%
834
832
137
(52)
NM
6.1x
NM
4.8x
NM
31.2%
6.72
8.50
79.1%
610
782
770
69
8.9%
1.0x
11.4x
1.0x
6.8x
(4.7%)
Callidus Software Inc.
14.29
17.31
82.6%
695
669
137
(1)
NM
4.9x
NM
4.1x
30.8x
21.6%
Healthstream Inc.
25.88
32.17
80.4%
716
595
171
27
16.0%
3.5x
21.8x
2.9x
21.6x
29.0%
Dice Holdings, Inc.
8.76
11.49
76.2%
473
557
263
74
28.2%
2.1x
7.5x
2.0x
6.8x
23.0%
Halogen Software Inc.
6.76
9.43
71.7%
148
107
57
(10)
NM
1.9x
NM
1.6x
NM
18.1%
$45.53
$28.92
$58.06
$47.01
75.4%
77.6%
$2,847
$775
$2,739
$807
$400
$263
$19
$13
18.1%
16.0%
5.7x
4.2x
13.8x
13.0x
4.5x
3.6x
18.0x
16.9x
26.3%
23.1%
Automatic Data Processing, Inc.
$88.84
$89.70
99.0%
$42,213
$40,270
$10,646
$2,219
20.8%
3.8x
18.2x
3.5x
16.8x
20.1%
Aon plc
100.36
107.08
93.7%
28,126
33,169
12,019
2,569
21.4%
2.8x
12.9x
2.7x
12.2x
2.0%
Paychex, Inc.
49.84
50.19
99.3%
18,097
17,568
2,633
1,124
42.7%
6.7x
15.6x
6.2x
14.7x
9.3%
H&R Block, Inc.
34.15
35.80
95.4%
9,397
8,895
3,031
946
31.2%
2.9x
9.4x
2.7x
11.0x
3.3%
131.50
133.54
98.5%
9,148
8,758
3,620
691
19.1%
2.4x
12.7x
2.4x
11.6x
5.6%
36.34
36.96
98.3%
2,529
2,981
502
171
34.1%
5.9x
17.4x
5.1x
16.1x
29.9%
Monster Worldwide, Inc.
Mean
Median
HR Outsourcing
Towers Watson & Co.
TriNet Group, Inc.
Qualicorp S.A.
9.09
9.96
91.3%
2,486
2,519
578
235
40.7%
4.4x
10.7x
4.2x
10.7x
26.1%
Paycom Software, Inc.
31.88
35.12
90.8%
1,717
1,719
151
23
15.1%
11.4x
NM
8.8x
NM
40.3%
WageWorks, Inc.
57.45
65.56
87.6%
2,042
1,708
268
57
21.2%
6.4x
30.1x
5.1x
19.1x
22.1%
Paylocity Holding Corporation
29.89
31.00
96.4%
1,509
1,420
128
(9)
NM
11.1x
NM
8.6x
NM
41.2%
Insperity, Inc.
51.80
52.76
98.2%
1,313
1,007
404
68
17.0%
2.5x
14.7x
2.3x
10.1x
4.5%
8.84
9.45
93.5%
436
640
719
75
10.5%
0.9x
8.5x
0.8x
NM
4.0%
37.25
71.76
51.9%
265
269
636
(43)
NM
0.4x
NM
0.4x
6.4x
19.4%
$51.33
$37.25
$56.07
$50.19
91.8%
95.4%
$9,175
$2,486
$9,302
$2,519
$2,718
$636
$625
$171
24.9%
21.2%
4.7x
3.8x
15.0x
13.8x
4.1x
3.5x
12.9x
11.9x
17.5%
19.4%
1.4%
CBIZ, Inc.
Barrett Business Services Inc.
Mean
Median
HR Staffing & Services
Adecco S.A.
$78.89
$83.94
94.0%
$14,128
$15,591
$25,003
$1,231
4.9%
0.6x
12.7x
0.7x
11.7x
Randstad Holding NV
59.03
59.37
99.4%
10,616
11,428
20,880
856
4.1%
0.5x
13.4x
0.5x
10.9x
4.1%
Robert Half International Inc.
61.96
63.21
98.0%
8,373
8,088
4,695
546
11.6%
1.7x
14.8x
1.6x
12.7x
10.6%
ManpowerGroup Inc.
80.46
86.85
92.6%
6,300
6,070
20,763
811
3.9%
0.3x
7.5x
0.3x
7.6x
2.5%
2.37
2.53
93.6%
3,356
3,478
5,831
251
4.3%
0.6x
13.9x
0.6x
11.2x
1.2%
38.21
39.86
95.9%
2,000
2,384
1,860
184
9.9%
1.3x
13.0x
1.3x
11.7x
14.0%
2.4%
Hays plc
On Assignment Inc.
Michael Page International plc
7.76
7.90
98.1%
2,407
2,340
1,735
143
8.2%
1.3x
16.4x
1.5x
15.7x
USG People NV
13.66
15.90
85.9%
1,106
1,320
2,941
144
4.9%
0.4x
9.2x
0.5x
9.7x
2.0%
Korn/Ferry International
30.60
32.78
93.4%
1,541
1,267
1,001
130
13.0%
1.3x
9.8x
1.2x
7.8x
11.7%
TrueBlue, Inc.
23.01
31.30
73.5%
920
1,101
2,174
116
5.4%
0.5x
9.5x
0.4x
7.9x
30.3%
Kforce Inc.
23.60
24.99
94.4%
722
815
1,217
59
4.8%
0.7x
13.8x
0.6x
10.6x
5.7%
Kelly Services, Inc.
17.31
26.17
66.1%
655
664
5,563
56
1.0%
0.1x
11.9x
0.1x
9.2x
2.8%
CDI Corp.
18.40
19.24
95.6%
361
321
1,133
37
3.3%
0.3x
8.6x
0.3x
7.8x
4.8%
Heidrick & Struggles International Inc.
23.94
24.89
96.2%
437
255
494
44
8.9%
0.5x
5.8x
0.5x
5.7x
7.0%
7.63
17.90
42.6%
143
102
393
20
5.2%
0.3x
5.0x
0.3x
7.8x
(6.1%)
$32.46
$23.60
$35.79
$26.17
88.0%
94.0%
$3,538
$1,541
$3,682
$1,320
$6,379
$2,174
$308
$143
6.2%
4.9%
0.7x
0.5x
11.0x
11.9x
0.7x
0.5x
9.9x
9.7x
6.3%
4.1%
Computer Task Group Inc.
Mean
Median
Source: Capital IQ; Note: EV/EBITDA multiples higher than 50.0x are excluded from aggregate calculations and are marked as ‘NM’
HR Technology: WDAY, ULTI, CEB, CSOD, BNFT, MWW, CALD, HSTM, DHX, TSX:HGN
HR Outsourcing: ADP, AON, PAYX, HRB, TW, BOVESPA:QUAL3, WAGE, NSP, CBZ, BBSI
HR Staffing & Services: SWX:ADEN, ENXTAM:RAND, RHI, MAN, LSE:HAS, ASGN, LSE:MPI, ENXTAM:USG, KFY, TBI, KFRC, KELY.A, CDI, HSII, CTG
Note: In Q3 2014 Automatic Data Processing (ADP) executed a spinoff of its Dealer Services business segment; ADP’s LTM revenue and EBITDA have been adjusted to
appropriately reflect standalone business performance and valuation
6
HR Software and Services Monthly
March 2015
HR Software & Services Public Trading Statistics (As of February 27, 2015)
EV as a multiple of
($ in millions except stock price)
Company
Current
Price
52 Week
% of 52
High
Week High
Market
Cap
Enterprise
Value
Revenue
LTM
LTM
EBITDA
% Margin
Revenue
LTM
NTM
EBITDA
Revenue
EBITDA
Total Rev
Growth
HR Benefits and Risk Consulting
Marsh & McLennan Companies, Inc.
$56.89
$58.74
96.9%
$30,651
$32,080
$12,951
$2,686
20.7%
2.5x
11.9x
2.4x
11.1x
Willis Group Holdings plc
47.72
48.88
97.6%
8,528
10,283
3,767
827
22.0%
2.7x
12.4x
2.6x
11.3x
3.7%
Arthur J Gallagher & Co.
46.99
49.38
95.2%
7,741
9,820
4,560
661
14.5%
2.2x
14.9x
1.9x
11.0x
44.5%
Jardine Lloyd Thompson Group plc
14.81
17.12
86.5%
3,226
3,934
1,799
372
20.7%
2.2x
10.6x
2.2x
10.7x
13.6%
Morneau Shepell Inc.
13.72
14.15
97.0%
659
906
468
68
14.5%
1.9x
13.4x
2.0x
10.7x
13.8%
2.83
2.90
97.3%
305
307
134
23
17.2%
2.3x
13.3x
2.2x
11.5x
8.4%
$30.49
$30.90
$31.86
$33.00
95.1%
96.9%
$8,518
$5,484
$9,555
$6,877
$3,946
$2,783
$773
$516
18.3%
18.9%
2.3x
2.2x
12.8x
12.9x
2.2x
2.2x
11.1x
11.1x
14.9%
11.0%
Jelf Group plc
Mean
Median
5.6%
SaaS
salesforce.com, inc.
$69.38
$71.00
97.7%
$43,779
$44,981
$5,374
$303
5.6%
8.4x
NM
6.9x
38.5x
32.0%
ServiceNow, Inc.
76.26
81.24
93.9%
11,309
11,084
683
(109)
NM
16.2x
NM
11.2x
NM
60.7%
NetSuite Inc.
96.42
119.98
80.4%
7,399
7,214
556
(53)
NM
13.0x
NM
10.0x
NM
34.2%
Guidewire Software, Inc.
55.66
58.00
96.0%
3,873
3,373
363
33
9.1%
9.3x
NM
8.9x
NM
19.6%
Demandware, Inc.
63.19
82.23
76.8%
2,294
2,052
161
(21)
NM
12.8x
NM
8.8x
NM
54.8%
RealPage, Inc.
20.23
23.11
87.5%
1,599
1,592
405
33
8.1%
3.9x
48.7x
3.5x
20.9x
7.3%
LogMeIn, Inc.
52.70
53.69
98.2%
1,289
1,088
222
21
9.3%
4.9x
NM
4.2x
19.2x
33.5%
Marketo, Inc.
27.95
42.00
66.5%
1,152
1,045
150
(46)
NM
7.0x
NM
5.1x
NM
56.3%
Cvent, Inc.
28.95
44.31
65.3%
1,196
1,029
142
10
7.3%
7.2x
NM
5.8x
NM
28.0%
SPS Commerce, Inc.
68.70
71.82
95.7%
1,123
992
128
13
10.3%
7.8x
NM
6.3x
45.8x
22.6%
Textura Corporation
28.21
30.53
92.4%
722
655
63
(14)
NM
10.4x
NM
7.3x
NM
31.2%
IntraLinks Holdings, Inc.
10.37
12.28
84.4%
582
608
256
28
10.8%
2.4x
22.0x
2.2x
15.9x
9.1%
Tangoe, Inc.
12.41
19.15
64.8%
482
432
212
15
7.2%
2.0x
28.1x
1.8x
11.1x
12.5%
Rocket Fuel Inc.
SciQuest, Inc.
Mean
Median
9.77
59.62
16.4%
403
383
355
(29)
NM
1.1x
NM
0.7x
NM
81.8%
17.41
32.69
53.3%
480
349
102
5
5.1%
3.4x
NM
3.2x
15.7x
13.0%
$42.51
$28.95
$53.44
$53.69
78.0%
84.4%
$5,179
$1,196
$5,125
$1,045
$611
$222
$13
$10
8.1%
8.1%
7.3x
7.2x
32.9x
28.1x
5.7x
5.8x
23.9x
19.2x
33.1%
31.2%
Source: Capital IQ; Note: EV/EBITDA multiples higher than 50.0x are excluded from aggregate calculations and are marked as ‘NM’
HR Benefits and Risk Consulting: MMC, WSH, AJG, LSE:JLT, TSX:MSI, AIM:JLF
SaaS: CRM, NOW, N, GWRE, DWRE, RP, LOGM, MKTO, CVT, SPSC, TXTR, IL, TNGO, FUEL, SQI
7
HR Software and Services Monthly
March 2015
Global Technology Sector M&A and Private Placement Update (As of January 31, 2015)
Commentary
Global M&A transaction value in Software and Services fell to $10.8 billion in January 2015, from $21.0 billion in December 2014.
The total number of transactions rose 2.7% year-on-year to 486 from 473 transactions in January 2014. The total number of
private placement deals (679) was higher than the number of M&A deals (486) this month. Global M&A transaction value rose in
2014 to $421.9 billion, marking a 61.0% increase year-on-year, while the total number of M&A deals rose by 19.1% to 5,984 in the
same period. The total number of private placement deals rose to 9,110 in 2014, marking an increase of 14.1% year-on-year.
2014 recorded the highest number of both M&A and private placement transactions in the past 8 years. Improving economic
conditions in the U.S., low interest rates, and strong cash balances in technology firms indicate a bright outlook for Q1 2015
Global Technology Monthly Transactions Count and Volumes (Last One Year as of January 31, 2015)
900
800
797
767
774
679
$100
631
422
518
511
488
473
400
583
542
530
513
$80
512
461
431
486
$60
$65.0
300
$32.5
$28.6
200
793
687
600
500
810
$37.0
$40
$22.9
$32.1
100
$22.6
$20.7
$11.6
$21.0
$20
$19.3
$10.8
Private Placement
$0
Jan-15
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
Jan-14
Feb-14
0
Merger/Acquisition
M&A Transaction Volume ($ in billions)
Count of Transactions
792
778
730
699
700
$120
852
$108.6
M&A Transaction Volume
Global Technology Annual Transactions Count and Volumes (Last Eight Years as of December 31, 2014)
10,000
9,110
Count of Transactions
6,818
7,000
6,000
5,000
4,000
3,000
$700
7,984
8,000
5,663
3,788
3,660
$600
5,984
5,494
4,992
4,929
7,354
5,342
5,229
5,026
4,118
3,754
$421.9
$245.9
$270.6
$220.2
$206.1
$400
$300
$391.1
2,000
$500
$232.6
$262.0
$200
M&A Transaction Volume ($ in billions)
9,000
$800
$100
1,000
0
$0
2007
2008
2009
Merger/Acquisition
2010
2011
Private Placement
2012
2013
2014
Merger/Acquisition
Source: Company Filings, Press Releases, Thomson Reuters, Capital IQ, Analyst Reports
8
HR Software and Services Monthly
March 2015
Select Recently Announced M&A Transactions (As of February 27, 2015)
($ in millions)
Announced Date
Acquirer
Target
Target Business Description
Enterprise
EV /
Value
Revenue
EV /
EBITDA
2/26/2015
Deltek, Inc.
HRsmart, Inc.
Offers SaaS-based unified talent management softw are w orldw ide
NA
NA
NA
2/23/2015
Hentons
Brookroyd Payroll Limited
Offers payroll bureau services and auto enrollement services to academies
and free schools, nursing homes, retail organizations, and others
NA
NA
NA
Certica Solutions, Inc.
Northw est Evaluation Association, Formative
Assessment Item Bank Line of Business
Offers a repository of standards-based items that enables educators to create
custom, formative assessments
NA
NA
NA
Starfish Retention Solutions, Inc.
Develops automating student tracking, early alert, online appointment
scheduling, and assessment softw are solutions
NA
NA
NA
Netchemia, LLC
Provides cloud-based talent management softw are solutions for K-12 school
districts in the U.S.
NA
NA
NA
NA
NA
NA
2/23/2015
2/22/2015
2/19/2015
Hobsons Australia Pty Limited
PeopleAdmin, Inc.
2/18/2015
Grow thPlay, LLC
SSS Consulting, Inc.
Develops and provides sales improvement, talent management, and leadership
development softw are tools and research services
2/18/2015
Gap Personnel Holdings Ltd
Personell Solutions
Provides staffing solutions and operates as a recruitment agecy in the U.K.
NA
NA
NA
Venture Profiles Corporation
Engages in placing finance/accounting professionals, including CFOs, VPs,
controllers, financial managers and accountants
NA
NA
NA
NA
NA
NA
2/13/2015
BANK W Holdings, LLC
2/11/2015
Labourforce Impex Personnel Pty. Ltd.
ImpEx Personnel
Provides transport and logistics recruitment services to small, medium, and large
organizations in Australia and New Zealand
2/11/2015
Guidepoint Global, LLC
Innosquared GmbH
Provides on-demand custom recruiting solutions in Germany and internationally
NA
NA
NA
$270.2
1.9x
NM
2/10/2015
Vector Capital
Saba Softw are, Inc.
Provides cloud-based intelligent talent management solutions for organizations
to hire, develop, engage, and inspire people
2/4/2015
DHR International, Inc.
CTPartners Executive Search Inc.
Provides retained executive search services w orldw ide
66.1
0.4x
4.4x
NA
NA
NA
2/4/2015
Revelstoke Capital Partners LLC
Career Step, LLC
Provides career-focused online education and corporate training for job
opportunities in healthcare, administrative services, and technology in the U.S.
2/1/2015
Rappahannock Goodw ill Industries, Inc.
Taskforce Staffing, LLC
Offers staffing services
NA
NA
NA
1/30/2015
Berry Recruitment Limited
Headw ay Recruitment Specialists Limited
Provides recruitment services
NA
NA
NA
NA
NA
NA
NA
NA
NA
36.0
NA
NA
1/28/2015
Grow thPlay, LLC
Force Management, LLC
Provides customized sales consulting and training services to high-technology
organizations, w orkforce management companies, and others
1/28/2015
Management Buyout
Penta Consulting Limited
Provides contract, interim, and permanent recruitment solutions to technical
professionals across the telecommunications industry
1/26/2015
Pluralsight LLC
Code School LLC
Provides online learning services, including video lessons, coding challenges,
and screencasts, for existing and aspiring developers
1/22/2015
XING AG
Intelligence Competence Center
Operates a job search engine in German speaking countries
9.9
NA
NA
1/21/2015
National Planning Corporation
National Insurance Consulting
Offers human resource and employee benefits consulting services
NA
NA
NA
1/20/2015
Talent Inc.
Career Services Group, Inc.
Offers online recruitment services
NA
NA
NA
1/20/2015
Hylant Group, Inc.
The Gardner Group, Inc.
Offers employee benefit programs and consulting services
NA
NA
NA
1/20/2015
CRMPoint.net, Inc.
Precision Professionals, LLC
Provides IT search and staffing services, in addition to consulting, to multinational firms and grow ing organizations
NA
NA
NA
1/20/2015
Econocom Group SA/NV
Aragon-eRH, SAS
Offers human resources management softw are for businesses
NA
NA
NA
1/18/2015
BLG Executive Search GmbH
HealthyCareers BV
Offers recruitment and executive search services
NA
NA
NA
1/15/2015
StepStone Deutschland GmbH
ictjob SPRL/BVBA
Provides online recruitment solutions for IT professionals
NA
NA
NA
1/14/2015
RGF Staffing Melbourne tw o Pty Ltd.
(Recruit Holdings Co.)
Chandler Macleod Group Limited
Provides human resource outsourcing (HRO), recruitment, consulting, and
managed services
309.6
0.3x
10.9x
1/14/2015
RGF Staffing Melbourne One Pty Ltd.
(Recruit Holdings Co.)
Peoplebank Australia Ltd
Specializes in the permanent and contract placement of information and
communications technology professionals
56.0
NA
NA
Management Buyout
Specializes in the recruitment of human resource professionals for various
Better Placed HR Recruitment (nka Eyzon Limited)
industries in the U.K. and internationally
NA
NA
NA
1/12/2015
Groupe ACTUAL SARL
Three Employment Agencies in Pau, Bayonne and
Provide employment services in France
Dax
NA
NA
NA
1/12/2015
Encore Personnel Services Limited
Response Recruitment Solutions Limited
Provides permanent and temporary contract recruitment services
NA
NA
NA
1/7/2015
Alliant Insurance Services, Inc.
American Benefits Consulting LLC
Provides employee benefits consulting services
NA
NA
NA
1/6/2015
Pureprint Group Ltd.
Imprint Limited
Offers recruitment services in the U.K.
NA
NA
NA
SELEXENS Marseille
Develops and provides customers w ith a fully outsourced recruitment solution,
using strategies of sourcing, and remote evaluation
NA
NA
NA
1/13/2015
1/6/2015
Talentpeople SARL
Source: Company Filings, Press Releases, Capital IQ, Research Reports
9
HR Software and Services Monthly
March 2015
Select Recently Announced Financings (As of February 27, 2015)
($ in m illions)
Announced
Com pany Nam e
2/25/2015
Xero Limited
2/24/2015
Benefitfocus, Inc.
Country
New
Zealand
U.S.
Am ount
Type of Financing
/ Round (if VC)
Business Description
Provides a platform for online accounting and business services for
small businesses and their advisors
Participated Investors in Current Round
$109.9
Undisclosed
Accel Partners; Matrix Capital Management Company, LLC
74.7
Undisclosed
Provides cloud-based benefits softw are solutions for consumers,
employers, insurance carriers, and brokers
Provides a cloud-based HR SaaS platform that helps small, medium, and
Undisclosed
large companies to identify the right partner, employee, or contractor
Mercer LLC
2/20/2015
1-PAGE LIMITED
U.S.
7.5
Undisclosed
2/19/2015
Instructure, Inc.
U.S.
40.0
Series E
Provides Canvas, an open-source learning management system that
communicates w ith students, teachers, and administrators
Bessemer Venture Partners; Insight Venture Partners; EPIC
Ventures; OpenView Venture Partners
2/18/2015
Glint, Inc.
U.S.
9.0
Series B
Provides a real-time employee engagement platform for organizations
Norw est Venture Partners; Shasta Ventures
IDG Ventures; MeriTech Capital Partners; New Enterprise
Associates; Storm Ventures LLC
2/10/2015
GuideSpark, Inc.
U.S.
22.2
Series C
Provides benefits and open enrollment communication, new hire
training/pre-hire training, and financial w ellness services
2/10/2015
ShiftPlanning Inc.
U.S.
9.0
Series B
Provides online w orkforce management softw are solutions
Point Nine Capital; Klever Internet Investments Limited; MHS
Capital; Team Builder Ventures Fund Ii, L.P.
2/9/2015
New Koosharem Corporation U.S.
216.5
Undisclosed
Offers staffing services
Undisclosed
2/9/2015
ZRG Partners, Inc.
U.S.
Undisclosed
Undisclosed
Provides senior-level executive search and human capital management
Northcreek Mezzanine
services
2/5/2015
Career Analytics Netw ork,
Inc.
U.S.
Undisclosed
Undisclosed
Develops HR tools and solutions that helps employers and job seekers
connect through scientific measures of fit
Quintel Management Consulting, Inc.
Undisclosed
1/27/2015
getFittter Inc.
U.S.
Undisclosed
Undisclosed
Offers a monetization and client retention tool to health clubs, fitness
studios, and personal trainers
1/21/2015
Work Market Inc.
U.S.
20.0
Undisclosed
Provides a SaaS-based w orkforce solution that helps companies and
Industry Ventures, LLC; SoftBank Capital; Union Square
businesses to engage and manage freelance and contractor w orkforce Ventures; Spark Capital Partners, LLC
1/20/2015
HireCanvas, Inc.
U.S.
Undisclosed
Undisclosed
Recruits candidates by leveraging employees and university netw orks
AngelPad
AngelPad
Edison Partners; Carmel Ventures; ORIX Ventures
1/20/2015
Allay Inc.
U.S.
Undisclosed
Undisclosed
Develops and provides an HR and benefits platform for insurance
brokers and their customers
1/19/2015
RealMatch Inc.
U.S.
8.0
Undisclosed
Provides online job matching services
1/12/2015
Percolata Inc.
U.S.
5.0
1/12/2015
VeriQuik
U.S.
Undisclosed
Undisclosed
Offers an online platform for background screening and verification
SparkLabKC
1/12/2015
PopBookings
U.S.
Undisclosed
Undisclosed
Provides cloud-based staffing solution softw are
SparkLabKC
Operates a career management platform that allow s professionals to
manage their careers, and show case expertise and accomplishments
Sierra Angels
1/6/2015
Talentral, Inc.
U.S.
Undisclosed
Seed
Provides cloud-based w orkforce management solutions that help
Menlo Ventures; Foundation Capital; Google Ventures;
retailers to manage their employee w orkforce to meet customer demand Andreessen Horow itz LLC
Series A
Provides staffing firm management solutions for contract/temporary and
Undisclosed
direct-hire businesses
12/23/2014
erecruit Holdings, LLC
U.S.
12.0
Undisclosed
12/19/2014
Innovate CV Corp.
U.S.
7.4
Series A
Provides w eb-based talent acquisition softw are and services
Undisclosed
12/17/2014
MyCareer.com
U.S.
Undisclosed
Seed
Operates a platform that offers a resume-on-demand solution
Karlani Capital
12/16/2014
Ascentis Corporation
U.S.
7.0
Undisclosed
Provides human resources softw are, online payroll services, and
human capital management solutions
Undisclosed
12/12/2014
mobileJobs GmbH
Germany
Undisclosed
Undisclosed
Offers job listing and recruiting services as a mobile application
High-Tech Gründerfonds Management GmbH
6.8
Undisclosed
Provides a career portal and HR services, including agency services
Globis Capital Partners; Mizuho Capital Co. Ltd.; Mynavi
for permanent placement of fresh graduates and experienced w orkers Corporation; Link and Motivation Inc. (TSE:2170)
Undisclosed
Provides w eb-based, pre-hire talent assessment softw are solutions to
Primus Capital
organizations, hospitals, and Fortune 500 firms w orldw ide
12/12/2014
Neo Career CO., LTD.
Japan
12/3/2014
SkillSurvey, Inc.
U.S.
Undisclosed
11/25/2014
Hired, Inc.
U.S.
15.0
Series B
11/25/2014
BG Staffing, Inc.
U.S.
9.4
Operates an online marketplace that enables tech companies to recruit
engineers, data scientists, designers, and product managers
CrossLink Capital; Sierra Ventures; Comcast Ventures;
SoftTech VC; SVB Silicon Valley Bank; Lumia Capital
Undisclosed
Operates as a temporary staffing company in the U.S.
Undisclosed
Benchmark Capital; New Enterprise Associates; FirstMark
Capital, L.L.C.; T. Row e Price Group, Inc. and others
11/25/2014
Elance-oDesk
U.S.
30.0
Undisclosed
Operates a platform for businesses to find, hire, collaborate w ith and
pay freelancers from the U.S.
11/24/2014
Smartlink, LLC
U.S.
5.5
Undisclosed
Provides staffing and services for the development, engineering, and
maintenance of new and existing communications infrastructure
Spell Capital Partners LLC; Kemper Corporation, Investment
Arm; Farragut Capital Partners, LLC
11/21/2014
Recsolu, LLC
U.S.
6.0
Series A
Offers w eb-based and mobile recruitment softw are solutions
First Analysis Corporation; Generations Capital
11/20/2014
HunterOn.com
China
20.0
Undisclosed
Operates an online recruitment portal, w hich gives headhunters and
applicants a platform on w hich to find capable employees and jobs
IDG Capital Partners; Sequoia Capital China
11/14/2014
Shiftgig, Inc.
U.S.
10.0
Undisclosed
Operates a job posting site for ow ners and hiring managers, as w ell as FireStarter Fund; Chicago Ventures; KGC Capital; Garland
job candidates in the food, entertainment, and service industries
Capital Group; Corazon Capital LLC; DRW Ventures
11/11/2014
Teleborder
U.S.
Undisclosed
Undisclosed
Provides HR softw are solutions that manage the immigration process
for company’s management, employees, and new hires
Recruit Strategic Partners, Inc.
Source: Company Filings, Press Releases, Capital IQ, Research Reports
10
HR Software and Services Monthly
March 2015
Select Recently Announced Equity Offerings (As of February 27, 2015)
Filing Date
Closed Date
Issuer
1/26/2015
1/30/2015
CTPartners Executive Search Inc.
1/20/2015
1/22/2015
12/23/2014
Offer Size
('000)
Offer Price
Deal Value
Market Value
EV /
($ in m illions) ($ in m illions) Revenue
EV /
EBITDA
Ticker
Type
Securities Offered
CTP
Follow -on
Common Stock
1.45
$3.44
$5.0
$62.4
0.3x
3.0x
The Advisory Board Company
ABCO
Follow -on
Common Stock
4.70
43.00
202.1
1,849.0
2.9x
30.2x
1/14/2015
Paycom Softw are, Inc.
PAYC
Follow -on
Common Stock
5.59
22.50
125.7
1,359.9
8.9x
NM
12/18/2014
12/18/2014
Ideagen PLC
IDEA
Follow -on
Common Stock
51.47
0.53
27.4
99.2
4.2x
21.5x
11/21/2014
12/11/2014
Paylocity Holding Corporation
PCTY
Follow -on
Common Stock
4.60
26.25
120.8
1,313.5
10.6x
NM
11/18/2014
11/18/2014
Informa plc
INF
Follow -on
Common Stock
60.39
7.20
323.9
4,860.1
3.3x
11.0x
11/17/2014
12/21/2014
Interw orks Inc.
6032
IPO
Common Stock
0.92
14.65
13.5
68.3
2.8x
16.6x
11/10/2014
12/14/2014
TechnoPro Holdings, Inc.
6028
IPO
Common Stock
23.70
16.49
390.7
547.7
1.2x
14.5x
11/4/2014
11/6/2014
Impellam Group PLC
IPEL
Follow -on
Common Stock
3.26
7.30
23.8
324.6
0.2x
19.7x
10/20/2014
11/13/2014
Work Service Spólka Akcyjna
WSE
Follow -on
Common Stock
5.00
4.86
24.3
322.5
0.8x
15.4x
9/10/2014
10/15/2014
Recruit Holdings Co.,Ltd.
6098
IPO
Common Stock
63.58
29.21
1,857.4
19,591.9
1.4x
9.0x
9/4/2014
11/5/2014
Upland Softw are, Inc.
UPLD
IPO
Common Stock
3.85
12.00
46.2
166.3
3.6x
NM
8/22/2014
9/11/2014
TriNet Group, Inc.
TNET
Follow -on
Common Stock
12.00
25.50
306.0
1,793.5
1.1x
14.0x
8/18/2014
8/18/2014
DPA Group NV
DPA
Follow -on
Common Stock
4.54
2.20
10.0
109.2
1.3x
16.2x
8/1/2014
8/21/2014
Ashley Services Group Limited
ASH
IPO
Common Stock
59.49
1.54
91.8
232.3
1.5x
NM
6/30/2014
7/7/2014
Bamboos Health Care Holdings Limited
8216
IPO
Common Stock
100.00
0.06
6.5
79.0
5.1x
8.5x
6/27/2014
7/11/2014
Clearstar Inc
CLST
IPO
Common Stock
15.50
0.97
15.1
36.6
4.4x
35.4x
6/5/2014
6/19/2014
Zalaris HR Services AS
ZAL
IPO
Common Stock
9.32
3.75
30.4
80.1
6.9x
NM
5/15/2014
5/15/2014
Staffline Group plc
STAF
Follow -on
Common Stock
2.00
13.44
26.9
340.2
0.4x
15.2x
5/5/2014
6/11/2014
Zhaopin Ltd.
ZPIN
IPO
Depositary Receipts
6.45
13.50
75.7
656.7
4.0x
15.8x
4/8/2014
4/8/2014
Learning Technologies Group plc
LTG
Follow -on
Common Stock
50.00
0.27
13.4
111.8
7.4x
45.1x
1/13/2014
1/14/2014
Workday, Inc.
WDAY
Follow -on
Common Stock
6.90
89.00
534.0
12,405.1
37.4x
NM
11/22/2013
12/12/2013
WDB Holdings Co., Ltd.
2475
Follow -on
Common Stock
0.67
13.12
8.8
126.3
0.5x
5.3x
11/15/2013
12/18/2013
Will Group, Inc.
6089
IPO
Common Stock
0.74
27.83
20.6
46.4
0.2x
8.4x
8/27/2013
9/17/2013
Temp Holdings Co., Ltd.
2181
Follow -on
Common Stock
8.00
20.97
146.8
1,873.9
0.6x
12.5x
8/21/2013
9/4/2013
Halogen Softw are Inc.
HGN
Follow -on
Common Stock
1.73
13.36
20.0
186.3
4.9x
NM
8/14/2013
9/17/2013
Benefitfocus, Inc.
BNFT
IPO
Common Stock
5.68
26.50
130.8
746.5
5.7x
NM
8/12/2013
8/13/2013
WageWorks, Inc.
WAGE
Follow -on
Common Stock
2.97
40.45
120.1
1,375.7
4.7x
24.4x
5/8/2013
5/14/2013
NetDimensions (Holdings) Ltd
NETD
Follow -on
Common Stock
10.75
0.58
6.2
44.1
0.8x
NM
4/2/2013
5/9/2013
Halogen Softw are Inc.
HGN
IPO
Common Stock
5.52
11.47
55.0
186.3
5.6x
NM
4/1/2013
5/31/2013
SaraminHR Co.,LTD
A143240
Follow -on
Common Stock
2.60
9.15
23.8
151.8
2.0x
14.5x
3/28/2013
4/9/2013
Zebra Strategic Holdings Limited
8260
IPO
Common Stock
100.00
0.05
5.3
11.9
0.9x
32.9x
3/1/2013
3/12/2013
WageWorks, Inc.
WAGE
Follow -on
Common Stock
5.63
24.00
135.1
1,375.7
2.1x
13.3x
11/15/2012
1/24/2013
Oilfield Workforce Group Limited
OFW
IPO
Common Stock
14.15
0.52
7.4
11.0
2.0x
19.5x
Source: Company Filings, Press Releases, Capital IQ, Research Reports
11
HR Software and Services Monthly
March 2015
Select Recently Closed Leveraged Loans (As of February 27, 2015)
Closed Date
Borrow er
Ticker
Total Facility
($ in m illions) Revolver
Term
Loan
Security
Tenor
(Months)
Spread
Rating
Moody's
Rating
S&P
Purpose
NA
NA
NR
NR
Corp. purposes
Sponsor
12/31/2014 Butler America
$44.5
$44.5
-
12/31/2014 Oasis Outsourcing Holdings Inc
270.0
50.0
220.0
Secured
84
475 bp
NR
NR
SBO
12/19/2014 First Advantage Corp
655.0
-
655.0
Secured
96
875 bp
NR
NR
Dividend Recap
Kforce Inc, Kforce Government
12/19/2014
Solutions Inc
175.0
175.0
-
Secured
60
125 bp
NR
NR
Work. cap.
11/20/2014 NAVEX Global
310.0
20.0
290.0
Secured
60
475 bp
B2
B-
LBO
MWW
190.0
100.0
90.0
Secured
36
325 bp
NR
NR
Corp. purposes
Bank of America Merrill Lynch, KeyBank
CCRN
85.0
85.0
-
Secured
32
150 bp
NR
NR
Corp. purposes
Bank of America
479.4
-
479.4
NA
NA
NR
NR
SBO
93.8
93.8
-
36
NA
NR
NR
Work. cap.
120.0
75.0
45.0
60
150 bp
NR
NR
Corp. purposes
14.4
14.4
-
36
NA
NR
NR
Work. cap.
1,500.0
125.0
1,375.0
60
375 bp
NR
NR
Corp. purposes
44.0
7.5
36.5
60
450 bp
NR
NR
LBO
135.0
135.0
-
25
125 bp
NR
NR
Work. cap.
Bank of America
594.7
594.7
-
6
88 bp
0
0
Work. cap.
Bank of America Merrill Lynch, Wells Fargo & Co
400.0
400.0
-
6
175 bp
0
0
Corp. purposes
2,455.9
2,455.9
-
60
0 bp
NR
NR
Corp. purposes
650.0
75.0
575.0
59
275 bp
B1
B+
Corp. purposes
300.0
300.0
-
Secured
60
175 bp
NR
NR
Takeover
Secured
60
NA
B1
B+
Corp. purposes
10/31/2014
Monster Worldw ide Inc [Ex-TMP
Worldw ide]
10/21/2014 Cross Country Healthcare
Northgate Information Solutions
10/16/2014
Plc
9/30/2014
Pasona Group Inc
9/24/2014
Elw ood Staffing Services Inc
8/29/2014
HITO Communications Inc
8/7/2014
Ceridian Corp, Ceridian Canada
Ltd
8/4/2014
Kforce Healthcare Inc
8/1/2014
Kforce Inc, Kforce Government
Solutions Inc
7/31/2014
Allegis Corp
7/28/2014
CBIZ Inc
7/9/2014
Randstad NV
7/3/2014
TriNet HR Corporation
6/26/2014
TrueBlue Inc
6/24/2014
Creative Circle
200.0
15.0
185.0
6/20/2014
Skilled Group Ltd
302.6
302.6
-
14
NA
NR
NR
Corp. purposes
6/18/2014
Automatic Data Processing
5,500.0
5,500.0
-
12
NA
NR
NR
Corp. purposes
5/12/2014
Sterling Infosystems Inc
275.0
25.0
250.0
Secured
72
NA
B2
B
Corp. purposes
4/29/2014
Koosharem Corp
490.0
120.0
370.0
Secured
NA
NA
NR
NR
Corp. purposes
4/3/2014
Renaissance Learning
745.0
40.0
705.0
Secured
96
NA
NR
NR
SBO
1/29/2014
Seaton Corp
57.0
-
57.0
60
NA
NR
NR
Acquis. line
3654.JP
KFRC
CBZ
TBI
ADP
Secured
Stone Point Capital
Symphony Technology Group LLC
Vista Equity Partners, General Electric Capital
Corp, Golub Capital Inc
Mizuho Bank Ltd
PNC Bank
Bank of America Merrill Lynch, Credit Suisse AG,
Deutsche Bank AG
Madison Capital Funding LLC
Bank of America Merrill Lynch
General Atlantic LLC [GA]
Morgan Stanley Global Private Equity
Calera Capital
Hellman & Friedman Capital Partners
Select Recently Closed High Yield (As of February 27, 2015)
Closed Date Issuer
Amount
Ticker ($ in millions)
Type
Security
Coupon (%)
Maturity
Structure
Issuance
Price
Yield
Spread
Rating
Moody's
S&P
$825.0
144A
Sr. Sec. Notes
9.500%
1-Jul-19
NC2
100.000%
9.500%
787 bp
B3
B-
6/30/2014
Altegrity
5/21/2014
Ceridian Corporation
855.0
144A
Sr. Notes
8.125%
15-Nov-17
NC1
99.750%
8.207%
742 bp
Caa2
CCC
4/3/2014
Infor Global Solutions
750.0
144A
Sr. Notes
7.125%
1-May-21
NC3
100.000%
7.125%
NA
Caa1
CCC+
12/10/2013
Opal Acquisition, Inc.
610.0
144A
Sr. Notes
8.875%
15-Dec-21
8nc3
100.000%
8.875%
647 bp
Caa1
CCC+
Source: Company Filings, Press Releases, Capital IQ, Research Reports
12
HR Software and Services Monthly
March 2015
Upcoming Events
March
April
S
M
T
W
R
F
S
1
2
3
4
5
6
7
8
9
10
11
12
13
14
5
6
15
16
17
18
19
20
21
12
22
23
24
25
26
27
28
29
30
31
S
M
T
W
R
F
S
1
2
3
4
7
8
9
10
11
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Denotes Bank Holiday
Denotes Event
Upcoming Industry Conferences
Dates
Mar 03 - Mar 06
Event
Location
SAP HR 2015
Bellagio - Las Vegas, NV
Additional Resources
Link to Conference Website
Mar 16 - Mar 19
The i4cp 2015 Annual Conference
The Fairmont Hotel - Scottsdale, AZ
Link to Conference Website
Mar 16 - Mar 19
2015 Executive Forum
Loews Royal Pacific Hotel - Orlando, FL
Link to Conference Website
Mar 20 - Mar 20
The 2015 Northern Ohio HR Conference
I-X Center - Cleveland, OH
Link to Conference Website
Mar 24 - Mar 25
SourceCon Seattle 2015
The Westin Seattle - Seattle, WA
Link to Conference Website
Mar 31 - Apr 02
2015 HCI Human Capital Summit
Walt Disney World Swan and Dolphin - Lake Buena Vista, FL
Link to Conference Website
Apr 12 - Apr 16
HIMSS15 Annual Conference
McCormick Place - Chicago, IL
Link to Conference Website
Apr 15 - Apr 17
Human Resource Executive Health and Benefits Leadership Expo
ARIA Resort and Casino - Las Vegas, NV
Link to Conference Website
Apr 19 - Apr 22
2015 HRPS Annual Conference
The Biltmore Resort - Miami, FL
Link to Conference Website
Apr 27 - Apr 29
SHRM Talent Management Conference & Exposition
Manchester Grand Hyatt San Diego - San Diego, CA
Link to Conference Website
Apr 27 - Apr 29
ERE Recruiting Conference 2015 Spring
San Diego Convention Center - San Diego, CA
Link to Conference Website
May 06 - May 07
High Performance Workforce Summit 2015
Omni Hotel at CNN Center - Atlanta, GA
Link to Conference Website
Jun 22 - Jun 24
2015 Strategic Talent Acquisition Conference
TBD - Boston Seaport, MA
Link to Conference Website
Jun 28 - Jul 01
SHRM 2015 Annual Conference and Exposition
Las Vegas Convention Center - Las Vegas, NV
Link to Conference Website
Jul 19 - Jul 22
IPAC 2015
TBD - Atlanta, GA
Link to Conference Website
Jul 27 - Jul 29
2015 Employee Engagement Conference
TBD - San Francisco, CA
Link to Conference Website
Sep 16 - Sep 18
2015 Learning and Leadership Development Conference
TBD - Chicago, IL
Link to Conference Website
Sep 30 - Oct 02
ebn Benefits Forum & Expo
Hilton Orlando Bonnet Creek - Orlando, FL
Link to Conference Website
Oct 25 - Oct 28
HR Southwest Conference
Fort Worth Convention Center - Fort Worth, TX
Link to Conference Website
Add to
Calendar
Upcoming Company Events
Date
Mar 02
Time
Company
1:00 PM Morneau Shepell Inc.
Event
Earnings Call
Location / Dial-in and Pass code
Dial-in: (416) 340-2217 ; Passcode: 2809543
Additional Resources
Investor Relations
Mar 03
4:30 PM Bazaarvoice, Inc.
Earnings Call
Dial-in: (877) 407-3982
Investor Relations
Mar 03
4:00 AM Jardine Lloyd Thompson Group plc
Earnings Call
TBA
Investor Relations
Mar 03
5:00 PM TriNet Group, Inc.
Earnings Call
Dial-in: (412) 902-6510
Mar 04
9:00 AM H&R Block, Inc.
Earnings Call
TBA
Investor Relations
Mar 04
8:30 AM CDI Corp.
Earnings Call
Dial-in: (866) 803-2143 ; Passcode: 3150648
Investor Relations
Mar 11
5:00 PM Korn/Ferry International
Earnings Call
TBA
Investor Relations
Mar 11
4:30 AM Michael Page International plc
Earnings Call
Dial-in: (020) 3059-8125 ; Passcode: PageGroup
Investor Relations
Add to
Calendar
Source: CapIQ, Company Websites
Note: Bold denotes planned attendance by KeyBanc Capital Markets HR Software & Services team member
13
HR Software and Services Monthly
March 2015
KeyCorp Overview
KeyBanc Capital Markets
 Corporate and Investment Bank focused on the middle market
 Full-services capabilities:
-
Equity Capital Markets - Sales & Trading
-
Leveraged Finance
- Mergers & Acquisitions
-
Debt Capital Markets
- Financial Sponsor Coverage
 Over 600 bankers in 20 offices: Albany, Atlanta, Boston, Charlotte,
Chicago, Cincinnati, Cleveland, Columbus, Dallas, Houston,
Indianapolis, Los Angeles, Nashville, New York, Philadelphia,
Portland, Salt Lake City, San Francisco, Seattle and Syracuse
Headquarters: Cleveland, OH
 Bankers organized by industry focus and transaction expertise
Sole Corporate Banking Offices (15 States)
 Over 60 senior and associate equity research analysts, tracking
more than 500 companies across four major industry sectors
Sole Community Banking Offices (11 States)
Combined Corporate and Community Banking Offices (4 States)
Recent KeyBanc Capital Markets HR Software & Services Transactions
January 2015
October 2014
September 2014
July 2014
A portfolio company of
Minority Growth
Equity Investment
$125,000,000
Senior Secured Credit Facility
Documentation Agent
$143,750,000
Convertible Senior Notes
$650,000,000
Senior Secured Credit Facilities
Senior Co-Manager
Joint Bookrunner,
Co-Syndication Agent &
Co-Documentation Agent
Exclusive Financial Advisor
- Team Contacts
For additional information on KeyBanc Capital Markets’ HR Software & Services Practice, please contact any of the individuals listed below:
Dev Navare
Director
Technology Group
[email protected]
(617) 385-6225
Boston, MA
Charlotte, NC
Seattle, WA
San Francisco, CA
225 Franklin St., 18th Floor
Boston, MA 02110
5935 Carnegie Blvd.,
Charlotte, NC 28209
1301 5th Ave., 23rd Floor
Seattle, WA 98101
One Embarcadero Center, Ste. 1100
San Francisco, CA 94111
Tim Monnin
Managing Director
Technology Group
[email protected]
(704) 651-9371
John Brock
Jason Black
Managing Director
Vice President
Segment Head
Technology Group
[email protected]
[email protected]
(206) 684-6226
(206) 684-6581
Chris Headrick
Managing Director
Technology M&A
[email protected]
(415) 486-3410
Niket Gandhi
Vice President
Technology Group
[email protected]
(617) 385-6231
Brett Deware
Analyst
Technology Group
[email protected]
(617) 385-6247
Disclosure: KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., Member
NYSE/FINRA/SIPC, and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc.and its licensed securities
representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A. This report was not issued by our research department. The information
contained in this report has been obtained from sources deemed to be reliable but is not represented to be complete, and it should not be relied upon as such. This report does not purport to be a
complete analysis of any security, issuer, or industry and is not an offer or a solicitation of an offer to buy or sell any securities. This report is prepared for general information purposes only and does
not consider the specific investment objectives, financial situation and particular needs of any individual person or entity.
14