GP Bullhound：2022年第四季度网络服务报告

DigitalServicessectorupdateQualitativeinsightsintobroaderDigitalServicestrendsandpublicandprivatevaluationsacrossthetransactionspectrum,ImportantdisclosuresappearattheendofthisreportManagementLimitedareauthorisedandregulatedbytheGPBullhoundManagementLimitedareauthorisedandregulatedbytheFinancialConductAuthorityGPBullhoundIncisamemberofFINRAinLuxembourgGPBullhoundLuxembourgS.ÀR.L.isregulatedbytheinLuxembourgTakeawaysTakeawaysTHEV工EWQ4DigitalServicesperspectivesfromGPBullhoundSOCIALCOMMERCEAHUGEDIGITALSERVICESCONTINUOUSGROWTHINCLOUD-ENABLEDTRANSFORMATIONPROCESSESMANAGEDSERVICEPROVIDERSTISIDLYGROWINGANDPRIMEDFORCONSOLIDATION▪Globalvalueofsocialcommercewilllikelyreach$2.9tnin2026,upfrom$992bntoday▪In2019,abouthalfofUSMillennialsandGenZconsumersshoppedonsocialmedia,makingitakeyfocusforbrands▪Consolidatorsarelookingtoacquirespecificcapabilitiesinthesocialplatformspacetomeettheever-changingdemandsoftheirclientsaswellastheincreasingshareofadwalletsgoinghere▪Digitaltransformationhasbecomeatopstrategicpriorityforseniorbusinessleaders,initiallydrivenbythepandemicwhichacceleratedtheneedfordigitalinitiatives,butnowconsideredafundamentalpractice▪StrongM&AdemandincloudconsultingwithparticularfocusonServiceNowandSalesforceimplementation▪MSPsarebecomingincreasinglycrucialtothelong-termITstrategiesoflargeenterprises▪AmarketpollshowedexistingMSPprovidersarehighlyactive,withoveraquarterofthemindicatingtheyareseekingtomakeanadd-onacquisitioninthenext24-36months▪MarketleadersareutilisingconsolidationtofurthercementtheirmarketshareandinvestorsaretakingnoticeNote:PleaseseefollowingslidesforsourcesTakeawaysGPBULLHOUND’SSECTORTAKEAWAYSSocialcommerceisahugeopportunityTakeawaysGPBULLHOUND’SSECTORTAKEAWAYSSocialcommerceisahugeopportunityasbrandsseektoconnectwithaudiencesConsumerdataandaccessmakesocialmediaplatformsidealpartnersforonlineretailerbrandsilllikelyreachtninupfrombntoday▪Asthenumberofsocialmediauserscontinuestogrow,peoplearemakingmorepurchasesdirectlyintheirsocialmediaapps.In2019,abouthalfofUSMillennialsandGenZconsumersshoppedonsocialmedia,makingitakeyfocusforbrands.Akeyattractionofshoppingonsocialmediaistheconveniencetomakethepurchaseontheappdirectly–currently,fourappshavebuilt-innativesocialcommercefeatures:Facebook,Instagram,PinterestandTikTok▪Utilisingthevolumeofcustomerdatathatiscapturedbysocialmediaplatforms,brandscandesignhighlytargetedfuturemarketingcampaigns–forexampleFacebookAudienceInsightsdataisbrokendownbygender,location,agegroup,orevenfurtherbyrelationshipstatusjobtitleoreducationlevel.ThiswaybrandscangettheirproductsandservicesinfrontoftheiridealtargetaudienceinawaythatwouldnotbepossibleusingtraditionalecommercestorefrontsceincludeSpringssaletoAmazeandSuperssaletoNewEnterpriseAssociatesDEALDATE:NOV-22EV/EBITDA:N/ADEALDATE:NOV-22EV/EBITDA:N/ASocialcapabilitiesremainaM&Akeypriorityforconsolidatorsinthespacetomeettheeverchangingdemands▪Socialplatformshaveuniquenuanceswhichrequireuniqueexpertiseinordertoallowclientstobecomesuccessfulontheseplatforms.Therehasbeenasignificantincreaseinthenumberofagenciesfocusedonaspecificpartofthemarket,suchasinfluencermarketing▪Further,increasedproliferationofsocialmediaplatforms,bothestablishedplayers,suchasMetaandTikTok,butalsonewofferings,suchasBeReal,andtheirincreasedproductfeatures,likeshopping,resultinCEOsandCMOsrequiringspecificagencycapabilitiestohelpnavigatetheever-changingbutlucrativelandscape▪Asaresult,thesesocialplatform-focusedagenciesareripeforM&A,asconsolidatorslooktomeetthedemandsoftheirbothspecialistsocialplatformagenciesDEALDATE:JUN-22SERIESC:$70MEV/EBITDA:N/ADEALDATE:MAY-22EV/EBITDA:N/ASources:Statista,Pitchbook,Datareportal,Shopify,MergermarketSelectrecenttransactionsTakeawaysGPBULLHOUND’SSECTORTAKEAWAYSContinuousgrowthindigitalmaturitymadeTakeawaysGPBULLHOUND’SSECTORTAKEAWAYSContinuousgrowthindigitalmaturitymadepossiblebycloud-enabledtransformationprocessesDigitaltransformation,once“project-led”,hasbecomeanongoingcontinuousprocessydriverofagrowingdigitaltransformationmarketDEALDATE:DEC-22EV:N/AEV/EBITDA:N/A▪Digitaltransformationhasbecomeatopstrategicpriorityforseniorbusinessleaders,initiallydrivenbythepandemicwhichacceleratedtheneedfordigitalinitiatives,butnowconsideredafundamentalpractice,withleadersrealisingthatdigitalmaturitydirectlycorrelatestosignificantlyimprovedfinancialperformance.Digitallymaturebusinessesareestimatedtoachievedoublethenetprofitmarginsand150%higherrevenuegrowthcomparedtothosewithlowerdigitalmaturity▪Onceconsideredaseriesofone-offprojects,digitaltransformationisnowaperpetualprocessconstructedatC-levelandimplementedatoperationallevel.Thisisachievedthroughtheintertwinementoflatesttechnologyplatformsmergedwithstreamlinedoperationalprocesses.Withanever-changingtechnologylandscape,maintainingacompetitiveedgeformationhasbecomeanessentialtoolforbusinessestocontinuetooutperformagainstDEALDATE:DEC-22EV:N/AEV/EBITDA:N/ArpeerstinuetogrowataCAGRoflikelyreachingmarketsizeoftninDEALDATE:NOV-22EV:N/AEV/EBITDA:N/ACloudenablementhasunlockedwhatisnowpossiblefordigitaltransformationusonSalesforceimplementationThecloudhasplayedamajorroleinenablingthiscontinuousdigitaltransformationprovidingthefoundationforbecomingmoreagile,collaborative,andcustomerfocused.Companiesthathaveadoptedcloudplatformsreportthattheycanbringnewcapabilitiestomarketabout20-40%faster.ThelatestGartnerMagicQuadrantshowsthatAmazonWebServices,MicrosoftAzureandGoogleCloudPlatformleadthewayasthetopthreecloudserviceprovidersentingcoftotalmarketDEALDATE:SEP-22EV:N/AEV/EBITDA:N/A▪ProviderssuchasServiceNowenablethebestuseoftheseproductsbyofferinganintegratedplatformforcloudmanagement,unlockingunifiedoperatingmodelcapabilitiesacrossbothcloudandnon-cloudestates▪Withtheimportanceofcloudnowestablished,cloudconsultinghasattractedstrongM&Ademand,withCognizantacquiringAustinCSI,aconsultingfirmspecialisinginenterprisecloudanddataanalytics.SpecificdemandforSalesforce,Sources:DeloitteInsights,Mckinsey,Diginomica,Statista,GartnerSelectrecenttransactionsEVREVEVREVN/ADEALDATE:OCT-22EV:N/AEV/REV:N/AEV:$6,680MEV/REV:2.4XTakeawaysGPBULLHOUND’SSECTORTAKEAWAYSSelectrelevanttransactionsManagedServiceProvidermarketSelectrelevanttransactionsandprimedforconsolidationMSPsarebecomingincreasinglycrucialtothelong-termITstrategiesoflargeenterprisestoenhancetheirtechcapabilitieswithyDEALDATE:22▪DemandforMSPshasgrownsubstantiallyinrecentyearsasaresultofarevampedpost-pandemicday-to-daybusinessenvironment,anincreasingdependenceonflexibledigitalinfrastructurethatenablesworkingfromhome,andaerofcybersecurityriskstoglobalenterprises▪MSPsassistexecutivestoseamlesslynavigateanincreasinglycomplexanddigitallytransformedlandscape.KeyfactorsdrivinggrowingspendonMSPsincludearenewedemphasisontheimplementationofsystemstoimproveoperationalefficiency,thecreationofcostsynergiesviatheoutsourcingofselectITservices,andthecontinuousimplementationofnextgenerationcloudtechnologies(automationtechnology,IoT,blockchain,cloudcomputing,andothers)▪Estimatedglobalmanagedservicesspendstoodat$267bnin2022andissettoexpandata13.6%CAGRtolikelyreachwhitespaceremainingtobecapturedasanexpandingnumberofenterprisescontinuetolookforwaystoaugment,MarketleadersareutilisingconsolidationtofurthercementtheirmarketshareandinvestorsaretakingnoticeSectorM&AremainsveryactiveandMSPsareseeingagrowingappetiteforprivateinvestmentDATEANNOUNCED:AUG-22uityfundsareincreasinglyturningtheirattentiontotheswiftlygrowingManagedServiceProvidersectorasitndhighlyfragmentedindustry▪MSPsareidealplatforminvestmentsforbuyoutfundslargelyduetotheirprovencycleresilienceinrecessionarymacroeconomicenvironmentstherecurringnatureandhighvisibilityoftheirrevenuestreams,andthestickinessoftheirDEALDATE:AUG-22EV:$1,594MEV/REV:4.7X▪StrategicbuyersarecontinuingtoanalyseM&AtargetopportunitiesintheDEALDATE:AUG-22EV:$1,594MEV/REV:4.7Xspecialisationofservicesaswellasachievefurtherscale.AmarketpollshowedexistingMSPsarehighlyactive,withoveraquarterofthemindicatingtheyareseekingtomakeanadd-onacquisitioninthenext24-36monthsSources:GrandviewResearch,TechCrunch,TheChannelCompany,Kaseya,CapitalIQTakeawaysTakeawaysALEADINGTECHNOLOGYADVISORYANDINVESTMENTFIRM,PROVIDINGTRANSACTIONADVICEANDCAPITALGPBullhound’srecentDigitalServicesactivityDigitalServicesadvisoryMelonDBYUNDISCLOSEDPurpleStrategiesWestViewCapitalPartnersUNDISCLOSEDMekanismDBYPlusCompanyUNDISCLOSEDArcaBlancaDBYArtefactUNDISCLOSEDTalonOutdoorEquistonePartnersEuropeUNDISCLOSEDDBYAccelerationCommunityofCompanies(ACC)UNDISCLOSEDNewcraftDBYWPPUNDISCLOSEDLDCUNDISCLOSEDAdyoulikeDBYOpenWeb(InsightPartners)$100MTeamITGBridgepointUNDISCLOSEDMayfairEquityPartnersLoopMe$200MTheVariableSvobodaCapitalUNDISCLOSEDArtefactArtefactLCArcaBlancaLtdAdPlayS.r.l.TheCarlyleGroupInc.(NasdaqGS:CG)CEOcommentaryCEOcommentaryrendsNOTABLEDIGITALSERVICESTRANSACTIONSContinuedactivityinQ4Dealvalue($m)ImpliedDealvalue($m)ImpliedImpliedDealdateTargetrTargetdescriptiontargetDec-22NAmericaMadisonLogic,Inc.BCPartnersBBmarketingexperts-Dec-22NAmericaMelonTechnologiesSalesforcecommerceagency---Dec-22AsiaAwareServicesPtyLtdMerkleInc.Salesforceandanalyticsconsultancy---Dec-22opeXceedTechnologyAbSofigateGroupOySalesforce-basedconsultancy---Dec-22NAmericaEcommercedigitalagency---Dec-22opeisGmbHGoStudentGmbHondaryschooltutoring---Dec-22NAmericanologySolutionsCorporation(NasdaqGS:CTSH)SAP-basedconsultancy---Dec-22NAmericaOctoConsultingGroup,Inc.alBusinessMachinesGovernmentagencyconsultancy---Dec-22opeConsultinganddatacompany---Dec-22opePerformancemarketingagency---Dec-22NAmericaInfluencerResponse,Inc./VoltAgency,LLCNAmericaInfluencermarketingagency---Dec-22AsiaAccentureplc(NYSE:ACN)Marketingresearchcompany---Nov-22NAmericaTheCambridgeGroup,Inc.PAConsultingGroupHoldingsBoutiquegrowthstrategyconsultancy---Nov-22NAmericaAustinConsultingLLCNov-22NAmericaAustinConsultingLLCnologySolutionsCorporation(NasdaqGS:CTSH)opeDigitaladtechcompany---opeCapgeminiInventSocialImpact-drivencreativeagency---Nov-22AsiaNaskoTradingPtyLtdGlobantS.A.(NYSE:GLOB)Smartphone-appconsultancy---opeIncubetaUKLimitedDigitalmarketingagency---Source:CapitalIQ(asof31December2022);Note(1)–Merger=GPBullhounddeal/investmentRafterOneRafterOneWpromoteLLCEightSevenMediaRetargetlyCapvisAGCEOcommentaryCEOcommentaryrendsNOTABLEDIGITALSERVICESTRANSACTIONSContinuedactivityinQ4Dealvalue($m)ImpliedDealvalue($m)ImpliedImpliedDealdateTargetrTargetdescriptiontargetNAmericaXebiaNederlandB.V.Applicationdevelopmentconsultancy---opeWeAreSocialLtdTheNarrativeGroupLLC1Socialmediacreativeagency---opeCroudIncLtd.Social-firstsocialmediaagency---opeCloudflightGmbHupHoldingAGssdigitisationserviceprovider---opePrivacy-firstaudiencecreationplatform---SAmericaEpsilonDataManagement,LLCData-drivenadvertisingplatform---opeAdExPartnersProcesstransformationconsultancy---NAmericaWillowTree,aTELUSInternationalCompanyCorp.Digitalconsultancyforappdevelopment---Oct-22NAmericaZelnickMediaCorporationDigitalmarketingagency---Oct-22NAmericaViralNationInc.Mobileenterprisesoftwareprovider---Oct-22NAmericaEpicenterExperience,LLCStagwellMarketingCloudLLCMobileenterprisesoftwareprovider---Oct-22NAmericaSoftwaresolutionconsultancy---Oct-22NAmericaLLCDigitalbusinessandITserviceagency---Oct-22NAmericaMARUGroupLimitedStagwellMarketingCloudLLCMarketresearchagency25--Oct-22NAmericaValtechLimitedDigitalmarketingagency---Oct-22AsiaAmeexTechnologiesCorp.Perficient,Inc.(NasdaqGS:PRFT)AIdigitaltransformationconsultancy38--Oct-22NAmericaStonebridgeConsultingGroupLLCAccentureplc(NYSE:ACN)Energy-centrictechnologyconsultancy---Oct-22NAmericaTheInterpublicGroupofCompanies,Inc.(NYSE:IPG)Salesforce-basedbrandingagency241--Source:CapitalIQ(asof31December2022);Note(1)–Merger=GPBullhounddeal/investmentrendsrendsDIGITALSERVICESM&AACTIVITYBYQUARTERDealactivitysignificantlysloweddowninH22022inH12022beforemacroeconomicfactorstookholdTransactiondealvalueandnumberofM&Adeals15000QQQQQQQQ4'19Q1'20Q2'20Q3'20Q4'20Q1'21Q2'21Q3'21Q4'21Q1'22Q2'22Q3'22Q4'22Totalvalue($bn)TotalvolumeM&Adealvolumebygeography9577Q1'18Q2'18Q3'18Q4'18Q1'19Q2'19Q3'19Q4'19Q1'20Q2'20Q3'20Q4'20Q1'21Q2'21Q3'21Q4'21Q1'22Q2'22Q3'22Q4'22US&CanadaEuropeAsiaOtherSource:CapitalIQ(asof31December2022);Note:(1)Includespubliclydisclosedvaluesonly09ConsultanciesMarketingagenciesPubliccompanyanalysesrendsConsultanciesMarketingagenciesPubliccompanyanalysesrendsCLOSEDTRANSACTIONSBYGROUPIN2022ConsultanciesarethemostactivebuyersOverallactivityamongkeycategoriesremainssignificantlydownonlastyear,withdealvolumesfallingfrom191to1242022numberofM&Adealsbytarget2022numberofM&Adealsbytargetgeography47463635Source:CapitalIQ(asof31December2022);Note:(1)GPBindexbuyersandselectedkeyprivateconsolidators65 4 4 4 4 4 533Publiccompanyanalyses65 4 4 4 4 4 533PubliccompanyanalysesTOPCONSOLIDATORSAccenturehasbeenthemostactiveacquirerin2022Geomatic.aiSWFTTechnologiesLtd/SuranceLtdgyd6653333DohaLLC3222111111ConsultanciesITservicesMarketingagenciesSource:CapitalIQ(asof31December2022)PubliccompanyanalysesPubliccompanyanalysesGPBULLHOUNDDIGITALSERVICESINDEXGPBullhoundDigitalServicesindexmarketcapitalisationnentshavecontinuedtofeeltheeffectofthewidersellofflosinginvalueinthelastmonthMarketcap($m)ConsultanciesConsultanciesITservicesMarketingagencies00Source:Source:CapitalIQ(asof31December2022)PubliccompanyPubliccompanyanalysesGPBULLHOUNDDIGITALSERVICESINDEXEV/EBITDATRENDS–PASTFIVEYEARSGPBullhoundDigitalServicesindexrecoveringfromOctoberDigitalServicesindexrollingthree-monthaverageNTMEBITDA0x5Ymean:10.6xNTMEV/EBITDAasof31Dec:10.4x8.0xDec-17Jul-18Feb-19Aug-19Mar-20Sep-20Apr-21Oct-21May-22Dec-22Source:CapitalIQ(asof31December2022)%%%%%%PubliccompanyanalysesPUBLICTRADINGPERFORMANCEVS.MARKETINDICESGPBullhoundDigitalServicesindexhistoricalperformancewidermarketselloffglobally85NovDecDec1-Dec-2228-Dec-229085JunAugSep-22Oct-22Nov-22Dec-22 igitalServicesindexSource:CapitalIQ(asof31December2022)SepOctNov-22Dec-22%%70DecMarJun-22Sep-22Dec-22TataConsultancyGlobantCGIGenpactTechTataConsultancyGlobantCGIGenpactTechMahindraAccentureCognizanthodoOmnicomCapgeminiDXCS4CapitalltenICFBlueFocusITservicesmean:18.1%Consultanciesmean:18.4%mean:18.3%MARGINBENCHMARKINGGPBullhoundDigitalServicesindexmarginbenchmarksdinQCY2022EBITDAmarginsMarketingMarketingagenciesmean:18.3%OverallITservicesConsultanciesITservicesConsultanciesSource:CapitalIQ(asof31December2022)GROUPCEO,UNLIMITEDGROUPCEO,UNLIMITEDbrands.Weaimtodrivemorevalue,returnandconversion,anywherealongthecustomerjourney.Withateamofover600talentedminds,wearetheonlyconversionagencyofscaledeliveringinsight-led,tech-enabledmarketingandactivationtodriveROI,salesandloyaltyforclients.Weareuniquelyplacedwithourscaleandbreadthofcapabilitiestocentraliseandoptimiseclientbriefs.Wearecontinuallyinnovatingtoachievebetteroutcomes–ourHumanUnderstandingLabdiagnosesbrandchallenges,ingintohumanemotionandsubconsciousinsighttounlockextraperformance.ctionscoresunderlinewhySelectedclientsCEOcommentaryLEADINGCOMPANIESANDCEOSTRANSFORMINGTHESECTORTimHassett,GroupCEOUNLIMITEDUNLIMITEDisadigitalagencydeliveringlocal,nationalandinternationalbriefsinbothB2CandB2B.Theyareamulti-awardwinningagency,recentlyreceivingTheDrum’sBestPerformingAgencyGroupoftheYearandCEOoftheYearawards.Theirspecialistconversioncapabilitiesarepoweredbyinsightsandtechnologytodeliverforclientswithnon-linearcustomerjourneys.Thecompanyhasover600employeesandisheadquarteredinLondon,UnitedKingdom.CEOcommentaryCEOcommentaryLEADINGCOMPANIESANDCEOSTRANSFORMINGTHESECTORUzairDada,Founder&CEOUZAIRDADAFOUNDER&CEO,IRONHORSEIronHorseemergedfromtheinadequaciesoftraditionalB2Bmarketingtoprovideinnovativenewgrowthtactics.Wesawthatmarketofferingsweremainlyfocusedonimplementation–butnotonhowtogrow.Weconnectthedotsbetweenstrategy,research,martechimplementationandcampaignexecutiontohelpourcustomerscreatescalableintegratedmarketingprograms.B2Bmarketingisafragmentedandcomplexprocess.Thelastfewyearshaveseenalotoftechnologydesignedtohelpmarketersunderstandtheirprospectsbetteranddeliveroperationalizethisdata.Wehelpourclientsextractthesignalfromthenoisetobetterunderstandtheiraudiencesandacceleratethebuyer’paniesaregettingsmarter.CompanieswillspendQ1regroupingandfiguringouthowtodomorewithwhattheyhave,butthenwillrefocusonpredictablegrowth.”IronHorseIronHorseisaB2Bgrowthmarketingagencyfocusedontechanddevelopermarketing.Withmorethan50employeesacrosstheU.S.,IronHorsehelpsFortune500companiesandglobalbrandsbuildunifiedconversationswiththeirprospectsandaccounts—wherevertheyare.TILOBONOWFOUNDER&TILOBONOWFOUNDER&CEO,PIABOnotasagencies,butasstrategicpartnerswithC-suiteexecutives.Businessleadersarecomingtouswithaswatheofissuestheyaretryingtonavigate.Inanincreasinglycomplexlandscapeofengagementchannels,wearelaser-focusedaudience.WeareseeingincreasingpotentialintheareasofC-suitemmunicationsBBinfluencermarketingcrisiscommunication,employerbrandingandinvestorcommunication.Andofcourse,weseehugepotentialinhelpingourclientscommunicatetheirESGcredentialsandinitiativesinwhathasbecomeamoreconsciousbusinessenvironment.wearecautiouslyoptimisticonthepotentialinthiscurrentmarketasweseeopportunitytodouble-downwherecompetitorsarebeingcautious-ourclientsneedusmorentsSelectedclientsCEOcommentaryLEADINGCOMPANIESANDCEOSTRANSFORMINGTHESECTORTiloBonow,Founder&CEOPiaboPiaboisamulti-awardwinningfull-stackPRpartnerhelpingitsclientsnavigatethedigitaleconomy.Therangeofservicesofferedincludespublicrelations,digitalandsocialmediamanagementaswellasbrandstrategy,contentmarketingandinfluencerrelations.RecentawardsincludeProvokeMedia’sDACHAgencyoftheYearaswellasDUP’sEmployeroftheFutureaward.Thecompanyhasover150employeesandisheadquarteredinBerlin,Germany.PubliccomparablesPubliccomparablesICCOMPARABLESBYTYPEPubliccomparablesCompanyNameShareprice(USD)31-Dec-2252WeekHigh(USD)WeekHigh%MktCap(USD)EV(USD)RevenueMultipleCY2020CY2021CY2022CY2020-CY2022EBITDAMultipleEBITDAMarginCAGRCY2020CY2021CY2022CY2020CY2021CY2022RevenueEBITDAInternationalBusinessMachinesCorporation3xx9x%%%(9.8%)(1.6%)Accentureplc5x7xxTataConsultancyServicesLimited4.9xxxx%%%6x.2xx%%%%CapgeminiSE0xHCLTechnologiesLimitedxx8x%%%CognizantTechnologySolutionsCorporation2x4%9ited4.7.8x6x2x%%%CGIInc.235x5x3x%%%%OmnicomGroupInc.68x7x.0%PublicisGroupeS.A.%%EPAMSystems,Inc..7xxxWPPplcn.m.n.m.BoozAllenHamiltonHoldingCorporation0x0x0xTheInterpublicGroupofCompanies,Inc.3.00x9x3%NECCorporation1.46x6x6xxx%5%TechMahindraLimited02x0xDentsuGroupInc.442.0xDXCTechnologyCompany574x6x7x2xx.2x(25.4%)(26.9%)GlobantS.A.5xxx0xx%%8%39715x9%%.9073x4x4x5xx.0x8%(0.3%)(20.9%)Hakuho