Software Equity Group’s Client, EnginuityPLM, Acquired by Dassault Systèmes

SAN DIEGO, CA – April 27, 2011.  Software Equity Group, LLC (SEG) announced today that its client, Enginuity PLM, a leader in formula-based Product Lifecycle Management solutions widely acknowledged as best-in-class has been acquired by Dassault Systèmes (ENXTA: DSY), a world leader in 3D and PLM solutions. The amount of the transaction was not disclosed.

The addition of Enginuity expands Dassault Systèmes’ extensive suite of collaborative business process solutions based on its ENOVIA® V6 platform.  With ENOVIA® and the Enginuity solution, formula-centric companies in the pharmaceutical, personal care, cosmetics, food and beverage, and flavor/fragrance industries will be able to accelerate product innovation and product launches while successfully navigating complex regulatory requirements and more effectively managing and leverageing their formula, packaging and consumer intellectual property in a single PLM solution.

“We believe that the acquisition of Enginuity represents a keystone in our PLM solution for formula industries, enabling us to expand the services and value that we deliver to our customers in this previously underserved space,” said Michel Tellier, CEO, ENOVIA®, Dassault Systèmes. “Additionally, this acquisition allows our core technology and offer a complete product definition for process industries including product, packaging and labeling.”

Dr. John Sottery, founder and CEO, Enginuity commented, “For the past 18 years we have focused on helping a number of the world’s largest and most successful formula based companies address a fundamental industry dilemma – how to accelerate innovation and reduce time-to-market while simultaneously navigating an increasingly complex global regulatory environment. By combining our best-in-class formula PLM solution and deep industry domain knowledge with Dassault Systèmes’ ENOVIA V6 PLM platform, I believe that we will revolutionize how our customers develop and launch formulated products.”

About Dassault Systèmes

As a world leader in 3D and Product Lifecycle Management (PLM) solutions, Dassault Systèmes brings value to more than 130,000 customers in 80 countries. A pioneer in the 3D software market since 1981, Dassault Systèmes applications provide a 3D vision of the entire lifecycle of products from conception to maintenance to recycling. The Dassault Systèmes portfolio consists of CATIA for designing the virtual product – SolidWorks for 3D mechanical design – DELMIA for virtual production – SIMULIA for virtual testing – ENOVIA for global collaborative lifecycle management, EXALEAD for search-based applications and 3DVIA for online 3D lifelike experiences.

About EnginuityPLM

Enginuity PLM provides a collaborative product development platform for global 2000 organizations in the formula-based, process manufacturing industries. Combining a global product development knowledge repository and powerful search engine with robust formula CAD, regulatory management and product launch functionality – the Enginuity® solution allows companies to accelerate product innovation and achieve real-time regulatory compliance, while significantly reducing time-to-market, raw material costs and total cost of ownership. The Engenuity product development software is used by leading cosmetics, consumer packaged goods (CPG), over-the-counter (OTC) drug, specialty chemical and pharmaceutical companies around the world. Customers include Shiseido subsidiary Zotos International, Revlon, Schering-Plough, Coty Inc., AkzoNobel, Energizer, Merck and Procter & Gamble (P&G).

About Software Equity Group

Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors.  Founded in 1992, our firm has guided and advised companies on five continents, including privately-held software and technology companies in the United States, Canada, Europe, Asia Pacific, Africa and Israel.  We have represented public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also advises several of the world’s leading private equity firms. We are ranked among the top ten investment banks worldwide for application software mergers and acquisitions.

For more information: Allen Cinzori, Managing Director, Software Equity Group, 858-509-2800

Software Equity Group Publishes Complimentary Q1 2011 Software Industry Equity Report

SEG’s complimentary 1Q11 Software Industry Equity Report is now available for download. Our 1Q11 Report provides the facts, data and insight you need to keep your finger on the software industry’s pulse.

Our 1Q11 Report provides the facts, data and insight you need to keep your finger on the software industry’s pulse.  We’ve assessed how public software, Internet and SaaS companies performed in Q1; how they’ve benefited from the rebound in IT spending and record levels in Internet retail sales and on-line advertising spend in 2010; and how their stock prices and market valuations have responded.  Our 1Q11 Report also enumerates and analyzes the software IPOs in the first quarter, looks at the current IPO pipeline, measures M&A deal volume and exit valuations overall and by software product category.

  • 1Q11 marked the fifth consecutive quarter the software industry’s benchmark median exit EV/Revenue multiple was above 2.1x TTM revenue.  What’s behind the multiple?  What are the hot M&A product categories?  Are vertical solution providers still in M&A vogue?
  • Thirty-nine SaaS companies were acquired in 1Q11, up from only ten during the same quarter a year ago.  What SaaS product categories are experiencing rapid consolidation?  Are buyers valuing SaaS operating margins over revenue growth rates in the current market?
  • What is driving the return of private buyers to the M&A market?  How has public buyer M&A strategy and thinking changed?
  • Fifteen buyers made two or more software company acquisitions in 1Q11.  Who were they and what did they acquire?
  • TTM revenue growth rates accelerated in 1Q11 for public software, Internet and SaaS companies.  Did it come at the expense of EBITDA margins which climbed to record levels in 2010?
  • Public Internet companies achieved stellar financial results on a median basis in 1Q11. What categories performed best and how did investors reward them?
  • At the close of 1Q11, the IPO pipeline consisted of twelve companies, including a few high profile names.  Who are they?  How does their financial performance measure up to 1Q11 IPOs and what does that portend for the stock performance once they go public?
1Q 2011 Software Industry Equity Report Topics:
U.S. Economy: Leading Indicators, Employment Outlook, 2011 Forecast
IT Spending, Internet Retail Spending and online Advertising
Public Software, SaaS, and Internet Company Financial Performance
Public Software, SaaS, and Internet Company Stock Market Performance
Software Company Initial Public Offerings and Filings
Software Industry Merger and Acquisition Data
Software Industry Merger and Acquisition Trends
Software Industry Merger and Acquisition: Most Active Buyers
Software Industry Merger and Acquisition: Most Active Categories
Software Industry Merger and Acquisition: Purchase Price Multiples by Category
Software Industry Merger and Acquisition: Deal Consideration
Software Industry Merger and Acquisition: Public vs. Private Buyers and Sellers
Software Industry Merger and Acquisition: Transactions by Product Category
Software Industry Merger and Acquisition: Analysis of Select Software Transactions

Software Equity Group’s Client, Cytiva Software, Acquired by Taleo

SAN DIEGO, CA – April 4, 2011.  Software Equity Group, LLC (SEG) announced today that Taleo Corporation (NASDAQ: TLEO), the leading provider of on-demand talent management solutions, completed the acquisition of SEG’s client, Cytiva Software Inc. (TSX-V: CRX), a leading midmarket provider of on-demand recruiting software solutions.

This acquisition solidifies Taleo’s leadership position in talent management for small and medium-sized businesses, and will extend Taleo’s customer base for its unified talent management platform.

“We are excited about the opportunity to continue providing Cytiva’s customers with a high level of service and support while bringing them the advantages of Taleo’s full suite of recruiting, performance, succession, compensation and learning capabilities,” said Michael Gregoire, Chairman and CEO of Taleo in a separate press release by the company.

About Taleo
Taleo’s (NASDAQ: TLEO) cloud-based talent management platform unites products and an ecosystem to drive business performance through talent intelligence. Nearly 20 million people, worldwide, use Taleo for talent acquisition, performance and compensation management, including 48 of the Fortune 100.

About Cytiva Software
Cytiva Software Inc. (TSX-V: CRX) provides innovative on-demand talent management software and services to mid-sized and Fortune 500 companies. Its flagship recruiting software product, SonicRecruit, allows corporations to screen applicants, automate recruiting departments, customize corporate career sites and hire great people.

About Software Equity Group
Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors.  Founded in 1992, our firm has guided and advised companies on five continents, including privately-held software and technology companies in the United States, Canada, Europe, Asia Pacific, Africa and Israel.  We have represented public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also advises several of the world’s leading private equity firms. We are ranked among the top ten investment banks worldwide for application software mergers and acquisitions.

For more information:
Allen Cinzori, (858) 509-2800
acinzori@softwareequity.com

Software M&A Transactions & Public Company Market/Financial Performance: April 2011

SEG’s complimentary April 2011 Monthly Flash Report assesses the financial and market performance of more than 250 publicly traded software, SaaS, and Internet companies, sorted across nearly 30 product categories.  The Report also highlights a selection of the most recent software M&A transactions.

Despite the market volatility of the past month due to political unrest in the Middle East and North Africa and the earthquake and nuclear concerns in Japan, valuations continue to trend higher and M&A activity remains robust.  Download a complimentary copy of the Report to see:

  • The median valuation of companies comprising one of our software tracking categories was a breathtaking 5.4x EV/Revenue in March. Which was it, and what drove it?
  • Which high flying SaaS companies drove the SEG SaaS Index to 5.5x EV/Revenue?
  • What SEG Internet product category registered a median EV/Revenue multiple nearly twice as high as our other Internet tracking categories?
  • The most noteworthy software M&A transactions in March, including the two transactions exceeding more than $1.7B
  • There’s much more….

Look for our complimentary 1Q11 Software Industry Equity Report, scheduled for publication and download from our website in late April.