HR Software and Services Monthly
December 2014
HR Software & Services Update
Salient Transactions
Aetna Acquires bswift for $400M
• Aetna acquired bswift, a provider of HR, benefits and payroll
administration, for $400 million
• The acquisition will help Aetna advance its consumer vision to
transform the health benefits industry to a retail model that is
consumer-centric, affordable and convenient
Elance-oDesk Raises $30M in Financing
• Elance-oDesk, a platform for businesses to find and hire
freelancers, raised $30 million in financing from investors
including Stripe Group, New Enterprise Associates, Sigma West,
FirstMark Capital, T. Rowe Price and Benchmark Capital
• Elance-oDesk will use the proceeds to further investment in
products
Major Indices & Exchange Rates
Close as of
11/28/2014
% 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
17,828.24
10,955.41
4,791.63
2,544.47
2,067.56
1,173.23
3.7%
2.3%
4.9%
0.5%
3.7%
1.5%
10.8%
7.6%
18.0%
6.6%
14.5%
2.7%
Euro / USD
Japanese Yen / USD
British Pound / USD
0.8042
118.7400
0.6393
1.5%
9.0%
2.5%
9.4%
15.9%
4.7%
Oasis Outsourcing Acquired by Stone Point Capital
• Oasis Outsourcing, a professional employer organization and
provider of workforce employment solutions, was acquired by
Stone Point Capital for an undisclosed amount
HR Software & Services News
Global Executive Search Revenue Rises 8.6% in Q3 2014
Global executive search revenue rose 8.6% and overall search
volume increased 8.7% year over year in the third quarter,
according to the Association of Executive Search Consultants.
However, revenue edged down 2.1% compared to Q2 2014 and the
number of new searches in this quarter fell by 2.4% as compared to
Q2 2014
Interest Rates
As of
11/28/2014
U.S. Prime Rate
U.S. Treasury - 10 years
ICE LIBOR - USD - 3 Month
Federal Funds Overnight Rate
3.250%
2.194%
0.234%
0.060%
Bps Change
1 Month 12 Month
0.00
(10.90)
0.12
(1.00)
0.00
(54.90)
(0.55)
1.00
U.S Temporary Help Services Jobs Rise by 8.8% in October
The number of U.S. temporary help services jobs rose by 8.8%
year over year in October — the fastest year-over-year growth
since April — according to the U.S. Bureau of Labor Statistics. In
addition, the temporary penetration rate reached another new high
of 2.1%. However, the month-over-month number was down from
the 17,800 added in September based on revised numbers. The
unemployment rate edged down to 5.8% in November from 5.9% in
September
*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
December 2014
HR Software & Services Headlines
11/29
Mobile, security and big data will continue to drive IT hiring and remain among the highest IT salary increases in 2015
according to Robert Half. The base compensation for IT professionals is expected to jump by 5.7%, slightly above last
year’s tech salaries. The most in-demand positions will occur within the big data field, with salaries expected to rise by
10.2%. Increases in salary and demand for Mobile Application Developers is attributed to the success of mobile
applications. More than 70% of organizations have implemented some type of mobile strategy, and the need for talent
who can develop applications for smartphones and other mobile devices is on the rise (PRWeb, 11/29/2014).
11/20
EmployeeScreenIQ, a provider of employee background screening services, and iCIMS, a provider of Software-as-aService (SaaS) talent acquisition software solutions for growing businesses, have upgraded their longstanding
platform integration to provide customers with fully streamlined, paperless background checks. By utilizing iCIMS’
new API protocols, customers will benefit from a smoother screening process. For many employers, pre-employment
screening is necessary but has historically required significant manual labor that is often challenging to manage (HR
Vendor News, 11/20/2014).
11/19
With the goal of reducing their workload and prioritizing efficiency over cost, companies are becoming more strategic
in their hiring and recruitment methods and look for an ideal solution for their specific needs during outsourcing,
according to Quest Staffing Solutions, a staffing solutions company in South Africa. Because of the changing
recruitment landscape and demand for bespoke solutions, the trend of Recruitment Process Outsourcing (RPO) has
picked up momentum and is one of the fastest-growing single-process human resource outsourcing markets. In 2013,
the uptake of RPO grew by an average of 16% worldwide, according to Everest Group (IT-Online, 11/19/2014).
11/19
Recruiting leaders globally will have higher budgets and even higher hiring volumes, with a strong need to focus on
“quality of hire” in 2015. They will also need a much stronger focus on social networks, and will need to structure a
strategy for passive candidate recruiting, which currently only 61% of global companies have, according to LinkedIn.
The findings outlined that 63% of leaders expect hiring volumes to rise, and 46% anticipate an increase in hiring
budgets. It also found that 38% expect to source talent from social professional networks — a number that has
increased by 78% since 2013 — second only to internet job boards at 42% (HR Online, 11/19/2014).
11/19
EBN’s survey of benefits decision-makers reveals that 41% plan to increase their spending on technology next year,
with 45% having already increased their spending from 2013 to 2014. Many of these respondents are tasked with not
only directing and planning the day-to-day operations of group benefits programs, but also providing superior
communications and education to employees. As the job grows in complexity, advances in benefits administration
technology help ease HR’s difficulties. The most effective of these platforms include decision-modeling calculators
driven by real data to enable a rich, personalized experience for employees (Employee Benefit News, 11/19/2014).
11/18
Talent deficiencies significantly hamper 40% of strategy implementation efforts, according to the Project Management
Institute’s findings. This inhibits competitive advantage, growth and customer satisfaction. Organizational leaders are
aware of the impact of insufficient talent; 72% of respondents say that talent management will become increasingly
important to strategy implementation and execution in the next three years. However, HR professionals and business
leaders acknowledge that improvement is necessary in order to align talent management policies and strategic
programs and projects (Business Wire, 11/18/2014).
2
HR Software and Services Monthly
December 2014
HR Software & Services Headlines
11/13
Top issues confronting claims organizations involve addressing the rapidly shrinking talent pool, grappling with
emerging technology trends, and operationalizing performance measures — all while improving productivity and
reducing costs, as per a report on workers’ compensation by Rising. Key hurdles include challenges in measuring
best practices within top-ranked core competencies, declining investment in current and future talent development, low
adoption of disruptive technologies (such as predictive analytics), and continued obstacles with claims system
integrations (Insurance News Net, 11/13/2014).
11/11
A new tool released by Staffing Industry Analysts helps analyze workers’ pay across occupations and geographies.
The workbook contains data on 820 detailed occupations for 403 metropolitan areas, allowing you to view roughly
200,000 pay range profiles. An interactive U.S. map also displays data by state. The tool provides wage ranges to
enable comparison of salaries over time, and if salaries going up or down for specific skill sets. Long-term
employment trends for target occupations and geographies can be analyzed and companies can know where they
stand in the marketplace (Staffing Industry, 11/11/2014).
11/11
Nearly 73% of U.S. companies expect an increase in their demand for “middle-skills” jobs – those that generally
require more than a high school diploma but less than a four-year degree – over the next few years, according to
research from Accenture. Additionally, 56% of those surveyed struggle to find people with the qualifications to fill
existing middle-skills vacancies. As per participants, hard-to-fill positions included Engineering Tech (Mining/Utilities 39%), Sales Reps (Info/Telecom - 34%), Nursing Assistants (29%), Network Admins (27%), and Computer Support
Specialists (21%) (Staffing Industry, 11/11/2014).
11/7
Outplacement services have a buyer power score of 4.7 out of 5, which reflects very strong negotiating power for
buyers, according to IBISWorld. Demand has declined during the past three years as companies recover from the
recent recession. Prices for outplacement services are expected to continue dropping through 2017 as the economy
further stabilizes and businesses start to expand their operations, benefiting buyers. A shift toward increased online
service offerings has contributed to falling supplier costs, which have boosted vendor financial stability and improved
supplier profit margins (PRWeb, 11/7/2014).
11/6
Technology has transformed the way companies recruit job candidates, but many still fall short in maximizing the
advantages of IT innovation, according to CareerBuilder. This is turning off promising prospects, as candidates'
impressions of an organization are strongly influenced by their job-hunting experience. 57% of HR departments do not
use any tools to capture candidates who do not apply, and just 23% use a shortened version of an application to
gather candidate information. Even if they didn't get hired for an opening at a company, 42% of candidates would like
to receive emails about new opportunities at that firm (Baseline, 11/6/2014).
11/3
The majority of integrated talent management vendors are pursuing similar approaches to differentiate themselves,
making it more difficult for buyers to distinguish among them according to IDC. The competitive field is exceedingly
close and getting closer all the time. Many attempts at differentiation are centering right now on HR analytics. The
challenge is that with everyone pursuing similar tactics, the results are proving to be indistinguishable. In addition to
HR analytics, most players are delivering or working on delivering consumer-like user experiences (Marketwatch,
11/3/2014).
3
HR Software and Services Monthly
December 2014
Industry Fundamentals
Market-Indexed Prices (12 Month Indexed Prices as of November 28, 2014)
20%
Indexed Price (% )
15%
Index
1 Month
12 Month
3.7%
3.7%
4.9%
1.5%
14.5%
10.8%
18.0%
2.7%
S&P 500 Index
Dow Jones Industrial
NASDAQ Composite
Russell 2000
18.0%
14.5%
10.8%
10%
5%
2.7%
0%
(5%)
(10%)
30-Nov-13
31-Jan-14
31-Mar-14
S&P 500 Index
31-May-14
Dow Jones Industrial
31-Jul-14
30-Sep-14
NASDAQ Composite
30-Nov-14
Russell 2000
HR Sector Indices vs. S&P 500 (12 Month Relative Share Price Returns as of November 28, 2014)
50%
40%
Indexed Price (% )
30%
Index
1 Month
12 Month
3.7%
3.5%
11.6%
2.5%
1.4%
2.1%
14.5%
(4.3%)
(0.6%)
(0.2%)
10.5%
(3.6%)
S&P 500 Index
HR Technology
HR Outsourcing
HR Staffing & Services
HR Benefits and Risk Consulting
SaaS
20%
14.5%
10%
10.5%
(0.2%)
(0.6%)
(3.6%)
(4.3%)
0%
(10%)
(20%)
(30%)
30-Nov-13
S&P 500 Index
31-Jan-14
HR Technology
31-Mar-14
HR Outsourcing
31-May-14
31-Jul-14
HR Staffing & Services
30-Sep-14
SaaS
30-Nov-14
HR Benefits and Risk Consulting
Source: Capital IQ
HR Technology: WDAY, ULTI, CEB, CSOD, CALD, BNFT, DHX, MWW, TSX:HGN
HR Outsourcing: ADP, AON, PAYX, HRB, TW, BOVESPA:QUAL3, WAGE, CBZ, NSP, BBSI
HR Staffing & Services: SWX:ADEN, ENXTAM:RAND, RHI, MAN, LSE:HAS, ASGN, LSE:MPI, ENXTAM:USG, TBI, KFY, KFRC, KELY.A, CDI, HSII, CTG
HR Benefits and Risk Consulting: MMC, AJG, WSH, LSE:JLT, TSX:MSI, AIM:JLF
SaaS: CRM, NOW, N, CNQR, GWRE, DWRE, RP, MKTO, LOGM, CVT, SPSC, IL, FUEL, TXTR, TNGO, SQI
Note: PAYC, PCTY and TNET began trading within the past year and are not included in 12 month calculations.
4
HR Software and Services Monthly
December 2014
Industry Fundamentals
Relative Valuation (12 Month EV / Revenue Valuations as of November 28, 2014)
12.0x
11.0x
Enterprise Value / Revenue
10.0x
Index Averages
HR Technology
HR Outsourcing
HR Staffing & Services
HR Benefits and Risk Consulting
SaaS
1 Month
12 Month
4.4x
3.0x
0.6x
2.2x
5.7x
5.5x
3.0x
0.7x
2.3x
6.4x
9.0x
8.0x
7.0x
6.0x
5.6x
5.0x
4.4x
4.0x
3.1x
3.0x
2.2x
2.0x
1.0x
0.6x
0.0x
30-Nov-13
31-Jan-14
HR Technology
31-Mar-14
HR Outsourcing
31-May-14
31-Jul-14
HR Staffing & Services
SaaS
30-Sep-14
30-Nov-14
HR Benefits and Risk Consulting
Relative Valuation (12 Month EV / EBITDA Valuations as of November 28, 2014)
Index Averages
60.0x
Enterprise Value / EBITDA
50.0x
HR Technology
HR Outsourcing
HR Staffing & Services
HR Benefits and Risk Consulting
SaaS
1 Month
12 Month
10.7x
11.8x
9.9x
12.4x
32.4x
10.1x
11.9x
11.5x
12.8x
35.6x
40.0x
31.6x
30.0x
20.0x
12.4x
11.9x
10.8x
10.0x
10.0x
0.0x
30-Nov-13
31-Jan-14
HR Technology
31-Mar-14
HR Outsourcing
31-May-14
HR Staffing & Services
31-Jul-14
SaaS
30-Sep-14
30-Nov-14
HR Benefits and Risk Consulting
Source: Capital IQ; Note: EV/Revenue and EV/EBITDA multiples higher than 20.0x and 50.0x respective were excluded from chart calculations
HR Technology: WDAY, ULTI, CEB, CSOD, CALD, BNFT, DHX, MWW, TSX:HGN
HR Outsourcing: ADP, AON, PAYX, HRB, TW, BOVESPA:QUAL3, WAGE, CBZ, NSP, BBSI
HR Staffing & Services: SWX:ADEN, ENXTAM:RAND, RHI, MAN, LSE:HAS, ASGN, LSE:MPI, ENXTAM:USG, TBI, KFY, KFRC, KELY.A, CDI, HSII, CTG
HR Benefits and Risk Consulting: MMC, AJG, WSH, LSE:JLT, TSX:MSI, AIM:JLF
SaaS: CRM, NOW, N, CNQR, GWRE, DWRE, RP, MKTO, LOGM, CVT, SPSC, IL, FUEL, TXTR, TNGO, SQI
Note: PAYC, PCTY and TNET began trading within the past year and are not included in 12 month calculations.
5
HR Software and Services Monthly
December 2014
HR Software & Services Public Trading Statistics (As of November 28, 2014)
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.
$87.1
$116.5
74.7%
$16,191
$14,846
$703
($160)
NM
21.1x
NM
14.4x
NM
72.2%
The Ultimate Software Group, Inc.
147.2
172.0
85.6%
4,177
4,076
482
69
14.2%
8.5x
NM
7.0x
28.5x
23.5%
Corporate Executive Board Co.
73.2
81.0
90.4%
2,463
2,884
892
188
21.0%
3.2x
15.4x
2.9x
11.7x
12.9%
Cornerstone OnDemand, Inc.
31.8
61.9
51.4%
1,701
1,698
242
(38)
NM
7.0x
NM
5.3x
NM
45.2%
Callidus Software Inc.
16.0
17.3
92.3%
777
748
129
(2)
NM
5.8x
NM
4.8x
42.7x
19.8%
Benefitfocus, Inc.
27.1
77.0
35.2%
692
673
127
(48)
NM
5.3x
NM
4.2x
NM
31.8%
Dice Holdings, Inc.
10.9
11.5
94.6%
578
664
253
72
28.2%
2.6x
9.3x
2.4x
7.7x
21.9%
4.4
8.5
51.2%
386
562
783
73
9.3%
0.7x
7.7x
0.7x
5.6x
(4.6%)
Monster Worldwide, Inc.
Halogen Software Inc.
Mean
Median
7.7
12.5
61.8%
169
123
54
(8)
NM
2.3x
NM
1.9x
NM
18.9%
$45.0
$27.1
$62.0
$61.9
70.8%
74.7%
$3,015
$777
$2,919
$748
$407
$253
$16
($2)
18.2%
17.6%
6.3x
5.3x
10.8x
9.3x
4.8x
4.2x
19.2x
11.7x
26.8%
21.9%
HR Outsourcing
Automatic Data Processing, Inc.
$85.6
$86.3
99.3%
$41,283
$40,752
$12,418
$2,614
21.0%
3.3x
15.6x
3.6x
17.3x
12.8%
Aon plc
92.5
92.7
99.8%
26,372
31,474
11,929
2,410
20.2%
2.6x
13.1x
2.6x
12.0x
2.0%
Paychex, Inc.
47.4
48.2
98.4%
17,202
16,642
2,573
1,102
42.8%
6.5x
15.1x
6.0x
14.1x
9.0%
H&R Block, Inc.
33.6
33.9
99.2%
9,254
8,327
3,031
951
31.4%
2.7x
8.8x
2.6x
8.2x
3.2%
113.0
131.7
85.8%
7,922
7,616
3,550
652
18.4%
2.1x
11.7x
2.1x
10.2x
2.9%
Qualicorp S.A.
10.8
11.1
97.6%
2,950
2,987
578
235
40.7%
5.2x
12.7x
4.5x
11.8x
26.1%
TriNet Group, Inc.
31.7
32.8
96.6%
2,203
2,656
479
171
35.7%
5.5x
15.5x
4.8x
14.3x
39.8%
WageWorks, Inc.
58.4
68.3
85.5%
2,065
1,758
244
45
18.3%
7.2x
39.3x
5.5x
21.3x
15.9%
Paycom Software, Inc.
28.8
29.4
97.7%
1,469
1,478
137
18
13.2%
10.8x
NM
8.3x
44.8x
39.1%
Paylocity Holding Corporation
29.1
31.0
93.8%
1,445
1,372
117
(6)
NM
11.7x
NM
9.0x
NM
40.1%
8.7
9.5
91.5%
427
630
723
72
10.0%
0.9x
8.7x
0.8x
NM
6.8%
Insperity, Inc.
32.7
36.3
90.0%
827
602
389
65
16.6%
1.5x
9.3x
1.4x
7.7x
3.9%
Barrett Business Services Inc.
21.8
102.2
21.4%
155
74
606
(50)
NM
0.1x
NM
0.1x
2.1x
20.7%
$45.7
$32.7
$54.9
$36.3
89.0%
96.6%
$8,737
$2,203
$8,951
$2,656
$2,829
$606
$637
$171
24.4%
20.2%
4.6x
3.3x
15.0x
12.9x
4.0x
3.6x
14.9x
12.0x
17.1%
12.8%
Towers Watson & Co.
CBIZ, Inc.
Mean
Median
HR Staffing & Services
Adecco S.A.
$70.2
$82.6
85.0%
$12,578
$14,018
$25,003
$1,231
4.9%
0.6x
11.4x
0.5x
9.6x
1.4%
Randstad Holding NV
49.4
62.0
79.6%
8,875
9,696
21,496
835
3.9%
0.5x
11.6x
0.4x
9.0x
3.1%
Robert Half International Inc.
56.8
58.3
97.4%
7,719
7,430
4,557
516
11.3%
1.6x
14.4x
1.5x
12.3x
8.6%
ManpowerGroup Inc.
66.9
87.2
76.7%
5,291
5,115
20,894
808
3.9%
0.2x
6.3x
0.2x
6.3x
3.4%
2.1
2.5
84.3%
2,947
3,046
6,292
251
4.0%
0.5x
12.1x
0.5x
10.4x
(0.5%)
30.7
39.9
77.1%
1,609
1,982
1,809
179
9.9%
1.1x
11.1x
1.0x
9.5x
16.8%
6.4
8.0
80.6%
1,997
1,930
1,735
143
8.2%
1.1x
13.5x
1.2x
12.6x
2.4%
USG People NV
11.0
17.6
62.3%
889
1,127
2,941
144
4.9%
0.4x
7.8x
0.4x
7.4x
2.0%
TrueBlue, Inc.
23.0
31.3
73.3%
976
1,122
1,932
102
5.3%
0.6x
11.0x
0.4x
8.1x
23.5%
Korn/Ferry International
27.2
32.8
82.8%
1,366
1,109
983
126
12.9%
1.1x
8.8x
1.1x
7.1x
15.0%
Kforce Inc.
23.3
24.1
96.7%
714
726
1,259
62
4.9%
0.6x
11.7x
0.6x
9.9x
18.6%
Kelly Services, Inc.
15.4
26.2
59.0%
582
619
5,524
59
1.1%
0.1x
10.5x
0.1x
7.2x
2.2%
CDI Corp.
17.2
19.2
89.5%
337
297
1,133
37
3.3%
0.3x
8.0x
0.3x
7.2x
4.8%
Heidrick & Struggles International Inc.
20.0
23.9
83.8%
365
237
491
40
8.2%
0.5x
5.9x
0.5x
5.2x
9.6%
9.3
19.2
48.5%
173
145
398
23
5.9%
0.4x
6.2x
0.4x
6.6x
(6.2%)
$28.6
$23.0
$35.6
$26.2
78.5%
80.6%
$3,094
$1,366
$3,240
$1,127
$6,430
$1,932
$304
$143
6.2%
4.9%
0.6x
0.5x
10.0x
11.0x
0.6x
0.5x
8.6x
8.1x
7.0%
3.4%
Hays plc
On Assignment Inc.
Michael Page International plc
Computer Task Group Inc.
Mean
Median
Source: Capital IQ; Note: EV/EBITDA multiples higher than 50.0x are excluded from aggregate calculations and are marked as ‘NM’
HR Technology: WDAY, ULTI, CEB, CSOD, CALD, BNFT, DHX, MWW, TSX:HGN
HR Outsourcing: ADP, AON, PAYX, HRB, TW, BOVESPA:QUAL3, TNET, WAGE, PAYC, PCTY, CBZ, NSP, BBSI
HR Staffing & Services: SWX:ADEN, ENXTAM:RAND, RHI, MAN, LSE:HAS, ASGN, LSE:MPI, ENXTAM:USG, TBI, KFY, KFRC, KELY.A, CDI, HSII, CTG
6
HR Software and Services Monthly
December 2014
HR Software & Services Public Trading Statistics (As of November 28, 2014)
EV as a multiple of
($ 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.
$56.6
$57.0
99.4%
$30,609
$32,061
$12,820
$2,635
20.6%
2.5x
12.2x
2.4x
11.1x
5.5%
Arthur J Gallagher & Co.
48.0
49.5
96.9%
7,738
9,869
4,220
645
15.3%
2.3x
15.3x
2.0x
11.0x
43.8%
Willis Group Holdings plc
42.7
45.5
93.9%
7,564
9,236
3,739
817
21.9%
2.5x
11.3x
2.3x
10.7x
4.2%
Jardine Lloyd Thompson Group plc
13.9
17.3
80.3%
2,924
3,640
1,799
372
20.7%
2.0x
9.8x
2.0x
9.5x
13.6%
Morneau Shepell Inc.
14.8
15.2
96.8%
709
979
468
68
14.5%
2.1x
14.5x
2.0x
10.6x
13.8%
1.9
2.1
90.8%
202
216
133
21
15.8%
1.6x
10.3x
1.7x
8.8x
8.2%
$29.6
$28.7
$31.1
$31.4
93.0%
95.4%
$8,291
$5,244
$9,334
$6,438
$3,863
$2,769
$759
$508
18.1%
18.2%
2.2x
2.2x
12.2x
11.7x
2.1x
2.0x
10.3x
10.6x
14.8%
10.9%
$59.9
$67.0
89.4%
$37,778
$39,203
$5,074
$87
1.7%
7.7x
NM
6.3x
34.5x
34.9%
64.0
71.8
89.1%
9,485
9,276
610
(99)
NM
15.2x
NM
10.7x
NM
62.8%
NetSuite Inc.
105.8
120.8
87.6%
8,115
7,956
513
(45)
NM
15.5x
NM
11.7x
NM
33.5%
Concur Technologies, Inc.
128.8
130.4
98.8%
7,355
7,234
703
9
1.2%
10.3x
NM
8.4x
NM
28.7%
Guidewire Software, Inc.
50.5
58.0
87.0%
3,509
3,064
350
24
6.8%
8.7x
NM
8.1x
NM
16.5%
Demandware, Inc.
56.0
82.2
68.1%
2,033
1,774
142
(16)
NM
12.5x
NM
9.2x
NM
50.3%
RealPage, Inc.
20.6
23.6
87.3%
1,619
1,627
396
35
8.9%
4.1x
46.2x
3.8x
21.7x
7.7%
Marketo, Inc.
32.0
45.0
71.0%
1,317
1,206
136
(44)
NM
8.9x
NM
6.5x
NM
60.5%
LogMeIn, Inc.
50.6
53.4
94.7%
1,233
1,037
207
20
9.4%
5.0x
NM
4.2x
18.8x
31.1%
Cvent, Inc.
26.9
44.3
60.8%
1,112
930
134
8
5.8%
7.0x
NM
5.6x
NM
28.4%
SPS Commerce, Inc.
58.3
71.8
81.1%
949
808
121
12
10.0%
6.7x
NM
5.5x
41.2x
21.9%
IntraLinks Holdings, Inc.
10.9
12.5
87.0%
611
644
251
8
3.1%
2.6x
NM
2.4x
16.4x
9.5%
Rocket Fuel Inc.
16.4
71.9
22.7%
675
633
355
(29)
NM
1.8x
NM
1.1x
NM
81.8%
Textura Corporation
24.0
41.5
57.7%
610
545
64
(12)
NM
8.5x
NM
6.7x
NM
NM
Tangoe, Inc.
13.0
20.1
64.8%
505
458
208
14
7.0%
2.2x
31.6x
1.9x
11.9x
13.5%
14.9
32.7
45.6%
410
286
102
5
4.6%
2.8x
NM
2.7x
13.9x
21.6%
$45.8
$41.2
$59.2
$55.7
74.5%
84.1%
$4,832
$1,275
$4,792
$1,121
$585
$229
($2)
$8
5.8%
6.3%
7.5x
7.3x
38.9x
38.9x
5.9x
5.9x
22.6x
18.8x
33.5%
28.7%
Jelf Group plc
Mean
Median
SaaS
salesforce.com, inc.
ServiceNow, Inc.
SciQuest, 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 Benefits and Risk Consulting: MMC, AJG, WSH, LSE:JLT, TSX:MSI, AIM:JLF
SaaS: CRM, NOW, N, CNQR, GWRE, DWRE, RP, MKTO, LOGM, CVT, SPSC, IL, FUEL, TXTR, TNGO, SQI
7
HR Software and Services Monthly
December 2014
Global Technology Sector M&A and Private Placement Update (As of October 31, 2014)
Commentary
Global M&A transaction value in Software and Services reached $18.5 billion in October 2014, from a low of $12.3 billion in April
2014. The total number of transactions rose 16.1% year-on-year to 563 from 485 transactions in October 2013. The total number
of private placement deals (803) was higher than the number of M&A deals (563) this month. Global M&A transaction value rose
in 2013 to $269.1 billion, marking a 15.7% increase year-on-year, while the total number of M&A deals fell by 3.7% to 5,036 in the
same period. The total number of private placement deals rose to 8,014 in 2013, marking an increase of 9.0% year-on-year.
2013 recorded the highest number of private placement transactions in the past 7 years, while 2011 marked the highest number
of M&A transactions. Improving economic conditions in the U.S., low interest rates, and strong cash balances in technology firms
indicate a bright outlook for Q4 2014
Global Technology Monthly Transactions Count and Volumes (Last One Year as of October 31, 2014)
900
$120
$108.5
800
Count of Transactions
500
485
424
483
443
424
200
100
515
563
539
535
434
$27.4
$41.6
$36.8
$40
$22.8
$20
$22.0
$17.7
$80
$60
$63.2
$31.5
$30.6
$36.8
518
510
489
400
300
$100
634
627
599
600
803
M&A Transaction Volume ($ in billions)
700
768
774
805
797
732
701
689
794
779
$18.5
$11.8
Merger/Acquisition
Private Placement
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
Feb-14
Jan-14
Nov-13
Dec-13
$0
Oct-13
0
M&A Transaction Volume
Global Technology Annual Transactions Count and Volumes (Last Five Years as of December 31, 2013)
9,000
$800
8,014
Count of Transactions
6,000
5,000
$600
5,663
4,993
4,929
3,788
3,660
4,000
3,000
$700
7,354
6,820
7,000
3,754
5,494
5,343
5,229
5,036
4,118
$400
$300
$385.2
$245.9
2,000
$500
$268.9
$220.2
$206.5
$232.6
$269.1
$200
M&A Transaction Volume ($ in billions)
8,000
$100
1,000
0
$0
2007
2008
2009
Merger/Acquisition
2010
Private Placement
2011
2012
2013
Merger/Acquisition
Source: Company Filings, Press Releases, Thomson Reuters, Capital IQ, Analyst Reports
8
HR Software and Services Monthly
December 2014
Select Recently Announced M&A Transactions (As of November 28, 2014)
($ in millions)
Announced Date
Acquirer
Target
11/20/2014
Stone Point Capital LLC
Oasis Outsourcing, Inc.
11/19/2014
58.com Inc.
M91.cn
11/18/2014
Spectrum Pension Consultants, Inc.
11/14/2014
Arthur J Gallagher & Co.
Target Business Description
Operates as a professional employer organization and provides w orkforce
solutions for employment-related functions in the U.S.
Enterprise
EV /
Value
Revenue
EV /
EBITDA
NA
NA
NA
Provides online recruitment services
NA
NA
NA
Compensation Consultants, Inc.
Provides w orkers' compensation cost control solutions to employers
NA
NA
NA
The Titan Group LLC
Provides human resources (HR) consulting services in the U.S.
NA
NA
NA
NA
NA
NA
11/13/2014
Accurate Background, LLC
Hirease, Inc.
Provides criminal record, pre-employment, and verification checking services to
clients w orldw ide
11/12/2014
Primary Capital Limited
Gatenbysanderson Limited
Provides senior and interim management recruitment, and assessment solutions
NA
NA
NA
11/11/2014
Right Management Spain, S.L.U.
UniConsult Integrated Business Services, A.I.E.
Provides outplacement and career transition services
NA
NA
NA
11/6/2014
Mercer
AUSREM Pty Limited
Provides remuneration information and consultancy services
NA
NA
NA
NA
NA
NA
11/6/2014
Vistra Holdings S.à r.l.
Trinity Corporate Services Sp. z o.o.
Provides management, reporting, local compliance, accounting, payroll, and
company formation services in Poland, Romania, and Bulgaria
11/6/2014
Arthur J Gallagher & Co.
Discovery Benefit Solutions, Inc.
Offers health insurance and self funding solutions in Southern California
NA
NA
NA
11/5/2014
Management Buyout
Navartis Limited
Provides recruitment services in the U.K. and internationally
NA
NA
NA
11/5/2014
Xero Limited.
Monchilla, Inc.
Provides a cloud-based payroll and accounting softw are
7.1
NA
NA
11/5/2014
Frenkel Benefits L.L.C.
The Moyer Group, Inc.
Provides employee benefit, and financial consultation and analysis services
NA
NA
NA
400.0
NA
NA
11/3/2014
Aetna Inc.
bsw ift, LLC
Offers softw are and services that streamline benefits, HR, and payroll
administration for employers, brokers, and public and private U.S. exchanges
11/1/2014
Allen Austin
Gaines International, Inc.
Provides executive search and recruitment services
NA
NA
NA
NA
NA
NA
10/31/2014
NYSE Holdings LLC
Intelligent Business Entertainment Inc.
Develops compliance and regulatory training games and applications for mobile
platforms
10/29/2014
Compunnel Softw are Group, Inc.
Challenge Training and Consulting, Inc.
Provides human capital training, development, and resource services for
corporations in the U.S. and internationally
NA
NA
NA
10/28/2014
HireBetter LLC
Expiritis Consulting Group LLC
Offers recruiting and talent management consulting services
NA
NA
NA
10/28/2014
Hub International of Illinois Limited
Laurus Strategies Inc.
Provides business consulting services
NA
NA
NA
NA
NA
NA
10/28/2014
Pena Search Consulting
Albertini Group, Inc. (nka:Kingsley Gate)
Discovers executive talent and places them at firms from private equity and
venture capital portfolio companies to Fortune 50 companies
10/27/2014
Mercer, Inc.
Jeitosa Group International, LLC
Provides HR consulting and IT support services
NA
NA
NA
10/24/2014
Beanhunter Pty Ltd
CoffeeJobs.com Pty Ltd
Operates an employment w ebsite for the coffee industry
NA
NA
NA
10/23/2014
Andersen Partnership
SearchBank Ltd.
Offers recruitment services
NA
NA
NA
10/22/2014
Kellton Tech, Inc.
Vivos Professional Services, LLC
Provides recruitment solutions
NA
NA
NA
10/21/2014
Flexpoint Holding B.V.
Trace Group
Provides temporary staffing and outplacement services
NA
NA
NA
10/21/2014
Lyons HR, Inc.
AdminHR, LLC.
Provides human resources services for the small to mid-sized business market
NA
NA
NA
10/20/2014
Berry Recruitment Limited
Mainline Resourcing Ltd
Provides permanent and contract recruitment services
NA
NA
NA
10/17/2014
BTS USA, Inc.
Sandra Hartog & Associates, Inc.
Provides talent management consulting services
6.6
NA
NA
10/16/2014
SF Resourcing Limited
Matt Burton Group Limited
Provides recruitment services
NA
NA
NA
10/16/2014
Institutional Shareholder Services Inc.
Incentive Lab, LLC
Provides executive compensation data and analytics services
NA
NA
NA
10/16/2014
Element K Corporation
Accent Training, LLC
Provides IT training and consulting services
NA
NA
NA
10/15/2014
CTPartners Executive Search Inc.
Neumann Leadership Holding GmbH
Offers executive search services
NA
NA
NA
10/14/2014
HgCapital
Allocate Softw are plc.
Engages in the development, sale and support of w orkforce management
solutions for healthcare, defense, government and commercial customers
145.3
2.3x
14.4x
NAVEX Global, Inc.
Provides employee compliance training solutions to various organizations
across the globe
500.0
NA
NA
10/14/2014
Vista Equity Partners
Source: Company Filings, Press Releases, Capital IQ, Research Reports
9
HR Software and Services Monthly
December 2014
Select Recently Announced Financings (As of November 28, 2014)
($ in m illions)
Announced
Com pany Nam e
Country
Am ount
Type of Financing
/ Round (if VC)
Business Description
Operates a platform for businesses to find, hire, collaborate w ith and
pay freelancers from the U.S.
Participated Investors in Current Round
Benchmark Capital; New Enterprise Associates; FirstMark
Capital, L.L.C.; T. Row e Price Group, Inc. and others
Develops a w eb-based and mobile recruitment softw are
First Analysis Corporation; Generations Capital
Undisclosed
Ow ns and operates an online recruitment portal
IDG Capital Partners; Sequoia Capital China
10.0
Undisclosed
Operates a job posting site
FireStarter Fund; Chicago Ventures; KGC Capital; Garland
Capital Group; Corazon Capital LLC; DRW Ventures
Undisclosed
Undisclosed
Provides HR management system solutions for immigration
Recruit Strategic Partners, Inc.
8.2
Undisclosed
Provides household staff for housew ork service and babysitter service Nichii Hong Kong Limited
17.0
Undisclosed
Provides production payroll and accounting services to motion picture,
television production (TV), and commercial production industries
11/25/2014
Elance-oDesk
U.S.
$30.0
Undisclosed
11/21/2014
Recsolu, LLC
U.S.
6.0
Series A
11/20/2014
HunterOn.com
China
20.0
11/14/2014
Shiftgig, Inc.
U.S.
11/11/2014
Teleborder
U.S.
11/7/2014
Guangzhou Zhengxianghe
Housekeeping Services
China
11/4/2014
Ease Entertainment Services,
U.S.
LLC
Bison Capital Asset Management, LLC
10/31/2014
Accurate Background, LLC
U.S.
5.0
Undisclosed
Provides employee background screening and human resource support
Undisclosed
services
10/27/2014
Limeade, Inc.
U.S.
25.0
Undisclosed
Operates as a corporate w ellness provider
TVC Capital, LLC; Oak HC/FT Partners, L.P.; Oak HC/FT
Partners
10/24/2014
Namely Inc.
U.S.
12.0
Series B
Provides talent management softw are solutions for the advertising
industry
Matrix Partners; True Ventures; Lerer Hippeau Ventures;
Bullpen Capital
10/24/2014
Serraview Australia Pty Ltd
Australia
Undisclosed
Series A
Designs and develops w orkplace management softw are
Tamarisc
10/24/2014
Ziptask Inc.
U.S.
Undisclosed
Undisclosed
Operates a managed outsourcing platform that connects employers and
Undisclosed
freelancers
10/22/2014
BetterHeads GmbH
Germany
Undisclosed
Undisclosed
Operates a B2B online platform for the selection and assignment of
recruitment consultants in search for skilled employees and managers
10/14/2014
Sapience Analytics Pvt. Ltd.
India
7.3
Series B
Provides softw are solutions to measure the time spent on applications,
Orios Venture Partners
activities, and projects by each employee
10/14/2014
Checkr, Inc.
U.S.
9.0
Series A
Offers a background screening API that integrates w ith existing
platforms
Accel Partners; Khosla Ventures; Google Ventures; SV
Angel; Data Collective
10/14/2014
Merlin RAMCo, Inc.
U.S.
Undisclosed
Provides staffing services to military and civilian offices to support
manned and unmanned aircraft programs
Triangle Capital Corporation (NYSE:TCAP); Trive Capital
10/9/2014
Justw orks, Inc.
U.S.
6.0
Series A
Provides self-service payroll, benefits, w orkers’ comp and government
Index Ventures; Thrive Capital
compliance, payments, deposit, insurance, and reimbursements
10/7/2014
Jobvite, Inc.
U.S.
25.0
Series D
Develops and provides internet-based softw are solutions for the
recruitment industry
10/3/2014
HRSoft Inc.
U.S.
Undisclosed
Undisclosed
Provides w eb-based talent management and talent acquisition solutions
Bellw ether Financial Group, Inc.
for employers in the U.S.
10/3/2014
Staffing 360 Solutions, Inc.
U.S.
8.0
Undisclosed
Provides staffing and consultancy services in the U.S., the U.K., and
Canada
Undisclosed
10/2/2014
Lever, Inc.
U.S.
10.0
Series A
Develops and delivers a w eb application for hiring
Matrix Partners
9/25/2014
Context Relevant, Inc.
U.S.
13.5
Undisclosed
Develops automated predictive analytic softw are solutions for human
resources performance measurement and management
Goldman Sachs Group, Merchant Banking Division; Merrill
Lynch PCG Private Equity Investment Arm; and others
9/24/2014
Equity Administration
Solutions, Inc.
U.S.
21.4
Undisclosed
Provides Softw are-as-a-Service/cloud-based solutions for equity
Undisclosed
compensation management to public and private companies w orldw ide
9/24/2014
F.W. Davison & Company,
Inc.
U.S.
Undisclosed
Undisclosed
Develops human resource softw are solutions for the PEO, ASO, and
HRO industries
Accel-KKR LLC
Accel Partners; Insight Venture Partners; Sequoia Capital
Undisclosed
MBG Mittelständische Beteiligungsgesellschaft BadenWürttemberg GmbH
CMEA Capital; Trident Capital, Inc.; Catalyst Investors; ATA
Ventures
9/24/2014
Qualtrics, Inc.
U.S.
150.0
Series B
Provides online data collection, analysis services and offers a talent
assessment and leadership development platform
9/24/2014
Udacity, Inc.
U.S.
35.0
Series C
Offers online courses focusing on artificial intelligence and robotics
Charles River Ventures; Cox Enterprises, Inc.; Recruit
Holdings Co.,Ltd.; Bertelsmann Digital Media and others
9/23/2014
BetterWorks Systems, Inc.
U.S.
15.5
Series A
Engages, empow ers, and cross-functionally aligns w orkers in
organizations
Kleiner Perkins Caufield & Byers; Formation8 Partners
9/22/2014
RolePoint Inc.
U.S.
Undisclosed
Undisclosed
Provides employee referral softw are for recruitment teams w orldw ide
Randstad Innovation Fund
9/16/2014
Corporate Finance Group,
Inc.
U.S.
Undisclosed
Undisclosed
Offers accounting, reporting, and tax advisory services
Flexpoint Ford, LLC
Undisclosed
Undisclosed
Operates an online event platform for students, employers, universities,
Militello Capital
media companies, and more w orldw ide
9/16/2014
Brazen Careerist, Inc.
U.S.
9/9/2014
Albatross Global Solutions
Hong Kong
5.8
Undisclosed
Provides marketing and human resource solutions for shops, counters,
1000mercis (ENXTPA:ALMIL)
and offices in Asia
9/5/2014
ExecOnline, Inc.
U.S.
5.0
Undisclosed
Provides a learning platform for business executives
Militello Capital
9/2/2014
Ding Xiang Yuan
China
70.0
Undisclosed
Operates a w ebsite for medical, pharmaceutical, and bioscience
professionals, in addition to a recruitment platform and job board
Tencent Holdings Ltd. (SEHK:700)
9/2/2014
Cardinal Tecnologia Ltda.
Brazil
7.0
Series A
Operates an online job marketplace for blue-collar w orkers in Brazil
QUALCOMM Ventures; Grupo RBS Ltda; Monashees
Capital+; e.BRICKS Digital
Source: Company Filings, Press Releases, Capital IQ, Research Reports
10
HR Software and Services Monthly
December 2014
Select Recently Announced Equity Offerings (As of November 28, 2014)
Filing Date
Closed Date
11/18/2014
11/18/2014
11/04/2014
Issuer
Offer Size
('000)
Offer Price
Deal Value
Market Value
EV /
($ in m illions) ($ in m illions) Revenue
EV /
EBITDA
Ticker
Type
Securities Offered
Informa plc
INF
Follow -on
Common Stock
60.39
$7.20
$323.9
$4,860.1
3.3x
11.0x
11/6/2014
Impellam Group PLC
IPEL
Follow -on
Common Stock
3.26
7.30
23.8
324.6
0.2x
19.7x
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
09/04/2014
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
Common Stock (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
10/12/2012
11/14/2012
CAREERLINK Co.,Ltd.
6070
IPO
Common Stock
1.59
5.23
7.2
28.4
0.1x
2.4x
9/13/2012
10/3/2012
WageWorks, Inc.
WAGE
Follow -on
Common Stock
6.90
17.50
105.0
1,375.7
1.2x
8.0x
9/10/2012
9/13/2012
On Assignment Inc.
ASGN
Follow -on
Common Stock
5.17
17.00
87.9
1,843.6
1.6x
16.3x
5/22/2012
3/4/2013
Professional Diversity Netw ork LLC
IPDN
IPO
Common Stock
2.63
8.00
21.0
21.0
5.1x
12.3x
5/1/2012
5/15/2012
Angie's List, Inc.
ANGI
Follow -on
Common Stock
8.63
13.00
109.7
637.2
5.6x
NM
4/18/2012
4/19/2012
DPA Group NV
DPA
Follow -on
Common Stock
3.70
1.44
5.3
110.1
1.0x
16.2x
11/3/2011
11/16/2011
LinkedIn Corporation
LNKD
Follow -on
Common Stock
10.06
71.00
621.3
17,891.5
13.6x
NM
10/17/2011
2/15/2012
SaraminHR Co.,LTD
A143240
IPO
Common Stock
2.43
4.45
10.8
151.8
0.6x
3.1x
Source: Company Filings, Press Releases, Capital IQ, Research Reports
11
HR Software and Services Monthly
December 2014
Select Recently Closed Leveraged Loans (As of November 28, 2014)
Closed Date
Borrow er
Ticker
11/13/2014 NAVEX Global
10/31/2014
Monster Worldw ide Inc [Ex-TMP
Worldw ide]
10/21/2014 Cross Country Healthcare
Total Facility
($ in m illions) Revolver
Term
Loan
Security
Tenor
(Months)
Spread
Rating
Moody's
Rating
S&P
Purpose
$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
0
0 bp
NR
NR
SBO
650.0
650.0
-
60
150 bp
NR
NR
Corp. purposes
93.8
93.8
-
36
0 bp
NR
NR
Work. cap.
120.0
75.0
45.0
60
150 bp
NR
NR
Corp. purposes
14.4
14.4
-
36
0 bp
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
Northgate Information Solutions
10/16/2014
Plc
10/6/2014
Salesforce.com, Inc
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
12/31/2013 Alexander Mann Solutions
200.0
40.0
160.0
72
475 bp
NR
NR
SBO
200.0
200.0
-
60
180 bp
NR
NR
Corp. purposes
150.0
50.0
100.0
60
350 bp
NR
NR
Corp. purposes
12/11/2013 Kelly Services Inc
10/1/2013
Employment Solutions
Management Inc
Sponsor
$310.0
CRM
3654.JP
KFRC
CBZ
TBI
ADP
KELY.A
Secured
Secured
General Electric Capital Corp, Golub Capital Inc
Bank of America Merrill Lynch, BNP Paribas SA,
Wells Fargo & Co
Mizuho Bank Ltd
PNC Bank
Bank of America Merrill Lynch, Credit Suisse AG,
Deutsche Bank AG
Madison Capital Funding LLC
Bank of America Merrill Lynch
General Atlantic LLC [GA]
Morgan Stanley Global Private Equity
Calera Capital
Hellman & Friedman Capital Partners
New Mountain Capital
Select Recently Closed High Yield (As of November 28, 2014)
Closed Date Issuer
Amount
Ticker ($ 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
December 2014
Upcoming Events
December
S
January
M
T
W
R
F
S
1
2
3
4
5
6
7
8
9
10
11
12
13
4
5
6
14
15
16
17
18
19
20
11
12
21
22
23
24
25
26
27
18
28
29
30
31
25
S
M
T
W
R
F
S
1
2
3
7
8
9
10
13
14
15
16
17
19
20
21
22
23
24
26
27
28
29
30
31
Denotes Bank Holiday
Denotes Event
Upcoming Industry Conferences
Dates
Dec 02 - Dec 03
Event
Human Capital Management Federal Conference
Location
Hilton Alexandria Mark Center - Arlington, VA
Additional Resources
Link to Conference Website
Dec 11 - Dec 12
2014 Talent Acquisition Technology Forum
The Palace Hotel - San Francisco, CA
Link to Conference Website
Feb 18 - Feb 21
2015 AHRD International Conference in the Americas
Hyatt Regency - St. Louis, MO
Link to Conference Website
Feb 23 - Feb 25
2015 Workforce Planning and Analytics Conference
Dallas/Plano Marriott at Legacy Town Center - Dallas, TX
Link to Conference Website
Mar 03 - Mar 06
SAP HR 2015
Bellagio - Las Vegas, NV
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 31 - Apr 02
2015 HCI Human Capital Summit
Walt Disney World Swan and Dolphin Resort - 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
Talent Management Conference & Exposition
TBD - San Diego, CA
Link to Conference Website
Apr 27 - Apr 29
ERE Recruiting Conference 2015 Spring
TBD - 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
Add to
Calendar
Upcoming Company Events
Date
Dec 02
Time
Company
9:00 AM Bazaarvoice, Inc.
Event
Earnings Call
Location / Dial-in and Pass code
Dial-in: (877) 407-3982
Additional Resources
Investor Relations
Dec 08
9:00 AM H&R Block, Inc.
Earnings Call
TBA
Investor Relations
Dec 09
9:00 AM Korn/Ferry International
Earnings Call
TBA
Investor Relations
Jan 22
9:00 AM Informatica Corporation
Earnings Call
TBA
Investor Relations
Jan 26
9:00 AM Robert Half International Inc.
Earnings Call
TBA
Investor Relations
Jan 26
5:00 PM Monster Worldwide, Inc.
Earnings Call
TBA
Investor Relations
Jan 30
9:00 AM ManpowerGroup Inc.
Earnings Call
TBA
Investor Relations
Jan 30
9:00 AM Constant Contact, Inc.
Earnings Call
TBA
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
December 2014
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
October 2014
September 2014
July 2014
October 2013
A portfolio company of
Minority Growth
Equity Investment
$125,000,000
Convertible Senior Notes
$650,000,000
Senior Secured Credit Facilities
$250,000,000
Credit Facilities
Senior Co-Manager
Joint Bookrunner,
Co-Syndication Agent &
Co-Documentation Agent
Joint Lead Arranger &
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:
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, Suite 1100
San Francisco, CA 94111
Dev Navare
Niket Gandhi
Brett Deware
Director
Associate
Analyst
Technology Group
Technology Group
Technology Group
[email protected] [email protected] [email protected]
(617) 385-6225
(617) 385-6231
(617) 385-6247
Tim Monnin
Managing Director
Technology Group
[email protected]
(704) 651-9371
John Brock
Managing Director
Segment Head
[email protected]
(206) 684-6226
Jason Black
Vice President
Technology Group
[email protected]
(206) 684-6581
James Lim
Managing Director
Technology Group
[email protected]
(415) 486-3424
Chris Headrick
Managing Director
Technology M&A
[email protected]
(415) 486-3410
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
© Copyright 2024 ExpyDoc
