From Data Centers to Cloud Services, Inside the Backbone of a New Economy - Clipperton Finance Research Paper

© 2014 Clipperton Finance Limited
Clipperton White Paper
Outsourced Data Management:
From Data Centers to Cloud Services,
Inside the Backbone of a New Economy
February, 2014 About Clipperton Finance
Clipperton is a leading European corporate
finance boutique exclusively dedicated to High
Tech and Media industries. Clipperton Finance
advises high growth companies on mergers and
acquisitions, financial transactions, fundraisings,
and capital increases. With a team based in
London, Paris and Berlin and an international
reach, Clipperton is a European leader in the
sector.
Disclaimer:
This document has been produced by Clipperton Finance (“Clipperton”) and is communicated to you solely for you information
and should not be construed as a solicitation or offer to buy or sell any securities or financial instruments. Clipperton Finance
Limited is authorized and regulated by the Financial Services Authority. Registered No.523695 – More Details P51
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Thomas Neveux, Partner
Antoine Ganancia, Senior Associate
Kulchetan Sanga, Associate

Hosters: Adapt to Survive
2
Executive Summary
 As investment needs are growing exponentially, a specialized asset class is
emerging upstream: Wholesale Vendors. These new players offer real
estate and technical infrastructure management services allowing clients’
to improve capital efficiency by focusing investments on their core business.
 Wholesalers are deploying large amounts of capital with low risk long-term
returns.
 Hosters are facing key challenges…
i) Traditional data hosting becomes largely commoditized
ii) High value cloud services have emerged down the value chain
 … And need to move fast:
i) Mainly going downstream (incorporating high tech cloud services)
ii) And Consolidating for scale
New Asset Class: Wholesalers
?
A Fast Maturing
Outsourced Data
Management Value Chain
 For most Companies, Data Management needs are growing too fast and
become too complex to be handled internally.
 Naturally, the fast growing Outsourced Data Management Market is
organizing itself around highly specialized operators in a rapidly structuring
value chain.
UPSTREAM
DOWNSTREAM
1
2
3

Outsourced Data Management: A Maturing Value Chain
3
Upstream: Emergence of a New Asset Class
Downstream: Increasingly High-Tech
Notable Transactions in the Data Management Space
Focus on Selected European Players
About Clipperton Finance
Table of Contents
I
II
III
IV
V
VI

The Data Management Industry has now Entered its Third Expansion Phase
4
Explosion of the “client-server” computing
architecture within major corporations
1
2
3
Explosion of Internet usage Explosion of content consumption (video…)
1990’s 2000’s Today
26
33
41
51
62
76
2012 2013 2014 2015 2016 2017
Consumer Internet Traffic (EB/month)
0.4
0.5
0.7
0.8
0.9
1.0
1.1
1.4
1.6
1.7
2.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Internet Users
worldwide (billions)
Servers are grouped into
dedicated “Data Centers”
Growing number of servers are
housed in the large ‘dotcom era’
Data Center inventory
Driven by increased usage,
exploding IP traffic leads to a
buoyant market
Source: Cisco
Source: World Bank

Clear and Sustained Exogenous Trends Driving the Expansion of the Data
Management Market
5
Explosion of computing needs …
… not offset by innovation
100
145
210
303
439
100
140 142
164
183
2011 2012 2013 2014 2015
Amount of Digital Data Stored Areal Storage Density*
This gap drives the
need for more
servers …
… and more Data
Centers to house
them in!
Digital Data Storage & Areal Storage
Density (*) Comparative Evolutions
(base 100 in 2011)
*Number of bytes per square inch / Source: PFS Violin White Paper, IDC, Clipperton Finance analysis
26
33
41
51
62
76
2012 2013 2014 2015 2016 2017
Internet Vidéo Web, email & data File sharing
Internet Traffic (EB/month)
 Multimedia consumption
pushed by access point
multiplication
 Broader Internet usage in
Emerging Countries
 Cloud services
Video
Mobile
Cloud
2000 2020
$80B
Projected Annual Data Center Construction
(billion USD)
Source: C. Belady, Microsoft “Projecting annual new datacenter construction market”
2000-2020:
9% CAGR
Explosion of Data Center construction
$15B

50%50%
13%
87%
Explosion of Data Centers Needs Foster Growth of Outsourced Solutions
6
In-house DC
As cost and complexity of
owning and operating a
Data Center increases,
Companies are less
inclined to keep them in-
house
Outsourcing Data Centers
helps Companies refocus
investments on core
business
100
118
138
153
100
107
112
118
2011 2012 2013 2014
Revenue Index Major
Outsourced DC Players
Global Data Center
Infrastructure Market
Outsourced DC Players
Rev. Growth CAGR
15%
2012 2020e
* Outsourced DC Players Index: DLR, DFT, EQIX, TCY, INXN
Source: Lifeline Datacenters, IDC, Canalys, Thomson, Clipperton Finance Analysis
Outsourced DC
610k
sq.ft.
800k
sq.ft.
US Data Center Stock Shifting to Outsourced Solutions
Outsourced DC Market Growth is Outpacing Overall
DC Market
*

© 2014 Clipperton Finance Limited7
How is this Fast Growing
Outsourced Data Management
Market Structuring Itself
?

A Large Market Inevitably Leading to Fragmentation of the Value Chain around
Differentiated Business Models
WHOLESALE
VENDORS
COLOCATION
VENDORS
MANAGED
HOSTING
Strong Outsourcing Trend
Telcos Corporations
What?
TELECOM INFRASTRUCTURE
OUTSOURCED Data Center SPECIALISTS
FINAL CUSTOMERS
A portion of server
to thousands
10-500 sqm1,000-10,000 sqm
Dedicated server and
management services
offered to customers.
Fitted DC space (cabinets,
cages and racks to house
their clients’ servers, …)
Shell DC space (“walls” as
well as facility security,
secured power, …)
Chunk Size ?
Who ?
8
CLOUD
SERVICES
Cloud Services ranging
from IaaS enabling to SaaS
Bytes

4 Segments Displaying Different Equity Stories
9
Wholesalers
Colocators
Hosters
Cloud Services
1
2
3
Low risk/Low Return Profile High risk/High Return Profile
Digital Realty, Dupont
Fabros, Coresite
Equinix, Interxion, Telecity
Akamai, InterNAP,
Iomart, Rackspace
Weighted average components of the ROCE per segment
4
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0% 50% 100% 150% 200%
WHOLESALERS
COLOCATORS
HOSTERS
5% ROCE
10% ROCE
15% ROCE
20% ROCE CLOUD SERVICES
VMware, Citrix,
Salesforce, Netsuite
Source:ThomsonOne,ClippertonFinanceanalysis
2012 Sales / Capital Employed
2012EBITMargin
4
3
2
1

Wrap Up
Early 2000s
In-House
Hosters
Colocation
Wholesale
2013+
Data Management Market Evolution
KEY TAKE AWAYS
10
The fast growing outsourced Data
Management market is maturing,
leading to fragmentation of the
value chain into identifiable asset
classes
A new class of players have
emerged: the Wholesalers, that
need to be specifically analyzed

Outsourced Data Management: a Maturing Value Chain
11
Notable Transactions in Data Management Space
Table of Content
I
II
III
IV
V
VI

Wholesalers: Widely Used & Praised by IT Bellwethers
12
“DuPont Fabros has always proven to be a great customer-
focused partner with a fantastic mission-critical product”
Source: DFT’s testimonials
“We consider DuPont Fabros one of our most trusted
partners. They have yet to miss a committed delivery
date and their operational expertise is second to none.”
Source: DFT’s testimonials
“Digital Realty is the perfect investor able to
provide the stable environment we need to
pursue our growth in France”
Richard Viel, deputy CEO of Bouygues Telecom
“By leasing space in its facility, we are able to move
forward immediately with our Data Center plans
without the significant capital investment
ordinarily associated with large hosting projects”
Oliver Herrmann,Deputy COO of Capgemini… sold in 2013 its Parisian
Data Center facilities for
$80m to…
… signed in 2009 a turn-key Data
Center lease agreement with…
… uses Data Centers
facilities of…
… uses Data Centers facilities of…

Wholesale Market is Growing at a Fast Pace
13
Source: JP Morgan, Clipperton Finance analysis
0.4
0.6
0.8
1.2
1.7
2011 2012 2013 2014 2015
Wholesale market in
Europe ($b)
WORLDWIDE MARKET EUROPEAN MARKET
2.4
3.1
4.1
5.3
6.9
2011 2012 2013 2014 2015
Worldwide wholesale
market ($b)
Source: JP Morgan, Clipperton Finance analysis

2 Major Wholesalers Have Emerged in the US: Digital Realty & DuPont Fabros
14
100+ facilities
Worldwide combining
18 million square feet
10+ facilities
Located in the US combining
2.5 million square feet
Clients include:
$1.3b
2012 Revenue
Clients include:
listed since 2004 Listed since 2007
$12b
Enterprise Value
$332m
2012 Revenue
$2.5b
Enterprise Value

Upstream to Colocators, Wholesalers Have Found their Sweet Spot in the Value
Chain
15
Real Estate
Technical
Infrastructure
Proximity
Services
Telecom
Services
Hardware
Computers
Simple
Cloud Services
Advanced
Cloud Services
CORE BUSINESS
CORE BUSINESS
CORE BUSINESS
CORE BUSINESS
WHOLESALE
MANAGED
HOSTING
1 COLOCATION2 3
CLOUD
SERVICES
4

Offering Low Risk x Long Term Returns to Investors
16
1-3 years5-7 years8-10 years
StrongLimitedVery low
WHOLESALE
MANAGED
HOSTING
1 COLOCATION2 3
PAYBACK PERIOD
15% 20-30% 30-50%
50%
UNLEVERAGED IRR
60%+
50% 30-40%
20-30%EBITDA MARGIN
RISK LEVEL
Low High Low High Low High
CLOUD
SERVICES
4
Fair
Low High
3-5 years

Why did Wholesalers Emerge? To Allow Other Players to Focus on Core
Business
17
OUTSOURCE
INFRASTRUCTURE
By outsourcing Data Center
facilities companies avoid heavy
investment in non-core assets
Financial Structure Ratios (2013e)
Source: Thomson One, Yahoo Finance,
Clipperton Finance Analysis
-0,4
-0,2
0
0,2
0,4
0,6
0,8
1
1,2
1,4
0 1 2 3 4 5 6 7
FinancialLeverage
(NetLTdebt/Equity)
Capital Intensity
(Fixed Assets/Sales)
COLOCATORS WHOLESALERS
HOSTERS
INTERNET
GIANTS
Outsourcing Capital
Intensive Investments

18
Table of Content
I
II
III
IV
V
VI

© 2012 Clipperton Finance Limited. Private and confidential.
Hosting Market is Crowded, with Basic Offerings now Largely Commoditized
19
COLOCATION
A $13bn Global Cloud Infrastructure Market in 2012
45% share 26% share
5%
4.5%
4%
TELCOS
COLOCATORS
INTERNET GIANTS
REGIONAL PLAYERS
SOFTWARE
HARDWARE
Managed Hosting is a
$5.6bn market with
three leaders
occupying a ~15%
market share
With a very long tail of
diversified players
Source: Synergy Research Group, Clipperton Analysis
Amazon the clear leader in IaaS
and ranks second behind
Salesforce in PaaS segment
HOSTING HOSTING
MANAGED HOSTING IAAS & PAAS
Client leases an entire server that is not shared.
More flexible than shared hosting due to full
control over the servers/ choice of OS. Server
hardware is owned by the provider
IaaS: Virtualized Computing / storage delivered over the
internet + CDN/ADN
PaaS: Developer services bundling infrastructure and a
programming language level environment
CLOUD SERVICES
IAAS
ENABLEMENT
SAAS
29% share

Some Value Has Shifted Downstream To New Cloud Services
20
… and Outperform Hosters in Terms of Shareholder
Value created
Cloud Services are Clearly Gaining Momentum…
Increasing innovation further downstream has encouraged the emergence of complex Cloud Services
offerings
Revenue and Index analysis based on: Hosters: Iomart, Akamai, Internap, Cloud Services: Salesforce, NetSuite, Vmware, Citrix
0
100
200
300
400
500
600
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Stock Price Evolution (index 100, Jan.09)YoY Revenue Growth
0%
5%
10%
15%
20%
25%
30%
35%
2009 2010 2011 2012
Cloud Services
Hosting not inc. RAX

How can Hosters React?
21
COMMODITIZATION
Fragmented market
Flattening Revenue
Growth
Highly competitive
landscape
Ubiquitous Service
Offerings
TWO OPTIONS TO SURVIVE:
CONSOLIDATE FOR SCALE
Capitalize on market fragmentation to rapidly build customer base/
geographical expansion via acquisition
MOVING DOWNSTREAM
Break free from commoditization by combining recurring revenue
from service subscriptions with elastic infrastructure e.g.
• Internally develop new downstream offerings
• Via acquisition of cloud software/ service providers
12 3

Consolidation to Rapidly Build Large Scale Client Bases - A “Land Grab” - Examples
22
 Date: Apr-13
 Deal Value: $526m
 Rev Multiple: 3.3x
 EBITDA Multiple: 12.4x
Rationale:
Increases scale and reach of Cogeco Cable's IT
hosting business: addition of infrastructure
including 19 Data Centers and 21 points-of-
presence throughout NA & EU.
AQCUIRES
TRANSACTION DETAILS
Rationale:
Combines SoftLayer with IBM SmartCloud into
a global platform; acquires 21,000 customers
across 140 countries.
AQCUIRES
TRANSACTION DETAILS
 Date: Jul-13
 Deal Value: $2.0bn
 EBITDA Multiple: 14.9x
 Date: Dec-12 Apr-13 Sep-13
 Deal Value: $2.4m $11m $12.4m
 Rev Multiple: - 2.4x 1.5x
 EBITDA Multiple: - 11.2x 3.3x
AQCUIRES
European hosting services
TRANSACTION DETAILS
Rationale:
Numerous acquisitions to expand into new markets with a
particular recent focus on Scandinavia.
May-13
Three UK based hosting acquisitions in 12 months with
the aim to become the leader in UK hosting services
Media & Communications company Multinational Technology and Consulting Founded in 2006 – Data Center server and
managed hosting provider
Founded in 1999 - Internet hosting services
AQCUIRES
Colocation and hosting providor
Nov-13
Nov-13
Nov-12 Aug-11
Sep-11
Aug-12

Going Downstream, What Does it Mean?
23
Historically, Hosting offerings evolved from
simple colocation to IaaS & PaaS.
CLOUD SERVICES
SAASIAAS ENABLING
IAAS & PAAS
MANAGED
HOSTING
SHARED
HOSTING
COLOCATION
OS
SOFTWARE
Client leases an
entire server that is
not shared
Mass market
shared
infrastructure
hosting
IaaS: Virtualized Computing/
storage delivered over the internet
PaaS: Developer services bundling
infrastructure and a programming
language level environment
OS
Technology Specific:
• Unified Communications
• Cloud Management/ Automation
• Cloud Security
Monitoring / Diagnostics:
• Power
• Cooling
• Analytics
Traditional
equipment space
and bandwidth for
rental
Load Balancing / Traffic
Optimization:
• Web app acceleration
Sector Specific:
• Compliance software/ services
• Financial services solutions
Basic Business Applications:
• Email
• Cloud Storage
• Database
• CRM
Internally developed services such as
load balancing and monitoring begin to
blur the line but major players will
exhibit a shift towards more
downstream offerings: IaaS optimizing
& enabling services and/or SaaS.
So, what’s next?
HOSTING

Hosters can Progress “Downstream” via Internal Development and/or Acquisitions
Examples
24
 Date: Jan-13
 Deal Value: $55m
 EBITDA multiple: 11.5x
Rationale:
To offer cloud-based voice services and a full
suite of enterprise-grade cloud servers and
services.
AQCUIRES
TRANSACTION DETAILS
 Founded: 1995
 Overview: Cloud Service Provider
 Founded: 2001
 Overview: Cloud Communications
 Date: Nov-12
 Deal Value: £55m
 EBITDA multiple: n.a.
Rationale:
Unified communications, remote desktop and
advanced security services; creates largest EU
mid-market hosting provider.
AQCUIRES
TRANSACTION DETAILS
 Founded: 1996
 Overview: Managed Services
 Founded: 1995
 Overview: Unified Communications
Founded: 2010
Transaction Date: Mar-13
Overview:
Error tracking software
 Founded: 1998
 Overview: IT HostingAQCUIRES
Founded: 2012
Transaction Date: Feb-13
Overview:
Cloud database-aaS (MondoDB)
Founded: 2010
Transaction Date: Aug-12
Overview:
Mailbox web service APIs
Has developed extensive software,
advisory and support services largely
utilising open source technologyDEVELOPED
Cloud Monitoring
Load Balancing
Backup & Replication
IaaS Enabling SaaS
Rackspace email
Rackspace Databases
Cloud File Storage
Enables users to have servers delivered with
a full range of pre-installed SaaS apps (CRM,
database management, …)DEVELOPED
IaaS Enabling SaaS
• Customers can opt for a pre-installed
software environment.
• vApps: specific professional apps
(CRM, database management, e-
commerce, …).
• vSphere / vCloud dedicated cloud
offering w/Vmware partnership.
• Private Cloud® offering.
Has developed extensive software –
particularly useful for personal and small
business useDEVELOPED
IaaS Enabling SaaS
• MyWebsite; website creation platform.
• 1&1 email: Instant Mail / MailXchange
/ Microsoft Exchange 2013.
• Mobile app cloud server
management.
• Mobile app server monitoring.
Via Internal Development Via Acquisition

Rackspace Example: Differentiation Seems to be Paying Off
25
Also Outperforming Hosters and Cloud Services
in terms of Value Created for Shareholders
Revenue Growth Contrasts with other Hosters and
Exceeds Cloud Services growth
The success of Rackspace (a serial acquirer and developer of innovative cloud services) suggests that
the first strategy for winners will be to move downstream
5%
10%
15%
20%
25%
30%
35%
2009 2010 2011 2012
Cloud Services
Hosting not inc. RAX
Rackspace
0
200
400
600
800
1000
1200
1400
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Stock Price Evolution (index 100, Jan.09)YoY Revenue Growth
Revenue and Index analysis based on: Hosters: Iomart, Akamai, Internap, Cloud Services: Salesforce, NetSuite, Vmware, Citrix

Differentiation Should be the Priority, Consolidation Will Not be Sufficient
26
#1
WINNERS
2nd
PLACE
LARGE
SMALL
TRADITIONAL HOSTING HIGHLY TECHNICAL/DIFFERENTIATED
COMPANYSIZE
INNOVATORS:
• Smaller innovators to be acquired by hosters
for their tech expertise
SMALLER/ REGIONAL PLAYERS:
• Various players acquired for major players’
consolidation for scale

… What About Colocators?
They seem to go Upstream with the Wholesalers, a Good Idea?
27
Moving Downstream: HostersMoving Upstream: Wholesalers & Colocators
Evolution of ROCE components until 2012 among key players
EBITMargin
Sales/ Capital
Employed
0%
5%
10%
15%
20%
25%
30%
35%
40%
0% 50% 100% 150% 200%
2008
2012
2009
2011
2012
2010
2008
2012
2009
2010
2008
2009
2010
2011
2012
Wholesalers
Wholesalers
Wholesalers
Colocators
Wholesalers
Hosters
Wholesalers
Cloud Services
5% ROCE
10% ROCE
15% ROCE
20% ROCE
Source:ThomsonOne,ClippertonFinanceAnalysis

28
Focus on Key European Players
Table of Content
I
II
III
IV
V
VI

Comparables Analysis
Valuation Analysis
29
Company
Market Cap
as @ Jan-14
Enterprise Value
as @ Jan-14
Revenue Revenue EBITDA EV / Revenue EV / EBITDA P/E
Growth CAGR Margin
USDm USDm 2013-14 2012-14 2013 2014e 2013 2014e 2013 2014e 2013 2014e
Wholesalers
Dupont Fabros 1,632 3,162 8.8% 10.6% 63.9% 63.9% 8.5x 7.8x 13.2x 12.2x 28.7x 18.4x
CoreSite 706 1,348 14.0% 14.0% 44.9% 45.7% 5.7x 5.0x 12.7x 11.0x 71.8x 70.2x
Digital Realty 6,785 12,200 8.0% 11.7% 58.0% 58.3% 8.3x 7.6x 14.2x 13.1x 26.7x 42.6x
Mean 10.3% 12.1% 55.6% 56.0% 7.5x 6.8x 13.4x 12.1x 42.4x 43.7x
Colocators
Equinix 8,834 12,135 12.1% 12.8% 46.2% 46.7% 5.6x 5.0x 12.2x 10.8x 108.2x 46.8x
Telecity 2,539 3,012 13.1% 14.7% 47.1% 47.8% 5.6x 4.9x 11.8x 10.3x 12.9x 11.1x
Interxion 1,689 2,070 11.3% 11.4% 43.0% 44.5% 4.9x 4.4x 11.5x 10.0x n/m 32.9x
Mean 12.2% 12.9% 45.5% 46.3% 5.4x 4.8x 11.8x 10.4x 60.6x 30.3x
Hosters
Akamai 8,695 8,128 14.0% 13.9% 44.0% 43.0% 5.2x 4.6x 11.8x 10.6x 24.4x 22.6x
Iomart 506 544 21.6% 24.7% 41.1% 42.3% 6.4x 5.2x 15.5x 12.4x 19.5x 14.6x
Internap 408 541 7.5% 4.9% 20.7% 26.6% 1.9x 1.8x 9.3x 6.8x n/m n/m
Rackspace 5,344 5,146 16.7% 16.8% 32.9% 32.8% 3.4x 2.9x 10.2x 8.8x 62.7x 52.4x
Mean 14.9% 15.1% 34.7% 36.2% 4.2x 3.6x 11.7x 9.6x 35.5x 29.9x
Cloud Services
Vmware 42,189 36,802 14.5% 13.6% 40.3% 40.3% 7.1x 6.2x 17.6x 15.4x 29.2x 25.5x
Citrix 11,316 10,621 11.3% 12.2% 32.8% 31.1% 3.6x 3.3x 11.1x 10.5x 20.5x 18.1x
Salesforce 36,011 37,182 28.7% 30.8% 16.6% 17.7% 9.4x 7.3x 56.4x 41.1x n/m 122.7x
Netsuite 8,264 8,060 29.4% 31.3% 10.7% 8.6% 19.6x 15.2x 183.2x 175.2x n/m n/m
Mean 21.0% 22.0% 25.1% 24.4% 9.9x 8.0x 67.1x 60.5x 24.8x 55.5x
Source: Thomson One

Relevant M&A deals in the DC industry
Focus on Selected Deals in the Upstream Segment
30
Date Target Acquirer
Deal
Value
Target
Rev.
EV/Rev. Rationale
Jun-13 - - -
• A 23k sq.ft. Facility located in US Southeast's
most active datacenter cluster that will provide
Centrilogic with direct access to new large
enterprises.
Jul-12 $1.1b - -
• A deal part of DRT strategy to better address the
European market.
• 750k sq.ft. facility in London for $1.1b, showing a
valuation of $1.5k/sq.ft.
Jul-12 $320m $40-45m 7-8x
• Asia Tone strengthens Equinix position in the
Asia-Pacific region
• The deal values the 80K sq.ft. of Data Center
space at $4k/Sq.ft.
Asia Tone
Aug-11 $144m $22m 7x
• The deal allows Telecity to better capture the
strong and growing demand for storage capacity
in Ireland
• Telecity acquired 64sq.ft. At $2.4k/sq.ft.
Oct-13 $440m $85m 5x
• Enables NTT Com to more than double its Data
Center space in the US.
• NTT will also use Raging Wire’s patented
technology to deploy sophisticated Data Centers.

Selected M&A Activity in the Upstream Segment
31
Date Acquiror Nat. Target Nat. Description Rationale
sq.ft.
acquired
Value EV/Rev
EV/
EBITDA
EV/sq ft
Feb-14 Cologix US BZ US Datacenter provider
Acquiring the leading interconnection points in underserved
markets
32k n.a. - - -
0ct-13 NTT Com JP RagingWire US Datacenter provider US Expansion n.r. $350 (80%) 5.1x - -
Sep-13 Rogers Communications CAN Pivot Data Centers CAN Datacenter provider Data Center portfolio build-out n.r. $155m 5x - -
Aug-13 Mellanox US Kotura US Technology provider Improve performances n.r. $82m 5.5x - -
Jun-13 Zayo US Core NAP US Datacenter provider Geographic expansion 15k n.a. - - -
Jun-13 Centrilogic US Dacentec BEL Data Center operator Geographic expansion 23k n.a. - - -
Apr-13 NTT Facilities JAP Unitrio THA Datacenter builder Improve offering n.r. n.a. - - -
Dec-12 365 Main US 16 Equinix datacenter US 16 facilities in the US Upstream move 280k $75m - - $270
Nov-12 Telecity UK Academica FIN Datacenter operator Geographic expansion 5k $36m - - $7,200
Aug-12 Telecity UK Tenue Oy FIN Datacenter operator Geographic expansion 2k $6m - - $3 000
Jul-12 Oracle US Xsigo US Technology provider
Deliver a complete set of virtualization capabilities for cloud
environments
n.r. n.a. - - -
Jul-12 Equinix US Asia tone CH Data Center colocator Strengthen Equinix position in the Asia-Pacific region 80k $320m 7-8x $4,000
Jul-12 Digital realty US Sentrum UK Ficility in London Geographic expansion 760k $1,1b - - $1,450
May-12 Six Degrees Group UK Datahop UK Technology provider
Improve Network's capacity and allow to deliver broader range
of services to its customers
n.r. n.a. - - -
Mar-12 AMD US SeaMicro US Technology provider
Accelerate AMD’s strategy to deliver disruptive server
technology
n.r. $334m 6.7x 27.8x -
Oct-11 Digital Realty Trust US Sun Center Drive US Facility located in California Increase storage capacity 69k $30m - - $435
Aug-11 Telecity Group UK Data Electronics Group IRE Data Center operator Geographic expansion 60k $144m 6.7x 13.9x $2,400
Apr-11 CenturyLink US SAVVIS US Data Center colocator Geographic expansion (48 Data Centers in NA, EU & Asia) 1.9m $3b 3x 13.1x $1,580
Jul-10 Digital Realty US RockWood Capital/365 Main US Facilities in the US Extend leadership 250k $725m - - $2,900
Oct-09 Equinix US
Switch and data facilities
company
US Provider of Datacenter services
Acquisition of 32 Datacenters in 22 markets, allowing Equinix
to reach 16 new markets
150-200k $689m 3.5x 11.5x $3,445
May-07 Reuben Brothers SW Global Switch UK Wholesaler Buy out Morley Fund Management's 25% stake 3m $580m 2-3x - $193
Average 5,0x 16,6x $2 387
Median 5,5x 13,5x $1 990

Focus on Selected Deals in the Downstream Segment
32
Date Target Acquirer
Deal
Value
Target
Rev.
EV/Rev. Rationale
Apr-13 $2bn $333m 6x
• This acquisition is part of IBM strategy to offer more
Hosting services to its clients.
• It also allows IBM to expand geographically in the NA
& EU regions.
Feb-13 n.a. n.a. -
• ObjectRocket is a provider of Cloud Database-aaS
Solutions.
• The acquisition allows Rackspace to improve its
open-source & open-cloud offering.
Jun-12 $38.5m $12.5m 3x
• Peer 1 becomes the #2 provider of SME managed
hosting services in the UK.
• NetBenefit provides Peer1 with a platform allowing
to sustain their growth in Europe.
• Part of Vmware’s plan to deploy one of the biggest
SDN (software-defined-network) of the industry.
$1.3bJun-12
Dec-10 $212m <$10m(e) -
• Combine Heroku’s technology and product with
Salesforce reputation to make it a leader in cloud
application platform for companies.
-n.a.
• Through the acquisition of Corente, Oracle plans to
strengthen its networking portfolio.
• It enables Oracle to move toward a cloud services
broker offering.
Jan-14 n.a.n.a. -

Selected M&A Activity in the Downstream Segment
33
Date Acquiror Nat. Target Nat. Target Focus Rationale Value ($m) EV/Rev.
EV/
EBITDA
Feb-14 IBM US Cloudant US Database-as-a-server Enhance its Big Data and analytics portfolio n.a. - -
Jan-14 Oracle US Corente US Software defined Networking Oracle plans to bundle SDN and cloud infrastructure n.a. - -
Dec-13 Evolve IP US Paragrid Inc US Cloud Services Geographic expansion n.a. - -
Oct-13 VMware US Desktone US Virtual desktop hosting platform Enhance desktop virtualization offering n.a. - -
Oct-13 NTT JP Virtela US Cloud based security Expand global network services coverage 525 - -
Dec-13 Akamai US Prolexic Technologies US IT Security Services Expand Akamai security services offering 370 - -
Sept-13 iomart Group UK Redstation UK Managed Hosting Enlarge Client base 13 1.6x -
Jul-13 Cinven UK Host Europe Group UK Hosting and Domain Services Capitalize on further consolidation in the hosting market 668 4.8x 13.8x
Jul-13 Intergenia DE Internet24 DE Managed Hosting Geographic expansion (DACH) n.a. - -
Apr-13 IBM US Softlayer US Hosting Services Enlarge footprint; Geographical expansion (NA & EU) 2,000 6.0x 14.9x
Mar-13 Rackspace US Exceptional US Error tracking Sfotware Improve service offering n.a. - -
Feb-13 Rackspace US ObjectRocket US Cloud Database-aaS Improve service offering n.a. - -
Jan-13 Intermedia US Telanetix US Cloud communication Offer cloud-based voice services 55 1.8x 11.5x
Jan-13 Cogeco Cable CAN Peer 1 Hosting CAN Managed Hosting Enlarge client base 526 3.3x 12.4x
Nov-12 Claranet UK Star UK Unified communications Improve service offering 88 1.1x -
Aug-12 iomart Group UK Melbourne Server Hosting UK Managed Hosting Geographic expansion (North England) 11 2.4x 11.2x
Aug-12 Rackspace US Mailgun US Mailbox webservices APIs Improve service offering n.a. - -
Jun-12 Peer 1 Hosting CAN NetBenefit UK Managed Hosting Geographic expansion (UK) 38.5 3.1x 10.1x
Jan-12 Host Europe UK Red Coruna ESP Hosting Services Geographic expansion (ESP) n.a. - -
Nov-11 iomart Group UK EQSN UK/US Managed Hosting
Consolidate position in hosting market; additional recurring
revenue
3.8 1.5x 10.0x
Oct-11 ISIS Equity Partners UK The Onyx Group UK
Managed Hosting, internet
connectivity
Capitalize on further consolidation in the hosting market 43 1.8x -
Jun-11 Acens Technologies ESP Telefonica S.A ESP Colocation and Managed Hosting Enlarge SME client base (ESP) 132 2.7x 6.9x
Mar-11
Novacap, Bank Street
Capital, Caisse
CAN iWeb Group CAN Dedicated and web hosting Capitalize on further consolidation in the hosting market 47 1.6x 7.8x
Feb-11 Time Warner Cable US NaviSite US Managed Hosting Enlarge client base 230 1.8x 9.5x
Jan-11 Verizon Communications US Terremark Worldwide US Colocation and Managed Hosting Enlarge client base 1,842 5.4x 22.4x
Average 2.8x 11.9x
Median 2.1x 11.2x

Selected European Fundraisings – 2010/13
34
Invest.
Date
Company Name Nat. Description Investors Amount
Jul-13 eNovance FR Managed Hosting Odyssee venture, Entrepreneur Venture, BNP, OSEO $6m
Jul-13 Opbeat DN Web hosting Balderton Capital $2.7m
Apr-13 abiquo UK Managed Hosting Oxford Capital Partners, Balderton Capital, Nauta Capital $5m
Apr-13 Flexiant UK Managed Hosting Leopard Rock Capital $6m
Mar-13 OVH FR Managed Hosting Debt $181
Mar-13 Racktivity BEL Power Management services PMV-Vinnof, BigBang Ventures, Partech Ventures $3.2m
Jan-13 OnApp UK Managed Hosting LDC $20m
Nov-12 Flexiant UK Managed Hosting Leopard Rock Capital $5m
Sept-12 amplitada BEL Hosting Services Intel Capital, Swisscom Ventures, Hummingbird Ventures, Endeavour Vision $6m
Apr-12 NWIX Group, Ltd. UK Colocation & Hosting Services Alliance Fund Managers Ltd $0.8m
Feb-12 amplidata BEL Hosting Services Intel Capital, Swisscom Ventures, BigBang Ventures, Endeavour Vision $8m
Jan-12 AIMES Grid Services CIC, Ltd. UK Colocation & Hosting Services Alliance Fund Managers Ltd, RBS Capital $2m
Oct-11 Virtus Data Centres, Ltd. UK Wholesale & Colocation services Brockton Capital n.a.
Sept-11 Adapt PLC UK Managed Hosting Lyceum Capital Partners $47m
Jul-11 Intrinsic Technology, Ltd. IRL Colocation & Hosting Services RJD Partners $48m
May-11 Next Generation Data, Ltd. UK Power Management services Finance Wales Investments Ltd, Lombard Investments Inc. n.a.
Mar-11 TIXEL GmbH GER Colocation & Hosting Services enjoyventure Management GmbH, High-Tech Gruenderfonds Management GmbH $1m
Dec-10 Racktivity BEL Power Management services BigBang Ventures, Partech Ventures $8m
Nov-10 VirtenSys, Ltd. UK Colocation & Hosting Services Undisclosed $2.1m
Nov-10 abiquo UK Managed Hosting Balderton Capital, Nauta Capital, Eurecan $10m
Oct-10 Host Europe Corporation, Ltd. UK Managed Hosting Montagu Private Equity LLP $347m
Oct-10 Zimory GmbH GER Managed Hosting Creathor Venture Management GmbH, High-Tech Gruenderfonds Management GmbH, IBB $5.5m
Sept-10 amplidata BEL Hosting Services Swisscom Ventures, BigBang Ventures, Endeavour Vision $6m

35
Table of Content
I
II
III
IV
V
VI

Clipperton List of Selected European ‘Data Management’ Players
36
Stars & emerging
companies with a
claim on online Data
Management markets

Table of Content: Selected European ‘Data Management’ Players
UPSTREAM
37
39
41
43
44
DEV OP TOOLS
45
45
PRICING OPTIMIZATION
46
ENERGY MANAGEMENT
49
48
48
49
RETAIL COLOCATION
CARRIER-NEUTRAL WHOLESALE
SECURITY
CLOUD-ENABLING SERVICES CLOUD MANAGEMENT
IAAS
42
41
40
40
38
47
PLATFORMS

Selected European Players – Focus on Telecity Group
38
Key Figures Presentation
 Founded:
 Nationality:
 Rev. 2013:
 Rev. 2012:
 Market Cap.:
 EV/EBITDA:
 PER
 Leading colocation provider
in Europe with 33 Data
Centers spread over key Tier I
locations (London, Paris,
Amsterdam, …).
 With 10+ acquisitions since
inception, Telecity has proved
a key consolidator on the
European colocation scene.
1998
UK
£329m
£283m
£1.4B
10.8x
20x
Context & Positioning
 Thanks to an aggressive consolidation strategy and a well-handled execution,
Telecity has managed to display an impressive 20% revenue growth CAGR
from 2008 to 2013 making the Company one of the leading colocation
provider in Europe.
 Telecity announced the launch of Cloud-IX, a cloud-neutral ecosystem that
will be rolled out to customers and provide direct connectivity with cloud
providers such as Amazon Web Services, iland, CSC, Fujitsu, Outsourcery, etc.
Equinix
8% Telecity
8%
Interxion
7%
Telehouse
4%
Deutsche Telekom
4%
Orange; 3%
Interoute; 2%
BT; 2%
Colt; 2%
Other local
players 60%
Source: Synergy Research Group
Retail Colocation Market Leaders – EMEA
Q3 2013
Telecity has consistently outpaced LSE index (base 100)
-
50
100
150
200
250
300
350
Oct-07
Feb-08
Jun-08
Oct-08
Feb-09
Jun-09
Oct-09
Feb-10
Jun-10
Oct-10
Feb-11
Jun-11
Oct-11
Feb-12
Jun-12
Oct-12
Feb-13
Jun-13
Oct-13

Selected European Players – Focus on Global Switch
39
 Founded:
 Nationality:
 Rev. 2012:
 Asset Value:
 Est. EV
 Founded in 1998 by the
Reuben brothers (UK’s 2nd net
worth individuals).
 One of the largest carrier-
neutral wholesale Data
Centers vendors in Europe
with 9 Data Centers spread
over Tier I locations (London,
Paris, Amsterdam, …).
 Tier I clients include IBM, Cap
Gemini or Atos.
1998
UK
£313m
£3.8B
£2.2-2.5B
(based on comps.)
 With a specific Carrier-Neutral x Wholesale positioning, Global Switch has
managed to compete with the larger US-based players such as Digital
Realty or Dupont Fabros.
 Global Switch is currently focusing on the Asian market where demand is
booming with large projects underway (Sydney, Hong-Kong, Singapore)
and a newly appointed Managing Director to lead the Asian expansion. + Singapore & Sydney
Madrid
London
Paris
Amsterdam
Frankfurt
GLOBAL SWITCH Data CenterS
 9 Datacenters
 290,000 sqm
 Carrier-neutral

Selected European Players – IaaS [1/3]
 Founded:
 Nationality:
 Rev. 2012:
 Rev. 2011:
 Funding:
 Investors:
 Developer of advanced cloud
software and management
solutions.
 Strong international reach
(Europe, US, Asia).
 Multi-awarded software
solution (incl. Gartner’s Cool
Vendor in Cloud Management
2011, 2013 Red Herring top 100
Europe).
2006
UK
n.a.
n.a.
$24.2m
Balderton,
Nauta, Oxford Capital
+ Others
 Abiquo positions itself at the point at which enterprises are seeking to migrate from
legacy software systems to cloud based services.
 To address this, Abiquo’s cloud computing toolkit enables enterprises to build,
integrate and manage public and private clouds via a single homogenous
dashboard environment.
 Founded:
 Nationality:
 Rev. 2011:
 Rev. 2010:
 Funding:
 Investors:
 Provider of cloud orchestration
software for on-demand, fully
automated provisioning of
cloud services.
 Spun out from hosting company
XCalibre Communications.
 Cloud Orchestrator is now
implemented by 100+ EU service
providers.
2009
UK
n.a.
n.a.
$10.5m
Leopard Rock
Capital
 Flexiant acts as a facilitator in the trend for traditional hosting providers seeking to
offer more downstream, value add services. Of particular focus are telcos that want
to use their existing infrastructure to become fully fledged infrastructure-as-a-service
players. By integrating Flexiant’s software, such service providers broaden their
hosting offerings into more advanced cloud services.
 The recent fundraising will be used by Flexiant for international expansion,
particularly in the US.

41
 Founded:
 Nationality:
 Rev. 2011:
 Rev. 2010:
 Funding:
 Investors:
 Initially a Cloud Management SW
offering, Onapp has pioneered
the federated cloud model
enabling their network of
Service Providers to offer at
scale CDN services, and storage.
 900 clients in 87 countries,
Signing 20-30 new SP’s per
month.
2010
UK
n.a.
n.a.
$20m
Lloyds
Development Capital
 Onapp has emerged in response to the widespread commoditization of traditional
hosting services and dominance of Amazon in the IaaS space. Their solution targets
the significant longtail of hosters struggling to compete with Amazon’s sheer scale.
 As many of the core building blocks of cloud hosting are now able to be bought off the
shelf, Onapp has developed software that enables smaller hosters to operate a
network or “federated” cloud model thus enabling the scale and product diversity of
bigger players.
 Onapp plans to further utilize it’s network of service providers to offer a true
marketplace for cloud infrastructure.
 Founded:
 Nationality:
 Rev. 2011:
 Rev. 2010:
 Funding:
 Investors:
 Cloud management platform for
complex, virtualized and
physical enterprise applications.
 Product portfolio includes the
eCloudManager based on
Information Workbench
semantic platform.
 Numerous awards winner,
including Computerwoche Best
in Cloud Award 2012 (Category
IaaS – Private Cloud).
2008
DE
n.a.
n.a.
€6m
Founder,
SAP-Co-Founder
 Fluid Operations offers a semantic cloud and Data Center management
solution to overcome the complexities that enterprises experience in
managing complex, virtualized application environments.
 Offers automated handling of daily operations of a private or public eCloud.
 Serves enterprise customers, such as Daimler, F.IT, SAP, Statoil and T-Systems.

42
 Founded:
 Nationality:
 Rev. 2011:
 Rev. 2010:
 Funding:
 Investors:
 Carrier-grade cloud
infrastructure management
software provider.
 Expanding international reach
(US, Eurasia).
 Numerous awards winner,
e.g. Cloud Management Leader
Award by Experton Group in
2013 and 2012 as well as
Gartner “Cool Vendor” in 2011.
2007
DE
n.a.
n.a.
$26m
Creathor, HTGF, IBB, KfW,
T-Venture, Deutsche Börse
 Zimory’s infrastructure management software automates and simplifies the
creation, launch and management of all types of cloud environments.
 The suite delivers also brokerage capabilities which are enabling cloud and
service marketplaces, and reducing service delivery times and effort.

Selected European Players – Energy / Environment Management
43
 Founded:
 Nationality:
 Rev. 2012:
 Rev. 2011:
 Funding:
 Investors:
 Energy & environment
management system for Data
Centers.
 In-house developed hardware,
firmware and software.
 Integration with third party
components.
 Mainly active in Europe (25
FTEs).
2009
BEL
n.a.
n.a.
$13m
PMV-Vinnof
Partech Ventures
Big Bang Ventures
 Racktivity offers hardware and software solutions that enable detailed
monitoring of Data Center infrastructure in order to minimize system
failures and downtime for end customers.
 Energy management is absolutely key as energy usually accounts for the bulk
of Data Center operating expenses.
 The software combined with a family of PDUs and sensors measure, monitor
and manage power across distributed Data Centers and gives customers full
visibility and control of Data Centers’ energy consumption.

 Founded:
 Nationality:
 Rev. 2012:
 Funding:
 Investors:
 Cloud infrastructure security
SaaS solutions.
 One of the Cloud Security
Alliance founders.
 Technology partner of
Amazon Web Services, HP
Cloud, VMware and
Eucalyptus.
 7 FTEs
2011
FR
€1-3m.
Undiscl.
n.a.
 Result of a joint research work with Eurecom, a French research institute in
telecom and network security.
 Set of products and services specifically designed to help cloud infrastructure
providers and users to safely migrate to the cloud.
 Increases the safety of IaaS, identifying vulnerabilities in major IaaS providers
and collaborating with them.
Selected European Players – Security

 Founded:
 Nationality:
 Rev. 2012:
 Rev. 2011:
 Funding:
 Investors:
 Provider of application
provisioning and management
services for Ruby on Rails.
 Build PaaS from scratch on any
public or private cloud vendor
or your own infrastructure.
 Offices in the UK and the US.
2011
UK
n.a.
n.a.
No funding
to date
 Innovative solution combining the convenience of Platform-as-a-Service
(PaaS) with the control and flexibility of Infrastructure-as-a-Service (IaaS).
 A very fast way to market, while still allowing clients to maintain their
control over their infrastructure growth and expenditure for the lifetime of
their projects.
 Provided as a service and charged per server per month.
 Founded:
 Nationality:
 Rev. 2012:
 Rev. 2011:
 Funding:
 Investors:
 Cloud computing hosting
PaaS.
 Runs all the major languages
(Java, Scala, Ruby, Python,
PHP, etc.).
 Hosted in French Data Centers
in Paris.
 10 FTEs (as of Jan. 2014).
2010
FR
€1-3m
n.a.
Undiscl.
Kima
Ventures
 Provides Cloud computing hosting, for high-performance and easy-to-manage
Java/PHP/Ruby based web applications.
 Each hosted application is highly secured (https protocol, backups, 24/7
monitoring and support, specific virtual machine, etc.).
 Designed to make developers’ life easier and let them focus on their core
business (easy testing, deployment and production).
Selected European Players – Dev Op Tools

Selected European Players – Cloud Hosting Software
46
 Founded:
 Nationality:
 Rev. 2011:
 Rev. 2010:
 Funding:
 Investors:
 PaaS provider for web
applications development and
operation.
 Integrated add-on marketplace
with 3rd party services.
 Won ECO Award (category
“Hosting”) in 2009.
 Mainly active in Europe (22 FTE),
currently rolling out US business.
2009
DE
n.a.
n.a.
2 Rounds
IBB
Creathor Ventures
 Extends the product portfolio through PaaS-enablement for hosters and
telecommunication companies (managed white-label platform).
 Initially started with PHP language support in Q4 2010. The company became
one of few ‘polyglot’ player by supporting Java, Python, Ruby and NodeJS
programming languages and others through the buildpack standard.
 Offers a broad service base through it’s 3rd party add-on marketplace.

 Founded:
 Nationality:
 Rev. 2012:
 Rev. 2011:
 Funding:
 Investors:
 Cloud computing broker-dealer.
 Billing and pricing service between
cloud clients and cloud providers.
 Approved supplier on the UK
government G-cloud program.
 Clients in the EU and the US and
usually have £25-50k IaaS spend per
month and commit for 6 months
minimum with Cloud Options.
2010
UK
n.a.
n.a.
Undiscl.
Techstars
 Experts in cloud billing and price risk management, transferring expertise from the
physical commodities markets to cloud computing.
 Their offering is effectively a cloud service “market maker” – helping users to buy
cloud services on terms that suit them, whilst buying from cloud providers on terms
to suit the latter.
 Through its financial service “Cloud Options”, Strategic Blue involves both the buyer
and the seller in the price-setting process, not just the seller. Going forward the
business model will begin to mirror a traditional commodity hedging business
model of high volume and low transaction fee margins.
Selected European Players – Cloud Brokerage

Selected European Players – Platforms [1/2]
48
 Founded:
 Nationality:
 Rev. 2012:
 Rev. 2011:
 Funding:
 Investors:
 SaaS Cloud Management
solution allowing multiple
Cloud providers in a unified
infrastructure.
 Complete monitoring system.
 Awared Best Solution 2013 by
EuroCloud, at spannish level.
 ~20 FTEs
2012
SP
n.a.
n.a.
€200k
Ackstorm
 Offers easy management and control of different Cloud providers (Amazon,
Rackspace, Linode, etc.) from a single intuitive interface.
 Powerful control tool capable of performing a complete monitoring of the
operation, and performing automatic maintenance actions such as increasing
resources available, auto-scaling or restarting applications in case of incidents.
 Clients include developers, IT managers, systems integrators and IaaS providers.
 Founded:
 Nationality:
 Rev. 2011:
 Rev. 2010:
 Funding:
 Investors:
 Complete cloud business
provider.
 Offers public, private and
hybrid clouds plus storage in
own Data Centers or hosted
worldwide on their network of
cloud federation partners.
 Operates multiple Data
Centers in Berlin, Hamburg and
Frankfurt am Main.
2009
DE
n.a.
n.a.
n.a.
Spin-Off
from Internet Service
Provider Internet4You
 IaaS providing self-service solution to user management, provisioning,
automation services to offer a public, private or hybrid cloud solution.
 Spin-Off from Germany-based Internet Service Provider Internet4You, which
also offers managed hosting services and hybrid engineering solutions to build
tailored server solutions.

Selected European Players – Cloud Hosting Software
49
 Founded:
 Nationality:
 Rev. 2012:
 Rev. 2011:
 Funding:
 Investors:
 Storage and scalable cloud
hosting platform software
provider.
 Self-healing platform designed
to automatically recover when
Data Center hardware or
software fail.
 SETsquared member company.
 11 FTEs.
2008
UK
n.a.
n.a.
$1m
DN Capital
 Helps user systems automatically recover from hardware & software failures
without loss of data and deal with spikes in traffic that traditionally lead to crashes.
 Offers storage and hosting platform technology that automatically detects and
recovers from Data Center outages, delivers better density of customers per server,
and offers end users the ability to self-recover lost files and data.
 Key technology enabler is the use of containers as a lighter alternative to VMs
enabling live migration across servers without the need of arduous/ enormous data
replication (as is the case with VMs).
 Founded:
 Nationality:
 Rev. 2012:
 Rev. 2011:
 Funding:
 Investors:
 Collaborative work tool in SaaS
mode dedicated file sharing and
project management.
 Strong security policy (resilient
storage infrastructure,
confidentiality, accessibility, etc.).
 Used by 5,000+ SMBs.
 Offices in Paris and San Francisco
(18 FTEs).
2010
FR
n.a.
n.a.
€680k
Business
Angels
 All-in-one solution for collaborative processes in business, Wimi streamlines
teamwork, allowing businesses to quickly and easily access shared documents,
tasks and project calendars.
 Seamless integration with today’s most popular productivity apps including
Google Apps, Outlook, Skype, Evernote, etc.
 Automatic synchronization across all digital devices.

Abiquo ControlCircle Skye Cloud
Adapt Flexiant Skyscape Cloud Services
Arkivum Future Facilities Strategic Blue
Cloud66 Hybrid Logic The Bunker
Opbeat
EverCloud
Ensafer
ECManaged
Red Coruna
50
Selected European Players by Country
Altitude Datacenter eNovance SecludIT
CleverCloud JoliCloud Wimi
Ecritel France OVH
CloudControl
Fluid Operations
ScaleUp Technologies
Zimory
Amplidata
AWINGU
Racktivity

Clipperton Finance
Antoine Ganancia
Senior Associate, Paris
Thomas Neveux
Partner, Paris
Disclaimer:
This document has been produced by Clipperton Finance (“Clipperton”) and is communicated to you solely for your information and should not be
construed as a solicitation or offer to buy or sell any securities or related financial instruments.
This research paper is based on information available to the public and other sources deemed reliable, while every effort has been made to guarantee
exactitude and reliability, Clipperton Finance cannot be held responsible for omissions or errors. The information and analysis accessible in this
presentation speaks to industry trends in general, and should not be construed as providing any particular recommendations or analysis for any specific
company that is mentioned in this presentation. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on,
the fairness, accuracy or completeness of the information contained herein and, accordingly, none of Clipperton’s officers or employees accepts any
liability whatsoever arising directly or indirectly from the use of this document.
Clipperton Finance Limited is authorised and regulated by the Financial Services Authority. Registered No. 523695
aganancia@clipperton.nettneveux@clipperton.net
Clipperton Finance Contacts:
Kulchetan Sanga
Associate, London
ksanga@clipperton.net

52
Table of Content
I
II
III
IV
V
VI

Mission Statement
Building the best European platform in tech advisory
London (2009)
Paris (2003)
Berlin (2013)
Leveraging a proven track record of 100+
transactions & seasoned technology
advisory professional's experience to
accompany our clients in their growth and
through all key steps of their financial life
3 offices in Europe
5 partners

What do we do?
Transaction Advisory for European Growth Companies, International
Investors and Blue-Chips
54
Mergers &
Acquisitions
StrategyFundraising
European Tech and Growth
Companies
Early Stage Financing
Growth Financing
Exits (M&A, IPO, Buy-out)
Private Equity
Investors
VCs – International reach
incl. Corporate VCs
Growth Equity –
EU and US Funds
Leveraged Funds –
Buyout, Mid Market
Technology Blue Chips
Sell-side Advisory,
Divesture
Buy-side Screening
Minority
Investment

Value Proposition
Our Solid Track Record Illustrates an Ability to Consistently Exceed Client
Expectations
55
Transaction expertise
Client Expectations Clipperton Finance‘s Fit
Industry knowledge and extensive
experience
Access to investors
Team commitment and senior-level
involvement
Ability to maximize value
• Track record of delivering deals since 2003: 100+ successfully closed transactions as placement agent or M&A
advisor
• Deal negotiation experience and proven process & methodology
• Cutting-edge and extensive domain expertise in TMT and Cleantech
• Strong capabilities in framing and fine-tuning strategic positioning and go-to-market
• Global network of investors and acquirers
• Strong relationships with industrial and financial sponsors, intimate understanding of expectations
• Major success stories within client base
• Strategic approach to financial transactions to position companies to maximize shareholder return
• Partner commitment from conception to closing, deep pool of experienced professionals
• Quality, not volume led – significant resource dedicated throughout
Independent and
trusted advisor
• Unbiased advice with focus on long term value creation
• Long term relationship with clients and exceptional level of client satisfaction

Track Record
Selected High Profile M&A & Fundraising Transactions Across the Value Chain
56
M&APrivate Placement
sold to
Sole Sell-Side Advisor
July-12 $160,000,000 Apr-11 €5,300,000
Private Placement
(A-round)
Digital Media
Social Gaming
Acquires
Sole Buy-Side Advisor
Jan-11 € Undisclosed Dec-10 €6,000,000
Private Placement
(C-round)
Telecom Equipment
Mobile 3G/4G Network
Nov-10 Undisclosed
Acquired by
Sep-10 €7,500,000
Private Placement
(B-round)
Jul-10 €13,700,000
Clean Tech
Energy Storage
Dec-09 €12,000,000
Private Placement
(B-round)
E-Commerce
Footwear
Since May-08 €16,000,000
Private Placement
(B/C-rounds)
Digital Media
Media Center
Private Placement
(B-round)
May-09 €12,500,000
Telecom
LTE / Testing
Acquired by
Sep-08 $27,700,000
Private Placement
(C-round)
Sep-07 $10,500,000
Telecom
Mobile BSS / OSS
Acquired by
Sept-10 Undisclosed
Private Placement
(B-round)
Clean Tech
PV Operator
Nov-08 €20,000,000
Private Placement
(B-round)
Feb-12 £6,300,000
eCommerce
Private Sales
Private Placement
(B-round)
Oct-11 €7,500,000
Social Commerce
Second hand fashion
Private Placement
(B-round)
Feb-12 $12,000,000
New TV sell-side platform
Private Placement
(B-round)
Mar-12 €4,000,000
Social Payment
Private Sales
Private Placement
(A-round)
$13,500,000
Mobile App
App Discovery
Private Placement
(A-round)
eCommerce
Organic Products
Jan-13Jan-13 €3,000,000
Aug-07 €8,000,000
Private Placement
(A-round)
E-Commerce
e/m-ticketing
Aug-06 €7,000,000
Private Placement
(A-round)
Digital Media
Video Sharing
Since Jul-06 €60,000,000+
Private Placement
(B-E-rounds)
Semiconductors
WiMax/LTE Comm. IC
Private Placement
(B-round)
$30,000,000
Connected Objects
Jul-13
Private Placement
(B-round)
$20,000,000
Social Commerce
Sep-13 $90,000,000Jul-13
Joint Sell-Side Advisor
sold tosold to
Sell-Side Advisor
Jan-14 Undisclosed
Private Placement
(A-round)
Feb-12 €4,000,000
Adtech
Video advertising
ADS Public Offering
Dec-13 $26,000,000
Semiconductors
WiMax/LTE Comm. IC
[NYSE:SQNS]

Experience in Advisory Services
Over 50 Years of Experience in Technology Advisory Services
57
• M&A sell-side & buy-side (20+ operations); >€700m raised in Equity (70+ operations)
• Extensive network of investors and acquirers in Europe, North America and Asia
• Team based in Paris, Berlin and London (pan-European coverage)
• 4 Partners combining 50+ years of experience with prominent Technology firms

Clipperton Finance France
10 rue de Mont Thabor
75001 PARIS
+ 33 1 77 35 18 10
corporate@clipperton.net
Clipperton Finance United-Kingdom
Green Park House
15 Stratton Street
W1J 8LQ LONDON
+ 44 20 3036 0346
Clipperton Finance Germany
Neue Schönhauser Str. 2.
10178 BERLIN
58
Disclaimer:
This document has been produced by Clipperton Finance (“Clipperton”) and is communicated to you solely for your information and should not be construed as a solicitation or offer to buy or sell any securities or
related financial instruments. This research paper is based on information available to the public and other sources deemed reliable, while every effort has been made to guarantee exactitude and reliability,
Clipperton Finance cannot be held responsible for omissions or errors. The information and analysis accessible in this presentation speaks to industry trends in general, and should not be construed as providing
any particular recommendations or analysis for any specific company that is mentioned in this presentation. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed
on, the fairness, accuracy or completeness of the information contained herein and, accordingly, none of Clipperton’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use
of this document.
Clipperton Finance Limited is authorised and regulated by the Financial Services Authority. Registered No. 523695

From Data Centers to Cloud Services, Inside the Backbone of a New Economy - Clipperton Finance Research Paper

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