Private Equity Transaction Structures, continued…

Report
Copyright © 2011 Holland & Knight LLP All Rights Reserved
Copyright © 2011 Holland & Knight LLP All Rights Reserved
Legal Issues Associated with
Cyber Security M&A
William J. Mutryn
Co-Chair
Mergers & Acquisitions Practice
Group
Holland & Knight LLP
October 25, 2011
(703) 720-8069
[email protected]
Copyright © 2011 Holland & Knight LLP All Rights Reserved
Holland & Knight LLP
Global law firm with nearly 1,000 attorneys in 17 U.S. offices and several international
offices
Mid-Atlantic Region: H&K’s largest region with roughly 250 attorneys and offices in
Washington and Tysons Corner
Corporate, M&A and Securities Group: 25 attorneys in the Mid-Atlantic Region and 150
nationally focusing on serving the middle market companies in M&A transactions,
securities, finance and corporate governance
Represented parties in approximately 100 M&A transactions involving Government
Contractor, Defense and Security companies over the last 4 years, including 25
transactions in 2011 – approximately 25% of all government contractor transactions
Experienced attorneys in tax, employee benefits, government contracts, intellectual
property, environmental, real estate, employment and antitrust to perform M&A
transactions
Strong direct experience in representing cyber security firms, including companies that
serve the intelligence community. See, List of H&K’s Representative Transactions at the
end of this presentation
Copyright © 2011 Holland & Knight LLP All Rights Reserved
3
The Current M&A Environment
•
Broad array of buyers, including: defense firms, technology
firms, private equity sponsors, diversified firms and foreign firms
•
Favorable financing terms and cash availability
•
Perception of a strong growth market in cyber security that is still
evolving
•
Buyers seeking to acquire:






Technology
Products
Service capabilities
Customer relationships
Long-term contracts
Management talent
Copyright © 2011 Holland & Knight LLP All Rights Reserved
4
The Current M&A Environment
•
Robust Activity – quest for growth by Purchasers, desire for
liquidity by Sellers and favorable tax rates. See list of recent
cyber security transactions at the end of this presentation (list
provided by KippsDeSanto & Co.)
•
Purchasers are VERY PARTICULAR – seeking the right deal
at the right price
•
Rigorous due diligence results in challenges for deals to be
completed on LOI terms
•
Multiple tiers of valuation ranges for selling companies; cyber
security technology and products, higher level cyber security
services to homeland security and intelligence agencies are
in the highest valuation range
Copyright © 2011 Holland & Knight LLP All Rights Reserved
5
The Current M&A Environment
•
Lower level IT services are in less demand and sell for lower
valuations
•
Focus of Purchasers is shifting to products or mission critical or
technology-enhanced products services with strong margins and
growth potential
•
Price multiples for attractive Targets often exceed public
valuation multiples
•
Valuation multiples (EV divided TTM Adjusted EBITDA) for
higher end cyber security services firms often in the range of 10
to 12x. For firms with unique intellectual property or products,
multiples can be higher, sometimes by considerable amounts
Copyright © 2011 Holland & Knight LLP All Rights Reserved
6
Key Factors Affecting M&A Transaction Terms
•
Competitive demand for Target, e.g., auction process vs.
single purchaser
•
Risk tolerance and historical practices of particular
Purchaser
•
Composition of Seller group
•
Nature and magnitude of perceived future business and
legal risks
•
Overall Target preparation and compliance posture
•
Negotiation process
Copyright © 2011 Holland & Knight LLP All Rights Reserved
7
Trends in M&A Transactions
Extensive Negotiation of a More-Detailed Letters of Intent
•
Frequently follows some due diligence by Purchaser and
management briefing by Target
•
Often part of a process managed by investment bankers
•
Items customarily addressed:
 Tax and corporate structure, enterprise value and
assumptions behind purchase price
 Purchase price and type of consideration
 Escrow or holdback
 Working capital requirements
 Principal closing conditions
Copyright © 2011 Holland & Knight LLP All Rights Reserved
8
Trends in M&A Transactions
Letter of Intent/Term Sheet, continued…





Earn-out structure, if any
Non-competes and key employee retention
Due diligence process
Exclusive negotiation period
Indemnity caps, baskets, minimum claims, survival periods
and materiality scrape sometimes negotiated
•
Exclusivity Period may be staged based on completion of
diligence, financing commitment and distribution of draft
documents
•
Sellers have strong interests to avoid future surprises on major
terms and prefer to negotiate prior to exclusivity
Copyright © 2011 Holland & Knight LLP All Rights Reserved
9
Trends in M&A Transactions
Rigorous Sophisticated Due Diligence by Prospective
Purchasers:
• Revenue waterfall
• Backlog and pipeline
• Contract terms
• Margin sustainability and adequacy of business infrastructure
• Customer relationships and re-compete risk
• Key employee skills and employment continuity
• Taxes: income, foreign, sales and use
Copyright © 2011 Holland & Knight LLP All Rights Reserved
10
Trends in M&A Transactions
Purchaser Due Diligence, continued…
• Efficacy of 338(h)(10) or similar elections
• Compliance related matters:
 Infringement
 Employment classification
 Employee benefits
 Export controls
 FCPA
 Government procurement regulations (if applicable)
• Capitalization
• Intellectual Property – data rights, ownership, pricing,
competitive position
• IT system adequacy and security
Copyright © 2011 Holland & Knight LLP All Rights Reserved
11
Trends in M&A Transactions
Escrow and Other Protections for Purchaser from PostClosing Losses at Historical Levels
•
Because of sophisticated diligence many Purchasers are better able
to evaluate risks of claims against target companies
•
Escrows – generally in the range of 5-20% of purchase price (with
average of 10%) and held for 12 - 24 months to secure indemnity
claims
•
Set-off Rights if subordinated notes or earn-outs are used as
consideration
•
Often a separate escrow to secure working capital deficiencies or
some agreements provide for no upward adjustment based on
estimated working capital at closing
•
Holdbacks are less frequent than escrows
Copyright © 2011 Holland & Knight LLP All Rights Reserved
12
Trends in M&A Transactions
Survival Periods for Representations, Warranties and
Covenants
• General Reps and Warranties – 1 to 3 years; usually at
least one audit cycle
• Fundamental reps, including capitalization, authority, title,
brokers, absence of debt – indefinite or statute of
limitations
• Tax, ERISA, Environmental – 30 to 60 days past statutes
of limitations
• IP, Regulatory and Government Contracts – as negotiated:
could be same as general, 3 to 5 years, or statute of
limitations
Copyright © 2011 Holland & Knight LLP All Rights Reserved
13
Trends in M&A Transactions
Survival Periods, continued…
• Pre-closing covenants – indefinite or same as general
representations and warranties
• Post-closing covenants and special indemnities – indefinite
or statute of limitation; sometimes special indemnities have
separate survival periods
• ESOP-owned Target or widely-held Target in competitive
auction – reps and warranties survive until escrow/holdback
released, except for Fundamental
• Public Target – representations and warranties generally do
not survive closing
Copyright © 2011 Holland & Knight LLP All Rights Reserved
14
Trends in M&A Transactions
Indemnification Provisions
• Sellers – typically joint and several, sometimes several (if limited
number of Sellers); Widely-held or ESOP-owned – indemnification
usually limited to escrow or holdback
• Cap – typically 10% to 30% of purchase price for general
representations based on circumstances
• Potential exclusions from cap and/or basket: capitalization,
authority, title, breach of covenants, fraud, willful misconduct, tax,
ERISA, environmental, ongoing litigation/investigation/claims,
certain regulatory compliance matters, e.g., FCPA, special
indemnities; cap for these items is negotiated but can be as high
as the purchase price
Copyright © 2011 Holland & Knight LLP All Rights Reserved
15
Trends in M&A Transactions
Indemnification Provisions, continued…
• Basket – negotiated amount (generally 0.25% to 1.00% of
purchase price) – deductible or first dollar (tipping basket);
split basket, (i.e., part deductible and part first dollar
becoming more frequent
• Minimum claim size sometimes negotiated
• Special indemnities for discovered risks are often included
Copyright © 2011 Holland & Knight LLP All Rights Reserved
16
Trends in M&A Transactions
Continued Emphasis on Employee Retention
•
Many Purchasers require as a closing condition that
key employees of Target execute retention or
employment agreements and a percentage of other
employees sign standard employee agreements
•
Retention or bonus agreements generally contain
stay-bonus provisions plus non-solicitation covenants
with respect to customers and employees
Copyright © 2011 Holland & Knight LLP All Rights Reserved
17
Trends in M&A Transactions
Employee Retention, continued…
•
Highest level key employees may be required to sign
employment agreements as a closing condition,
particularly if Purchaser is private equity firm or small or
mid cap strategic
•
Private equity Purchasers may require or encourage
purchase of equity by key managers
•
Strategic Purchasers often grant stock options or
restricted stock to key employees
Copyright © 2011 Holland & Knight LLP All Rights Reserved
18
Trends in M&A Transactions
Selective Use of Earn-Outs
Earn-outs – used by selected Purchasers if extraordinary
growth projected, set-aside contracts or to bridge valuation gap
• More widespread use by private equity and small and midtier strategic buyers willing to pay upside if financial
projections are achieved or key contracts are maintained or
migrated
• Can be event-based or performance-based; usually no
longer than 2 years from closing
• Performance-based earn-outs based on revenues, gross
profits, contribution margin or EBITDA
• Earn-outs used less frequently by strategic buyers that
prefer near-term integration of Target
Copyright © 2011 Holland & Knight LLP All Rights Reserved
19
Trends in M&A Transactions
Use of Creative Tax Structures to Achieve Step Up in Basis
and Deferral of Rollover Equity
•
Many Purchasers attribute value to availability of step-up in
basis of Target’s assets from IRS Section 338(h)(10) or 754
election
•
In transaction with rollover equity, creative tax structures
have evolved to enable tax deferred treatment of rollover
equity, in some cases even where there is a Section
338(h)(10) or 754 election
•
Careful tax examination by Sellers of effects of Section
338(h)(10) election and installment sales treatment required
Copyright © 2011 Holland & Knight LLP All Rights Reserved
20
Trends in M&A Transactions
Continued Importance of Target’s Net Working Capital or
Tangible Net Assets At Closing
•
Usually determined based on cash-free, debt-free net working
capital of business over an agreed period before closing
•
Some Purchasers seek to exclude or limit deferred tax assets
•
Some Purchasers require an adjustment if Accounts Receivable
not collected within an agreed time
•
Reserves and deferred revenue to be in accordance with GAAP
•
Separate escrow or holdback to serve as payment source if a
deficiency
•
Customary adjustment mechanisms:
 Both upward and downward;
 Downward only; or
 No adjustment if within range
Copyright © 2011 Holland & Knight LLP All Rights Reserved
21
Trends in M&A Transactions
Private Equity Transaction Structures Continues to
Use Leverage and Investment by Sellers and Key
Employees
•
Increased availability of senior and mezzanine debt in
2011 vs. last 2 years
•
Consideration may consist of:
 Cash
 Subordinated notes
 Rollover equity by sellers
 Earn-outs
Copyright © 2011 Holland & Knight LLP All Rights Reserved
22
Trends in M&A Transactions
Private Equity Transaction Structures, continued…
•
Opportunity for “2 Bites at the Apple” by Sellers and
equity appreciation by key executives
•
Subordinated Notes – payment terms and
subordination provisions are heavily negotiated items
•
Rollover Equity – usually parri passu to or one level
behind sponsor and subject to shareholders
agreement
•
Management fees and transaction fees paid to
sponsor
Copyright © 2011 Holland & Knight LLP All Rights Reserved
23
Trends in M&A Transactions
Suggestions to Potential Sellers:
•
Conduct extensive preparation – Sellers should invest to
prepare for every diligence question, including S Corp
compliance, revenue waterfalls, contracts, compliance,
benefits, IP rights and capitalization
•
Be aware of customary terms
•
Provide stay incentives for key employees
•
Prioritize issues
•
Keep in mind the big picture
Copyright © 2011 Holland & Knight LLP All Rights Reserved
24
Trends in M&A Transactions
Conclusions:
•
Prevailing trends can be helpful to provide guidance in
formulating party’s negotiating strategy
•
Resulting terms reflect the particular circumstances,
bargaining power and practices of the parties involved
•
Experienced financial, legal and accounting advisors can
assist in developing creative compromises
Copyright © 2011 Holland & Knight LLP All Rights Reserved
25
List of Recent Holland & Knight
Representative Transactions
Acquiror
Target
Month/Year
Type of
Transaction
Iron Bow Technologies, LLC’s
Senior Management*
CACI International Inc.
Iron Bow Technologies, LLC
09/11
Management Buyout
Paradigm Holdings, Inc.*
09/11
Merger
Computer Sciences Corporation *
Maricom Systems, Inc.
08/11
Stock Purchase
GTSI Corp.*
08/11
Stock Purchase
The Boeing Company
Information Systems Consulting
Group, Inc.
Solutions Made Simple, Inc.*
08/11
Stock Purchase
General Dynamics Government
Systems Corporation
Network Connectivity Solutions,
Corp.*
07/11
Stock Purchase
Chemonics International, Inc.
Employee Stock Ownership Plan
Chemonics International, Inc.*
07/11
Stock Purchase
Dynamics Research Corporation*
High Performance Technologies, Inc.
06/11
Merger
SFW Capital Partners
Spectro, Inc.*
06/11
Stock Purchase
TASC, Inc.
TexelTek, Inc.*
06/11
Stock Purchase
Monument Capital Group*
Persistent Sentinel LLC
05/11
Asset Purchase
National Security Partners, Inc.
Point One, L.L.C. and FuGen, Inc.*
05/11
Asset Purchase
FedCap Partners, LLC*
Global Resource Solutions, Inc.
05/11
Minority Equity
Purchase
* = H&K Client in Transaction
Copyright © 2011 Holland & Knight LLP All Rights Reserved
26
List of Recent Holland & Knight
RepresentativeTransactions
Acquiror
Target
Month/Year
Type of
Transaction
FedCap Partners, LLC*
Global Analytic Information
Technology Services, LLC
03/11
Minority Equity
Purchase
ManTech International Corporation
TranTech, Inc.*
02/11
Stock Purchase
ManTech International Corporation
MTCSC Inc.*
12/10
Asset Purchase
Pragmatics, Inc.
Innovative Solutions International*
12/10
Stock Purchase
Computer Sciences Corporation
(“CSC”)*
CenTauri Solutions, LLC
12/10
Merger
Global Defense Technology Systems, Signature Government Solutions,
Inc.
LLC's*
12/10
Equity Purchase
KeyW Corporation
Everest Technology Solutions, Inc.*
12/10
Stock Purchase
Arlington Capital Partners*
White Oak Technologies, Inc.
11/10
Merger
ManTech International Corp.
10/10
Asset Purchase
Computer Sciences Corporation*
QinetiQ North America's Security
and Intelligence Solutions Unit*
Vulnerability Research Labs
10/10
Asset Purchase
CGI Group, Inc.*
Stanley, Inc.
8/10
Merger
* = H&K Client in Transaction
Copyright © 2011 Holland & Knight LLP All Rights Reserved
27
List of Recent Holland & Knight
RepresentativeTransactions
Acquiror
Target
Month/Year
Type of
Transaction
Applied Signal Technology, Inc.
Seismic, LLC*
4/10
Equity Purchase
KeyW Corporation
The Analysis Group, LLC*
2/10
Stock Purchase
SRA International, Inc.*
Perrin Quarles Associates, Inc.
1/10
Stock Purchase
General Dynamics C4 Systems, Inc.
Ascend Intelligence LLC*
1/10
Asset Purchase
DynCorp International LLC
Casals & Associates, Inc.*
1/10
Stock Purchase
Science Applications International
Corporation
Science, Engineering and
Technology Associates Corporation*
1/10
Merger
* = H&K Client in Transaction
Copyright © 2011 Holland & Knight LLP All Rights Reserved
28
List of Recent Cyber Security Transactions
Announce
Close
10/04/11
Pending
10/04/11
Acquiror
Target
Q1 Labs Inc.
Pending
International Business Machines Corp.
(NYSE:IBM)
McAfee, Inc.
10/04/11
10/04/11
Avaya Inc.
Sipera Systems, Inc.
09/29/11
09/29/11
Ultra Electronics Holdings plc (LSE:ULE)
AEP Networks, Inc.
09/03/11
09/03/11
General Dynamics C4 Systems, Inc.
Innovative Security Systems, Inc. (dba
Argus Systems Group)
09/01/11
Pending
IBM Corporation
Algorithmics, Inc.
08/25/11
08/25/11
Verizon Communications
CloudSwitch
08/15/11
Pending
BIO-key International Inc. (OTCBB:BKYI)
S.I.C. Biometrics Inc.
08/05/11
08/05/11
Intergraph Corporation
Augusta Systems, Inc.
07/22/11
07/22/11
Google Inc. (NasdaqGS:GOOG)
Pittsburgh Pattern Recognition
05/12/11
06/06/11
Rambus Inc. (NasdaqGS:RMBS)
Cryptography Research, Inc.
05/11/11
05/23/11
Thoma Bravo, LLC
Tripwire, Inc.
05/05/11
05/05/11
Novacoast, Inc.
Data Technique, Inc.
NitroSecurity, Inc.
Compilation by KippsDeSanto & Co., an investment banking firm with strong experience in the cyber security
industry.
Copyright © 2011 Holland & Knight LLP All Rights Reserved
29
List of Recent Cyber Security Transactions
Announce
Close
Acquiror
Target
05/04/11
05/02/11
Identive Group, Inc. (NasdaqGM:INVE)
idOnDemand Inc.
05/03/11
07/08/11
RadiSys Corporation (NasdaqGS:RSYS)
Continuous Computing Corporation
05/03/11
05/03/11
General Microsystems Inc.
RockFish Tek, Inc.
04/27/11
04/28/11
Polaris Software Lab Ltd. (BSE:532254)
IdenTrust, Inc.
04/04/11
04/04/11
RSA Security, Inc.
NetWitness Corporation
03/21/11
03/21/11
Peer Media Technologies, Inc.
BayTSP, Inc.
03/03/11
02/28/11
Imation Corp. (NYSE:IMN)
BeCompliant Corporation
02/14/11
02/14/11
Quest Software Inc. (NasdaqGS:QSFT)
e-DMZ Security, LLC
02/11/11
02/11/11
NetSweeper, Inc.
02/07/11
03/03/11
Corero plc (AIM:CORO)
DeepNines, Technology And Business
Assets
Top Layer Networks, Inc.
01/26/11
05/01/11
Cisco Systems, Inc. (NasdaqGS:CSCO)
Pari Networks, Inc.
01/18/11
01/18/11
Solaria Fund
01/14/11
02/17/11
BAE Systems (Holdings) Ltd.
Lavasoft AB, Anti-Spyware and
Antivirus Software Business
Norkom Group Plc (ISE:N5OK)
01/14/11
01/14/11
VMware, Inc. (NYSE:VMW)
NeoAccel, Inc.
01/12/11
Pending
SAP AG (DB:SAP)
SECUDE International AG Assets
Compilation by KippsDeSanto & Co., an investment banking firm with strong experience in the cyber security
industry.
Copyright © 2011 Holland & Knight LLP All Rights Reserved
30
List of Recent Cyber Security Transactions
Announce
Close
Acquiror
Target
01/11/11
01/11/11
Intel Corporation (NasdaqGS:INTC)
Nordic Edge AB
01/10/11
02/28/11
Ameristar Network Inc. (OTCPK:AMWK)
SecurDigital, Inc.
01/10/11
01/10/11
Astaro GmbH & Co. KG
01/10/11
01/10/11
VASCO Data Security International, GmbH
100% stake in CoSoSys S.R.L. and 97%
in Mobile Software Solutions SRL
DigiNotar B.V.
01/07/11
02/02/11
Ultra Electronics Defense, Inc.
3e Technologies International, Inc.
12/29/10
12/30/10
Sourcefire, Inc.
Immunet Corporation
12/23/10
12/23/11
Management Buyout
Anonymizer, Inc.
12/22/10
03/21/11
BAE Systems plc
ETI A/S
12/06/10
12/06/10
Juniper Networks, Inc.
Altor Networks, Inc.
11/29/10
02/01/11
Trend Micro Inc.
Mobile Armor, Inc.
11/22/10
12/22/10
ManTech International Corp.
MTCSC Inc.,
11/21/10
12/22/10
Attachmate Corporation
Novell Inc. (NasdaqGS:NOVL)
11/09/10
11/30/10
AVG Technologies N.V.
DroidSecurity TLV
11/04/10
11/04/10
Raytheon Company
Trusted Computer Solutions
11/01/10
11/01/10
Webroot Software, Inc.
Prevx Limited
Compilation by KippsDeSanto & Co., an investment banking firm with strong experience in the cyber security
Copyright © 2011 Holland & Knight LLP All Rights Reserved
industry.
31
List of Recent Cyber Security Transactions
Announce
Close
Acquiror
Target
10/25/10
10/25/10
Asknet AG
Norman ASA
10/18/10
10/18/10
MarkMonitor, Inc.
DtecNet Software ApS
09/29/10
Pending
[undisclosed buyer]
09/15/10
09/15/10
Microsemi Corp.
eSoft, Inc., Assets Associated with
UTM Internet Security Appliance
Offerings
Arxan Defense Systems, Inc.
09/13/10
10/20/10
Hewlett-Packard Company
ArcSight, Inc.
08/31/10
08/31/10
Qualys, Inc.
Nemean Networks, LLC
08/30/10
10/04/11
CA Technologies
Arcot Systems, Inc.
08/24/10
08/24/10
Technology Nexus AB
PortWise AB
08/23/10
09/29/10
Thoma Bravo, LLC
LANDesk Software, Inc.
08/18/10
02/28/10
Intel Corporation
McAfee, Inc. (NYSE:MFE)
08/17/10
09/22/10
Hewlett-Packard Company
Fortify Software, Inc.
08/09/10
08/31/10
Tektronix Texas, LLC
Arbor Networks, Inc.
07/29/10
12/22/10
McAfee Inc.
tenCube Pte Ltd.
07/27/10
07/30/10
Juniper Networks, Inc.
SMobile Systems, Inc.
07/26/10
09/03/10
Commtouch, Inc.
Command Software Systems, Inc.
Compilation by KippsDeSanto & Co., an investment banking firm with strong experience in the cyber security
industry.
Copyright © 2011 Holland & Knight LLP All Rights Reserved
32
List of Recent Cyber Security Transactions
Announce
Close
Acquiror
Target
07/13/10
07/13/10
GFI Software
Sunbelt Software, Inc.
07/12/10
07/12/10
Quest Software GmbH
Völcker Informatik AG
07/07/10
07/29/10
Boeing Company
Narus, Inc.
07/04/10
07/04/10
SafetyWeb, Inc.
Odojo, Inc.
07/01/10
07/20/10
IBM Corporation
BigFix, Inc.
06/30/10
06/30/10
H&C Network Co. Ltd.
Initech Co. Ltd. (57% stake)
06/22/10
06/22/10
TrustWave Holdings, Inc.
Breach Security, Inc.
06/07/10
06/07/10
Idera Corporation
iDevFactory
06/03/10
06/03/10
Tibco Software, Inc.
Proginet Corp.
06/02/10
07/23/10
Teachers' Private Capital; Thoma Bravo, LLC
SonicWALL, Inc.
05/25/10
06/03/10
McAfee Inc.
Trust Digital, LLC
05/17/10
05/28/10
Harris Corporation
SignaCert, Inc.
05/03/10
05/18/10
Apax Partners Worldwide LLP
Sophos Plc (70% stake)
Compilation by KippsDeSanto & Co., an investment banking firm with strong experience in the cyber security
industry.
Copyright © 2011 Holland & Knight LLP All Rights Reserved
33
List of Recent Cyber Security Transactions
Announce
Close
Acquiror
Target
04/29/10
06/04/10
Symantec Corporation
PGP Corporation
04/07/10
04/07/10
Absolute Software Corporation
04/01/10
04/01/10
VeriSign, Inc.
Phoenix Technologies Ltd., FailSafe
and Freeze Anti-Theft Assets
TrustBearer Labs, LLC
03/25/10
04/15/10
Options Media Group Holdings, Inc.
PhoneGuard, Inc.
03/22/10
Pending
AVG Technologies CZ, s.r.o.
Square S.A.
03/03/10
03/03/10
TrustWave Holdings, Inc.
Intellitactics, Inc.
02/26/10
02/26/10
AuthenTec, Inc.
02/26/10
02/17/10
RF Logics Inc
SafeNet Inc., Embedded Security
Solutions Division
ME2 Security LLC
02/15/10
02/28/10
Cloudmark Inc.
Bizanga Limited
02/11/10
02/11/10
Telenity, Inc.
Construia
01/31/10
01/31/10
Raytheon Company
Compucat Research Pty. Ltd.
01/29/10
01/29/10
WidePoint Corporation
01/26/10
01/26/10
Ipswitch, Inc.
VUANCE Inc. (Government Solutions
Division)
Dorian Software Creations, Inc.
01/19/10
02/01/10
CACI International, Inc.
SystemWare, Inc.
01/14/10
02/05/10
SAIC, Inc.
CloudShield Technologies, Inc.
Compilation by KippsDeSanto & Co., an investment banking firm with strong experience in the cyber security
Copyright © 2011 Holland & Knight LLP All Rights Reserved
industry.
34
List of Recent Cyber Security Transactions
Announce
Close
Acquiror
Target
01/12/10
01/22/10
Symantec Corporation
Gideon Technologies Inc.
01/12/10
01/12/10
iForem
Enmoda Inc.
01/12/10
01/12/10
TrustWave Holdings, Inc.
BitArmor Systems Inc.
01/07/10
01/28/10
Motorola, Inc.
SecureMedia, Inc.
12/18/09
12/18/09
Healthcare of Today Inc
NuvoDigital Technology, Inc.
12/13/09
12/14/09
ActivIdentity Corporation
CoreStreet Ltd.
12/10/09
02/10/09
Microsoft Corporation
Sentillion Inc
11/30/09
11/30/09
IBM Corporation
Guardium, Inc.
11/23/09
01/11/10
NICE Systems Ltd
Orsus (security management assets)
11/23/09
11/23/09
Check Point Software Technologies
11/03/09
11/03/09
m86 Security
FaceTime Communications (application
database)
Finjan
10/27/09
12/04/09
Cisco Systems, Inc.
ScanSafe, Inc.
Compilation by KippsDeSanto & Co., an investment banking firm with strong experience in the cyber security
Copyright © 2011 Holland & Knight LLP All Rights Reserved
industry.
35

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