Identity Software - May 2021 - SECTOR SNAPSHOT: GCA Advisors
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SECTOR SNAPSHOT: Identity Software – May 2021
EXECUTIVE SUMMARY
Identity Software Sector Update
The pandemic has driven digital transformation into overdrive with retailers and financial institutions rapidly adopting to
consumer demand shifting from offline to online transactions, and enterprises accelerating migration to cloud to manage
millions of workers working remotely.
This unprecedented growth in digital activity saw a corresponding increase in intensity and regularity of identity fraud and data
breaches on an almost daily basis.
Advanced persistent threats are fueling rapid innovation and adoption of identity security and data protection solutions across
different market verticals, which in turn have catalyzed some of the most significant M&A and funding activities in recent
history
Recent M&A activity has been robust across multiple sub categories especially in IAM, highlighted by:
Select M&A Transactions
($MM)
$28,940 $1,400
$6,408 $850
Financing and investment volume in the overall identity sector has continued unabated with sponsors making bold bets to
unleash growth and create new unicorns:
Select Financing Transactions
($MM)
$210 $205 $150 $100 $100 $100
GCA expects these trends to continue with even stronger identity related market activity excepted in the remainder of 2021
2
I. GCA OVERVIEW
II. IDENTITY SOFTWARE MARKET OBSERVATIONS
III. APPENDIX
3
GCA’S DEDICATED SECTOR KNOWLEDGE AND EXECUTION EXCELLENCE
GCA’s Identity Software Leadership Team
Chris Gough Saif Malik
Managing Director / Head of Cybersecurity
Executive Committee
Phone: (415) 318‐3658 Phone: (212) 537‐4533
cgough@gcaglobal.com smalik@gcaglobal.com
GCA Identity Software Focus
Behavioral Bot and Malware Data Management Fraud Detection
Authentication
Analytics Detection and Governance and Prevention
Identity Access Identity Data Identity Proofing Identity Theft Regulatory
Management Aggregation and Verification Protection Compliance
GCA Overview
25 >500 500+ 245 80%
Offices Around M&A Transactions In PE Deals In The Repeat Or
The World Professionals Last 3 Years Last 3 Years Referred Clients
4
OUR GLOBAL INVESTMENT BANKING PLATFORM
Global investment bank providing strategic M&A and capital markets advisory services to growth companies and market leaders
STOCKHOLM
MANCHESTER LEEDS
PARIS FRANKFURT
BIRMINGHAM MUNICH
KYOTO NAGOYA
ZURICH TOKYO
LONDON SHANGHAI
NEW YORK LAUSANNE MILAN
NEW DELHI OSAKA
TEL AVIV FUKUOKA
SAN FRANCISCO
TAIPEI
MUMBAI
SINGAPORE HO CHI MINH CITY
Global platform:
Sector expertise: Exceptional cross‐
25 offices in key Experienced team:
Expansive coverage border capabilities:
markets across Over 500 employees
and deep ~50% of all
America, Asia and across the globe
specialization transactions
Europe
Strong reputation Broad spectrum
and track record: Diversified
of clients:
High number of business model:
Leading
repeat clients and Geographically
conglomerates, top
referrals with 189 balanced, synergistic
private equity firms
deals announced or and complementary
closed in last 12 and emerging high‐
focus areas
months growth companies
5
GCA operates as GCA in America and Asia, and GCA Altium in Europe
OUR RECENT SOFTWARE TRANSACTION EXPERIENCE
Deep software sector expertise with demonstrated success advising public and private companies
sold to
strategic investment from
Advisor to ShowingTime
acquired by
6
I. GCA OVERVIEW
II. IDENTITY SOFTWARE MARKET OBSERVATIONS
III. APPENDIX
7
CONVERGENCE OF VERIFICATION AND FRAUD DETECTION TECHNOLOGIES
Increased Digital Activity Driving Need For Sophisticated Fraud Protection Solutions
Covid‐19 accelerated the shift toward digital identity and triggered
changes in online shopping behaviors, pushing retailers and financial Ecommerce…
institutions to adopt eCommerce strategies penetration incr’d over 2.0x YoY,
from 15% in CY19 to 35% in CY20
This drastic rise in online sales saw a corresponding increase in the
volume and sophistication of fraudulent activity, especially ATO fraud
involving bots, phishing, social engineering, credential stuffing and
brute‐force attacks to infiltrate systems $861 billion…
was spent via online channels in
Steep costs of such attacks have fueled a stronger desire for KYC the US; 44% increase from 2019
onboarding and identity verification solutions, while enabling an
inclusive frictionless experience for customers
To prevent fraud, a robust multi‐layered and risk‐based identity
72% increase…
solution is required to differentiate a trusted user from a fraudster in account takeover (ATO) fraud
and combat all types of fraud, beginning with account origination to reported in 2020 from 2019
the transactions that follow
Mastercard’s latest acquisition of Ekata, for example, brings the
integration of identity verification data, fraud prevention and digital $4.2 billion…
identity programs to help their customers ensure trust in real‐time in reported loses to US consumers
during online account opening, payments and every other digital due to internet fraud
interaction
Investors are betting on continued growth of fraud prevention outside
of ecommerce to other market verticals as evidenced by recent 12.8% CAGR…
fundings of Signifyd ($205MM), Veriff ($69MM), Sift ($50MM), Jumio projected from 2020‐2025 in the
($150MM), Socure ($100MM), and Id.me ($100MM) global fraud prevention market
Notes:
Source: DigitalCommerce360, Federal Bureau of Investigation. 8
EXTENDING AUTHENTICATION AND AUTHORIZATION FOR DATA PROTECTION
Implementation of Zero Trust Data Security Principles
Rise in consumer online activity has also led to ever growing What companies have now
amounts of personally identifiable information (PII), which must Lengthy Manual and ad‐
Incomplete Infrequent or
be properly consumed, measured, tracked, and protected. identification
retention hoc data
decentralized
policies and retention
data disposal of data
schedules processes
Organizations lacking proper implementation of data security, What is the need
privacy, governance and compliance are increasingly at risk, and Clarity on data assets Next‐gen governance Investment in the right
have been subjected to a significant level of security breaches and retention methods of data retention technologies and tools
recently
Legacy architectures remain ill‐equipped to handle sprawling
sensitive data as it transitions to distributed multi cloud Why
environments. To address this, a redefined zero trust approach Enables Realizes value of
Minimizes risks Gains consumer
that works seamlessly across networks is required including
sustainable, data in
and stakeholder
efficient privacy intelligence and
compliance risk trust
operations busines growth
Identity layer is at the heart of securing these networks and
endpoints, with authentication and authorization as the core Cumulative Data Breaches
components of zero trust information access control 8.5
10,000
8.1 9.5
9,000
7.2
7,270
7.5
Recent acquisition of Auth0 by Okta, delivers the critical identity
8,000
7,000 4.9 6,162
solutions needed to streamline processes, maintain high security, 6,000
5.5
and improve customer experiences for growth 2.9 4,800
5,000 3.5
4,000
3,520
0.3 1.5
With continued recent large investments in BigID ($100MM) and
3,000
1,889
2,000
Securiti.ai ($50MM) in data management and privacy, Biocatch 785 ‐0.5
1,000
($168MM) in behavioral biometrics / continuous authentication, 0 ‐2.5
and Hypr ($35MM) in passwordless authentication 2015A 2016A 2017A 2018A 2019A 2020A
Cum. Data Breaches Cum. Individuals Impacted (B)
Notes:
Source: Identity Theft Research Center (2021), PwC Insights. 9
OVERVIEW OF THE END‐TO‐END IDENTITY SOFTWARE ECOSYSTEM
Identity Theft Protection
Provide software and services to reduce the risk of
ID theft from online or electronic media
Identity Theft Password Personal Identity Self‐Sovereign Utilize monitoring software to track unauthorized
Protection Managers Products Identity (SSI) use of credit and other personal information
Fraud Detection
Provide tools to monitor user behavior and
Data – Prevention – Detection – Remediation
transactions in real‐time to detect suspicious
User & Entity Fraud Prevention & Regulatory Compliance & Behavioral Biometrics Endpoint Malware
activity and prevent account fraud
Behavior Analytics Risk Management Transaction Monitoring & Bot Detection Detection
Identity Access Management (IAM)
Define and manage the roles and access privileges
of individual network users and the circumstances
Privileged Access Identity‐as‐ Identity Governance Customer Identity & Access
in which users are granted (or denied) those
Management a‐Service SSO & Administration Management (CIAM) privileges
Identity Authentication
Provide recognition technology for a user’s identity
by associating an incoming request with a set of
Multi‐factor Mobile Identity &
identifying credentials
FIDO Authentication Token Access
Authentication Device Management
Identity Proofing
Verify and affirm the true identity of an individual
interacting with an organization for the first time,
Know Your Customer & Identity & Document Identity Background
based on document verification, digital attributes,
Entity Verification Verification Proofing Screening and national identity systems
Data Aggregation
Identity data gathered from multiple sources for
combination into a summary analysis and to
Credit Data Alternative Credit & Master Data &
present a single view of an individual
Scoring Aggregators Financial History Consent Management
10IDENTITY SOFTWARE LANDSCAPE
Proofing Fraud Detection IAM Identity Theft Protection
KYC & Entity Verification User & Entity Behavior Analytics Privileged Access Mgmt. Identity Theft Protection
* * *
* *
*
* *
*
Identity & Document Verification *
* * *
*
*
Identity‐as‐a‐Service Password Managers
Identity Proofing
* * * Fraud Prevention & Risk Mgmt.
* *
Background Screening * *
*
* * Identity Gov. & Administration Personal Identity Products
*
Identity Data Reg. Compliance & Txn Monitoring
Credit Scoring & Data Aggregators *
*
*
Customer Identity & Access Mgmt. Self‐Sovereign Identity
*
* * *
Identity Resolution *
*
* * * *
*
* Authentication
Alt. Credit & Financial Identity
Behavioral Biometrics & Bot Det Authentication Mobile Identity & Device Mgmt.
*
* * *
*
Data Mgmt. & Governance *
*
*
Endpoint Malware Detection
*
* Indicates acquired / subsidiary
Notes:
Source: Company filings, GCA research, Gartner, One World Identity. 11IDENTITY SOFTWARE M&A TIMELINE
Highlighted transactions
Sep‐18: Cisco acquires May‐19: Mastercard Mar‐20: LexisNexis Dec‐20: Intuit acquires
Sep‐17: Google acquires May‐21: Okta acquires
Duo Security acquires Ethoca (Fraud acquires Emailage (Fraud Credit Karma (Identity
Bitium (IAM) Auth0 (IAM)
(Authentication) Detection) Detection) Theft)
Mar‐17: Mastercard Jul‐18: Transunion Feb‐19: GB Group Nov‐19: FICO acquires Apr‐20: Foursquare Apr‐21: Mastercard
acquires NuData (Fraud acquires Iovation (Fraud acquires Idology EZMCOM acquires Factual announced acquisition of
Detection) Detection) (Proofing) (Authentication) (Authentication) Ekata (Proofing)
Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21
Feb‐17: Symantec Feb‐18: LexisNexis Jan‐20: F5 acquires Nov‐20: Nasdaq
Jan‐19: Akamai acquires Sep‐19: Visa acquires
acquires Lifelock (Identity acquires ThreatMetrix Shape Security (Fraud announced acquisition of
Janrain (IAM) Verifi (Fraud Detection)
Theft) (Fraud Detection) Detection) Verafin (Fraud Detection)
Nov‐18: Broadcom Jul‐19: Imperva acquires Jan‐20: LexisNexis Nov‐20: Mastercard Jan‐21: London Stock
Nov‐17: SAP acquires
acquires CA Technologies Distil Networks (Fraud acquires IDAnalytics acquires Finicity Exchange acquires
Gigya (IAM)
(IAM) Detection) (Proofing) (Proofing) Refinitiv (Identity Data)
Notes:
Source: Capital IQ, Pitchbook. 12IDENTITY SOFTWARE DEAL DASHBOARD (2021 YTD)
Select Recent M&A Transactions ($MM) Select Recent Financing Transactions ($MM)
Notes:
Source: Capital IQ, Pitchbook. 13TRANSACTION HIGHLIGHTS – M&A
Mastercard To Acquire Ekata
Transaction Overview Company Synopsis
On April 19th, Mastercard Headquarters: Seattle, WA
(NYSE: MA) announced it had
entered into an agreement to Founded: 2019
acquire Ekata for $850 million
Employees: 214
Ekata’s global identity
To be acquired by verification solutions will join Description: Ekata Inc. develops global identity verification solutions
Mastercard’s Cyber and designed to prevent fraudulent transactions. The
Intelligence business company uses insights to deliver unique scores, data
The acquisition will help attributes and risk indicators services in real‐time during
Mastercard deliver a more online account opening, payments and variety of other
comprehensive identity service digital interactions
$850 million that can power real‐time
decision‐making needs Selected Transaction Commentary
Product Solutions “The shift to a more digital “The acceleration of online
world requires real solutions to transactions has thrust global
Fake Account Prevention
secure every transaction and digital identity verification to
Detect creation of fraudulent user accounts and instill trust in every the forefront as one of the
stop bad actors from abusing loyalty programs interaction…with the addition biggest opportunities to build
of Ekata, we will advance our digital trust and combat global
Manual Reviews identity capabilities and create fraud…Becoming part of the
Cross‐verify customer information with credible a safer, seamless way for Mastercard Identity family
data and improve confidence in risk control consumers to prove who they ensures a broader, collective
say they are in the new digital approach to meeting the
Payment Risk Reduction economy. ” growing demands of the digital
Fight payment fraud and make accurate risk economy. ”
decisions pre, post, and during authorization
Transaction Fraud Anjay Bhalla Rob Ekevekd
Fight payment fraud and make accurate risk President of Cyber and Intelligence Chief Executive Officer
decisions pre, post, and during authorization Mastercard Inc. (NYSE: MA) Ekata, Inc.
Notes:
Source: Capital IQ, Pitchbook, Press Releases, and Company Website. 14TRANSACTION HIGHLIGHTS – M&A
Mastercard (NYSE: MA) Annotated Stock Chart
Mastercard has been an active investor across the Fintech space, with recent emphasis in the Identity Proofing landscape
The Company’s most recent quarter was highlighted by recent corporate / business development endeavors, most notably its acquisition of
Ekata, one of the most pivotal recent integrations in the identity verification data vertical
$450.00 Announces 16MM
23.7% acquisition of Ekata
MARKET CAP APPRECIATION Announces acquisition of Warmeja 14MM
(1/1/2020 – 5/9/2021) Announces
$400.00 acquisition of
Announces Completes acquisition of Finicity Airtel 12MM
acquisition of
Finicity
10MM
$350.00
8MM
$300.00 Stock Price: $374.40
6MM
Stock Price: $303.39 Mkt Cap: $372 billion
Mkt Cap: $306 billion
4MM
$250.00
2MM
$200.00 0
1/1/20 3/1/20 5/1/20 7/1/20 9/1/20 11/1/20 1/1/21 3/1/21 5/1/21
Notes:
Source: Capital IQ, Pitchbook, Press Releases, and Company Website. 15TRANSACTION HIGHLIGHTS – M&A
Okta Acquires Auth0
Transaction Overview Company Synopsis
Headquarters: Bellevue, WA
On May 3rd, Okta (NASDAQ:
OKTA) completed its acquisition Founded: 2013
of Auth0, Inc. for $6.5 billion
Combination is accretive to Employees: 935
revenue growth, and
Has been acquired by Description: Auth0, Inc. develops identity and authentication
complements Okta’s enterprise
platform designed to verify users and tackle identity
focused strength with Auth0’s
fraud. The company's platform provides login and
developer first capabilities
authentication for a bevy of device types in a variety of
Accelerates penetration into formats, including single‐sign‐on, multi‐factor
combined $25Bn customer and authentication, and passwordless logins, enabling third‐
$6.5 billion $30Bn workforce identity party websites to securely verify the users
markets Selected Transaction Commentary
Product Solutions “Combining Auth0’s developer‐ “Together, we can offer our
centric identity platform with customers workforce and
Access Management
the Okta Identity Cloud will customer identity solutions
Enables developers to eliminate the friction of drive tremendous value to with exceptional speed,
authentication and authorization both current and future simplicity, security, reliability,
customers. Okta’s and Auth0’s and scalability. By joining
Security shared vision for the identity forces, we will accelerate our
Threat intelligence tools with capabilities to market, rooted in customer customers’ innovation and
protect customers from identity attacks success, will accelerate our ability to meet the needs and
innovation, opening up new demands of consumers,
Multi‐Factor Authentication ways for our customers to businesses, and employees
Reduces risk and increases productivity to allow leverage identity to meet their everywhere. ”
authentication of users across applications business needs. ”
User Management Todd McKinnon Eugenio Pace
Supports importing users from external Co‐Founder & CEO Co‐Founder & CEO
applications using custom database connections Okta Inc. (NASDAQ: OKTA) Auth0, Inc.
Notes:
Source: Capital IQ, Pitchbook, Press Releases, and Company Website. 16TRANSACTION HIGHLIGHTS – M&A
Okta (NASDAQ: OKTA) Annotated Stock Chart
Amongst recent events, Okta’s acquisition was a defensive deal resulting from the Company’s challenges in expanding its product suite to
include customer‐facing access management and developer tools
Okta’s price declined following Auth0 acquisition over concerns of core growth slowing and distraction from entering adjacent markets
such as PAM, IGA and CIAM via Auth0
$330.00 10MM
102.3% Completes
acquisition of
Auth0
MARKET CAP APPRECIATION 9MM
(1/1/2020 – 5/9/2021)
$280.00 8MM
7MM
$230.00 Announces 6MM
Stock Price: $117.31
acquisition of
Mkt Cap: $14 billion Auth0
5MM
Oktane 21
Conference
$180.00 held targeting 4MM
PAM and IGA
Stock Price: $237.27 3MM
Mkt Cap: $36 billion
$130.00 2MM
1MM
$80.00 0
1/1/20 3/1/20 5/1/20 7/1/20 9/1/20 11/1/20 1/1/21 3/1/21 5/1/21
Notes:
Source: Capital IQ, Pitchbook, Press Releases, and Company Website. 17TRANSACTION HIGHLIGHTS – FUND RAISING
Jumio Receives PE Growth Financing From Great Hill Partners – Verification
Transaction Overview Company Synopsis
On March 22nd, Jumio Headquarters: Palo Alto, CA
Corporation received $150
million of development capital Founded: 2010
from Great Hill Partners
Employees: ~1,500
Jumio will use the proceeds to
Received equity growth accelerate its significant global Description: Jumio Corporation develops online identity management
lead in the digital identity space software designed to reduce business fraud through
financing from
The company is focused on biometric and machine learning technologies. The
expanding the breadth of the company develops image‐recognition technology for
Jumio KYX Platform and grow mobile phones protecting the ecosystems of businesses
its suite of AML compliance through cutting‐edge online identity verification and
$150 million services and to fuel innovation authentication services
and automation Selected Transaction Commentary
Product Solutions “Jumio has established itself as “Jumio’s innovations helped
the de facto global leader in establish the identity
Comprehensive Verification
online identity verification, verification market, and the
Detects digital manipulation of identification fraud detection and need to establish someone’s
images and content compliance…Organizations digital identity remotely has
must digitally transform their never been greater…Great Hill
Authentication onboarding, KYC and AML team bring tremendous
Establishes digital identities of users through monitoring processes, which expertise and a strong track
selfies and protection against spoofing have become even more vital record of innovation and
as the volume of online and strategic leadership, so we are
Screening mobile payments reaches excited to partner with them
Protects against online financial crime with AI‐ historic highs.” as we continue to scale. ”
powered AML screening
Transaction Monitoring Nick Cayer Robert Prigge
Detects suspicious activity and manages Partner Chief Executive Officer
investigations Great Hill Partners Jumio Corporation
Notes:
Source: Capital IQ, Pitchbook, Press Releases, and Company Website. 18TRANSACTION HIGHLIGHTS – FUND RAISING
Signifyd Receives Investment From Owl Rock Capital – Fraud Detection
Transaction Overview Company Synopsis
On April 21st, Signifyd, Inc. Headquarters: San Jose, CA
raised $205 million through a
combination of debt and Series Founded: 2011
E venture funding in a deal led
Employees: 342
by Owl Rock Capital
Received an investment The funds will be used to Description: Signifyd, Inc. develops standalone risk and fraud‐
expand the company's prevention platform designed to make commerce safer
from
Commerce Protection Platform for online retailers. The company's platform leverages
and identity graph globally big data, machine learning, and expert manual reviews
Signifyd’s latest investors point to provide a financial guarantee against fraud on
to strong pre‐IPO credibility and approved orders that turn out to be fraudulent
$205 million momentum
Selected Transaction Commentary
Product Solutions “Signifyd is mission‐critical “Last year we saw ecommerce
infrastructure for a growing sales and influence propelled
End‐to‐End Commerce Protection
number of retail’s biggest and into 2025. And yet the online
Automate customer experience and eliminate best‐known brands. They are checkout experience is stuck in
fraud and customer abuse for retailers poised to expand their position 2015…With this latest
as the market leader in investment, Signifyd has the
Abuse Prevention commerce protection just as roadmap, the resources and
Manage abuse beyond payment fraud from rapidly shifting consumer technical talent to enable
consumers who participate in digital transactions preferences are driving an merchants to push the
ecommerce inflection point we customer experience to that
Payments Optimization didn’t think we’d see for future state — and to keep
Ensure PSD2 compliance without friction and several years. ” pushing it forward for years to
allow traffic routed to banks for authorization come. ”
Revenue Protection Kurt Tenenbaum Raj Ramanand
Evaluate the effectiveness of processes and Managing Director Chief Executive Officer
identify focus areas for revenue optimization Owl Rock Capital Signifyd, Inc.
Notes:
Source: Capital IQ, Pitchbook, Press Releases, and Company Website. 19TRANSACTION HIGHLIGHTS – FUND RAISING
BigID Receives Series D Venture From Salesforce Ventures and Tiger Global Management – Data Management
Transaction Overview Company Synopsis
On April 22nd, BigID, Inc. raised Headquarters: New York, NY
$100 million of Series D venture
funding in a deal led by Advent Founded: 2016
International, Salesforce
Employees: ~300
Ventures and Tiger Global
Management Description: BigID, Inc. develops data‐driven protection and privacy
Received an investment
from The funds will be used to compliance platform designed to transform how
accelerate the company's enterprises protect and manage the privacy of personal
investment in data intelligence data. The company's platform uses advanced machine
for privacy, protection and learning and identity intelligence to help enterprises
perspective safeguard and assure the privacy of their sensitive data,
$100 million BigID’s valuation was placed at reduce breach risk and meet compliance standards
$1.25 billion by investors post Selected Transaction Commentary
transaction
Product Solutions “Data powers the modern “The boom in data continues to
enterprise and has become present multiple challenges for
Privacy
indispensable for customer enterprises – especially with
Data‐centric privacy compliance and innovation and value the new tech stack. We believe
automation governance creation…it has also come our unified data intelligence
under greater scrutiny given platform is uniquely positioned
Protection the sensitivity and increase in to ensure businesses tackle
Data protection and remediation with broad global privacy regulators. BigID their data management pain
coverage in data access and breach notification has pioneered the ability for points by providing increased
organizations to find and know knowledge and visibility of
Data Management their data in a way that helps their data, enabling them to
Automatically inventory enterprise data via them take action and meet regulatory requirements,
machine learning across siloed data assets automate critical privacy.” ”
ensure their data is secure.
Data Classification Matthew Garratt Dimitri Sirota
Pattern & ML based classification to Managing Partner Co‐Founder and CEO
automatically classify data elements Salesforce Ventures BigID, Inc.
Notes:
Source: Capital IQ, Pitchbook, Press Releases, and Company Website. 20IDENTITY SOFTWARE PUBLIC COMPANY VALUATION
LTM Share Price Performance
Public Identity Ecosystem
Cyber Security Data Aggregation FinTech
20% 38% 37%
LTM Share Price
Performance
Notes: Darktrace and KnowBe4 are excluded from LTM Share Price Performance
Source: Capital IQ as of 5/18/2021. 21IDENTITY SOFTWARE PUBLIC COMPANY VALUATION
EV / 2021E Revenue EV / 2021E EBITDA 2021E Revenue Growth 2021E EBITDA Margin
Public Identity Ecosystem
Cyber Security Data Aggregation FinTech
7.3x / 12.4x / 10.5% / 7.9% 7.3x / 20.4x / 9.6% / 35.2% 10.7x / 29.6x / 20.2% / 46.0%
2021E Revenue / 2021E EBITDA Multiple / 2021E Revenue Growth / 2021E EBITDA Margin
Notes:
Source: Capital IQ as of 5/18/2021. 22I. GCA OVERVIEW
II. IDENTITY SOFTWARE MARKET OBSERVATIONS
III. APPENDIX
23SELECTED PUBLIC COMPANY DETAIL
$MMs, except per share data
Financial Metrics Operating Metrics
Stock Price Equity Enterprise EV / Revenue EV / EBITDA CY Rev. Growth Gross Margin EBITDA Margin
Company 5/18/2021 Value Value CY 21E CY 22E CY 21E CY 22E 21E/20A 22E/21E CY 21E CY 22E CY 21E CY 22E
Cyber Security
Okta, Inc. $227.35 $34,784 $34,166 31.2x 24.0x NM NM 31% 30% 60% 61% (2%) 3%
Splunk Inc. $115.41 $18,916 $19,741 7.7x 6.3x NM NM 15% 22% 68% 64% 2% 7%
Akamai Technologies, Inc. $112.74 $18,376 $18,736 5.5x 5.1x 12.4x 11.4x 7% 8% 60% 61% 44% 45%
NortonLifeLock Inc. $26.49 $15,415 $18,157 6.6x 6.1x 12.0x 11.1x 10% 7% NA NA 55% 55%
NICE Ltd. $222.71 $14,058 $13,291 7.3x 6.6x 21.6x 19.6x 10% 11% 65% 65% 34% 34%
CyberArk Software Ltd. $119.85 $4,685 $4,008 8.2x 7.3x NM NM 6% 13% 79% 73% 8% 7%
Rapid7, Inc. $79.17 $4,365 $4,686 9.3x 7.8x NM NM 23% 19% 60% 62% 6% 8%
SailPoint Technologies Holdings, Inc. $44.50 $4,108 $4,113 10.1x 8.7x NM NM 12% 16% 70% 68% (1%) 4%
Darktrace plc $4.90 $3,367 $3,398 NM NM NM NM NM NA NA NA NA NA
KnowBe4, Inc. $19.35 $3,285 $3,212 14.4x 11.5x NM NM NM NA NA NA 6% 11%
Micro Focus International plc $7.14 $2,397 $6,628 2.3x 2.4x 6.5x 6.5x (3%) (3%) NA NA 36% 37%
Ping Identity Holding Corp. $23.71 $1,945 $1,949 7.2x 6.4x NM NM 11% 13% 72% 71% 9% 10%
OneSpan Inc. $25.36 $1,020 $919 4.2x 3.8x NM NM 2% 10% 69% 66% (0%) 6%
Mitek Systems, Inc. $16.63 $716 $621 5.0x 4.4x 17.4x 13.7x 18% 14% NA NA 29% 32%
Mean 9.1x 7.7x 14.0x 12.4x 12% 13% 67% 66% 17% 20%
Median 7.3x 6.4x 12.4x 11.4x 11% 13% 68% 65% 8% 10%
Data Aggregation
RELX PLC $26.19 $50,466 $59,581 5.7x 5.3x 15.6x 14.1x 7% 8% 60% 60% 37% 38%
Experian plc $37.32 $34,091 $37,911 6.7x 6.2x 20.4x 17.5x 9% 9% NA NA 33% 35%
Equifax Inc. $233.66 $28,437 $32,051 6.9x 6.5x 20.4x 17.6x 13% 6% 52% 56% 34% 37%
TransUnion $106.86 $20,442 $23,355 7.8x 7.3x 19.9x 18.1x 10% 7% 61% 62% 39% 40%
Fair Isaac Corporation $489.92 $14,098 $14,924 11.0x 10.0x 27.2x 24.1x 4% 10% NA NA 40% 41%
Dun & Bradstreet Holdings, Inc. $21.79 $9,400 $12,880 6.0x 5.7x 15.2x 14.2x 24% 4% 55% 65% 39% 40%
GlobalData Plc $22.21 $2,620 $2,754 10.1x 9.6x 31.8x 28.8x 12% 5% 37% NA 32% 33%
GB Group plc $12.44 $2,442 $2,448 8.0x 7.5x 31.8x 29.9x 5% 7% NA NA 25% 25%
Mean 7.8x 7.3x 22.8x 20.5x 11% 7% 53% 61% 35% 36%
Median 7.3x 6.9x 20.4x 17.9x 10% 7% 55% 61% 35% 37%
FinTech
Visa Inc. $225.57 $481,094 $483,406 19.6x 16.7x 28.7x 23.3x 15% 18% NA NA 68% 71%
Mastercard Incorporated $363.07 $359,820 $364,650 19.8x 16.6x 34.5x 27.1x 20% 19% 55% 55% 57% 61%
PayPal Holdings, Inc. $243.21 $285,706 $276,339 10.7x 8.8x 35.9x 29.0x 20% 21% 46% 43% 30% 30%
American Express Company $154.99 $124,504 $106,113 2.7x 2.4x NM NM 44% 13% 7% 9% NA NA
Intuit Inc. $417.43 $114,309 $114,351 11.2x 10.5x 30.6x 28.0x 32% 7% NA NA 37% 37%
Fidelity National Information Services, In $148.21 $91,909 $110,119 8.0x 7.4x 17.9x 16.1x 9% 8% 33% 34% 45% 46%
Global Payments Inc. $195.56 $57,732 $65,857 8.6x 7.9x 18.3x 16.3x 3% 10% 69% 65% 47% 49%
Mean 11.5x 10.0x 27.7x 23.3x 20% 14% 42% 41% 47% 49%
Median 10.7x 8.8x 29.6x 25.2x 20% 13% 46% 43% 46% 47%
Notes:
Source: Capital IQ as of 5/18/2021. Sorted by equity value. 24SELECTED M&A ACTIVITY
Announced Enterprise EV / LTM EV / NTM
Date Acquirer Target Value Revenue EBITDA Revenue EBITDA Target Description
Notes: $ in millions
Source: Capital IQ and Pitchbook. 25SELECTED M&A ACTIVITY (CONT’D)
Announced Enterprise EV / LTM EV / NTM
Date Acquirer Target Value Revenue EBITDA Revenue EBITDA Target Description
Notes: $ in millions
Source: Capital IQ and Pitchbook. 26SELECTED M&A ACTIVITY (CONT’D)
Announced Enterprise EV / LTM EV / NTM
Date Acquirer Target Value Revenue EBITDA Revenue EBITDA Target Description
Notes: $ in millions
Source: Capital IQ and Pitchbook. 27SELECTED M&A ACTIVITY (CONT’D)
Announced Enterprise EV / LTM EV / NTM
Date Acquirer Target Value Revenue EBITDA Revenue EBITDA Target Description
Notes: $ in millions
Source: Capital IQ and Pitchbook. 28SELECTED FINANCING ACTIVITY
Announced Amount Total Funding to Latest
Date Company Select Investor(s) Invested Date Valuation Target Description
Notes: $ in millions
Source: Capital IQ and Pitchbook. 29SELECTED FINANCING ACTIVITY (CONT’D)
Announced Amount Total Funding to Latest
Date Company Select Investor(s) Invested Date Valuation Target Description
Notes: $ in millions
Source: Capital IQ and Pitchbook. 30SELECTED FINANCING ACTIVITY (CONT’D)
Announced Amount Total Funding to Latest
Date Company Select Investor(s) Invested Date Valuation Target Description
Notes: $ in millions
Source: Capital IQ and Pitchbook. 31SELECTED FINANCING ACTIVITY (CONT’D)
Announced Amount Total Funding to Latest
Date Company Select Investor(s) Invested Date Valuation Target Description
Notes: $ in millions
Source: Capital IQ and Pitchbook. 32SELECTED FINANCING ACTIVITY (CONT’D)
Announced Amount Total Funding to Latest
Date Company Select Investor(s) Invested Date Valuation Target Description
Notes: $ in millions
Source: Capital IQ and Pitchbook. 33GCA is a global investment bank that provides strategic M&A and capital markets advisory services to growth companies and market leaders. The firm offers worldwide coverage with over 500 professionals in 25 offices across America, Asia and Europe. Built by the people that run the business, GCA is a firm of experts who focus on deals that require commitment, original perspective, skill and exceptional networks. www.gcaglobal.com This report was prepared by GCA Advisors, LLC, a registered broker‐dealer and member of FINRA and SIPC. Sources of data include Capital IQ and other news organizations. Information obtained from third‐ party sources is considered reliable, but we do not guarantee that the information herein is accurate and complete. The report shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities mentioned herein; past performance does not guarantee future results. Recipients of this report should not interpret the information herein as sufficient grounds for an investment decision or any other decision. DISCLAIMER: This report includes logos or other words or devices that may be registered trademarks of their respective owners. Such use is solely for purposes of convenience in referring to the trademark owners and their products/services. This report and its contents are not endorsed by, sponsored by or affiliated with any trademark owners. GCA Advisors, LLC and its affiliates are not affiliated with any trademark owner but may provide financial services to one or more trademark owners or their affiliates.
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