401 Congress Avenue, Suite 2650

Austin TX 78701 USA

Email: [email protected]
Web: eswcapital.com
BUY  STRENGTHEN  GROW

WE BUY BUSINESS
SOFTWARE COMPANIES

BUY  STRENGTHEN  G ROW

 ABOUT US
Based in Austin, Texas, the ESW Capital group
specifically focuses on buying, strengthening, then
growing mature business software companies. By
taking advantage of its unique operating platform, ESW
revitalizes its acquisitions for sustainable success while
making customer satisfaction a top priority. ESW and its
affiliated companies have been in the enterprise
software space since 1988, and the group includes
notable brands such as Aurea, Ignite Technologies,
Trilogy, and Versata.

For more information, email [email protected]

2 ESW Capital, LLC

 COMPANY

Our Model: Buy, strengthen, and

grow business software companies

Immersed in business and enterprise

software and services since 1988

75 portfolio acquisitions, including 20 TTM

We don’t sell assets — we run companies for

the long term

TRANSACTIONS

100% acquisitions, target EVs $10m-$250m+

Fast: IOI’s with valuation within a week, LOI and

closing within 45 days

Easy: Seller friendly: cash at close, no earn-outs or

post-close contingencies

Certain: 98% close rate on our LOIs

Broad: Technology independent, and will bid on

turnaround situations

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 OUR ACQUISITION APPETITE
 We are interested in acquiring all types of business software and IT service companies, spanning the spectrum
from SMB through Enterprise.

 Our portfolio includes SaaS, on premise software, tech-enabled managed service, and pure IT consulting
companies in North America and Europe.

 Our group companies enjoy significant competitive advantages:

 Proven business model → our customers love us
 Proven operating platform → cost-structure advantages
 Global footprint and breadth of offerings → distribution advantages
 Unique Prime program → delivers Free Enterprise Software to our customers
 Revolutionary Crossover recruiting platform → ability to quickly spin-up global, world-class talent

We bid most aggressively for those companies with long tenured customers, even if they have unattractive
growth rates and/or earnings history.

OUR FOCUS
We will consider all types of business software and IT service companies, and specifically focus on the following:

Established Enterprise Software SMB Technology Profitable Niche Software

 $5m-100m+ TTM Revenue  $7m-50m+ TTM Revenue  $3m-20m+ TTM Revenue

 No EBITDA or growth rate  No EBITDA or growth rate  Profitable ($1m-$5m EBITDA),
requirement requirement with no growth rate
 Broad: horizontal or vertical, all  Ideal fits are either SaaS-based requirement
levels of the technology stack or download-install-run  Located in the United States
 Will also bid on divestitures,  Worldwide appetite  Regional or industry
legacy tech, and turnarounds concentration is acceptable
 US or Europe  Non-consumer, business
oriented software

Tech Enabled Managed Services Enterprise IT Consulting Distressed Situations / Bankruptcy

 $10m-100m+ TTM Revenue  $10m-100m+ TTM Revenue  No revenue minimum

 No EBITDA or growth rate  No EBITDA or growth rate  Software or high-tech
requirement requirement  Prefer $100m+ of accumulated
 Open to all sectors and  Prefer staff located in United deficit and/or granted U.S.
industries States patents
 Prefer staff located in United  Ideal fits have specialization in  Will provide DIP financing and
States or Western Europe a particular domain or stalking horse bids
technology

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 ESW CAPITAL, LLC COMPANIES (July 2018)

Bonzai Intranet Intranet Platform for SharePoint and Office 365 bonzai-intranet.com Canada Jul-18
Chute Enterprise User-Generated Content (UGC) getchute.com USA Jun-18
MBI Solutions Software Application Management mbisolutions.net USA Jun-18
My Alerts Personalized e-Commerce Marketing Platform myalerts.com USA Jun-18
Olive Software E-Publishing and Digital Archiving Solutions olivesoftware.com USA Jun-18
Bizness Apps Mobile App Development biznessapp.com USA May-18
ResponseTek Enterprise Customer Experience Management Solutions responsetek.com Canada May-18
Symphony Commerce Retail Commerce, Inventory, and Logistics symphonycommerce.com USA May-18
Firm58 Capital Markets Firms Platform firm58.com USA Apr-18
RMSA Retail Solutions Retail Planning and Forecasting Platform rmsa.com USA Mar-18
Mobilogy Mobile Device Lifecycle Solutions mobilogy.com Asia Mar-18
Kayako SMB Customer Service Software kayako.com Asia Mar-18
ScaleArc Database Load Balancing Software scalearc.com USA Jan-18
Knowledge Marketing Audience and Customer Management for Publishers knowledgemarketing.com USA Jan-18
Apps2U Desktop and Application Hosting cyberlinkasp.com USA Nov-17
Infer Predictive Analytics for Sales and Marketing infer.com USA Oct-17
Sitrion Business Solutions Workforce Productivity for SharePoint and SAP sitrion.com USA Sep-17
PeerApp Carrier-grade Content Delivery Solutions peerapp.com USA Sep-17
DNN Corp. Dynamic Content Management dnnsoftware.com USA Aug-17
FirstRain Data Analytics for Sales and Marketing Enablement firstrain.com USA Jul-17
Jive Software Enterprise Collaboration and Communities jivesoftware.com USA Jun-17
Placeable Location Data Management and Marketing placeable.com USA Apr-17
Exinda Application and Network Performance Tools exinda.com USA Apr-17
Engine Yard Ruby Technology, Consulting and Hosting engineyard.com USA Apr-17
Rose ASP Microsoft Dynamics and Application Hosting roseasp.com USA Apr-17
Infobright IEE Scalable Big Data Storage and Analytics infobright.com Canada Mar-17
Kerio Technologies SMB Communications and Security kerio.com USA Jan-17
CyberlinkASP Desktop Hosting Services cyberlinkasp.com USA Dec-16
ThinkVine Marketing Attribution and Optimization thinkvine.com USA Oct-16
Wave Systems Data Security and Encryption wavesys.com USA Aug-16
@Hand Enterprise Mobile Data Platform hand.com USA May-16
SenSage AP Security Data Analytics ignitetech.com USA Apr-16
Conarc Document Management for Accountancies conarc.com USA Mar-16
EPM Live Enterprise Productivity Management epmlive.com USA Mar-16
Compressus Medical / Radiology Workflow System compressus.com USA Dec-15
Quantum Retail Retail Profit Analytics quantumretail.com USA Oct-15
Lyris Email and Messaging Management lyris.com USA Jul-15
Nextdocs Document Management for Life Sciences nextdocs.com USA Jul-15
GFI SMB Email and Fax gfi.com Europe Jun-15
Hipcricket Mobile Messaging and Advertising hipcricket.com USA May-15
MessageOne Email Archiving and Recovery messageone.com USA May-15
Spiral Multichannel Retail ERP spiralnet.net Europe Sep-14

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Update Industry Specific CRM update.com Europe Sep-14
Aurea Energy Solutions Energy billing/management aurea.com USA Aug-14
Acorn Profit Analytics System acornsys.com USA Jul-14
NuView Payroll Processing nuviewinc.com USA Jul-14
GCE Retail ERP aurea.com Europe Jun-14
Still Secure NAC & Managed Security stillsecure.com USA Sep-13
Ignite Content Delivery SaaS ignitetech.com USA Jul-13
Aurea Infrastructure and BPM aurea.com USA Dec-12
ObjectStore Object Oriented Database objectstore.com USA Dec-12
Accept Project and Portfolio Management accept360.com USA Oct-12
Prologic Retail Vertical Software prologic.com Europe May-12
Agentek Field Service/Workforce Optimization agentek.com USA Oct-11
RavenFlow Requirements Definition System ravenflow.com USA Mar-11
GeoVue Dynamic Location Optimization geovue.com USA Feb-11
Right90 Sales Forecasting right90.com USA Dec-10
Auto-Trol Enterprise Data Management auto-trol.com USA Nov-10
Corizon App Dev / Composite Apps corizon.com Europe Oct-10
Infopia eCommerce Software/Service versata.com USA Oct-10
Think3 CAD and PLM versata.com Europe Sep-10
Metatomix Semantic Middleware metatomix.com USA Sep-10
Triactive Systems Management triactive.com USA Jul-10
PurchasingNet Supply Chain Management purchasingnet.com USA Dec-09
Everest SMB Retail ERP everestsoftwareinc.com USA Jun-09
Alterpoint Network Device Management alterpoint.com USA Mar-09
eCora Systems Management ecora.com USA Sep-08
TenFold Application Development Platform versata.com USA Jun-08
ETI Data Transformation versata.com USA May-08
Nuvo Network Monitoring Service versata.com Canada Mar-08
Clear Application Development Platform versata.com USA Mar-08
Nextance Document Management nextance.com USA Sep-07
Gensym Expert System Development Platform gensym.com USA Sep-07
Artemis Enterprise Portfolio Management artemis.com Europe Jul-06
Versata Application Development Platform versata.com USA Jan-06
Trilogy Enterprise Sales and Marketing Solutions trilogy.com USA Founded 1998

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 OUR STANDARD DATA REQUEST

Our transactions are quick-turn and no nonsense. In many cases 10 days to LOI, 45 days to close with no post-close
contingencies. Our process focuses on simple metrics, and our valuation methodology overlooks unattractive earnings
and/or growth rate.

For Initial Valuation and Indication of Interest

Please Submit:

1) Corporate website and Information Memorandum (if any)

a) Product or service listing/description, with pricing strategy for each
2) Quarterly financial statements for the past 12 quarters, including income statement and current
balance sheet
a) Please include additional detail on revenue mix (subscription vs. license vs. maintenance,
software vs. services, recurring vs. resold, product line breakdown, etc.)
b) Please include available detail on the composition of COGS
3) Customer information
a) Revenue by customer by product/service line for the past 12 quarters (anonymous is fine)
b) Any available detail on recurring revenue churn and/or net economic retention rates, with the
underlying data
4) Employee roster (names not necessary) with function, geography, tenure, and salary
5) Summary of lease obligations, by location, showing monthly financial obligation and termination date

Additional Items Required for Final Valuation and Letter of Intent

1) Management call with key executives

2) Existing management, product and/or sales presentations
3) Current year tax return (or previous year if current is not available)
4) Listing of deferred revenue detail, specifically calling out any long-term prepaid revenue (i.e. beyond
12-months)
5) 3-year recurring revenue retention detail
6) Summary of severance policy including any specific contracts with key employees
7) Listing of any other potential liability not accrued on the balance sheet with termination dates and
financial obligation
8) Listing of U.S. Patents (issued or pending), including any granted patent licenses

READY TO SUBMIT?
Email us at [email protected]

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