-

50

100

150

200

250

300

350

400

2019

2020

2021

2022

2023

2024

Other

Marketplaces

Jobs

Property

Motors

Tech Insights #368

Potential Trade Me relisting

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Mergers & acquisitionsCorporate finance advisoryCapital raising

14 April 2025

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Overview

Trade Me was taken private by Apax Partners in 2019, with average annual EBITDA growth since the acquisition of 6.5%. There has recently been rumours of Apax Partners’ intention to divest, which raises the possibility of a public listing (among other exit options). This Tech Insights report highlights Trade Me’s growth since the 2019 acquisition and looks at how Trade Me could be positioned relative to comparator NZX and ASX companies were it to list. Note, Trade Me has a June financial year end.

Trade Me revenue - NZD $m

% of revenue by segment

29%

34%

17%

29%

11%

10%

28%

20%

15%

7%

-

20%

40%

60%

80%

100%

2020

2024

Other

Marketplaces

Jobs

Property

Motors

Revenue growth rate

EBITDA

-

10%

20%

30%

40%

50%

60%

70%

-

50

100

150

200

250

300

2019

2020

2021

2022

2023

2024

EBITDA margin

EBITDA – NZD $m

classifieds

58%

73%

*Split of classifieds based on half year results

*

(5%)

-

5%

10%

15%

2019

2020

2021

2022

2023

2024

-

5,000

10,000

15,000

20,000

25,000

30,000

REA

Xero

CAR

TechnologyOne

Seek

Trade Me

Trade Me

HUB24

Trade Me

Domain

SiteMinder

Vista

Tech Insights #368

Potential Trade Me relisting

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Disclaimer The information provided in this report has been sourced and calculated from FactSet and the NZ Companies Office. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.

Mergers & acquisitionsCorporate finance advisoryCapital raising

14 April 2025

Company

Description

EV

Revenue

5yr revenue growth

LTM rev growth

LTM EBITDA margin

EV/LTM Revenue

EV/LTM EBITDA

REA

Online real estate advertising platform.

33,488

1,977

106%

21%

47%

17x

36x

Xero

Cloud-based accounting software provider.

24,945

1,909

201%

24%

33%

13x

39x

CAR

Automotive research and review marketplace.

14,402

1,251

199%

18%

52%

12x

22x

Technology One

Enterprise software solutions provider.

9,536

549

82%

18%

43%

17x

41x

Seek

Online job search and employment platform.

9,304

1,116

(36%)

(14%)

38%

8x

22x

HUB24

Investment and superannuation platform.

5,738

399

267%

24%

33%

14x

44x

Domain

Real estate listings and property website.

2,946

443

42%

13%

36%

7x

18x

SiteMinder

Hotel booking and management system.

1,009

222

117%

20%

2%

5x

283x

Vista

Film industry software solutions and analytics.

830

150

4%

5%

16%

6x

35x

Median

9,304

549

106%

18%

36%

12x

36x

Trade Me*

NZ's largest online marketplace and auction site.

370

38%

3%

65%

Trade Me listed comparators on ASX/NZX – NZD $m

Potential Trade Me valuation - NZD $m

35x EBITDA multiple

Note: Trade Me was acquired by Apax Partners at a 15.3x EBITDA multiple.

25x EBITDA multiple

15x EBITDA multiple

*Trade Me financials are as at June 2024

Graph provides three valuations for Trade Me using different EBITDA multiples.

‍

-

2.5x

5.0x

7.5x

10.0x

12.5x

15.0x

17.5x

20.0x

22.5x

25.0x

Mar 20

Sept 20

Mar 21

Sept 21

Mar 22

Sept 22

Mar 23

Sept 23

Mar 24

Sept 24

Mar 25

Tech Insights #367

Cloud Index as at 31 March 2025

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Overview

This report looks at valuation multiples for cloud companies publicly listed in the United States, Australia and New Zealand. Although the March quarter began with an uplift in revenue multiples, by the end of the quarter the, US Cloud Index fell to 6.1x EV/NTM revenue, while the ANZ Cloud Index declined to 6.8x — representing a 13% and 9% drop respectively over the quarter. Both indices remain below their five-year average.

NTM revenue multiple for cloud companies listed in the US and ANZ (EV / NTM revenue)

ANZ Cloud Index

Average

12MMA

Mar 25

6.8x

7.0x

Dec 24

7.5x

6.7x

Change

10%)

4%

Mar 24

7.1x

6.0x

Change

(5%)

18%

US Cloud Index

Average

12MMA

Mar 25

6.1x

6.4x

Dec 24

7.0x

6.3x

Change

(13%)

1%

Mar 25

6.7x

6.3x

Change

(9%)

2%

Note: Indices are calculated using a simple average (equal weighting), with the ANZ index (25 companies) comprising of companies that have a minimum NZD $250m market capitalisation versus NZD $500m for the US Index (89 companies). Avg = Average, NTM = Next 12 months, 12MMA = 12 month moving average.

Key:

US

ANZ

Average

12MMA

5yr avg

6.8x

6.1x

7.4x

10.6x

-

5.0x

10.0x

15.0x

20.0x

Mar 20

Mar 21

Mar 22

Mar 23

Mar 24

Mar 25

-

10.0x

20.0x

30.0x

40.0x

Mar 20

Mar 21

Mar 22

Mar 23

Mar 24

Mar 25

75th percentile

Median

25th percentile

Tech Insights #367

Cloud Index as at 31 March 2025

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US cloud companies NTM revenue multiple

ANZ cloud companies NTM revenue multiple

7.6x

5.0x

2.9x

10.0x

5.1x

3.2x

US cloud companies

25th

75th

31 Mar 2025

Average

percentile

Median

percentile

EV (NZD $m)

39,309

4,090

9,105

27,182

EV / NTM rev

6.1x

2.9x

5.0x

7.6x

Revenue growth (NTM)

13%

5%

12%

21%

EV / LTM rev

7.5x

3.3x

5.9x

9.4x

Revenue growth (LTM)

17%

9%

16%

24%

Operating margin

(2%)

(10%)

(0%)

11%

ANZ cloud companies

25th

75th

31 Mar 2025

Average

percentile

Median

percentile

EV (NZD $m)

7,017

732

1,518

9,744

EV / NTM rev

6.8x

3.2x

5.1x

10.0x

Revenue growth (NTM)

16%

6%

16%

25%

EV / LTM rev

8.4x

3.8x

6.0x

11.6x

Revenue growth (LTM)

16%

8%

17%

26%

Operating margin

24%

13%

28%

38%

Note: The percentiles for each metric are calculated individually. Companies added or removed from each index take effect from the first day of the reported quarter.

EV = Enterprise Value, LTM = Last 12 months, NTM = Next 12 months.

Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. ClareCapital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.

‍

158

146

111

19

25

27

0

100

200

2016

2020

2024

Tech Insights #366

The Warehouse vs Kmart

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The Warehouse and Kmart are two of New Zealand’s largest bargain retail chains. This Tech Insights report compares the performance of these two chains. Kmart, owned by ASX-listed Wesfarmers, has been performing strongly against The Warehouse, supported by the success of the Anko brand. Anko products represent ~85% of Kmart products sold, which supports Kmart’s high gross profit margins and operating profit margins (44% and 16% in FY24). The analysis on page 1 compares The Warehouse (excluding Noel Leeming and TheMarket.com) and Kmart New Zealand only. The financial year-end is July for The Warehouse and June for Kmart.

Overview

Revenue comparison (NZD $m)

Revenue per store (NZD $m)

-

500

1,000

1,500

2,000

2,500

FY20

FY21

FY22

FY23

FY24

Operating profit comparison (margin RHS)

41 co-located stores

Store count

Due to a shift in strategy, many Warehouse Stationery stores have now been integrated into The Warehouse, resulting in a reduced number of stores.

-

10

20

30

40

2016

2020

2024

Operating profit is equal to EBIT pre IFRS 16 (leases).

The Warehouse

Warehouse Stationery

Kmart NZ

Key:

2016

2020

2024

Operating profit (NZD $m)

2016

2020

2024

6%

11%

5%

4%

2%

8%

13%

9%

11%

16%

-

10%

20%

-

50

100

150

200

FY20

FY21

FY22

FY23

FY24

Operating profit margin

The Warehouse

Noel Leeming

$3.0b

-

25%

50%

75%

100%

Warehouse Group

Tech Insights #366

The Warehouse vs Kmart

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Disclaimer The information provided in this report has been sourced from FactSet and company annual reports. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.

Annual parent segment revenue (NZD $b)

Share price index (total return)

Selected comparable company metrics (NZD $m)

Company

Exchange

Description and brands

Enterprise Value

LTM

revenue

LTM rev growth

LTM EBITDA

margin %

EV / EBITDA

1 yr share price Δ

Wesfarmers

ASX

Kmart, Target, Bunnings and others

101,993

48,931

3%

13%

15.8x

6%

JB Hi-Fi

ASX

Consumer electronics and home appliances

11,585

11,016

6%

10%

10.5x

48%

Harvey Norman

ASX

Consumer electronics, furniture and home appliances

9,196

4,330

2%

21%

10.0x

(1%)

Super Retail Group

ASX

Macpac, Rebel Sport (AU), Supercheap Auto and others

4,295

4,329

3%

18%

5.4x

(19%)

Myer Holdings

ASX

Department store

2,676

2,871

(2%)

13%

7.1x

(18%)

Briscoe Group

NZX

Briscoes and Rebel Sport (NZ)

1,081

791

(0%)

18%

7.7x

(7%)

Warehouse Group

NZX

The Warehouse, Warehouse Stationery and Noel Leeming

1,009

3,012

(4%)

7%

5.1x

(42%)

KMD Brands

NZX

Kathmandu, Rip Curl and other brands

617

982

(4%)

14%

4.6x

(38%)

Kogan.com

ASX

Online retail marketplace (Kogan.com and Mighty Ape)

470

527

5%

9%

10.5x

(40%)

Median

2,676

3,012

2%

13%

7.7x

(18%)

Kmart NZ

Kmart AU

Bunnings (AU & NZ)

Health

Other

$47.6b

-

25%

50%

75%

100%

Wesfarmers

-

50%

100%

150%

200%

250%

Jan 20

Jan 21

Jan 22

Jan 23

Jan 24

Jan 25

Wesfarmers (Kmart parent)

Warehouse Group

Wesfarmers

(Kmart parent)

‍

-

20

40

60

80

100

120

FY20

FY21

FY22

FY23

FY24

Gross profit

EBITDA

26% gross profit margins, 12% EBITDA margins.

Tech Insights #365

Hellers – New Zealand’s Butcher

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Overview

Christchurch-based butcher Hellers has grown into a large Trans-Tasman business with a major supermarket presence and iconic Leigh Hart commercials. In 2019, Hellers was acquired by a group lead by Australian private equity firm Adamantem Capital from majority owner Rangatira. Adamantem Capital aim for holding periods of three to five years for businesses, driving media speculation around potential exit opportunities. Page 2 explores the performance of their investment and what an exit might look like.

Profitability (NZD $m)

Revenue by geography (NZD $m)

-

100

200

300

400

FY20

FY21

FY22

FY23

FY24

Australia

New Zealand

A mix of organic growth and Canon Foods acquisition.

Debt funding profile (NZD $m)

-

2x

4x

6x

8x

10x

12x

14x

-

50

100

150

200

250

300

350

FY20

FY21

FY22

FY23

FY24

Net debt / EBITDA

Total debt

Bank debt

Shareholder loan

Net debt to EBITDA

Investment behaviour (NZD $m)

-

100

200

300

400

500

-

10

20

30

40

50

FY20

FY21

FY22

FY23

FY24

Book value

Cash invested

Investment in PPE

Acquisitions

Total assets (RHS)

Major investment in production capability has driven growth.

*June financial year

Tech Insights #365

Hellers – New Zealand’s Butcher

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Listed A/NZ comparable companies (NZD $m)

Equity outflows / (inflows) (NZD $m)

Company

Sector

EV / EBITDA

EV

Revenue

(LTM)

EV / Revenue

Revenue growth

Gross profit margin

EBITDA margin

Inghams

Poultry processor

8.3x

3,861

3,524

1.1x

2%

18%

13%

Scales

Horticulture & petfood

7.9x

704

592

1.2x

3%

22%

15%

Ricegrowers

Rice processor

5.9x

957

2,031

0.5x

4%

13%

8%

Sanford

Seafood farming & processing

5.8x

705

583

1.2x

5%

22%

21%

Tegel

Poultry processor

8.0x

578

620

0.9x

4%

24%

12%

Hellers

Meat & poultry processor

419

5%

27%

12%

While not perfect comparisons, listed A/NZ comps with similar growth and profitability profiles give a reference point for a potential exit multiple. Tegel was acquired via a takeover by Bounty Foods in 2018 and shows similar metrics, scale and geographies to Hellers. Note: Tegel financials LTM as at 2018 acquisition.

Disclaimer The information provided in this report has been sourced and calculated from FactSet, Hellers’ financials and other information. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions, you should seek appropriate personalised financial advice.

EV uplift – Adamantem investment to potential exit

This profile of cash flows from Hellers’ cash flow statements are combined with illustrations of exit returns if Hellers is sold at a 6x, 8x, and 10x EV / EBITDA.

(100)

(50)

-

50

100

150

200

250

Acquisition

FY19

FY20

FY21

FY22

FY23

FY24

Exit (6x)

Exit (8x)

Exit (10x)

Equity investment

Buyback / dividend

Shareholder loan

Exit

Hellers has grown from the $212m EV when Adamantem acquired it. Exits at 6x, 8x, and 10x EV / EBITDA show materially different outcomes for the equity owners (equity IRRs based on cash flows highlighted in right chart).

-

100

200

300

400

500

Initial investment

6x EBITDA

8x EBITDA

10x EBITDA

Bank debt

Shareholder loan

Equity

-6% IRR

16% IRR

25% IRR

Note: EBITDA adjusted for IFRS-16 impacts.

Potential

Potential

‍

Tech Insights #364

Advertising revenue

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Overview

This Tech Insights report looks at the advertising revenue generated by tech companies. Of particular note is Alphabet (Google and YouTube) which generates more revenue from advertising than New Zealand’s GDP. It’s also interesting to compare smaller tech companies that have advertising heavy business models (Reddit, Yelp, Snap and Pinterest) to a traditional player in the advertising market (Fox). The second page tracks share price performance and comparator metrics for a selection of these companies.

Major tech companies - advertising revenue

Other companies - advertising revenue

-

100

200

300

400

500

600

Alphabet

Meta

Amazon

Microsoft

Revenue USD $b

Other revenue

Advertising revenue

-

2

4

6

8

10

12

14

16

Fox

Snap

Pinterest

Spotify

Yelp

Reddit

Revenue USD $b

Other revenue

Advertising revenue

Tech Insights #364

Advertising revenue

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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.

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Comparator metrics for tech companies that generate a majority of revenue from advertising (USD $b)

Company

Description

EV

Revenue

Advertising revenue %

5yr revenue growth (2024 vs 2019)

LTM EBITDA margin

EV/LTM Revenue

EV/LTM EBITDA

Alphabet

Operates Google and YouTube

1,992

350

76%

117%

36%

6x

16x

Meta

Facebook, Instagram, WhatsApp

1,560

165

98%

133%

52%

9x

18x

Reddit

Online forum for discussion

21

1

91%

No data

(42%)

16x

nm

Pinterest

Pinboard-style photo-sharing website

20

4

100%

219%

6%

5x

99x

Snap

Snapchat (text and photo based messaging)

15

5

100%

213%

(12%)

3x

nm

Yelp

User generated reviews of local businesses

2

1

96%

39%

15%

2x

10x

Median

21

5

97%

133%

10%

6x

17x

Share price index - tech companies that generate a majority of revenue from advertising

-

100%

200%

300%

400%

2020

2021

2022

2023

2024

2025

Snap

Yelp

Pinterest

Alphabet

Reddit*

Meta

*Publicly listed in 2024

‍

Tech Insights #363

Revenue multiples and growth rates

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This Tech Insights report looks at drivers of revenue multiples (EV / LTM revenue). Revenue growth rate is a key determinant of a revenue multiple however profitability and scale are also important factors. This report analyses a universe of 35 selected ASX and NZX-listed technology companies.

Overview

Revenue multiple vs LTM revenue growth for technology companies

EROAD

Bravura

CAR Group

Computershare

HUB24

Infomedia

Nuix

Netwealth

Objective Corporation

ReadyTech

Seek

Technology One

Domain

REA

WEB Travel

Wisetech

Xero

Gentrack Group

Serko

Enprise Group

ikeGPS

Life360

Dropsuite

DUG

Hansen

IRESS

Megaport

Praemium

Qoria

SiteMinder

Straker

Gumtree

3P Learning

Bigtincan

Vista Group

5x

10x

15x

20x

25x

30x

35x

(20%)

(10%)

-

10%

20%

30%

40%

EV / LTM revenue multiple

LTM revenue growth

>25% EBITDA margin

<25% EBITDA margin

Bubble size represents current EV (NZD)

<$2b

$10b

$30b

Key:

Wisetech is currently valued on a 32x revenue multiple (EV of $32b). LTM revenue growth was 20% and LTM EBITDA margin was 50%.

All companies trading on a multiple higher than 10x have an EBITDA margin greater than 25%.

Tech Insights #363

Revenue multiples and growth rates

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Revenue multiples by LTM revenue growth

Disclaimer The information provided in this report has been solely sourced from FactSet and company annual reports. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.

Comparison of selected companies (now vs Mar 2020)

n = 15

n = 11

n = 9

-

5x

10x

15x

20x

<10%

10% - 20%

20%+

LTM revenue growth

Upper quartile (50% - 75%)

Lower quartile (25% - 50%)

EV (NZD $m)

LTM revenue growth

EBITDA margin (%)

Revenue multiple

2020

Now

2020

Now

2020

Now

2020

Now

REA

10,721

▲

35,069

(3%)

▲

21%

54%

▼

47%

11.1x

▲

17.7x

Wisetech

5,397

▲

32,428

40%

▼

20%

30%

▲

50%

12.9x

▲

32.2x

Xero

9,882

▲

27,300

37%

▼

24%

19%

▲

33%

13.8x

▲

14.3x

Computershare

8,002

▲

26,666

10%

▼

6%

26%

▲

38%

2.3x

▲

5.4x

CAR Group

3,432

▲

16,052

12%

▲

17%

51%

▲

52%

7.6x

▲

12.8x

Seek

7,091

▲

10,447

16%

▼

(12%)

26%

▲

39%

4.1x

▲

9.4x

Technology One

2,576

▲

10,182

13%

▲

18%

31%

▲

43%

8.3x

▲

18.5x

Netwealth

1,578

▲

7,373

20%

▲

23%

52%

▼

49%

14.0x

▲

24.2x

HUB24

483

▲

6,627

12%

▲

23%

17%

▲

33%

4.4x

▲

16.6x

Domain

1,430

▲

3,279

(17%)

▲

12%

31%

▲

36%

4.6x

▲

7.4x

‍

14

7

19

23

12

20

23

21

9

33

29

21

42

14

34

36

40

40

35

40

46

52

60

77

84

90

-

20

40

60

80

100

120

140

Dec 21

Mar 22

Jun 22

Sept 22

Dec 22

Mar 23

Jun 23

Sept 23

Dec 23

Mar 24

Jun 24

Sept 24

Dec 24

Spacesystems

Launchservices

Mar 2020

Acquired satellite hardware company Sinclair Interplanetary for USD $17m

Jan 2022

Acquired space solar power technology company SolAero for USD $80m

-

50

100

150

200

250

Nov 20

Feb 21

May 21

Aug 21

Nov 21

Feb 22

May 22

Aug 22

Nov 22

Feb 23

May 23

Aug 23

Nov 23

Feb 24

May 24

Aug 24

Nov 24

Feb 25

Tech Insights #362

Rocket Lab: from Māhia to the moon

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Quarterly revenue by segment (USD $m)

Indexed share price since IPO via SPAC merger

Timeline of notable events

2025

Medium-lift rocket Neutron (compete with SpaceX’s Falcon 9) is planned to debut in 2025

Jun 2006

Founded in Auckland,

New Zealand

by Sir Peter Beck

Nov 2009

Launched sounding rocket Ātea-1 (first private company in the Southern Hemisphere to reach space)

2013

HQ moved from Auckland, NZ to California, US

May 2017

Small rocket Electron ‘It’s a Test’ flight successfully makes it to space

Acquired space software and mission simulation company Advanced Solutions for USD $46m

Oct 2021

Acquired satellite hardware company Planetary Systems for USD $80m

Dec 2021

Rocket Lab goes public via a SPAC merger, gross proceeds to Rocket Lab totalled USD $777m

Aug 2021

Rocket Lab, founded in 2006 by Sir Peter Beck, provides launch services, and space systems, which includes the design and manufacturing of satellites and spacecraft parts. The company’s Electron rocket, designed for small satellite launches, was the fastest commercially developed rocket to surpass 60 successful missions, outpacing SpaceX’s Falcon 9. It operates from launch sites in New Zealand and the US, serving commercial and government clients. Rocket Lab is currently developing its Neutron rocket to compete with Falcon 9 on cost per kilogram to low earth orbit (LEO).

Overview

Entered and grown space systems segment via acquisitions (see timeline below).

The share price fell by 10% after short seller Bleecker Street’s Research report claiming Rocket Lab’s 2025 Neutron launch was 'impossible’.

28 Feb EV = $10.4bn

5.5

8.1

6.7

7.1

7.8

6.5

9.2

7.5

7.0

5.7

-

2

4

6

8

10

2020

2021

2022

2023

2024

FY23

FY24

Tech Insights #362

Rocket Lab: from Māhia to the moon

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Disclaimer The information provided in this report has been sourced and calculated from company reports, FactSet, and Space.com. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.

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High-level profit & loss (USD $m)

Rocket Lab revenue per launch and cost per launch (USD $m)

0.3

13

18

-

5

10

15

20

Tonnes

Cost per launch: Rocket Lab versus SpaceX

Number of launches per calendar year: Rocket Lab versus SpaceX

Target price per launch

Payload to LEO

Cost per tonne to LEO

Electron (Rocket Lab)

Neutron (Rocket Lab)

Falcon 9 (SpaceX)

7

6

9

10

16

26

31

61

98

138

-

40

80

120

160

2020

2021

2022

2023

2024

28

4

4

-

5

10

15

20

25

30

USD 000s

8

53

70

-

20

40

60

80

USD $m

(189)

(174)

(132)

(229)

(91)

311

125

(179)

(119)

(110)

(129)

(64)

173

72

Loss before tax

R&D

SG&A

Space systems COS

Launch services COS

Space systems revenue

Launch services revenue

‍

-

100

200

300

400

Feb 17

Feb 18

Feb 19

Feb 20

Feb 21

Feb 22

Feb 23

Feb 24

Feb 25

-

20%

40%

60%

80%

100%

FY22

FY23

FY24

FY25*

Subscriptions

Total grossmargin

Hardware andother

Transactions

Tech Insights #361

ikeGPS: an eye on the poles

Page 1 of 2

Mergers & acquisitionsCorporate finance advisoryCapital raising

24 February 2025

Overview

This week’s Tech Insights report looks at ikeGPS (IKE), which listed on the NZX in 2014. IKE provides data collection, analysis, and management solutions for utility poles and overhead infrastructure, serving utilities, engineering firms, and communications companies. IKE’s revenue primarily comes from subscriptions to its platform and billable transactions based on how much customers use the software to engineer network assets. On 7 February, IKE announced it received an acquisition approach from a private equity group in late 2024 for NZD $1.00 per share. This presented a 62% premium to IKE’s closing price on 6 February. Its share price closed on 7 February at $0.82.

Revenue by segment (NZD $m)

Gross margin by segment

Products and services

*includes three quarters of actuals for 2025 annualised

Indexed weekly share price since February 2017

7 Feb

post $1.00 offer announced

share price NZD $0.82

5 Feb

pre $1.00 offer announced

share price NZD $0.62

Hardware

IKE device

Sale of IKE device and related accessories.

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Transactions

IKE Analyse

Back-end analysis to accelerate engineering processes.

IKE Insight

AI predictive analytics for network distribution planning.

Subscriptions

IKE Office Pro

Cloud software that interprets pole data from the IKE Device.

IKE PoleForeman

Structural analysis for pole loading and design.

7%

55%

31%

93%

14%

-

5

10

15

20

25

30

35

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24

FY25*

Hardware andother

Transactions

Subscriptions

Tech Insights #361

ikeGPS: an eye on the poles

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Disclaimer The information provided in this report has been solely sourced and calculated from company annual reports and FactSet. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.

Mergers & acquisitionsCorporate finance advisoryCapital raising

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Comparable engineering and geospatial software and solutions companies

$1.00 acquisition approach in late 2024

Pre- and post- offer announcement valuation

Description

Location

EV

21 Feb 2025

(NZD $m)

LTM

revenue

(NZD)

LTM

revenue growth (%)

LTM

EBITDA

(NZD)

EV /

Revenue

(x)

EV /

EBITDA

(x)

EBITDA margin

(%)

Autodesk

Engineering design software

US

109,001

9,750

9.7%

2,125

11.2x

51.3x

21.8%

Dassault Systems

3D design solutions

France

93,621

11,113

6.0%

3,462

8.4x

27.0x

31.2%

Hexagon AB

Industrial technology software

Sweden

62,047

9,660

0.8%

3,564

6.4x

17.4x

36.9%

ANSYS

Engineering simulation software

US

49,955

4,208

13.7%

1,274

11.9x

39.2x

30.3%

Trimble

Geospatial tech solutions

US

32,107

6,090

(1.6%)

1,199

5.3x

26.8x

19.7%

Bentley Systems

Infrastructure engineering software

US

28,644

2,162

8.0%

566

13.3x

50.6x

26.2%

Altair Engineering

Software and engineering solutions

US

16,674

1,101

10.2%

90

15.1x

184.9x

8.2%

ikeGPS

Utility pole software and tools

NZ

119

23

(12.1%)

(11)

5.2x

NM

(46.2%)

Median

41,031

5,149

7.0%

1,236

9.8x

33.1x

24.0%

Overview

•

On 7 February 2025, IKE announced that in late 2024, it received an unsolicited, non-binding acquisition approach from a North American private equity group.

•

The bidder was granted a brief exclusivity period for due diligence to form an offer compelling enough to put before all IKE shareholders.

Offer price

•

In late January, the bidder presented a firm offer of NZD $1.00 per share.

Outcome

•

After discussions with key shareholders, IKE’s Board determined that the proposed price was unlikely to secure sufficient support. As a result, the Board ceased acquisition discussions with the potential acquirer.

Date

Share price

(NZD)

Description

Market cap

(NZD $m)

EV

(NZD $m)

EV /

Revenue

(x)

5 Feb 25

0.62

Pre-announcement

100

90

4.0x

Late 2024

1.00

Offer

161

152

6.6x

21 Feb 25

0.80

Current

129

119

5.2x

‍

Tech Insights #360

NZDX

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Mergers & acquisitionsCorporate finance advisoryCapital raising

17 February 2025

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Overview

This Tech Insights report explores the listed debt market (NZDX). Forming an important part of the wider New Zealand debt market, the NZDX offers access to debt funding from institutional and retail investors.

NZDX and government bond overview

-

1

2

3

4

5

6

7

8

9

10

-

2

4

6

8

10

12

14

16

18

20

22

24

26

28

30

Yield (%)

Time to maturity (years)

Government

Council

Banking

Infrastructure

Property

Other

The graph below provides an overview of the NZDX market by yield (%), time to maturity (years), and category of issuer. The wholesale traded Government bonds are included as a common ‘risk-free’ benchmark. NZDX listed securities take on different structures e.g. resetting rates, options to call/redeem, convertible features, and perpetuals. The graph below adopts the common practice of pricing until the next significant date (maturity, reset, or call).

Auckland Council has the longest term issue on the NZDX, a vanilla bond maturing in 2050.

Councils and other senior lending show relatively consistent spreads.

Debt trading at wide credit spreads can be due to issuer creditworthiness, lack of liquidity and subordinated features of some notes.

A slight inversion indicates expectations for further rate cuts.

Tech Insights #360

NZDX

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Disclaimer The information provided in this report has been sourced and calculated from NZX, FactSet and other public information. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions, you should seek appropriate personalised financial advice.

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Amount outstanding by issuer

Amount outstanding by maturity profile

-

1

2

3

4

5

LGFA

BNZ

ANZ

ASB

Infratil

Westpac

Auckland Council

Mercury

Transpower

Auckland Airport

NZD $b

Amount outstanding by sector

# of securities on issue

-

4

8

12

16

20

24

Council

Banking

Infrastructure

Other

Property

NZD $b

$21.2b

-

4

8

12

16

20

0-2

2-4

4-6

6-8

8-10

10-30

NZD $b

Years to maturity/reset/call

-

2

4

6

8

10

12

Infratil

LGFA

BNZ

Wellington Airport

Auckland Airport

Auckland Council

Fletcher Building

Mercury

Transpower

# of securities

>

LGFA = Local Government Funding Agency

‍

-

2.5x

5.0x

7.5x

10.0x

12.5x

15.0x

17.5x

20.0x

22.5x

25.0x

Dec 19

Jun 20

Dec 20

Jun 21

Dec 21

Jun 22

Dec 22

Jun 23

Dec 23

Jun 24

Dec 24

Tech Insights #359

Cloud Index as at 31 December 2024

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Mergers & acquisitionsCorporate finance advisoryCapital raising

10 February 2025

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Overview

This report looks at valuation multiples for cloud companies publicly listed in the United States, Australia and New Zealand. Over the December quarter, the US Cloud Index rose over 7.5x EV / NTM revenue for the first time since August 2022 and then pulled back to 7.0x as at 31 December 2024. The ANZ Cloud Index also rose above 7.5x to 8.0x before ending the quarter at 7.5x, an 8% increase over the quarter and 25% over the last 12 months.

NTM revenue multiple for cloud companies listed in the US and ANZ (EV / NTM revenue)

7.5x

ANZ Cloud Index

Average

12MMA

Dec 24

7.5x

6.7x

Sep 24

6.9x

6.3x

Change

8%

7%

Dec 23

6.0x

5.6x

Change

25%

19%

US Cloud Index

Average

12MMA

Dec 24

7.0x

6.3x

Sep 24

5.8x

6.2x

Change

19%

2%

Dec 23

6.8x

6.0x

Change

2%

5%

Note: Indices are calculated using a simple average (equal weighting), with the ANZ index (23 companies) comprising of companies that have a minimum NZD $250m market capitalisation versus NZD $500m for the US Index (84 companies). Avg = Average, NTM = Next 12 months, 12MMA = 12 month moving average.

10.8x

7.5x

7.0x

Key:

US

ANZ

Average

12MMA

5yr avg

-

5.0x

10.0x

15.0x

20.0x

Dec 19

Dec 20

Dec 21

Dec 22

Dec 23

Dec 24

-

10.0x

20.0x

30.0x

40.0x

Dec 19

Dec 20

Dec 21

Dec 22

Dec 23

Dec 24

75th percentile

Median

25th percentile

Tech Insights #359

Cloud Index as at 31 December 2024

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Mergers & acquisitionsCorporate finance advisoryCapital raising

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US cloud companies NTM revenue multiple

ANZ cloud companies NTM revenue multiple

8.8x

5.7x

3.2x

10.9x

5.5x

3.5x

US cloud companies

25th

75th

31 Dec 2024

Average

percentile

Median

percentile

EV (NZD $m)

47,988

5,031

12,214

33,093

EV / NTM rev

7.0x

3.2x

5.7x

8.8x

Revenue growth (NTM)

12%

6%

13%

21%

EV / LTM rev

8.5x

3.5x

6.9x

11.2x

Revenue growth (LTM)

19%

11%

17%

25%

Operating margin

(7%)

(16%)

(4%)

6%

ANZ cloud companies

25th

75th

31 Dec 2024

Average

percentile

Median

percentile

EV (NZD $m)

7,011

647

1,605

10,179

EV / NTM rev

7.5x

3.5x

5.5x

10.9x

Revenue growth (NTM)

17%

6%

20%

27%

EV / LTM rev

9.5x

4.0x

6.5x

12.9x

Revenue growth (LTM)

18%

8%

18%

26%

Operating margin

22%

9%

26%

38%

Note: The percentiles for each metric are calculated individually. Companies added or removed from each index take effect from the first day of the reported quarter.

EV = Enterprise Value, LTM = Last 12 months, NTM = Next 12 months.

Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. ClareCapital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.

‍

Tech Insights #358

Clare Capital’s naughty or nice list

Page 1 of 2

Mergers & acquisitionsCorporate finance advisoryCapital raising

16 December 2024

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Overview

In this year’s Christmas Tech Insights report, we present our light-hearted Naughty or Nice list for 2024. On page 2 we have created two quick puzzles, a Strands word search and a crossword. Happy holidays!

NICE

Raglan Roast

(The Terrace)

Great coffee, across from our office (and only $20 for 6 coffees).

Kimchi scones at Astoria & Tipple

Team favourite for the best take on the classic Wellington cheese scone.

Mango

(office dog)

Miss September in the 2025 Wellington Dogs of the Cable Car Calendar.

OpenStar Technologies

Achieving a fusion energy milestone, creating superheated plasma.

11 Woodward Wine Bar

The new cozy wine bar under the ClareCapital office (the old Beaujolais).

Lego Team New Zealand AC75 Yacht

A great addition to Clare Capital’s office Lego collection.

Happy greyhounds

Greyhound racing is to be banned in NZ over the next 20 months.

NAUGHTY

Autopilot

A rough year for the NZ ferries & boats, losing power and being ‘beached az’.

Commerce Commission

Declining AlphaTheta’s acquisition of Serato (with an 8-month delay).

Du Val Group

In statutory management, owing ~$240m to creditors and investors.

SkyCity

5-day casino closure following breaches of the Gambling Act.

Wellington City Council

Crown Observer appointed to address financial and other challenges.

SolarZero

Liquidating only months after receiving debt-funding from NZGIF and others.

CrowdStrike

Causing millions of ‘blue screens of death’ globally following a faulty update.

list

CLARE CAPITAL’S CHRISTMAS NAUGHTY or NICE

Answers | Strands word search: Acquisition, Finance, Deal, Value, Tech, Advise, Transaction | Mini: 1. SCHED, 6. ALIVE, 7. TAKEN, 8. ARENT, 9. NESTS, 1. SATAN, 2. CLARE, 3. HIKES, 4. EVENT, 5. DENTS

Tech Insights #358

Clare Capital’s naughty or nice list

Page 2 of 2

Disclaimer This report has been informed by correspondence with the North Pole. Clare Capital assumes no responsibility over the imaginative nature of the content, as well

as allocations on the ‘naughty or nice’ list. Clare Capital is not an Authorised Financial Advisor.

Mergers & acquisitionsCorporate finance advisoryCapital raising

16 December 2024

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Strands word search

Find words hidden within the grid below. Connect letters vertically, horizontally and diagonally to form words related to the theme. Every letter in the grid is in a word only once and words do not appear in a straight line.

T

I

O

N

F

I

I

S

C

A

N

N

N

I

U

Q

C

A

L

O

I

E

D

E

U

A

V

T

A

T

E

A

H

C

L

R

V

D

C

A

S

A

I

S

E

E

T

N

M&A

TODAY’S THEME

Mini crossword

1

2

3

4

5

6

7

8

9

DOWN

1

Figure associated with evil

2

The name on the door

3

Long walks in nature

4

Cinema chain

5

Damage to a car's exterior

ACROSS

1

Plan or timetable (abbreviated)

6

Full of life, not dead

7

No longer available

8

Opposite of are (contraction)

9

Homes built by birds

‍

Tech Insights #357

Tech stocks 2024 wrap up

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Mergers & acquisitionsCorporate finance advisoryCapital raising

9 December 2024

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Overview

With the year coming to a close this Tech Insights report wraps up the performance, size and valuations for tech stocks local and abroad. NZX listed Gentrack Group doubled its share price in 2024 with its 1H24 and FY24 result announcements contributing big one-off share price movements. Large US tech companies played leapfrog for the title of world’s most valuable business with Apple (currently the largest), Nvidia and Microsoft all spending time at number one.

Largest NZX tech stocks: indexed share price

Largest NZX tech stocks EV (bar) and revenue multiple (dot)

Largest ASX tech stocks: indexed share price

Largest ASX tech stocks EV (bar) and revenue multiple (dot)

-

50

100

150

200

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Gentrack

Vista

Serko

EROAD

-

2x

4x

6x

8x

-

0.5

1.0

1.5

2.0

Gentrack

Vista

Serko

EROAD

EV/Revenue multiple

Enterprise Value (NZ $b)

-

25

50

75

100

125

150

175

200

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Wisetech

REA

Xero

Computershare

-

10x

20x

30x

40x

50x

-

10

20

30

40

50

EV/Revenue multiple

Enterprise Value (AU $b)

Tech Insights #357

Tech stocks 2024 wrap up

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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.

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Largest global tech stocks: indexed share price

Largest global tech stocks EV (bar) and revenue multiple (dot)

Select global SaaS stocks: indexed share price

Select global SaaS stocks EV (bar) and revenue multiple (dot)

-

50

100

150

200

250

300

350

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Apple

Nvidia

Microsoft

Amazon

-

5x

10x

15x

20x

25x

30x

35x

40x

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Apple

Nvidia

Microsoft

Amazon

EV/Revenue multiple

Enterprise Value (US $b)

-

25

50

75

100

125

150

175

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Salesforce

Adobe

Shopify

Atlassian

-

5x

10x

15x

20x

-

100

200

300

400

Salesforce

Adobe

Shopify

Atlassian

EV/Revenue multiple

Enterprise Value (US $b)

‍

Tech Insights #356

Cross-border M&A

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Mergers & acquisitionsCorporate finance advisoryCapital raising

2 December 2024

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Overview

This report looks at three sets of transactions over the last 10 years; acquisitions of private companies in New Zealand (page 1), acquisitions of private tech companies (page 1), and acquisitions of public companies (page 2). The insights focus on the origin of the buyers in these deals and how long deals take to complete. Note: tech is defined as ‘packaged software’ in FactSet.

-

10%

20%

30%

NZ

AUS

USA

UK

Other

% of deals

Location of buyer

-

20

40

60

80

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

# of deals

Year

Overseas

Local

Private New Zealand deals: overseas buyer vs local buyer

Private New Zealand deals (all deals): location of buyer

Private tech deals: overseas buyer vs local buyer

Private New Zealand tech deals: location of buyer

-

10%

20%

30%

40%

50%

60%

70%

80%

NZ

AUS

USA

UK

Overseas buyer %

Location of acquired companies

Most acquisitions of private NZ companies are from overseas buyers

Nearly 80% of acquisitions of private NZ tech companies are by overseas buyers

Nearly 30% of acquisitions of private NZ tech companies are by US buyers

-

10%

20%

30%

40%

NZ

AUS

USA

UK

Other

% of deals

Location of buyer

Tech Insights #356

Cross-border M&A

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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.

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-

500

1,000

1,500

2,000

2,500

USA

AUS

UK

NZ

# of deals

Location of acquired companies

Complete

Withdrawn

Public-to-private deals: overseas buyer participation

Public-to-private deals: split of completed and withdrawn deals

-

10%

20%

30%

40%

50%

60%

70%

USA

AUS

UK

NZ

Overseas buyer

Location of acquired companies

Public-to-private deals: days from announcement to completion

22

14

Overseas buyer:

-

20

40

60

80

100

120

140

160

USA

AUS

UK

NZ

Average days

Location of acquired companies

Yes

No

Comments

Top left: Almost 70% of acquirers of listed NZ companies are from overseas.

Top right: 85% of acquisitions of public companies that are announced in the US complete, 61% complete in New Zealand

Bottom right: On average, having an overseas buyer increases the time from announcement to completion by 47 days in New Zealand public-to-private deals. This is likely due in part to OIO requirements.

‍

-

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

AUM (NZD $t)

SPY

IVV

VOO

Combined % S&P 500 (RHS)

Tech Insights #355

Exchange Traded Funds (ETFs)

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Mergers & acquisitionsCorporate finance advisoryCapital raising

25 November 2024

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Overview

This Tech Insights report examines the growing global ETF market. ETF offerings have grown in both popularity and range, with more investors adopting ETFs within their portfolios. Page one highlights ETFs tracking the world’s most popular index (the S&P 500) and a range of notable ETF providers. Page two highlights the breakdown of global offerings as well as ETFs from NZ’s largest ETF provider Smart (formerly Smartshares).

Major S&P 500 ETFs

Notable ETF providers

State Street’s S&P 500 index ETF SPY remains the largest ETF in the world by assets under management (AUM) since its launch back in 1993. Vanguard’s VOO and BlackRock’s IVV have emerged as popular alternatives with more competitive expense ratios than SPY.

Provider

AUM of 10 largest ETFs (NZD $b)

First ETF launched

Significant ETF

Ticker/index

Fee

Exchange

3,285

2001

VOO

S&P 500

0.03%

NYSE

2,380

1996

IVV

S&P 500

0.03%

NYSE

1,818

1993

SPY

S&P 500

0.09%

NYSE

816

1999

QQQ

NASDAQ 100

0.20%

NASDAQ

31

2010

A200

ASX 200

0.04%

ASX

5

1996

NZG

NZX 50

0.20%

NZX

ETF providers typically create a mix of low-cost index tracking funds with a mix of alternative or more specialised options, such as Blackrock’s BTC (bitcoin) ETF.

The NZD $3t invested in VOO + SPY + IVV now constitutes 3.5% of the S&P 500’s NZD $87t market cap.

-

0.2

0.4

0.6

0.8

1.0

1.2

SPY

VOO

IVV

VTI

QQQ

VUG

VEA

VTV

IEFA

AGG

BND

IWF

IJH

IJR

VIG

VWO

VGT

IEMG

IWM

VXUS

VO

GLD

XLK

RSP

SCHD

AUM (NZD $t)

-

0.2

0.4

0.6

0.8

NZG

USF

GGB

FNZ

NZC

USG

NZB

TWH

NGB

ESG

AUS

AGG

OZY

MZY

TWF

GBF

EMF

MDZ

USH

TNZ

NPF

AUE

EMG

EUF

APA

AUM (NZD $b)

Tech Insights #355

Exchange Traded Funds (ETFs)

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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet and other public sources. Clare Capital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.

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Top 25 Global ETFs by AUM

Top 100 Global ETFs asset class breakdown

The global ETF market is highly concentrated with 57% of the AUM of the top 25 held by just 5 names: SPY, IVV, VOO, VTI (global stock market tracker) and QQQ.

Top 100 Global ETFs index & strategy breakdown

The most popular ETFs are broad market index trackers. More specific ETFs that offer satellite strategies are growing in popularity to supplement core portfolios. Value, growth, and dividend focused are the most common strategies for equities and target duration or credit rating are the most popular for fixed income.

Top 25 Smart ETFs by AUM

NZX owned Smart (formerly Smartshares) provide 44 NZX listed ETFs across various equity, fixed income, gold, and bitcoin exposures.

Equities

Fixed income

Gold

Strategy

Market index

Asset Class

Approach

-

20%

40%

60%

80%

100%

# of ETFs

AUM

Strategy

Index

-

20%

40%

60%

80%

100%

# of ETFs

AUM

Derivatives

Bitcoin

Gold

Fixed income

Equities

S&P 500

NZX 50

Global government bonds

‍

243%

-

40%

80%

120%

-2yr

-1yr

LTM

-2yr

-1yr

LTM

-2yr

-1yr

LTM

-2yr

-1yr

LTM

-2yr

-1yr

LTM

-2yr

-1yr

LTM

-2yr

-1yr

LTM

-2yr

-1yr

LTM

Revenuegrowth

Free CashFlow margin

Magnificent 7 deal activity* (last 10 years)

Tech Insights #354

Magnificent 7 (and Broadcom)

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Overview

The seven largest listed tech stocks globally (NVIDIA, Apple, Microsoft, Amazon, Alphabet, Meta, and Tesla) have been coined the Magnificent 7. Broadcom has been growing rapidly, nearly doubling its market capitalisation over the last year to USD $770bn and is currently the 8th largest company listed on the NASDAQ. This Tech Insights report spotlights these companies and their performance over time.

Annual revenue split by geography

Rule of 40

The Rule of 40 metric combines annual revenue growth and Free Cash Flow (FCF) margin. While the metric is primarily used to evaluate SaaS companies, in this context it also serves as a useful benchmark to assess performance. NVIDIA and Broadcom are the only two companies that achieved the Rule of 40 benchmark every year over the last three years. We note there are different variations of the Rule of 40, including using EBIT or EBITDA instead of FCF as a measure of profitability.

*Includes acquisitions, mergers and majority stakes by parent and subsidiaries.

-

20%

40%

60%

80%

100%

Amazon

Microsoft

Alphabet

Tesla

NVIDIA

Meta

Apple

Broadcom

United States

Rest of World

120%+

-

20

40

60

'15

'16

'17

'18

'19

'20

'21

'22

'23

'24

Deal count

Broadcom

Tesla

Meta

Alphabet

Amazon

Microsoft

Apple

NVIDIA

-

5

10

15

20

Jan 16

Sep 16

May 17

Jan 18

Sep 18

May 19

Jan 20

Sep 20

May 21

Jan 22

Sep 22

May 23

Jan 24

Sep 24

Market capitalisation (USD $tn)

Broadcom

Tesla

Meta

Alphabet

Amazon

Microsoft

Apple

NVIDIA

Tech Insights #354

Magnificent 7 (and Broadcom)

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Disclaimer The information provided in this report has been solely sourced from FactSet and company annual reports. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.

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Largest listed tech companies - key metrics (USD $b)

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Market capitalisation (USD $tn)

Company

Description

Market capitalisation

Enterprise value

LTM

revenue

LTM rev growth

FCF margin

EBITDA margin

EV / Revenue

EV / EBITDA

LTM share price Δ

NVIDIA

Semiconductors

3,483

3,458

96

195%

49%

64%

35.9x

56.5x

187%

Apple

Consumer electronics

3,401

3,455

391

2%

28%

34%

8.8x

25.7x

19%

Microsoft

Cloud services and computer software

3,085

3,104

254

16%

29%

55%

12.2x

22.4x

10%

Amazon

Cloud services and e-commerce

2,130

2,189

620

12%

7%

18%

3.5x

19.5x

42%

Alphabet

Cloud services

2,119

2,048

340

15%

16%

36%

6.0x

17.0x

26%

Meta

Social media platforms

1,398

1,377

156

23%

33%

50%

8.8x

17.6x

66%

Tesla

Electric vehicles

1,030

1,009

97

1%

4%

14%

10.4x

75.6x

37%

Broadcom

Semiconductors

770

830

47

32%

40%

49%

17.7x

36.2x

72%

Median

2,125

2,118

205

15%

28%

42%

9.6x

24.0x

40%

The combined market capitalisation of the Magnificent 7 and Broadcom currently accounts for 35% of the S&P 500 Index.

‍

Tech Insights #353

Tech M&A deal structures

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Mergers & acquisitionsCorporate finance advisoryCapital raising

11 November 2024

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Overview

This Tech Insights report covers the structure of technology M&A deals over the last 10 years as available from FactSet. Page one highlights regional differences in structure and acquisition behaviour, illustrating how deal activity has progressed through time. Page two highlights how some of the world’s most acquisitive tech companies structure their M&A deals. Note: this report only looks at acquisitions of private companies.

Average tech deal structure by acquirer region

Transaction value (% of acquirer’s EV)

-

5%

10%

15%

20%

25%

NorthAmerica

AU/NZ

Europe

UK

Asia

Other

25th percentile

Median

75th percentile

-

20%

40%

60%

80%

100%

NorthAmerica

AU/NZ

Europe

UK

Asia

Other

Cash up front

Stock up front

Other

The median transaction value in AU/NZ was 5.9% of the acquirer’s EV.

Number of tech M&A deals by year

Transaction size (US $m)

-

200

400

600

800

1,000

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

North America

AU/NZ

Europe

UK

Asia

Other

-

10

20

30

40

NorthAmerica

AU/NZ

Europe

UK

Asia

Other

25th percentile

Median

75th percentile

2024

as at 15 Oct

>89

49

-

20%

40%

60%

80%

100%

Monchilla

Hubdoc

Instafile

Waddle Loans

Planday

Tickstar

Locate Inventory

Cash up front

Stock up front

Other

Tech Insights #353

Tech M&A deal structures

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Selected Lightspeed deal structures (transaction size, US $m)

Selected Xero deal structures (transaction size, US $m)

-

20%

40%

60%

80%

100%

Chronogolf

GastroFix

ShopKeep

Upserve

Vend

Ecwid

NuORDER

Cash up front

Stock up front

Other

$12m

$120m

$500m

$421m

$354m

$643m

$386m

-

20%

40%

60%

80%

100%

IBM (12 deals)

Accenture (9)

Oracle (8)

Spotify (6)

Microsoft (19)

Tech Mahindra (19)

Atlassian (6)

Alphabet (15)

Citadel Group (6)

BigTinCan (12)

ReadyTech (8)

RPMGlobal (6)

Altium (7)

Salesforce (11)

Wisetech (27)

ELMO (7)

Lightspeed (7)

Xero (7)

Xero’s average deal structure contains 30% cash up front.

Average % of transaction value in up front cash

AU/NZ acquirers

Large global acquirers

$7.2m

$70m

$6.8m

$57m

$221m

$18m

$14m

‍

GetThere acquisition (announced 28 Oct 2024)

GetThere is a corporate travel management platform in North America and unlocks growth in this market for Serko. The acquisition includes the platform, team and customer base.

The announced 5-year Sabre partnership involves Sabre continuing to sell GetThere and also co-sell Zeno (Serko’s platform), utilising Sabre's sales team.

NZD $m

Upfront cash

17

Deferred (cash or shares)

3

Implied NTM revenue (NZD $m)

18

Base purchase price

20

→

Implied NTM revenue multiple

1.1x

Performance payments*

21

Total consideration

41

*Performance payments related to Sabre co-selling GetThere and Zeno over the next two-year period.

Tech Insights #352

Serko’s flight plan

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Overview

This Tech Insights report looks at the growth Serko has achieved with the existing Booking.com partnership and at Serko’s announced acquisition of Sabre’s GetThere platform. Serko recently announced a second major partnership (with Sabre) and shared an aspirational revenue target of NZD $250m by FY30. The second page looks at the performance of the listed travel tech space since 2019 (before, during and after COVID-19).

EV and revenue multiple over time

Serko annual revenue by segment (NZD $m)

The ‘Booking.com for Business‘ partnership (supplier commissions) has been a driver of Serko’s revenue growth over the last two years (mainly in Europe). Serko has had limited traction expanding into the North American market over the last few years.

Serko EBITDA

4.6x

-

20x

40x

60x

80x

-

250

500

750

1,000

Jan 19

Jan 20

Jan 21

Jan 22

Jan 23

Jan 24

EV / Revenue (LTM)

EV (NZD $m)

Enterprise Value (EV)

EV / Revenue multiple (LTM)

-

20

40

60

80

FY19

FY20

FY21

FY22

FY23

FY24

March year end

Services and other

Supplier commissions(Booking.com)

Expense platform

Travel platform booking

1

(7)

(27)

(29)

(23)

(4)

(400%)

(300%)

(200%)

(100%)

-

100%

(40)

(30)

(20)

(10)

-

10

FY19

FY20

FY21

FY22

FY23

FY24

EBITDA %

EBITDA (NZD $m)

March year end

EBITDA

EBITDA margin

-

10

20

30

40

Jun 19

Jun 20

Jun 21

Jun 22

Jun 23

Jun 24

Booking Holdings

Expedia Group

Airbnb

Tech Insights #352

Serko’s flight plan

Page 2 of 2

Disclaimer The information provided in this report has been solely sourced from FactSet and company annual reports. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.

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Selected listed travel tech companies (NZD $m)

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Listed travel tech industry – total Enterprise Value (NZD $b)

Company

Country

Description

Enterprise Value

LTM

revenue

LTM revenue growth

EBITDA margin %

EV / Revenue

EV / EBITDA

Booking Holdings

United States

Flight and accommodation booking platform

261,535

37,926

13%

31%

6.9x

22.3x

Airbnb

United States

Accommodation booking platform

128,442

17,329

17%

16%

7.4x

47.0x

Trip.com Group

China

Flight and accommodation booking platform

63,244

11,126

47%

28%

5.7x

20.0x

Expedia Group

United States

Flight and accommodation booking platform

33,197

21,879

10%

18%

1.5x

8.5x

MakeMyTrip

India

Flight and accommodation booking platform

17,965

1,452

30%

14%

12.4x

91.0x

Sabre

United States

Global distribution system (air bookings)

8,948

4,939

6%

13%

1.8x

13.8x

TripAdvisor

United States

Reviews / guides and booking platform

3,306

2,994

10%

13%

1.1x

8.7x

eDreams

Spain

Flight and accommodation booking platform

1,953

1,151

13%

11%

1.7x

14.8x

SiteMinder

Australia

Booking application software

1,913

206

25%

0%

9.3x

nm

WEB Travel Group

Australia

Flight and accommodation booking platform

1,314

508

27%

40%

2.6x

6.5x

Serko

New Zealand

Corporate travel platform

344

74

17%

(4%)

4.6x

nm

Median

8,948

2,994

17%

14%

4.6x

14.8x

Annual revenue of large travel tech platforms (NZD $b)

-

100

200

300

400

500

600

Jan 19

Jan 20

Jan 21

Jan 22

Jan 23

Jan 24

Trip.com Group

Airbnb

Other (see below)

Expedia Group

Booking Holdings

‍

2.3x

1.3x

-

1.0x

2.0x

3.0x

4.0x

0.0x

1.0x

Assumed revenue multiple for hardware

Tech Insights #351

Peloton’s Uphill Battle

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Mergers & acquisitionsCorporate finance advisoryCapital raising

21 October 2024

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Overview

Peloton is a global connected fitness company that provides an at-home fitness platform for live and on-demand fitness classes. While Peloton saw a surge in demand during the pandemic as consumers sought gym alternatives, the company’s growth has stalled as gyms have reopened, falling from a share price peak of USD $167 to $6 today. Peloton primarily generates revenue from subscriptions to its platform (software) and the sale of its exercise equipment (hardware). All figures are in USD.

Hardware subscribers* (millions) and monthly churn (%)

Hardware vs software quarterly revenue (USD $m)

Margin by revenue type (%)

Implied software revenue multiple as at June 2024

(100%)

(50%)

-

50%

100%

Sep 19

Sep 20

Sep 21

Sep 22

Sep 23

Softwaregrossmargin

Hardwaregrossmargin

EBITDAmargin

-

0.5%

1.0%

1.5%

2.0%

-

0.8

1.6

2.4

3.2

Sep 19

Sep 20

Sep 21

Sep 22

Sep 23

*Members who have purchased hardware and have a platform subscription.

-

300

600

900

1,200

1,500

Sep 19

Sep 20

Sep 21

Sep 22

Sep 23

Hardware

Software

30% software

67% software

If no value is associated with hardware revenue (0.0x), the implied multiple for the software revenue would be 2.3x.

Downturn due to

inventory write down, increased logistic expenses, and treadmill product recall.

Tech Insights #351

Peloton’s Uphill Battle

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Selected companies in various fitness industries as at 18 October 2024 (USD $m)

Indexed share price – Peloton vs traditional push-bike makers

LTM Revenue growth and EBITDA margin

Location

\

Enterprise value

LTM revenue

Gross margin

Revenue growth

EBITDA margin

EV /

LTM Revenue

EV /

LTM EBITDA

Peloton

US

3,423

2,701

45%

(4%)

(11%)

1.3x

NM

Health and fitness

Life Time Group

US

7,559

2,517

47%

18%

30%

3.0x

10.2x

Planet Fitness

US

P

8,660

1,112

82%

7%

41%

7.8x

19.1x

Xponential Fitness

US

1,071

327

77%

15%

31%

3.3x

10.5x

Viva Leisure

Australia

99

106

62%

12%

47%

0.9x

2.0x

Tech

Garmin

US

29,075

5,648

57%

15%

25%

5.1x

20.3x

Daktronics

US

654

812

27%

(0%)

11%

0.8x

7.5x

GoPro

US

184

931

32%

(11%)

(10%)

0.2x

NM

Equipment

Shimano

Japan

10,636

2,869

38%

(33%)

20%

3.7x

18.5x

Giant

Taiwan

2,523

2,249

23%

(23%)

9%

1.1x

13.2x

Technogym

Italy

1,969

907

40%

14%

18%

2.2x

12.4x

Johnson Health Tech

Taiwan

1,792

1,279

49%

12%

8%

1.4x

16.9x

Median

2,246

1,195

46%

10%

19%

1.8x

12.8x

Peloton

Life Time Group

Planet Fitness

Xponential Fitness

Viva Leisure

Garmin

Daktronics

GoPro

Shimano

Giant

Technogym

Johnson Health Tech

(20%)

(10%)

-

10%

20%

30%

40%

50%

(20%)

(10%)

-

10%

20%

30%

EBITDA margin

Revenue growth

(>20%)

-

1

2

3

4

5

6

7

Oct 19

Oct 20

Oct 21

Oct 22

Oct 23

Oct 24

Peloton

Shimano

Giant Manufacturing

‍

Tech Insights #350

Private Equity buyouts

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-

5x

10x

15x

20x

25x

30x

-

10

20

30

40

50

60

H2 '14

H1 '15

H2 '15

H1 '16

H2 '16

H1 '17

H2 '17

H1 '18

H2 '18

H1 '19

H2 '19

H1 '20

H2 '20

H1 '21

H2 '21

H1 '22

H2 '22

H1 '23

H2 '23

H1 '24

Revenue multiple

Total enterprise value (USD $b)

Overview

This Tech Insights report presents acquisitions by Private Equity firms of publicly listed Technology* companies over the past ten years. On the first page we present the total value of these transactions and the weighted EV/revenue multiple. The second page presents transaction revenue multiples of Thoma Bravo and Vista Equity Partners (the two most acquisitive firms), as well as selected notable transactions through the ten-year period.

Count

H2 '14

H1 '15

H2 '15

H1 '16

H2 '16

H1 '17

H2 '17

H1 '18

H2 '18

H1 '19

H2 '19

H1 '20

H2 '20

H1 '21

H2 '21

H1 '22

H2 '22

H1 '23

H2 '23

H1 '24

IT

2

2

3

1

2

1

4

1

3

2

2

-

4

3

-

3

2

2

1

2

PS

7

2

6

6

6

9

3

5

6

5

7

3

7

8

10

13

10

9

11

12

Private Equity Technology transactions

*Technology companies are represented by Information Technology Services (IT) and Packaged Software (PS) companies as categorised by FactSet.

The largest transaction across the ten-year period was Vista Equity Partners acquisition of Citrix Systems for $14.6b in Jan 22

Tech Insights #350

Private Equity buyouts

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Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.

Date

Country

Target

Description

Primary acquirer

Enterprise value

Revenue

Enterprise value / revenue

Oct 15

US

SolarWinds

Network management software and monitoring tools

Thoma Bravo

4,217

486

8.7x

Feb 16

NZ

Diligent Corp

SaaS governance platform

Insight Partners

361

99

3.6x

Dec 19

US

LogMeIn

Remote access software

Francisco Partners

4,409

990

4.5x

Jun 21

US

Cloudera

Data management and analytics solution

KKR

4,893

869

5.6x

Nov 21

US

McAfee Corp

Computer software company

Advent International

13,592

2,906

4.7x

Mar 22

US

Anaplan

Business planning and analysis platform

Thoma Bravo

9,348

592

15.8x

May 22

NZ

Pushpay

Donor management system

BGH Capital

1,097

203

5.4x

Aug 22

Australia

Nitro Software

Document management software

Potentia Capital

354

59

6.0x

Jan 23

US

Duck Creek

P&C insurance software

Vista Equity Partners

2,282

303

7.5x

Dec 23

US

Alteryx

Data analytics and visualisation platform

Insight Partners

4,178

970

4.3x

Selected notable Private Equity acquisitions since 2014 (USD $m)

Thoma Bravo last 20 technology transactions EV/revenue

-

5x

10x

15x

20x

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Vista Equity Partners last 10 technology transactions EV/revenue

-

2x

4x

6x

8x

10x

12x

1

2

3

4

5

6

7

8

9

10

Median revenue multiple 5.0x

Median revenue multiple 7.5x

20x+

‍

-

2.5x

5.0x

7.5x

10.0x

12.5x

15.0x

17.5x

20.0x

22.5x

25.0x

Sep 19

Mar 20

Sep 20

Mar 21

Sep 21

Mar 22

Sep 22

Mar 23

Sep 23

Mar 24

Sep 24

Tech Insights #349

Cloud Index as at 30 September 2024

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Mergers & acquisitionsCorporate finance advisoryCapital raising

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Overview

This report looks at valuation multiples for cloud companies publicly listed in the United States, Australia and New Zealand. As at 30 September 2024, the US Cloud Index is down 3% from the previous quarter to 5.8x EV / NTM revenue. It continues to move between a 5.0x and 7.5x multiple range. The ANZ Cloud Index recovered late in the quarter to stay flat at 6.9x, above the US Cloud Index. Over the last 12 months, the ANZ Cloud Index has increased by 19% versus a 2% decrease for the US Cloud Index. It is moving closer to its five-year average, while the US Cloud Index remains well below.

NTM revenue multiple for cloud companies listed in the US and ANZ (EV / NTM revenue)

7.5x

ANZ Cloud Index

Average

12MMA

Sep 24

6.9x

6.3x

Jun 24

6.9x

6.2x

Change

0%

0%

Sep 23

5.8x

5.6x

Change

19%

12%

US Cloud Index

Average

12MMA

Sep 24

5.8x

6.2x

Jun 24

6.0x

6.3x

Change

(3%)

(3%)

Sep 23

5.9x

5.9x

Change

(2%)

4%

Note: Indices are calculated using a simple average (equal weighting), with the ANZ index (18 companies) comprising of companies that have a minimum NZD $250m market capitalisation versus NZD $500m for the US Index (87 companies). Avg = Average, NTM = Next 12 months, 12MMA = 12 month moving average.

11.0x

6.9x

5.8x

Key:

US

ANZ

Average

12MMA

5yr avg

-

5.0x

10.0x

15.0x

20.0x

Sep 19

Sep 20

Sep 21

Sep 22

Sep 23

Sep 24

-

10.0x

20.0x

30.0x

40.0x

Sep 19

Sep 20

Sep 21

Sep 22

Sep 23

Sep 24

75th percentile

Median

25th percentile

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Cloud Index as at 30 September 2024

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US cloud companies NTM revenue multiple

ANZ cloud companies NTM revenue multiple

7.6x

5.0x

2.8x

8.9x

4.4x

2.8x

US cloud companies

25th

75th

30 Sep 2024

Average

percentile

Median

percentile

EV (NZD $m)

33,775

2,708

8,574

23,502

EV / NTM rev

5.8x

2.8x

5.0x

7.6x

Revenue growth (NTM)

11%

5%

11%

20%

EV / LTM rev

7.0x

3.2x

5.8x

9.9x

Revenue growth (LTM)

18%

11%

17%

25%

Operating margin

(6%)

(17%)

(3%)

7%

ANZ cloud companies

25th

75th

30 Sep 2024

Average

percentile

Median

percentile

EV (NZD $m)

5,641

574

1,179

2,773

EV / NTM rev

6.9x

2.8x

4.4x

8.9x

Revenue growth (NTM)

12%

0%

10%

19%

EV / LTM rev

8.7x

3.5x

5.4x

10.3x

Revenue growth (LTM)

18%

7%

17%

27%

Operating margin

18%

0%

21%

33%

Note: The percentiles for each metric are calculated individually. Companies added or removed from each index take effect from the first day of the reported quarter.

EV = Enterprise Value, LTM = Last 12 months, NTM = Next 12 months.

Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. ClareCapital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.

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