2022年第三季度數(shù)字服務(wù)報(bào)告

Q32022DigitalServicessectorupdateQualitativeinsightsintobroaderDigitalServicestrendsandpublicandprivatevaluationsacrossthetransactionspectrum,andinterviewswithtoday’sleaderstransformingthesector.ImportantdisclosuresappearattheendofthisreportGPBullhoundCorporateFinanceLtdandGPBullhoundAssetManagementLimitedareauthorisedandregulatedbytheFinancialConductAuthorityGPBullhoundIncisamemberofFINRAGPBullhoundHongKongLimitedisauthorisedandregulatedbytheSecurities&FuturesCommissionGPBullhoundLuxembourgSàrlisauthorisedasanAIFMinLuxembourgbytheCommissiondeSurveillanceduSecteurFinancierTakeawaysTakeawaysPAGE3PAGE3CONTEXTUALADVERTISINGRESURGENCEDRIVINGSIGNIFICANTCONSOLIDATIONANDINVESTMENTS

PrivacypressuresaredrivingadvertiserstowardscookielesstechnologiesAdvancesinmachinelearningandhaveenabledanumberofothertechnologies,suchascontextualadvertising,directsales,anddigitalfingerprinting,toalsogaintractionAhiveofinvestmentactivityisgoingoninthespaceincludingAdvent’s€250minvestmentinSpanishadtechprovider,SeedtagTHEVIEWQ3DigitalServicesperspectivesfromGPBullhound

GROWINGLATAMDIGITALSERVICESMARKETLEADINGTOINCREASEDM&ATHENEEDFORSEAMLESSUXDESIGNISDRIVINGCONSOLIDATORSINTOM&AMODE

Rapidtechnologyadoptionintheregionhasledtoincreaseddemandfordigital-firstservicesLargeincumbentsarerecognisingtheneedtohaveLatinAmericanpresenceinordertowinlargeglobalclientsSignificantdealswithinthespaceincludeWPP’sacquisitionofJeffreyGroupandAccenture’sacquisitionofTenbuCompaniesneedtoofferinnovativedigitalproductsthatworkflawlesslyacrossallmediachannelsandthatcollectandutilisedatainanongoingfeedbackloopTheUXdesignsoftwaremarketislikelytoreach$20bnby2028ataCAGRofc.16%Q32022sawthesigningofmultiplehigh-profiledeals,includingtheacquisitionofLondon-baseddesignandUXagencyRufusLeonard,byCapgeminiALEADINGTECHNOLOGYADVISORYANDINVESTMENTFIRM,PROVIDINGTRANSACTIONADVICEANDCAPITALGPBullhound’srecentDigitalServicesactivityDigitalServicesadvisoryNewcraftACQUIREDBYWPP

PurpleStrategiesINVESTMENTBYWestViewCapitalPartners

TalonOutdoorINVESTMENTBYEquistonePartnersEuropeUNDISCLOSED

UNDISCLOSED

UNDISCLOSEDLDCINVESTMENTINBlisUNDISCLOSED

MekanismACQUIREDBYPlusCompanyUNDISCLOSED

PixlyACQUIREDBYAccelerationCommunityofCompanies(ACC)UNDISCLOSEDAdyoulikeACQUIREDBYOpenWeb(InsightPartners)

TeamITGMAJORITYINVESTMENTBYBridgepoint

Queen’sParkEquityINVESTMENTINFutureDeluxe$100M

UNDISCLOSED

UNDISCLOSEDMayfairEquityPartnersINVESTMENTINLoopMe

TheVariableINVESTMENTBYSvobodaCapital

MedThinkACQUIREDBYFingerpaint$200M

UNDISCLOSED

UNDISCLOSEDGPBULLHOUND’SSECTORTAKEAWAYS

TakeawaysContextualadvertisingresurgencedrivingsignificantconsolidationandinvestmentactivityPrivacypressuresaredrivingadvertiserstowardscookielesstechnologiesImprovementsintechnologyhaveseenseveralalternativetechnologiesbecomeincreasinglyactiveCookieshaveenabledadvertiserstoaccesshighlyaccurateanddetailedinformationabouttheiraudiencesandshownhowtotargetthem,particularlythroughthird-partycookies.However,therehasbeengrowingconcernaboutthewaythird-partycookiesareusedtocollectprivatedataalongsidehowaccessiblethatdataistoadvertisers.such,governmentsgloballyintroducednewpoliciestorestrictdatacollectionbyadvertiserssuchasGDPRinEuropeandCCPAintheUSInresponsetothis,advertisingtechnologyfirmshavelookedtofindalternativetechnologies.oneofthedominantplayersinthemarket,Googlelaunchedits“PrivacySandbox”initiativetocreatenewdigitaladvertisingtoolsthatrespectprivacybetterthancookies,yetenableanad-supportedweb.Advancesinmachinelearningandhaveenabledanumberofothertechnologies,suchascontextualadvertising,directsalesanddigitalfingerprinting,toalsogaintractionContextualadvertisingisnotanewconceptbutitbecamesignificantlylessrelevantasamethodoftargetingcustomersduetothehyper-accuratetargetingthattheintroductionofthird-partycookieshasmadepossible.Contextualadvertisingisthetargetedplacingofadsbasedonthepagecontenti.e.theenvironmenttheuserisinratherthantheirbehaviourContextualadvertisingtechnologiesrepresentalargeopportunityforinvestorsandacquirersTechnologyadvantageatthecoreofinvestmentsInrecentmonths,wehaveseenanumberoflandmarkadtechdealsinparticular,fromgrowthandprivateequitylookingtoridethewaveofgrowthbeingseenincontextualadvertising.invested€250minSeedtag,theSpanishproviderofcontextualtechnologyLIZ?,tosupportitsexpansionintotheUSmarketandprovidecapitaltofundfurtheracquisitionsUKprivateequityfirmshavebackedanumberofplayersinthepastyearincludingLDC’sinvestmentintoBlis,anaudience-firstplatformthatbuildsaudiencesfromabroadrangeofanonymiseddatasetsPublishersarealsoseekingtoin-housethetechnologysothattheycandirectlyofferittoadvertisers.AkeyexampleofthiswastheveryrecentacquisitionofSpiketrapbyReddit.SpiketrapusesitsAI-poweredcontextualanalysisandtoolstohelpbrandsbetterunderstandandengagetheiraudiencesinrealtimeSources:Mergermarket,TheDrum,Venatus,eConsultancy,MarketingWeek,Instapage

SelectrecenttransactionsDEALDATE:SEP-22EV:EV/REV:N/ADEALDATE:SEP-22EV:N/AEV/REV:N/ADEALDATE:JUL-22EV:N/AEV/REV:N/ADEALDATE:JUN-22EV:N/AEV/REV:N/A4TakeawaysGPBULLHOUND’SSECTORTAKEAWAYSGrowingLatinAmericandigitalservicesmarket

SelectrecenttransactionsleadingtoincreasedM&ARapidtechnologyadoptionintheregionhasledtoincreaseddemandfordigital-firstservicesTheshifttodigitalmarketingandadjacentservicescontinuesLatinAmericanconsumersaremovingawayfromtraditionalpurchasingchannelsandareadoptingamoredigitalapproach.aresult,theregionisseeingincreasedinvestmentfrombothdomesticandmultinationalbrandsintodigitalmarketingstrategies(e-Commerce,programmatic,targetingadvertising,etc.)andisanimportantgrowthmarketforcommerceplatformssuchasSalesforce.Usingdigitaladvertisingspendasaproxy,itislikelytotalspendwillreach$11bnin2022andcontinueata15%+through2024WhilethetechservicesmarketoffersglobalmarketingagenciesandITservicesfirmsadeeptalentpoolinasimilartimezonetoNorthAmerica,theseservicesfirmsarealsorecognisingtheimportanceofpresencetowinlargeregionalclients.such,thereisanincreasingfocusonacquiringdomesticplayerstocaptureregionalmarketshareLatinAmericahasbecomeoneofthemostdynamiccommunicationsmarkets.GlobalbrandssuchasAmazon,NikeandMercadoLibrehavebeguninvestingasignificantamountintocommunicationsandmarketingservicesSignificantM&AactivitythroughoutthelastquarterinLatinAmerica’sdigitalservicesecosystemHoldingcompaniesareactivelyconsolidatinginLatinAmericaJeffreyGroup,theMiami-basedcompanyprovidingindependentcorporatecommunications,publicaffairs,andmarketingconsultingfirminLatinAmerica,wasacquiredbyJeffreyGroupwillmergewithHill+KnowltonStrategiestostrengthentheirpresenceintheregionalsoacquiredCorebizParticipacoes,theBarueri-basedcompanyprovidesdigitalmarketingande-CommerceconsultingservicestoclientssuchasWalmart,Carrefour,Decathlon,Whirlpool,EsteeLauderAccentureacquiredTenbuInformationManagementServices,aSaoPaulo-basedcompanythatprovidestechnologyconsultingservicesandsolutions,suchasclouddatasolutions,dataengineering,anddatavisualisation,amongotherservices.ThisacquisitionexpandsAccenture’scloud-firstcapabilitiesthroughoutLatinAmerica.ThismarksAccenture’seleventhacquisitionintheregionoverthepastfiveyears(othersinclude:OrganizeCloudLabs,Wolox,andErgo)

DEALDATE:SEP-22EV:N/AEV/EBITDA:N/ADEALDATE:AUG-22EV:N/AEV/EBITDA:N/ADEALDATE:JUL-22EV:N/AEV/EBITDA:N/ASources:Forrester,Statista,companypressreleases

DEALDATE:JUN-22EV:N/AEV/EBITDA:N/A5GPBULLHOUND’SSECTORTAKEAWAYS

TakeawaysTheneedforseamlessUXdesignisdrivingconsolidatorsintoM&AmodeAdoptionofnewtechnologiesiscontributingtorapidexpansionofUXdesignsoftwaremarketIntroductionofARandimmersivescrollingtechnologyperceivedaskeyemergingtrendsCompaniesneedtoofferinnovativedigitalproductsthatworkflawlesslyacrossallmediachannelsandthatcollectandutilisedatainanongoingfeedbackloop.DoingsofacilitatestheabilityofacompanytoreflectuponandcontinuouslyimprovetheiroverallstrategicmissionandbrandpositioningManyindustryplayersfacepressurewhenitcomestoUXdesign,scramblingtoone-uptheircompetitionandsuperchargetheircustomeracquisitionprocess.Inlinewiththis,theUXdesignsoftwaremarketislikelytoreach$20bn[2]by2028,ataofapproximately16%betweennowandthenTakingtheleadinUXdesignrequiresbrandstoembracethelatesttrendswithinthesector.Onesuchrecenttrendistheuseofvirtualandaugmentedrealitytechnology[3]increatingmeaningfuluserexperiences,withthevirtualtrying-onofclothesjustbeingoneexampleTheadoptionofimmersivescrolling,aconceptrelyingontheuseofJavaScript,animationlibraries,andnativeimplementationshasincreasedtheneedforbest-in-classUXdesign.Thetechnologyrevolvesaroundcreatingsmoothscrollinganimations,thusprovidingwebdesignerswiththecapabilitytopresentcontentinamorestrategic,narrative-centricway[2]M&Aactivitytakingplaceonmultiplefronts,involvingamultitudeofplayersMediaandconsultingagenciesseepotentialtobolsterintegratedserviceofferingthroughM&ATheM&AmarketforUXdesignsoftwarecompanies,thoughanichemarket,hasbeenveryactive,withQ32022seeingthesigningofmultiplehigh-profiledeals,includingtheacquisitionofdesignandUXagencyRufusLeonard,aLondon-basedtechnologyagency,byCapgeminiSittingattheintersectionbetweentechnology,marketing,andconsultingservices,itisespeciallydigital-firstconsultingfirms,includingforexampleNTTDataandCapgemini,thatstandtogainbyscoopinguphighlyvaluableUXdesignsoftwarecompanies.Doingsoallowsthemtoofferanevenmorediverse,yetintegrated,rangeofservicestocustomersMorebroadly,diversifiedinformationtechnologycompaniesaretakingadvantageofthebuddingpopularityofUXdesignsoftwareaswell,includingUS-basedpowerhouseIBMwhichrecentlyacquiredaward-winningtech-productdesignandengineeringagencyDialexaSources:(1)VerifiedMarketResearch;(2)TTTStudio

SelectrecenttransactionsDEALDATE:SEP-22EV:N/AEV/REV:N/ADEALDATE:SEP-22EV:N/AEV/REV:N/ADEALDATE:JUN-22EV:N/AEV/REV:N/ADEALDATE:JUN-22EV:N/AEV/REV:N/A6TransactiontrendsNOTABLEDIGITALSERVICESTRANSACTIONSContinuedactivityinQ3TransactiontrendsNOTABLEDIGITALSERVICESTRANSACTIONSContinuedactivityinQ3=GPBullhounddeal/investment=GPBullhounddeal/investmentDealdateGeographyoftargetTargetBuyer/investorTargetdescriptionDealvalue($m)ImpliedEV/LTMRevImpliedEV/LTMEBITDASep-22EuropeMarketingservicesproviderSep-22EuropeSystemintegrationsolutiondeveloperSep-22NAmericaDigitalinnovationservicesproviderSep-22EuropeBrand-focusedsoftwaresolutionsproviderSep-22NAmericaOnlinecontentpublishinghouseSep-22NAmericaProductdevelopmentsolutionsproviderSep-22EuropeStrategicconsultancyagencySep-22NAmericaCorporatecommunicationsagencySep-22EuropeITconsultingservicesproviderSep-22NAmericaDigitaladvertisingagency239Sep-22EuropeDigitaltransformationagencySep-22NAmericaGrowthstrategyconsultingagencySep-22NAmericaITconsultingandservicesfirmSep-22NAmericaEnd-to-endconsultingservicesproviderSep-22NAmericaE-CommercefocusedSaaSprovider7333.8x26.0xSep-22EuropeCommerceconsultingcompanySep-22EuropeZero-carbonstrategicadvisoryfirmSep-22NAmericaSupply-chainsoftwareconsultingfirmSource:CapitalIQ(asof30September2022) 7=GPBullhounddeal=GPBullhounddealDealdateGeographyoftargetTargetBuyer/investorTargetdescriptionDealvalue($m)ImpliedEV/LTMRevImpliedEV/LTMEBITDASep-22NAmericaTechnologyconsultingservicesprovider--Sep-22EuropeWebstrategyconsultingagency--Sep-22NAmericaTechnologypublicrelationsagency--Sep-22AsiaDigitaltransformationagency--Aug-22NAmericaCorporatereputationmanagementfirm--Aug-22NAmericaOnlineplatformconnectingcontentcreatorsandeditors--Aug-22NAmericaDatasciencecompany100-Aug-22AsiaSoftwaredevelopmentagency--Aug-22EuropeCloudconsultingservicesprovider--Aug-22EuropeStrategicadvertisingagency--Jul-22NAmericaITconsultingagency--Jul-22SAmericaDigitalmarketingconsultingagency--Jul-22EuropeLifesciencetechconsultingagency111-Jul-22NAmericaRetailsalesagency--Jul-22AfricaDataobservabilitysoftwaredeveloper--Jul-22EuropeOut-of-homemediaagency--Jul-22NAmericaDigitalmarketingagency--Source:CapitalIQ(asof30September2022) 8TransactiontrendsTransactiontrends9Source:CapitalIQ(asof30September2022);Note:(1)Includespubliclydisclosedvaluesonly9Source:CapitalIQ(asof30September2022);Note:(1)IncludespubliclydisclosedvaluesonlyDIGITALSERVICESM&AACTIVITYBYQUARTERDealactivityhassloweddowninQ32022DealactivityhasslowedtothelowestlevelsinceQ32020inresponsetomacroeconomicfactorsinthemarketcurrentlyTransactiondealvalueandnumberofM&Adeals1317 340 32014.3

291

328

296

259

291

231

162

193

210

279

226

251

276 17.8

20810.5

11.1

4.7

9.0

5.4 3.7

10.6

7.9

6.9

5.9

7.9Q4'17 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 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22Totalvalue($bn) TotalvolumeM&Adealvolumebygeography17111671316189151351074827774846358606442434311271136113210291039102810337371161161079911810884857111150589111391889810311879110131120111113109120105101105648281116929110413511485Q4'17 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 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22US&Canada Europe Asia Other10Source:CapitalIQ(asof30September2022);Note:(1)GPBindexbuyersandselectedkeyprivateconsolidators10Source:CapitalIQ(asof30September2022);Note:(1)GPBindexbuyersandselectedkeyprivateconsolidatorsCLOSEDTRANSACTIONSBYGROUPIN2022

TransactiontrendsSignificantactivityfromallgroupsYTDConsultancieshavebecomethemostactivebuyergroupdrivenmostlybyAccenture’sreturntoincreasedactivity2022YTDtransactionactivitybybuyergroup(1) 2022YTDnumberofM&Adealsbytargetgeography8639 38 37 278639 38 37 272221178Consultancies42Marketingagencies33MarketingagenciesITServices25ITServicesPubliccompanyanalysesPubliccompanyanalyses11Source:CapitalIQ(asof30September2022)11Source:CapitalIQ(asof30September2022)TOPCONSOLIDATORS2022Accenturehasbeenthemostactiveacquirerin2022 19 55555555443333333BerneUKSWFTTechnologies HoubanEnergyLtd./SuranceLtd. PrivateLimitedGeomatic.ai222221111 1 1 1Consultancies ITservices MarketingagenciesPAGE15Source:CapitalIQ(asof30September2022)PAGE15Source:CapitalIQ(asof30September2022)GPBULLHOUNDDIGITALSERVICESINDEXGPBullhoundDigitalServicesindexmarketcapitalisationDigitalServicesindexcomponentshavecontinuedtofeeltheeffectofthewidersell-off–losing$71bninvaluesinceQ22022Marketcap($m)31,01929,74227,91426,51220,77812,92412,22012,0427,5125,6273,9253,7862,629898887

72,860

107,307

135,101

162,755855 Consultancies ITservices MarketingagenciesGPBULLHOUNDDIGITALSERVICESINDEXEV/EBITDATRENDS–PASTFIVEYEARSGPBDigitalServicesindexfallstonearthefive-yearlowpointSectorvaluationsforGPBullhound’sDigitalServiceslistedpeersindexhavefallenfollowingnearall-timehighsattheendofQ12022DigitalServicesindexrollingthree-monthaverageNTMEBITDA12.0x11.0x 5Ymean:10.6x10.0x

NTMEV/EBITDAasof30Sep:9.8x9.0x8.0xSep-17 Apr-18 Nov-18 May-19 Dec-19 Jun-20 Jan-21 Jul-21 Feb-22 Sep-22PUBLICTRADINGPERFORMANCEVS.MARKETINDICESGPBullhoundDigitalServicesindexhistoricalperformance(8.2)%(10.0)%(8.2)%(10.0)%(7.6)%L1M

L3M(5.6)%(5.3)%(5.6)%(5.3)%(2.0)%110100908530-Aug-22 6-Sep-22 13-Sep-22 20-Sep-22 27-Sep-22

80Jun-22 Jul-22 Aug-22 Sep-22L6M1151101051009590858075Mar-22 May-22 Jun-22 Jul-22 Aug-22

(20.1)%(20.1)%(22.1)%(11.0)%Sep-22

L12M120110100908070Sep-21 Dec-21 Mar-22 Jun-22

(21.1)%(21.1)%(16.8)%(9.1)%Sep-22GPBDigitalServicesindex S&P500 FTSE100MARGINBENCHMARKINGGPBullhoundDigitalServicesindexmarginbenchmarksEBITDAmarginsacrosstheDigitalServicesindexcompaniesremainedaround18-19%inQ32022CY2022EBITDAmargins 31% 28% 27% 24% 24% 22% 22% 21% 21% 21% 31% 28% 27% 24% 24% 22% 22% 21% 21% 21% 20% 19% 19% 19% 19% 19% 18% 18%

Consultanciesmean:18.4% 17% 17% 16% 16% 16% 16% 17% 17% 16% 16% 16% 16% 16% 13% 11% 10% 10% 9%

Overallmean:18.2%DentsuTataConsultancyInfosysHCLNextFifteenPublicisWiproIBMPerficientGlobantCGIEPAMSystemsIPGWPPGenpactTechMahindraAccentureCognizantReplyOmnicomCapgeminiNTTDXCS4CapitalHakuhodoAltenBoozAllenHamiltonICFNECAtosBlueFocus3%Consultancies ITservices MarketingagenciesDentsuTataConsultancyInfosysHCLNextFifteenPublicisWiproIBMPerficientGlobantCGIEPAMSystemsIPGWPPGenpactTechMahindraAccentureCognizantReplyOmnicomCapgeminiNTTDXCS4CapitalHakuhodoAltenBoozAllenHamiltonICFNECAtosBlueFocus3%CEOcommentaryLEADINGCOMPANIESANDCEOSTRANSFORMINGTHESECTORCEOcommentaryLEADINGCOMPANIESANDCEOSTRANSFORMINGTHESECTORPAGE18PAGE18MargaretMurphy,Founder&CEOMARGARETMURPHYFOUNDER&CEO,BOLDORANGEMARGARETMURPHY“AtBoldOrange,ourgoalistotransformthedigitalcustomerexperienceinordertodriverelevancy.Werecognisethatthegrowthengineofabrandfallswithinmarketing–it'sallaboutfinding,engagingwith,andgrowingtherightcustomers.Inordertoachievethisandbuildloyalty,youneedtodeliveraseamlessexperienceanchoredinrelevancy.Weareseeingsignificantadvancementsintheeffectivenessanddeploymentofcustomerdataplatforms(CDPs)suchaswithinSalesforceMarketingCloud.CDPsincreasetheabilitytomakeanimpact–withbetterorganisationofreal-timedatathatthenenablebrandstocontinuouslyadapttoconsumerneeds.Dataisattheforefrontofsustainedrevenuegeneration.Ourgoalistobetheleadingcustomerexperiencecompanythathelpsbrandsoutperform.Wehavealreadymadeanacquisitiontobolsterourproductcapabilitiesandareactivelylookingformore.”BoldOrangeisacustomerexperienceagencyhelpingbrandswithend-to-endCXneedsinclusiveofgo-to-marketexperiences,content,UX/UI,loyaltyandCRM,performancemarketing,digitalmediaandSalesforceMarketingCloudimplementations.BoldOrangeisgrowingrapidly,expectingorganicgrowthof+22%thisyear,andislookingtoacquireintheareasofdigitalstrategy,UX,andSalesforceMarketingCloud.Thecompanyhasover100employeesandisheadquarteredinMinneapolis,MN,butwithaworkforcespreadacrossNorthAmerica.

SelectedclientsRobinSkidmore,Founder&CEOROBINSKIDMOREFOUNDER&CEO,JOURNEYFURTHERROBINSKIDMORE"JourneyFurtherlivesattheintersectionbetweenbrandandperformancemedia.Wearebreakingdowntraditionalmarketingsilosandremovingneedlessbureaucracytodeliverfastperformancefortheworld'sbiggestbrandsandmostdisruptivestartups.Weuseourheritageindataanalysistoquicklygettothetruth.Wecallourapproach‘clarityatspeed’.Apeople-firstbusiness,ourrapidgrowthisattributedtoourendlesspursuitofculture.Ouragencyplacespeopleaboveprofit;ourvaluesaremuchmorethanwordspostedonawall."SelectedawardsJourneyFurtherisaglobalperformancemarketingagencywithofficesinLeeds,Manchester,LondonandNewYorkCity.RobinSkidmore,anentrepreneurwhopreviouslybuiltandsoldEpiphanySearchtoJaywingPlc,launchedJourneyFurtherin2017.Theagencynowemploysover170peopleandhasexpandedrapidlywithrevenuegrowthof95%in2021,thebusinessisexpectedtogrowafurther45%in2022.

SelectedclientsJasonWulfsohn,Founder&CEOJASONWULFSOHNCO-FOUNDER&CEO,AUDIENCEXJASONWULFSOHN“OurkeydrivingstrategicprincipleatAUDIENCEXistodeliverunifiedomnichannelperformancemarketingandcustomeracquisitionsolutionstoourbrandandagencyclients.Performancemarketingismosteffectivewhenithelpsmovethecustomerthroughtheentiretyofthefunnel,withdatabeingtheconnectivetissuethatpowerscross-channeloptimisations.Thedigitalcustomerengagementlifecycleismorecomplexthaneverbeforecreatingsignificantchallengesforourclients.Wedeliverthetechnicalknowledgeandstrategicexpertisetoempowerourclientstoleveragethebestofenterprisetech.Wherewearedifferentisourfocusoncreatingasingleunifiedplatformthatintegrateseverypartofomnichanneldelivery.Thisenablesustooptimiseholisticperformancedataacrossplatformsandchannelstoimprovebusinessoutcomes.It'stheagencymodelcompletelyreimaginedtomeetthechallengesoftoday'sperformancemarketer."AUDIENCEXisaperformancemarketingcompany,builtonthelargestindependenttradingdeskformid-marketagenciesandbrands.Truepioneersinprogrammaticperformancemediasince2014,thebusinesshasbeenrankedforthelastfouryearsontheInc.5000listoffastest-growingcompaniesintheUS.AUDIENCEXisheadquarteredinCalifornia,withteamsandofficesthroughouttheUS,includingNewYork,Boston,Chicago,Dallas,andMiami.

SelectedclientsPubliccomparablesPUBLICCOMPARABLESBYTYPEPubliccomparablesPUBLICCOMPARABLESBYTYPE(NM)andarenotincludedinaveragecalculation(NM)andarenotincludedinaveragecalculationPubliccomparablesSource:CapitalIQ(asof30September2022):Note:Multiplesinexcessof75.0xorlessthan0.0xareconsiderednot-material 19Publiccomparables:Globalandmid-sizedagenciesSource:CapitalIQ(asof30September2022):Note:Multiplesinexcessof75.0xorlessthan0.0xareconsiderednot-material 20Publiccomparables:ITservicesandconsultanciesSource:CapitalIQ(asof30September2022):Note:Multiplesinexcessof75.0xorlessthan0.0xareconsiderednot-material 21PAGE22PAGE22GREGSMITHPARTNERSIMONGREGSMITHPARTNERSIMONPARTNERALECDAFFERNERPARTNERRAVIGHEDIAEXECUTIVEDIRECTOROLIVERSCHWEITZEREXECUTIVEDIRECTORADAMBIRNBAUMASSOCIATESTEFANOCAPRIROLOANALYSTTOMGILBRIDEAboutusMethodologyAboutusThisreportisbasedontheexpertinsightsofGPBullhound’sworldwideteamalongsidedetailedanalysisofinvestmenttrendsacrosstheglobaltechnologylandscape.GPBullhound’sDigitalServicessectorfocusesonthefullspectrumofdigitalandmarketingservicescategories,includingdigitaltransformation,digitalagencies,marketingtechnologyservices,dataanalytics,digitalmediaservices,healthcaremarketing,andCRM/customeracquisition,amongothers.GPBullhound’sDigitalServicesteamBasedinourLondonandNewYorkofficesrespectively,SimonNichollsandGregSmithheadupourDigitalServicespracticewithover50+yearsofexperienceandhavecompletedover100transactionsfordigitalservicescompaniesglobally.PAGE23PAGE23DisclaimerNoinformationsetoutorreferredtointhiscommunicationshallformthebasisofanycontract.Theissueofthisinsightsreport(the“report”)shallnotbedeemedtobeanyformofbindingofferorcommitmentonthepartofGPBullhoundoranyofitsaffiliatesorsubsidiaries.Thisreportisprovidedforusebytheintendedrecipientforinformationpurposesonly.Itispreparedonthebasisthattherecipientsaresophisticatedinvestors(so-called“professionalclients”inthemeaningofAnnexIIofDirective2014/65/EUonmarketsinfinancialinstruments,ortheirequivalentelsewhere)withahighdegreeoffinancialsophisticationandknowledge.ThisreportandanyofitsinformationisnotintendedforusebyprivateorretailinvestorsintheUKoranyotherjurisdictionwhereaccess,useoravailabilityofthisinformationwouldbeunlawful.Thisreportdoesnotprovidepersonalizedadviceorrecommendationsofanykind.You,astherecipientofthisreport,acknowledgeandagreethatnopersonhasnorisheldoutashavinganyauthoritytogiveanystatement,warranty,representation,orundertakingonbehalfofGPBullhoundinconnectionwiththecontentsofthiscommunication.Althoughtheinformationcontainedinthisreporthasbeenpreparedingoodfaith,norepresentationorwarranty,expressorimplied,isorwillbemadeandnoresponsibilityorliabilityisorwillbeacceptedbyGPBullhound.Inparticular,butwithoutprejudicetothegeneralityoftheforegoing,norepresentationorwarrantyisgivenastotheaccuracy,completenessorreasonablenessofanyprojections,targets,estimatesorforecastscontainedinthisreportorinsuchotherwrittenororalinformationthatmaybeprovidedbyGPBullhound.Theinformationinthisreportmaybesubjecttochangeatanytimewithoutnotice.GPBullhoundisundernoobligationtoprovideyouwithanysuchupdatedinformation.Allliabilityisexpresslyexcludedtothefullestextentpermittedbylaw.Withoutprejudicetothegeneralityoftheforegoing,nopartyshallhaveanyclaimforinnocentornegligentmisrepresentationbaseduponanystatementinthisreportoranyrepresentationmadeinrelationthereto.Liability(ifitwouldotherwisebutforthisparagraphhavearisen)fordeathorpersonalinjurycausedbythenegligence(asdefinedinSection65oftheConsumerRightsAct2015)ofGPBullhound,oranyofitsrespectiveaffiliates,agentsoremployees,isnotherebyexcludednorisdamagecausedbytheirfraudorfraudulentmisrepresentation.Thisreportshouldnotbeconstruedinanycircumstancesasanoffertosellorsolicitationofanyoffertobuyanysecurityorotherfinancialinstrument,norshallthey,orthefactofthedistribution,formthebasisof,orberelieduponinconnectionwith,anycontractrelatingtosuchaction.Theinformationcontainedinthisreporthasnoregardforthespecificinvestmentobjectives,financialsituationorneedsofanyspecificentityandisnotapersonalrecommendationtoanyone.Personsreadingthisreportshouldmaketheirowninvestmentdecisionsbasedupontheirownfinancialobjectivesandfinancialresources