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1、Digital Servicessector updateQ2 2023Qualitative insights into broader Digital Services trends and public and private valuations across the transaction spectrum,and interviews with todays leaders transforming the sector.Important disclosures appear at the end of this reportGP Bullhound Corporate Fina
2、nce Ltd and GP Bullhound Asset Management Limited are authorised and regulated by the Financial Conduct Authority GP Bullhound Inc is a member of FINRAGP Bullhound Luxembourg S.R.L.is regulated by the CSSF in Luxembourg2Q2 2023 Digital Services sector updateAbout usPublic comparablesTransaction tren
3、dsPublic company analysesCEO commentaryTakeawaysTHE VIEWQ2 Digital Services Perspectives from GP BullhoundLow-code solutions are continuing to democratise development Low-code solutions have reduced development friction,making non-technical users“citizen developers”,with new tools enabling businesse
4、s to deliver flexibly and at the pace demanded by modern agile environments Proliferation of low-code has resulted in a broad range of technical solutions from both global incumbents and specialist players,accompanied by growing adoption by regulated industries and expansion into more complex applic
5、ations Widening skills gap and economic pressures are making low-code capability highly valued in a fast-growing multi-billion-dollar market,accelerating M&A activityContinuous development in VFX is pioneering innovation in digital VFX is increasingly being used within digital marketing by leading b
6、rands as a creative solution for those who are looking for new and innovative ways to engage with their audience Advancements in technology,such as AI,and M&A consolidation are considered as key growth drivers for leading creative design studios who operate in the space Recent examples of M&A includ
7、e London-based FutureDeluxes coming together with Canada-based Tendril to create Forever,Envys acquisition of Absolute Post and Next Stage AMs investment in Mathematic StudioComposable reshaping Digital Experiences Composable platforms and technologies enable the separation of front-end and back-end
8、 applications for legacy commerce and CMS platforms in order to substitute in best-of-breed functionality and microservices Demand for this flexibility is being driven by rapidly changing customer experience needs in a digital-first omnichannel environment allowing for companies to build nimble fram
9、eworks that can integrate the best tools customised for their particular market needs As a result,there has been increasing fundraising and M&A activity across both composable technology providers and services firms specialised in composable strategy and implementation3Q2 2023 Digital Services secto
10、r updateGP BULLHOUNDS SECTOR TAKEAWAYS Low-code continuing to democratise developmentNew tools are enabling businesses to deliver flexibly and at the pace demanded by modern agile environmentsLow-code solutions have reduced development friction,making non-technical users“citizen developers”Low-code/
11、no-code refers to methodologies of developing applications using intuitive drag and drop tools that reduce or eliminatethe need for traditional developers who write code Equipping both IT developers and non-IT personnel(“citizen developers”)with tools to develop is core to the low-code philosophy.It
12、 is predicted that by 2026 developers outside formal IT departments will account for at least 80%of the user base for low-code development tools,up from 60%in 2021(1)While democratised development has distinct advantages,for example increased productivity,faster time-to-market,and the ability to add
13、ress a wider range of business needs,associated challenges include ensuring quality and security of applications,managing the proliferation of applications across organisations,and governance/compliance(2)Proliferation of the low-code landscape has resulted in a broad range of technical solutions fr
14、om both global incumbents and specialist players,among them Microsoft,Oracle and Pega,and Outsystems,Mendix and Quickbase respectively Several trends are accelerating low-code utilisation,including adoption by regulated industries,expansion into more complex applications,integration with data analyt
15、ics and BI tools,and growing adoption by larger enterprises as tools are becoming more scalable and secure(2).At the other end of the spectrum,low-code is highly relevant for SMBs as they grapple with enterprise solutions that dont meet their needs and a challenging talent environment in a world tha
16、t is demanding digital maturity(3)A widening skills gap and economic pressures are underscoring the need for operational optimisationLow-code capability valued highly with strong client demand in a fast-growing multi-billion-dollar market The global low-code development technologies market is foreca
17、st to be worth$32bn by 2024,growing strongly at a CAGR of 20%.Of this market,low-code application platforms are set to represent the largest and fastest-growing share,accounting for$12.5bn in 2024,followed by Integration Platform as a Services(iPaaS)at$8bn(3)Several recent transactions have highligh
18、ted the demand from consolidators for low-code expertise,most recently valanticsacquisition of OutSystems partner Do iT Lean,strengthening their foothold in the DACH region and adding an agile project management methodology based on Scrum with high-quality low-code software development In 2022,Globa
19、nt became one of the first major incumbents to invest in low-code technology by acquiring GeneXus a 150 team of low-code specialists with strength in LatAm and Asia.Similarly,in 2021,IT consultancy Xebia acquired low-code consulting and technology firm Appcino,augmenting their global low-code capabi
20、lity.Xebia CEO,Anand Sahay,commented:“Low-code platforms are game changers in the enterprise software application industry and have a strong future in bringing business agility”Sources:(1)Gartner-Gartner Forecasts Worldwide Low-Code Development Technologies Market to Grow 20%in 2023(Dec-22),(2)The E
21、CM Consultant:7 Incredible Low Code Trends To Watch in 2023(May-23),(3)Accenture:Technology democratization for smaller companies(Sep-21)About usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysACQUIRED BYACQUIRED BYSelect transactionsACQUIRED BY4Q2 2023 Digital Serv
22、ices sector updateGP BULLHOUNDS SECTOR TAKEAWAYS Continuous development in VFX is pioneering innovation in digitalVFX is revolutionising the way that brands think about digital marketing Future growth of VFX is expected from advances in technology and strategic M&A One key driver for the growth in V
23、FX has been the advancement of technology.More recently,specialist AI and machine learning-powered tools are enabling creative studios to simplify and streamline the VFX production process.As AI in VFX advances,we can expect increased speed and quality of visual effects,greater accessibility to the
24、tool,with wider audienceuse cases spurring increased innovation in tv,film and advertising Separately,consolidation through M&A has also driven growth in the space.Recent examples of this include London-based FutureDeluxe coming together with Canada-based Tendril to create Forever,a global design of
25、fering which uses VFX,animation and technology to tell transformational stories for leading organisations.The acquisition has allowed private equity backed FutureDeluxe to strategically align with a high-quality operator to accelerate global expansion,with offices in the UK,US,Canada,Brazil and Aust
26、ralia,while still catering for the premium segment of the market Other deals such as ENVYs acquisition of Absolute Post or NextStage AMs investment in Mathematic Studio also reflect the ongoing interest in the space,shining a light on further M&A expected in the futureSource:EMR Research,ThunderTech
27、About usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysACQUIRED BYACQUIRED BYINVESTMENT BYSelect transactions Visual effects(VFX),once considered an exclusive art only available for big-budget Hollywood productions,is increasingly becoming a necessity within digita
28、l marketing.Blue-chip brands such as Apple,Microsoft and Nike are seeking new ways to capture their audiences attention,leveraging on innovative creative design studios with VFX capabilities to fulfill this need VFX in advertising involves the use of computer-generated images(CGI)and other digital e
29、ffects to enhance or transform an advertisements visual appearance.It can range from subtle adjustments,like colour gradient,to more complex effects like adding CGI or compositing multiple shots to create a seamless sequence VFX has continued to grow in popularity with the current market size at$9.9
30、5bn in 2022,and likely to grow at a CAGR of 10.4%to reach over$18.02bn by 2028.It is likely that the advertising segment of this spend will grow even faster at a CAGR closer to 15%per annum Landmark use cases of VFX range from key-note films produced for Apples annual new iPhone releases to Coca-Col
31、as Taste the Feeling campaign which used VFX to create a series of ads featuring surreal,dream-like sequences to promote the drink.With VFX being both technical and specialist by nature,typical use cases are usually from premium brands who are willing to pay apremium price for high-quality outputs 5
32、Q2 2023 Digital Services sector updateGP BULLHOUNDS SECTOR TAKEAWAYS Composable reshaping Digital ExperiencesDigital services providers will need to help clients develop customised and nimble enterprise systemsGrowing push towards commerce and content systems that are more flexible,effective and ada
33、ptable Customer experience expectations and needs are rapidly changing in a digital-first omnichannel environment.As such,traditional monolithic platforms(merce and content)are rapidly being supplemented with highly-flexible best-of-breed composable platforms Composable is similar to headless techno
34、logy that separates front-end from back-end systems and communicates via APIs,but goes further by breaking down the back-end into microservices,allowing best-in-class optionality for functions such as ERP,payments,PIM,and CRM A composable infrastructure offers several key advantages,including:Flexib
35、ility:Quickly allocate resources based on application requirements,adjusting the composition as needed Scalability:Resources can be easily scaled up or down based on workload,leading to efficient resource utilisation Alignment with DevOps:Composable infrastructure adheres to the principles of DevOps
36、,which combines software development and operations.The programmability of composable systems simplifies continuous integration and deployment processes Composable architecture enables both hybrid and multi-cloud environments,providing a consistent and flexible infrastructure layer across different
37、cloud platformsGrowing funding and M&A activity around composable architecture and related digital servicesThe race towards composable infrastructure:industries poised for transformation The composable application market size is estimated at$5.2bn in 2023 and likely to reach$11.8bn by 2028,at a CAGR
38、 of 17.5%(1)Commercetools,one of the original and leading composable architecture providers,last raised$140m at a valuation of$1.9bn in late 2021.Major investments in 2022 included Shopifys investment in Sanity,and Contentstack raising$80m,bringing the total funding to$169m 2023 has seen M&A activit
39、y in the sector,including the acquisition of Unstack by Elastic Path,the acquisition of Gatsby by Netlify,and on the services side,the acquisition of Corra by Publicis Sapient to bolster the buyers offerings in ecommerce with composable solutionsNote:(1)Composable Applications Global Market Report 2
40、023:Increased Demand for App Development Boosts GrowthACQUIRED BYACQUIRED BYACQUIRED BYINVESTMENT BYAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysSelect transactions6Q2 2023 Digital Services sector updateA LEADING TECHNOLOGY ADVISORY AND INVESTMENT FIRM,PR
41、OVIDING TRANSACTION ADVICE AND CAPITALGP Bullhounds recent Digital Services activityAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysAdvisoryACQUIRED BYACQUIRED BYINVESTMENT ININVESTMENT BYACQUIRED BYACQUIRED BYACQUIRED BYACQUIRED BYINVESTMENT BYINVESTMENT BY
42、INVESTMENT INACQUIRED BY7Q2 2023 Digital Services sector updateNOTABLE DIGITAL SERVICES M&A DEALS&PRIVATE FINANCINGSNotable transactions from Q2 2023Sources:Pitchbook,Capital IQ and MergerMarket(as of 30 June 2023),GP Bullhound intelligenceAbout usPublic comparablesTransaction trendsPublic company a
43、nalysesCEO commentaryTakeawaysDeal dateGeography of targetTargetBuyer/investorTarget descriptionDeal value($m)Implied EV/LTM RevImplied EV/LTM EBITDAJun-23N AmericaREQ,Inc.Trinity Hunt Partners,L.P.Digital marketing and brand managementn.a.n.a.n.a.Jun-23EuropeApp development agencyn.a.n.a.n.a.Jun-23
44、N AmericaMajorityWPP plc(LSE:WPP)Digital marketing agencyn.a.n.a.n.a.Jun-23AsiaPencil Technologies Pte.Ltd.The BrandtechGroup LLCCreative AI advertising platformn.a.n.a.n.a.Jun-23N AmericaCreator development networkn.a.n.a.n.a.Jun-23EuropeAgyla.CloudIBMCyber-security,cloud computing,and IT consultan
45、cyn.a.n.a.n.a.Jun-23N AmericaThe KinetixGroupPetauriHealth,LLCDigital marketing servicesn.a.n.a.n.a.Jun-23N AmericaNew Tradition Media,LLCBlackstoneOutdoor advertising/marketing agencyn.a.n.a.n.a.Jun-23EuropeMSQ PartnersOEP Capital Advisors,L.P.Digital advertising agency and consultancyn.a.n.a.n.a.J
46、un-23N AmericaCorraTechnology,Inc.Publicis Groupe S.A.Digital marketing agencyn.a.n.a.n.a.Jun-23EuropeSAS EquancyAssociesMontefiore Investment,SA;Trocadero Capital Partners SAS;European Digital GroupIT-focussed consultancyn.a.n.a.n.a.Jun-23N AmericaNextiraAccenture plc(NYSE:ACN)Cloud migration,AI/ML
47、,and IT consultancyn.a.n.a.n.a.Jun-23EuropeJellyfish Group LimitedThe Brandtech Group LLCDigital marketing agencyn.a.n.a.n.a.May-23AsiaBourneDigital Pty LtdAccenture plc(NYSE:ACN)App development service providern.a.n.a.n.a.May-23N AmericaLeverage Marketing,Inc.Hawke Media Ventures,LLCOnline marketin
48、g and web media companyn.a.n.a.n.a.May-23S AmericaGreen DomusAccenture plc(NYSE:ACN)IT&ESG consultancyn.a.n.a.n.a.May-23EuropePentalogFrance S.A.Globant S.A.IT outsourcing provider and consultancyn.a.n.a.n.a.May-23EuropeWhyaye Ltd.Ernst&Young LLPBusiness process consultancyn.a.n.a.n.a.8Q2 2023 Digit
49、al Services sector updateNOTABLE DIGITAL SERVICES M&A DEALS&PRIVATE FINANCINGSNotable transactions from Q2 2023About usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysDeal dateGeography of targetTargetBuyer/investorTarget descriptionDeal value($m)Implied EV/LTM RevI
50、mplied EV/LTM EBITDAMay-23EuropeG2k Group GmbhServiceNow,Inc.(NYSE:NOW)IT research company and consultancyn.a.n.a.n.a.May-23S AmericaAgencia KTBO,S.A.de C.V.Globant S.A.(NYSE:GLOB)Digital advertising agencyn.a.n.a.n.a.May-23EuropeObjectivity Ltd.Accenture plc(NYSE:ACN)Value-driven IT outsourcing par
51、tnern.a.n.a.n.a.May-23EuropeCloud Stratex LtdBrillio,LLCIT consulting and services companyn.a.n.a.n.a.May-23N AmericaKivvit,LLCElmendorf|Ryan LLCBrand and digital strategy agencyn.a.n.a.n.a.Apr-23EuropeEinr ASAccenture plc(NYSE:ACN)Digital consultancy and advisoryn.a.n.a.n.a.Apr-23EuropeIn the Compa
52、ny of HuskiesForsman&BodenforsDigital marketing and advertising agencyn.a.n.a.n.a.Apr-23N AmericaPervicta,LLCMCA Connect,LLCData consultancy incl.data strategy and modellingn.a.n.a.n.a.Apr-23N AmericaExperienceIT LLCGlobant S.A.(NYSE:GLOB)Digital transformation consulting firmn.a.n.a.n.a.Apr-23Europ
53、eamp GmbHLandor&FitchSonic branding businessn.a.n.a.n.a.Apr-23N AmericaCandorPublic RelationsSalient GlobalIT and business consulting servicesn.a.n.a.n.a.Apr-23N AmericaAhanaCloud,Inc.IBMBusiness intelligence platformn.a.n.a.n.a.Apr-23EuropeFGS Global(UK)LimitedKKR&Co.Inc.IT and business advisoryn.a
54、.n.a.n.a.Apr-23EuropeDark Horses LimitedTBWA Worldwide Inc.Digital sports marketing agencyn.a.n.a.n.a.Apr-23N AmericaNoise Digital,Inc.Havas Media France SAMedia performance and data analytics companyn.a.n.a.n.a.Apr-23EuropeBNZSA Spain SLAnteriad LLCDigital marketing agencyn.a.n.a.n.a.Apr-23N Americ
55、aThe MYND GroupFingerpaint Marketing,Inc.Strategic market access and marketing services n.a.n.a.n.a.Apr-23EuropeThe Data Shed LimitedHippo Digital LimitedData consultancyn.a.n.a.n.a.Sources:Pitchbook,Capital IQ and MergerMarket(as of 30 June 2023),GP Bullhound intelligence9Q2 2023 Digital Services s
56、ector updateGLOBAL DIGITAL SERVICES TRANSACTION TRENDSSignificant drop in deal volumes&value in Q2 2023 deals,in line with 2020Source:Capital IQ(as of 30 June 2023)Note:Data includes all Digital Services M&A and private placement deals as defined by Pitchbook regardless of geography;”Other”includes
57、Africa,Oceania,South/Central America,and the Middle EastAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways9564828879936358606442434327363229392833373540341671316
58、10710168Q218Q318Q418Q119Q219Q319Q419Q120Q220Q320Q420Q121Q221Q321Q421Q122Q222Q322Q422Q123Q223US&CanadaEuropeAsiaOther18.011.14.74.69.08.95.43.74.210.68.415.07.98.46.917.85.97.93.12.60.7320295929252329502002503003504000510152
59、02530354045Q218Q318Q418Q119Q219Q319Q419Q120Q220Q320Q420Q121Q221Q321Q421Q122Q222Q322Q422Q123Q223Total value($bn)Total volumeTransaction deal value and number of M&A dealsM&A deal volume by geography10Q2 2023 Digital Services sector update986543322211Accenture plcWPP plcPublicis Groupe S.A.
60、Globant S.A.Dentsu Group Inc.International Business Machines CorporationThe Brandtech Group LLCDeloitte Touche Tohmatsu LimitedOmnicom Group Inc.The 20 MSPAlten S.A.Cognizant Technology Solutions CorporationDept Holding B.V.Ernst&Young Global LimitedHakuhodo DY Holdings IncHappy Horizon B.V.HP Inc.I
61、nfosys LimitedNorth AlliancePricewaterhouseCoopers International LimitedThe Interpublic Group of Companies,Inc.Thoughtworks Holding,Inc.Tinuiti Inc.GLOBAL DIGITAL SERVICES TRANSACTION TRENDSAccenture returned to being the most active acquirer in Q2 2023Source:Capital IQ(as of 30 June 2023)About usPu
62、blic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysConsultanciesIT servicesMarketing agenciesDigital ChallengersAdvertise BGGlassandCoUpside Down Media11Q2 2023 Digital Services sector update7 91523GLOBAL DIGITAL SERVICES TRANSACTION TRENDSMarketing agency group activity
63、 remains high with WPP,Publicis and Dentsu remaining significantly activeSource:Capital IQ(as of 30 June 2023);Note:(1)GPB index buyers and selected key private consolidatorsAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways2023 YTD transaction activity by buy
64、er group(1)17141077ConsultanciesMarketing agencies2023 YTD number of M&A deals by target geographyDigital ChallengersIT Services12Q2 2023 Digital Services sector updateGP BULLHOUND DIGITAL SERVICES INDEX PERFORMANCEGP Bullhound Digital Services index market capitalisation spreadSource:Cap
65、ital IQ(as of 30 June 2023)About usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways20,00518,98414,89311,1868,6183,837917852121,50639,19033,12825,97424,58019,46118,73513,01412,83112,1337,5975,6305,3813,2672,9441,566194,651147,23667,34032,57214,6186,9194,2372,9032,395
66、2,3372,053050,000100,000150,000200,000250,000Accenture plcTata Consultancy Services LimitedInternational Business Machines CorporationInfosys LimitedHCL Technologies LimitedCognizant Technology Solutions CorporationCapgemini SEWipro LimitedCGI Inc.Publicis Groupe S.A.NTT DATA Group CorporationOmnico
67、m Group Inc.LTIMindtree LimitedThe Interpublic Group of Companies,Inc.Booz Allen Hamilton Holding CorporationEPAM Systems,Inc.NEC CorporationTech Mahindra LimitedWPP plcDentsu Group Inc.Globant S.A.Genpact LimitedDXC Technology CompanyAlten S.A.Reply S.p.A.Hakuhodo DY Holdings IncTietoEVRY OyjEndava
68、 plcPerficient,Inc.Thoughtworks Holding,Inc.ICF International,Inc.Netcompany Group A/SAtos SES4 Capital plcNext 15 Group plcMarket Cap($m)ConsultanciesIT servicesMarketing agencies13Q2 2023 Digital Services sector update8.0 x9.0 x10.0 x11.0 x12.0 xDec-17Jul-18Feb-19Aug-19Mar-20Sep-20Apr-21Oct-21May-
69、22Dec-22Jun-23GP BULLHOUND DIGITAL SERVICES INDEX PERFORMANCEValuations for GP Bullhounds Digital Services listed index remain around the 5-year average but have trended down since Q123Source:Capital IQ(as of 30 June 2023)About usPublic comparablesTransaction trendsPublic company analysesCEO comment
70、aryTakeawaysNTM EV/EBITDA as of 31 March:10.2x5Y mean:10.3xDigital Services index rolling three-month average NTM EBITDA14Q2 2023 Digital Services sector update7585955145Dec-22Feb-23Mar-23Apr-23May-23Jun-23GPB Digital Services indexS&P 500FTSE 00150160170Jun-22Sep-22
71、Dec-22Mar-23Jun-23859095530-May-236-Jun-2313-Jun-2320-Jun-2327-Jun-2380900Apr-23May-23Jun-23GP BULLHOUND DIGITAL SERVICES INDEX PERFORMANCEContinued share price recovery in Q2 2023Source:Capital IQ(as of 30 June 2023)About usPublic comparablesTransaction trendsPublic company an
72、alysesCEO commentaryTakeaways3.3%5.8%4.4%10.4%8.3%21.6%16.0%15.9%37.6%16.0%17.6%59.5%L1ML6ML3ML12M15Q2 2023 Digital Services sector updateGP BULLHOUND DIGITAL SERVICES INDEX PERFORMANCEMargins continue to remain steady across categoriesSource:Capital IQ(as of 30 June 2023)About usPublic comparablesT
73、ransaction trendsPublic company analysesCEO commentaryTakeawaysCY2023 EBITDA margins23%22%19%19%17%17%13%8%25%23%22%21%20%19%18%17%17%16%16%15%14%13%11%10%26%24%23%19%18%18%17%16%14%11%11%Tata Consultancy ServicesInternational BusinessInfosys LimitedPerficient,Inc.Endava plcNext 15 Group plcPublicis
74、 Groupe S.A.HCL Technologies LimitedGlobant S.A.CGI Inc.WPP plcWipro LimitedThe Interpublic Group ofGenpact LimitedLTIMindtree LimitedAccenture plcNetcompany Group A/SDentsu Group Inc.Cognizant TechnologyEPAM Systems,Inc.Thoughtworks Holding,Inc.Omnicom Group Inc.TietoEVRY OyjReply S.p.A.DXC Technol
75、ogy CompanyTech Mahindra LimitedCapgemini SENTT DATA Group CorporationS4 Capital plcAlten S.A.NEC CorporationICF International,Inc.Booz Allen Hamilton HoldingAtos SEHakuhodo DY Holdings IncConsultancies mean:17.8%Marketing agencies mean:17.3%IT services mean:17.3%Overall mean:17.5%16Q2 2023 Digital
76、Services sector updateLEADING COMPANIES AND CEOS TRANSFORMING THE SECTORJosh Rosen,PresidentAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysPRESIDENT HOTSPEX MEDIA Josh RosenHotspex Media,based in Canada,is a digital media buying and planning agency offering
77、programmatic,social media,SEO and retail media services.It is the#1 ranked mediabuying and planning agency,as reviewed by clients on Clutch.co,and was named among Ad Age s best places to work.“Hotspex Media was created on a simple premise:define what will move a business outcome,and then what techno
78、logy is best suited to deliver that.We find this agnostic approach differentiates us from other firms that bring a technology and media platform they know,and then try to fit a strategic media plan into that.We have developed unique processes to optimise existing media platforms we deliver improved
79、and better buying methods,tracking,measurement,audience identification and reporting visualisation.We have developed a unique proprietary platform called ReticleAI a first of its kind,privacy compliant solution that delivers emotional alignment of a brand within the contextual signals of the content
80、 it is appearing in front of.Reticle lives at the intersection of insights and programmatic advertising,giving its user the ability to truly connect both sides of their marketing strategies.The AI-based platform can be deployed quickly through existing tech stacks and leverage existing plans and bud
81、gets.The effectiveness of emotional targeting has been proven to result in increased ad recall,ad attention and overall boosting of consideration/intent.Overall Hotspex Media takes a differentiated bottoms-up approach that understands customer needs and constructs strategic campaigns that accurately
82、 tag,track and extrapolate data.”SELECT CLIENTS17Q2 2023 Digital Services sector updateLEADING COMPANIES AND CEOS TRANSFORMING THE SECTORAllan Peretz,Co-founder and CEOAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysBold Strategies is an ecommerce marketing
83、and consulting agency that enables consumer packaged goods(CPG)brands to accelerate e-retail,DTC and omnichannel growth while building brand equity.The company provides the Strategy,Creative,Web Development,and Media capabilities that brands need to sell on their own direct-to-consumer(DTC)websites
84、and on major marketplaces.SELECT CLIENTSCO-FOUNDER AND CEO BOLD STRATEGIESAllan Peretz“Bold Strategies is solving for the lag in next-generation marketing strategies and technologies within the consumer-packaged goods(CPG)industry.CPG marketing is still very much based on brand management and creati
85、ve strategies,but without a focus on optimisation we are working to change that culture.Brands are faced with an abundance of choice for retail strategies and marketing we help them make analytics-based decisions on which two or three channels will be most effective(for emerging brands)or how to bes
86、t allocate spending across multiple channels(for larger,established brands).Two out of three new products fail.So,we are developing a unique software platform called TestPilotTM to test new products using machine learning to analyse large amounts of data from the test market to help brands develop a
87、n optimised marketing strategy including channel strategy,pricing,creative and shopper insights.Retail media networks are an amazing opportunity to leverage high value data.Looking ahead,Bold will help clients utilise their vast first party data sets to create highly-personalised marketing not just
88、traditional direct media,but with media such as personalised websites or apps that will deliver profitable growth while building and enhancing brand equity.”18Q2 2023 Digital Services sector updateLEADING COMPANIES AND CEOS TRANSFORMING THE SECTORTom Rowley,Co-Founder and CEOAbout usPublic comparabl
89、esTransaction trendsPublic company analysesCEO commentaryTakeawaysStripe Partners is an innovation consultancy specialising in the technology space.The team is made up of data scientists,anthropologists and designers addressing clients challenges in the field of artificial intelligence and beyond.SE
90、LECT CLIENTSCO-FOUNDER AND CEO STRIPE PARTNERSTom Rowley“Stripe Partners excels in working with teams in technology-led businesses to identify where to play next,clarify what they should be building and pinpoint how to scale their offers globally.The shift to products and services powered by AI is p
91、utting more pressure on development teams than ever before.Moving fast and breaking things does not work as an approach when the products you are building need to mesh deeply into all aspects of peoples personal and working lives.The pace and depth of change mean that standard data-driven research a
92、pproaches do not provide the nuance required to make them useful in the development process.As the AI age pushes at long-established boundaries between people and machines,the industry needs to embrace new ways of understanding their users current and future worlds.Our collaborative approach combine
93、s social science,data science and design to help teams to rapidly translate complex human,social and cultural phenomena into understanding and models that inspire product teams to build the right things,first-time.”19Q2 2023 Digital Services sector updateLEADING COMPANIES AND CEOS TRANSFORMING THE S
94、ECTORSam Foroozesh,Co-Founder and CEOAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysCure Media is an influencer marketing company for fashion brands.Its data-driven approach to influencer selection combines analytics and creativity to help clients strengthe
95、n their brand,drive sales and expand into new markets.SELECT CLIENTSCO-FOUNDER AND CEO CURE MEDIASam Foroozesh“We have focused on optimising our solution specifically for big legacy brands within lifestyle,fashion,home,beauty and pharmacies.Our main expertise lies within supporting these types of br
96、ands in pinpointing what role creators should have in the media mix to support overall business goals,as well as implement and execute on the strategy to maximise brands success.We see a huge opportunity for brands within that field to develop their market position toward the audience of women betwe
97、en 16-45 years old,which is our main consumer.We believe that people want to be inspired by likeminded peers.We founded Cure Media in 2014 with the aim to change the face of marketing by making it more efficient and result-focused for consumer brands to use influencers and creators in their communic
98、ation.Weve been focusing on AI since 2018.Today,we operate in the UK,Germany and the Nordics,where we are a leading player,but our goal is to be No.1 in Europe.”20Q2 2023 Digital Services sector updateGP BULLHOUND DIGITAL SERVICES INDEX PUBLIC COMPARABLESPublic comps GP Bullhound Digital Services in
99、dexSource:Capital IQ(as of 30 June 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from average calculationsAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysShare price(USD)52 Week High%of 52 Week Hi
100、ghMkt CapEVRevenue MultipleEBITDA MultipleEBITDA MarginCompany Name30-Jun-23(USD)%(USD)(USD)CY2019CY2020CY2021CY2022CY2023CY2024CY2022CY2023CY2024CY2022CY2023CY2024RevenueEBITDAOmnicom Group Inc.95.297.298%18,98423,0301.5x1.7x1.6x1.6x1.6x1.5x9.7x9.4x9.0 x16.7%16.6%16.9%3.2%3.9%Publicis Groupe S.A.80
101、.285.194%20,00522,0901.8x1.8x1.7x1.4x1.5x1.5x8.3x6.8x6.5x16.7%22.4%22.5%(2.8%)12.7%WPP plc10.513.776%11,18617,7551.0 x1.1x1.1x0.9x1.1x1.1x8.5x5.8x5.6x11.1%19.1%19.0%(6.4%)22.5%The Interpublic Group of Companies,Inc.38.641.094%14,89317,7902.1x2.2x2.0 x1.9x1.8x1.8x10.1x9.7x9.3x18.7%18.9%18.9%3.5%4.2%D
102、entsu Group Inc.32.634.395%8,6189,7161.3x1.4x1.2x1.1x1.0 x1.0 x5.6x6.0 x5.2x19.4%17.5%19.2%4.0%3.4%Hakuhodo DY Holdings Inc10.511.393%3,8373,6330.3x0.4x0.5x0.5x0.5x0.4x6.1x6.2x6.0 x8.6%8.0%6.6%14.4%0.4%S4 Capital plc1.63.251%9171,1234.0 x2.5x1.2x0.8x0.7x0.6x7.8x5.4x4.5x10.3%13.5%14.4%11.7%32.1%Next
103、15 Group plc8.614.361%8528732.2x2.1x1.4x0.9x1.1x1.0 x6.5x4.6x4.3x14.1%22.8%23.0%(3.8%)22.9%International Business Machines Corporation133.8153.287%121,506165,8562.9x3.1x2.9x2.8x2.7x2.6x13.4x10.8x10.2x20.7%24.7%25.2%3.7%14.5%HCL Technologies Limited14.514.599%39,19037,3233.9x3.7x3.3x3.0 x2.8x2.6x14.2
104、x12.5x11.4x21.2%22.4%22.7%8.1%11.7%Cognizant Technology Solutions Corporation65.370.992%33,12832,1541.9x1.9x1.7x1.7x1.7x1.6x9.0 x9.7x8.9x18.3%17.0%17.7%2.5%0.7%NTT DATA Group Corporation13.915.092%19,46136,5772.2x2.2x2.0 x1.6x1.2x1.2x10.7x8.9x8.1x15.3%13.7%14.5%17.7%14.5%Wipro Limited4.75.487%25,974
105、23,2303.2x3.1x2.6x2.2x2.0 x1.9x12.1x10.6x9.8x17.8%19.0%19.4%6.7%11.1%EPAM Systems,Inc.224.8463.049%13,01411,3935.0 x4.3x3.0 x2.4x2.4x2.2x14.6x14.4x12.8x16.2%16.9%17.6%2.5%6.7%NEC Corporation48.249.198%12,83116,0270.7x0.7x0.7x0.7x0.7x0.6x6.8x6.0 x5.7x10.2%11.1%11.4%4.0%9.9%Tech Mahindra Limited13.814
106、.297%12,13311,6662.6x2.5x2.3x1.9x1.7x1.6x13.3x11.9x10.7x13.9%14.6%15.2%7.1%11.7%Endava plc51.8115.945%2,9442,7766.7x5.5x3.8x2.8x2.6x2.3x16.0 x11.5x9.4x17.6%22.9%24.4%10.5%30.0%LTIMindtree Limited63.365.397%18,73517,98814.3x12.2x10.1x7.0 x4.1x3.6x40.7x22.5x17.8x17.1%18.3%20.0%39.7%50.9%TietoEVRY Oyj2
107、7.633.483%3,2673,9592.0 x1.3x1.2x1.2x1.2x1.2x10.2x7.3x6.6x11.8%16.4%17.3%2.3%23.8%CGI Inc.105.5107.598%24,58026,5222.9x2.9x2.9x2.6x2.4x2.3x15.1x12.0 x11.4x17.5%19.8%20.0%7.7%15.2%DXC Technology Company26.732.084%5,6309,4600.5x0.5x0.6x0.6x0.7x0.7x3.5x4.2x3.9x18.2%15.8%16.7%(1.3%)(5.3%)Globant S.A.179
108、.7240.075%7,5977,49011.4x9.2x5.8x4.2x3.6x3.0 x25.6x17.4x14.4x16.4%20.8%20.7%18.8%33.2%Alten S.A.157.5176.090%5,3815,1841.8x2.0 x1.6x1.2x1.1x1.0 x11.3x8.8x8.1x10.8%12.6%12.6%9.5%18.3%Atos SE14.317.283%1,5664,3510.3x0.3x0.4x0.3x0.4x0.4x6.1x3.4x3.2x5.6%10.3%11.1%(1.8%)37.5%Accenture plc308.6327.994%194
109、,651189,9374.3x4.2x3.5x3.0 x2.9x2.8x18.0 x16.4x14.7x17.0%17.8%18.8%4.9%10.5%Tata Consultancy Services Limited40.243.692%147,236142,7217.6x7.3x6.3x5.4x4.8x4.4x21.0 x18.4x16.7x25.7%26.3%26.6%10.4%12.3%Infosys Limited16.320.480%67,34066,0795.2x5.0 x4.2x3.7x3.5x3.2x15.9x14.6x13.1x23.2%24.1%24.6%6.7%10.0
110、%Capgemini SE189.5211.490%32,57236,6822.3x2.1x1.8x1.5x1.4x1.3x11.0 x9.9x9.0 x13.5%14.3%14.8%5.6%10.7%Booz Allen Hamilton Holding Corporation111.6112.599%14,61817,2652.4x2.2x2.1x1.9x1.7x1.6x20.4x16.2x15.5x9.3%10.7%10.6%7.8%14.7%Genpact Limited37.648.977%6,9198,0672.3x2.2x2.0 x1.8x1.7x1.6x11.7x9.4x8.3
111、x15.8%18.5%19.0%7.8%18.2%Perficient,Inc.83.3110.376%2,9033,2855.8x5.4x4.3x3.6x3.4x3.2x18.1x14.7x13.4x20.0%23.3%23.8%6.8%16.4%Thoughtworks Holding,Inc.7.617.443%2,3952,6323.4x3.3x2.5x2.0 x2.1x1.8xn.m.12.4x10.2xn.m.16.7%17.9%5.4%n.a.Netcompany Group A/S41.461.467%2,0532,3196.3x5.4x4.2x2.8x2.5x2.2x15.6
112、x14.2x12.1x17.8%17.7%18.5%11.4%13.7%Reply S.p.A.113.6154.873%4,2374,1633.1x3.0 x2.5x2.0 x1.7x1.6x12.0 x10.8x9.8x16.3%15.8%15.9%12.3%11.0%ICF International,Inc.124.4128.797%2,3373,1512.1x2.1x2.0 x1.8x1.6x1.5x18.9x14.7x13.5x9.4%10.8%10.9%9.5%18.1%Mean all83%3.2x2.9x2.4x2.1x1.9x1.8x13.2x10.8x9.7x15.7%1
113、7.5%18.0%7.1%15.4%Median all90%2.2x2.2x2.0 x1.9x1.7x1.6x11.8x10.6x9.4x16.6%17.5%18.5%6.7%13.2%CY2022-CY2024 CAGR21Q2 2023 Digital Services sector updateMethodologyAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysThis report is based on the expert insights of
114、GP Bullhounds worldwide team alongside detailed analysis of investment trends across the global technology landscape.GP Bullhounds Digital Services sector focuses on the full spectrum of digital and marketing services categories,including digital transformation,digital agencies,marketing technology
115、services,data analytics,digital media services,healthcare marketing,and CRM/customer acquisition,among others.Greg SmithPARTNERRavi GhediaEXECUTIVE DIRECTORSimon NichollsPARTNERAlec DaffernerPARTNEROliver SchweitzerEXECUTIVE DIRECTORAdam BirnbaumEXECUTIVE DIRECTORRory KimelANALYSTTom GilbrideASSOCIA
116、TEBased in our London and New York offices respectively,Simon Nicholls and Greg Smith head up our Digital Services practice with over 50+years of experience and have completed over 100 transactions for digital services companies globally.GP Bullhounds Digital Services teamRobbie LenigasANALYSTFreddi
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