1、DIGITAL SERVICESNEW YORK|LONDON|PARIS|MUNICH|SAN FRANCISCO LOS ANGELES|BERLIN|DUBAI|SINGAPOREOCTOBER 2022INDUSTRY UPDATEQ3 2022CHRISTOPHE CHRISTOPHE MORVANMORVANMANAGING PARTNER GABY GABY SILVESTRISSILVESTRISPARTNERRALF PHILIPP RALF PHILIPP HOFMANNHOFMANNMANAGING PARTNER&MEMBER OF THE EXCOMSAM LEVYS

2、AM LEVYPARTNEROUR QUARTERLY DIGITAL SERVICES NEWSLETTERThe DrakeStar Global Digital Services team is pleased to present the 5thedition of our quarterly Digital Services Report,providing updates on industry happenings such as important news and events,mergers and acquisitions activity and insights in

3、to the present and future trends impacting major areas of investment within the industry,including:DIGITAL TRANSFORMATION CLOUD MIGRATIONTECH-ENABLED IT SERVICES CLOUD PROVIDERSSECURITY SERVICESBUSINESS INTELLIGENCE2RALF PHILIPP HOFMANN RALF PHILIPP HOFMANN MANAGING PARTNER&MEMBER OF THE EXCOM+49 17

4、3 3930070CHRISTOPHE MORVANCHRISTOPHE MORVANMANAGING PARTNER+33 6 87 99 05 37GABY SILVESTRISGABY SILVESTRISPARTNER+44 777 305 2247 CONTACT THE DIGITAL SERVICES TEAMSAM LEVYSAM LEVYPARTNER+1 646 245 3THE DRAKE VIEW FROM OUR INVESTMENT BANKERSRALF PHILIPP HOFMANN,MANAGING PARTNER&MEMBER OF THE EXCOMDes

5、pite the current macro-economic climate,the Digital Services industry continues to see momentum through Q3 2022.The current inflationary environment makes the investment case for technology and services which enhances productivity and optimises costs even more compelling;we have therefore seen an ov

6、erall shift in priority for digital transformation having a positive impact on the Digital Services vertical;with 365+M&A deals&$40bn+disclosed and 260+fundraises&$5bn+disclosed in Q3 20221,including;Fujitsu acquired Enable Professional Services for$150m NTT DATA Business Solutions acquired Natuvion

7、 for an undisclosed amount Accenture acquired Tenbu for an undisclosed amount Litmus raised$30m of Series B funding led by Belden team.blue raised$17m of growth funding from Hg Quantori raised$15m of development capital from Flint CapitalOverall,Digital Services are the foundation of tech industrys

8、growth and the vertical is ideally positioned to support companies in the coming months.Heading into Q4,I expect strong investor appetite for robust Digital Services companies with resilient business models.We particularly expect strong global demand for companies that are enabled by disruptive tech

9、nologies such as AI,and big data and analytics which drive significant revenue optimisation and operational efficiencies for their clients.(1)Drake Star Analysis based on M&A and Private Placement DIGITAL SERVICES KEY HEADLINES4SELECTED SUBSECTORSDIGITAL TRANSFORMATIONTECH-ENABLED IT SERVICESCLOUD M

10、IGRATIONEY announces alliance with Kyndryl to help organisations accelerate their digital transformation journeysKyndryl,Aug 17,2022NTT DATA acquires Natuvion to expand its SAP S/4HANA transformation expertiseNTT Data,Aug 31,2022Wavestone beefs up British division with double acquisition of Coeus Co

11、nsulting and Pen PartnershipConsultancy.eu,20 Sep,2022Changi Airport partners with Accenturefor traveller digital experience transformationConsultancy.asia,Sep 26,2022Google Cloud partners with Saudi Aramco to launch a new data centre in Saudi Arabia to serve the regionArab News,Sep 25,2022Malaysias

12、 Bank Islam chooses AWS as preferred cloud providerTechnode Global,Aug 1,2022The department of Veterans Affairs has awarded a$110m Service Desk IT deal to General Dynamics ITExecutiveGov,Sep 26,2022Arvest Bank teams up with Google Cloud to boost its digital transformationFintech Futures,Jul 22,2022C

13、apgemini named a leader of the year in banking and financial services,as well as insurance for IT servicesCapgemini,15 Jul,DIGITAL SERVICES KEY HEADLINES5SELECTED SUBSECTORSCLOUD PROVIDERSBUSINESS INTELLIGENCESECURITYSERVICESCapgemini helps France tax office reveal hidden swimming pools with AIArs T

14、echnica,Aug 30,2022With help from Microsoft,NBA unveils new reimagined appNBA,Sep 27,2022Tencent Music launches TME Business Intelligence for artists and labelsMusic Ally,Jul 13,2022Accenture Ranks No.1 in Cybersecurity Service Providers by HFS ResearchAccenture,Jul 19,2022Cloud storage startup Wasa

15、bi raises$250m to reach unicorn statusTechCrunch,Sep 27,2022Grand Theft Auto VI leak:Could this be the biggest hack in gaming history?Euronews,Sep 20,2022Vodafone picks Google Cloud for AI&ML at scaleCapacity,Jul 6,2022Oracle and Microsoft announceavailability of Oracle Database Service for Microsof

16、t AzureMicrosoft,Jul 20,2022SentinelOne Integrates with Proofpointfor Enhanced Ransomware ProtectionBusiness Wire,Aug 11,SELECTED M&A DEALS IN Q3 2022Source:Similar Web,Capital IQ,Pitchbook,LinkedIn,Company WebsitesNote:Drake Star did not act as financial advisor on transactions listed on this page3

17、65+DEALS AND$40BN+IN DISCLOSED DEAL ACTIVITY IN Q3 2022 DEAL DESCRIPTIONAccenture acquired Tenbu for an undisclosed amount.The acquisition will expand Accentures cloud first,data and AI offering in Latin America and globally.BUSINESS DESCRIPTIONProvider of IT and consulting services intended to supp

18、ort customers in the development and implementation of decision-making.The company offers services in big data,cognitive computing,business analytics,managed services and machine learning.KEY PERSONNELCarlos Pinto CEO2004151KEY SHAREHOLDERSAugust 1st,2022So Paulon.a.Business IntelligenceUndisclosedA

19、CQUISITION BYYear foundedEmployeesSub-sectorTotal Website VisitsDEAL DESCRIPTIONNTT DATA Business Solutions acquired Natuvion for an undisclosed amount.The acquisition will open new growth potential for NTT DATA Business Solutions in Cloud migration.BUSINESS DESCRIPTIONProvider of IT services to hel

20、p companies through the entire transformation and data privacy journey.The company offers cloud migration,platform transformation,IT security consulting,data warehouse,and other related services.KEY PERSONNELHolger Strotmann Co-Founder&Co-CEOPatric Dahse Co-Founder&Co-CEORoland Storbeck Co-Founder&H

21、ead of Transformation2014161KEY SHAREHOLDERSAugust 30th,2022Walldorfn.a.Cloud Migration&Security ServicesUndisclosedACQUISITION BYDEAL DESCRIPTIONFujitsu acquired Enable Professional Services.Through this acquisition Fujitsu will strengthen its ServiceNow advisory practice and delivery services acro

22、ss Asia Pacific.BUSINESS DESCRIPTIONEnable Professional Services is a certified ServiceNow partner and a pure-play ServiceNow consultancy.The company builds and implements leading solutions that improve the customer and employee experience,enabling businesses to create value at speed.KEY PERSONNELBr

23、uce Hara Founder&CEOPaul Thomason Director of Strategy&Innovation2014322KEY SHAREHOLDERSJuly 7th,2022Melbournen.a.Digital Transformation$150mACQUISITION BYSELECTED FUNDRAISING DEALS IN Q3 2022260+DEALS AND$5BN+IN DISCLOSED FUNDRAISING ACTIVITY IN Q3 2022Year foundedEmployeesSub-sectorTotal Website V

24、isitsDEAL DESCRIPTIONLitmus raised$30m of Series B funding led by Belden,putting the companys pre-money valuation at$140m.The funds will be used to expand go-to-market efforts&support enterprise customers globally BUSINESS DESCRIPTIONProvider of an intelligent edge computing platform and services fo

25、r IoT enabling out-of-the-box data collection,analytics,and management.The companys platform offers connectivity,data intelligence,and application enablement to improve operations at scale,enabling users to transform critical edge data into actionable intelligence.KEY PERSONNELVatsal Shah Co-Founder

26、&CEOSacha Sawaya Co-Founder&CFOJohn Younes Co-Founder&COO201360KEY SHAREHOLDERSSeptember 13th,2022San Jose472.4kBusiness Intelligence$30mPRIVATE PLACEMENTLED BY DEAL DESCRIPTIONQuantori received$15m of development capital from Flint Capital.BUSINESS DESCRIPTIONProvider of IT consulting and software

27、engineering services intended to help biopharma companies speed up the discovery of viable drug candidates to deliver new therapies to patients.The companys services include Data Science Engineering,Digital Transformation,Cloud Services and other related IT services.KEY PERSONNELRichard Golob CEOYur

28、iy Gankin Principal&Chief Scientific OfficerVitaliy Aronov CTO,Head of Global Delivery2018558KEY SHAREHOLDERSJuly 12th,2022Cambridge63.4kTech-enabled IT Services&Software$15mPRIVATE PLACEMENT DEAL DESCRIPTIONteam.blue received an investment of$17m from current investor Hg.The funding will be used to

29、 expand its online solutions product offering and increase its presence in Europe.BUSINESS DESCRIPTIONOperator of a digital transformation company intended to shape technology and empower businesses with digital services.The company offers digital presence and enablement tools such as domains,hostin

30、g,virtual private server and applications,thereby building platforms that serve as the basis for powerful digital services.KEY PERSONNELJonas Dhaenens Founder&PresidentClaudio Corbetta Group CEOKirk Barlow Group CTIO1999518KEY SHAREHOLDERSJuly 6th,2022Gent38.4kDigitalTransformation$17mPRIVATE PLACEM

31、ENT Source:Similar Web,Capital IQ,Pitchbook,LinkedIn,Company WebsitesNote:Drake Star did not act as financial advisor on transactions listed on this SELECTED DEALS IN Q3 2022EXCLUSIVELY ADVISED BY DRAKE STARYear foundedEmployeesSub-sectorTotal Website VSource:Similar Web,Capital IQ,Pitchbook,LinkedI

32、n,Company WebsitesDEAL DESCRIPTIONSynoptek,a leading global business and digital transformation advisory firm,was acquired by Quad-C Capital Management.Quad-Cs ownership will support continued organic and M&A expansion opportunities.BUSINESS DESCRIPTIONSynoptek is a global,full-service business and

33、digital technology solutions provider and advisory firm that helps companies envision,transform,and evolve.As a systems integrator and managed technology group,Synoptek partners with organisations globally,helping them navigate the ever-changing technology landscape and build solid tech foundations.

34、KEY PERSONNELTim Britt CEOJeremy Daum CFO2001993KEY SHAREHOLDERSSeptember 28th,2022Irvine36.9kDigital TransformationA PORTFOLIO COMPANY OFSALE TODEAL DESCRIPTIONCognodata announced the acquisition of part of its equity by Audensiel.The transaction will help Cognodata accelerate deployment of its adv

35、anced analytics AI platforms across Europe and LATAM.BUSINESS DESCRIPTIONCapitalising on its best-in-class ML skills and consulting expertise,Cognodata has developed a significant know-how in the implementation of business-oriented AI platforms for specific verticals.The highly skilled team of data

36、experts consultants process and analyse extensive data sets of clients to deliver business-driven directly-applicable solutions.KEY PERSONNELRaul Garcia Co-founder&CEOFernando Corbacho Co-Founder&Senior Partner2001200KEY SHAREHOLDERSOctober 5th,2022 Madrid23.9kDigitalTransformationSALE TOBizvalueDEA

37、L DESCRIPTIONICG,a leading PE firm with over$70bn AUM will partner with Exxeta by acquiring a significant minority stake.The partnership is expected to provide access to an international network and relevant markets.BUSINESS DESCRIPTIONProvider of consulting and digital services intended for connect

38、ing business and information technology.The company designs,builds and runs tailor-made services for ecosystems or business models,enabling its clients in the automotive,energy and financial services sectors to go live and be prepared for the market within the shortest period of time.KEY PERSONNELAn

39、dreas Ritter CEOAchim Kirchgaessner CGOPeter Heine CTO2005875KEY SHAREHOLDERSSeptember 12th,2022Karlsruhe20.2kDigitalTransformationRECAPITALISATIONB-30%-10%10%30%Jun-22Jul-22Aug-2267.2%18.7%18.6%-14.8%-22.4%-40.3%SHARE PRICES BROADLY DOWN VS.JUNE9WITH DIGITAL TRANSFORMATION SERVICES IN THE LEADTOP 3

40、 RISERS&FALLERS JULY-SEPTEMBER 20221Micro Focus share price(+67.2%)rose after Open Text Corp.agreed to acquire the digital transformation firm for 532 pence per shareAlteryxs share price(+18.7%)gained momentum as they exceeded consensus estimates for both revenue and earnings in Q2Rackspace Technolo

41、gys stock(-40.3%)fell as the company missed its Q2 targets and went through corporate changes,promoting its CFO as new CEOKEY HIGHLIGHTSTech-Enabled Services:AKKA,Elixirr,WavestoneDigital Transformation:Accenture,Capgemini,Cognizant,EPAM,Grid Dynamics,HCL,tcs,Tech Mahindra,Wipro Cloud Services:Mindt

42、ree,Rackspace,Splunk,SecureKloudCloud Providers:Alphabet,Cirtix,Dropbox,IBM,Microsoft,Oracle,Salesforce,SAP,Tencent,VMwareDigital TransformationTech-Enabled ServicesCloud ProvidersCloud ServicesNASDAQSource:Capital IQ as of September 29th2022Sep-UNPARALLED TRACK-RECORD IN THE DIGITAL SERVICES SPACE

43、10WE HAVE SUCCESSFULLY EXECUTED 40+DIGITAL SERVICES TRANSACTIONS IN THE PAST 5 YEARS*Denotes transactions led by current partners at Drake Star,prior to joining the firm*SALE TODigital SGLOBAL REACH COMBINED WITH LOCAL PRESENCE11ONE OF THE LARGEST TECH TEAMS WITH OVER 100 PROFESSIONALS IN THE US,EUR

44、OPE,AND MIDDLE EAST6countries+70%cross-border transactions9 offices3continents+100professionals+400transactionsNew YorkMunichLondonSingaporeDubaiBerlinParisSan FranciscoLos ADrakeStar is the marketing name for the global investment bank DrakeStar Limited and its subsidiaries and affiliates.In the US

45、A,all securities are transacted through Drake Star Securities LLC.In the USA,Drake Star Securities LLC is regulated byFINRAFINRAand is a member ofSIPCSIPC.Drake Star UK Limited(FRN 942020)is an appointed representative of Kession Capital Ltd(FRN582160),which is authorized and regulated by theFinanci

46、al Conduct AuthorityFinancial Conduct Authority.2022 DrakeStar Limited.This report is published solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy any security.The information herein is based on sources we believe to be reliable bu

47、t is not guaranteed by us and we assume no liability for its use.Any opinions expressed herein are statements of our judgment on this date and are subject to change without notice.All product and company names are trademarks or registered trademarks of their respective holders.Use of them does not imply any affiliation with or endorsement by them.BELIEVE IN INNOVATIONCHANGE THE WORLD