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UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
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Pursuant to Section 13 or 15(d)
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of the Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported)
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April 15, 2019
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The Ultimate Software Group, Inc.
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(Exact name of registrant as specified in its charter)
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Delaware
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000-24347
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65-0694077
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☒
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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ITEM 8.01.
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Other Events.
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($ millions)
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2019
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2020
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2021
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2022
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2023
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2024
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2025
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2026
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2027
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2028
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Recurring Revenue
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$
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1,210
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$
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1,467
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$
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1,773
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$
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2,113
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$
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2,454
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$
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2,808
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$
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3,177
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$
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3,556
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$
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3,947
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$
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4,346
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Total Revenue
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1,367
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1,635
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1,953
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2,309
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2,649
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3,003
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3,372
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3,751
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4,142
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4,541
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Gross Profit(1)
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886
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1,070
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1,312
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1,591
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1,856
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2,136
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2,433
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2,736
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3,067
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3,399
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Operating Income(1)(2)
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267
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326
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422
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542
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648
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730
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828
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939
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1,082
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1,234
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Operating Margin(1)(2)
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19.5
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%
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19.9
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%
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21.6
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%
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23.5
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%
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24.5
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%
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24.3
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%
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24.6
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%
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25.0
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%
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26.1
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%
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27.2
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%
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Adjusted EBITDA(2)(3)
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339
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423
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531
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658
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781
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881
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994
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1,119
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1,257
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1,412
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Unlevered Free Cash Flow(4)
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140
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242
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316
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425
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483
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565
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644
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718
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798
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912
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Stock Based Compensation
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167
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183
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225
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254
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265
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270
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270
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263
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249
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227
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(1) |
Gross profit, operating income and operating margin are “non-GAAP” financial measures.
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(2) |
Operating income, operating margin and adjusted EBITDA are calculated to exclude stock-based compensation expense and
amortization of acquisition-related intangible assets.
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(3) |
Adjusted EBITDA is calculated as operating income plus depreciation and amortization.
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(4) |
Unlevered free cash flow is calculated as adjusted EBITDA less capital expenditures, capitalized software costs, changes in
working capital, and cash taxes.
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Selected Precedent Transactions
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Announcement Date
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Acquiror
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Target
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Enterprise
Value $ in millions |
EV/NTM
Revenue |
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December 2018
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Vista Equity Partners (“Vista”)
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MINDBODY, Inc.
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$
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1,807
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6.4x
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November 2018
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Vista
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Apptio, Inc.
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$
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1,837
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7.4x
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January 2018
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SAP SE (“SAP”)
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Callidus Software, Inc.
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$
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2,429
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8.5x
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July 2016
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Oracle Corp. (“Oracle”)
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NetSuite Inc.
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$
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9,389
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9.1x
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June 2016
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Microsoft Corp.
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LinkedIn Corp.
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$
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26,292
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6.8x
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June 2016
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salesforce.com, inc. (“Salesforce”)
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Demandware, Inc.
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$
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2,840
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8.9x
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May 2016
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Vista
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Marketo, Inc.
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$
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1,702
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5.9x
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April 2016
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Oracle
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Textura Corp.
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$
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668
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6.1x
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September 2014
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SAP
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Concur Technologies, Inc.
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$
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7,771
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9.6x
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December 2013
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Oracle
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Responsys, Inc.
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$
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1,577
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6.9x
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June 2013
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Salesforce
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ExactTarget, Inc.
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$
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2,608
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6.3x
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December 2012
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Oracle
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Eloqua, Inc.
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$
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884
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8.2x
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May 2012
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SAP
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Ariba, Inc.
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$
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4,393
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7.7x
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February 2012
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Oracle
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Taleo Corp.
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$
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1,947
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5.3x
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December 2011
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SAP
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SuccessFactors, Inc.
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$
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3,512
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8.7x
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October 2011
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Oracle
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Rightnow Technologies, Inc.
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$
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1,376
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5.6x
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Median
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7.4x
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Transaction contemplated by the merger
agreement
|
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8.0x
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The Ultimate Software Group, Inc.
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Date: April 15, 2019
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BY:
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/s/ Felicia Alvaro
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Felicia Alvaro
Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) |