E-Commerce Industry Insight February 2018

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Everett Lambert Riley
5 years ago
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1 Industry Insight February

M&A Update continues to see strong M&A activity In

M&A transactions with financial buyers making up

Announced M&A Transactions Date Status Target

2 M&A Update continues to see strong M&A activity In 2017, strategic buyers accounted for 91% of the M&A transactions with financial buyers making up the difference; during 2016, strategic buyers accounted for approximately 93% of the transactions Select Recent Notable Publicly Announced M&A Transactions Date Status Target Transaction Size Buyer Sep-2017 Announced $300 million Jul-2017 Announced $1.83 billion Jun-2017 Announced $180 million Apr-2017 Closed $110 million Nov-2016 Closed $190 million 1

3 M&A Market Overview transaction activity has been strong with favorable valuation trends U.S. Number of Transactions by Buyer Type continues to see strong activity There were 45 transactions in total in Strategic buyers continue to be the most active group of buyers 62 Many larger strategic players are seeking consolidation opportunities Strategic buyers are often buying at higher multiples than financial buyers Strategic Financial Source: Capital IQ, data as of 01/02/

4 Peakstone Index Trading Statistics The stock index outperformed the S&P 500 over the last 5 years, while valuation trends remain above the broader market Relative Stock Performance 150% 100% : 212% S&P 500: 73% 50% 0% -50% Peakstone Index AMZN, PCLN, EBAY, VIPS, ASC, W, STMP, SFLY, FLWS, PETS, OSTK, PRTS Source: Capital IQ, data as of 02/01/2018. Note: Peakstone indexes are equally weighted. 3

5 Peakstone Index Trading Statistics The stock index outperformed the S&P 500 over the last 5 years, while valuation trends remain above the broader market Comparable Valuation Trends Enterprise Value / EBITDA 24.0x 18.0x : 16.5x 12.0x S&P 500: 12.2x 6.0x 0.0x Peakstone Index AMZN, PCLN, EBAY, VIPS, ASC, W, STMP, SFLY, FLWS, PETS, OSTK, PRTS Source: Capital IQ, data as of 02/01/2018. Note: Peakstone indexes are equally weighted. 4

6 Selected Public Trading Comparables ($ in millions) Market Enterprise Enterprise Value / Forward Gross EBITDA Company Name Cap Peakstone Value Revenue Index EBITDA EBIT P/E Ratio Margin % Margin % Amazon.com, Inc. $648,510 $661, x 44.0x 161.3x 162.2x 37% 8% The Priceline Group Inc. $86,078 $88, x 18.9x 20.4x 21.7x 98% 38% ebay Inc. $42,163 $46, x 15.7x 20.4x 18.2x 77% 31% Wayfair Inc. $7,965 $7, x NM NM NM 24% -3% Vipshop Holdings Limited $10,090 $10, x 17.3x 25.5x 20.6x 23% 6% ASOS Plc $7,632 $5, x 57.5x 67.4x 68.2x 50% 5% Stamps.com Inc. $3,227 $3, x 18.4x 20.9x 21.0x 83% 39% Shutterfly, Inc. $2,235 $2, x 11.9x 26.3x 33.2x 48% 16% Overstock.com Inc. $1,466 $1, x NM NM NM 19% 0% PetMed Express, Inc. $873 $ x 15.3x 15.9x 20.4x 35% 19% Flowers.com Inc. $697 $ x 8.1x 15.1x 19.7x 43% 6% U.S. Auto Parts Network, Inc. $82 $85 0.3x 9.9x 58.9x 46.2x 30% 3% Total Median $5,430 $4, x 16.5x 23.2x 21.4x 40% 7% Source: Capital IQ; data as of 02/01/

7 Selected Precedent M&A Transactions Selected Transactions Date Target / Issuer Transaction Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments 09/20/2017 DineInFresh, Inc. $300 AB Acquisition LLC - AB Acquisition LLC agreed to acquire DineInFresh, Inc. (dba Plated) for $300 million on September 20, /16/2017 TicketsWest.com, Inc. $6 Spectra Ticketing & Fan Engagement - Spectra Ticketing & Fan Engagement entered into an asset purchase agreement to acquire substantially all of the assets of TicketsWest.com, Inc. from Red Lion Hotels Corporation (NYSE:RLH) for $6.0 million on August 11, /06/2017 HSN, Inc. (NasdaqGS:HSNI) $1,829 QVC Group (NasdaqGS:QVCA) 10.7x QVC Group (NasdaqGS:QVCA) entered into a definitive agreement to acquire the remaining 61.5% stake in HSN, Inc. (NasdaqGS:HSNI) for $1.3 billion on July 5, /20/2017 Newegg Inc. $179 Hangzhou Lianluo Interactive Information Technology Co.,Ltd (SZSE:002280) - Hangzhou Lianluo Interactive Information Technology Co.,Ltd (SZSE:002280) signed a letter of intent to acquire 37.8% stake in Newegg Inc. for approximately $180 million on June 20, /20/2017 VoIP Supply, LLC $4 Sangoma Technologies Corporation (TSXV:STC) - Sangoma Technologies Corporation (TSXV:STC) agreed to acquire VoIP Supply LLC for CAD 5.2 million on June 20, /07/2017 ebags, Inc. $105 Samsonite LLC - Samsonite LLC entered into merger agreement to acquire ebags, Inc. for approximately $110 million on April 6, /05/2017 Shoebuy.com, Inc. $70 Jet.com, Inc. - Jet.com, Inc. acquired Shoebuy.com, Inc. from IAC/InterActiveCorp (NasdaqGS:IAC) from $70 million on December 30, Source: Capital IQ. 6

8 Selected Precedent M&A Transactions (cont.) Selected Transactions Date Target / Issuer Transaction Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments 11/22/2016 PersonalizationMall.com, Inc. $190 Bed Bath & Beyond Inc. (NasdaqGS:BBBY) - Bed Bath & Beyond Inc. (NasdaqGS:BBBY) agreed to acquire PersonalizationMall.com, Inc. for $190 million in cash on November 21, /14/2016 Monoprice, Inc. $40 YFC-BonEagle Electronic Tech Co., Ltd. - Yfc-Boneagle Electronic Technology Co., Ltd. entered into a definitive agreement to acquire Monoprice, Inc. from Blucora, Inc. (NasdaqGS:BCOR) for $40 million in cash on November 14, /07/2016 Blue Nile, Inc. $497 Bain Capital Private Equity, LP; Bow Street, LLC 27.8x An investor group comprising of Bain Capital Fund XI, LP managed by Bain Capital Private Equity, LP and Bow Street, LLC entered into a definitive agreement to acquire Blue Nile Inc. (NasdaqGS:NILE) for approximately $490 million on November 6, Source: Capital IQ. 7

9 Peakstone Selected Transactions PAG Capital Strategic Advisor & Principal 8

10 Peakstone Momentum 9

11 Contact Us About Peakstone Peakstone is an investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. Our team is comprised of senior investment banking professionals who have decades of experience and have executed hundreds of transactions totaling billions of dollars. For additional information, visit. Contact Alex Fridman Managing Director Shreyas Venkatasubramaniam Analyst

E-Commerce Industry Insight February 2019

E-Commerce Industry Insight February 2019 Industry Insight February 2019 0 M&A Update continues to see strong M&A activity Through 2018, strategic buyers accounted for 88% of the M&A transactions with financial buyers making up the difference;