Cloud Applications Seek Lofty Valuations

The cloud application industry continues its ascent with robust M&A activity across a variety
of cloud-based platforms and services. As companies around the globe continue to shift to the
cloud, strategic and financial buyers are on the hunt for innovative cloud-based technology
acquisitions. The global public cloud services market is estimated to be growing at 6.3% in
2020, bringing the total market size to $257.9 billion by the end of the year, up from $242.7
billion in 2019. Encumbered slightly during the first half of 2020 by the COVID-19 pandemic,
cloud growth is still expected to increase to 19.0% in 2021 and 18.6% in 2022, with the overall
market reaching an estimated $354.6 million in 2022.

On July 28, 2020, Network International announced the acquisition of The Direct Pay Online
Group (DPO Group) for $288 million. The DPO Group operates a cloud-based eCommerce
processing platform that supports multiple transaction types with online and offline
capabilities for consumers. As a leader within the eCommerce enablement space in Africa,
The DPO Group will help expand Network International’s regional footprint and digital
commerce capabilities.

Also, in late July, ESW Capital announced its intention to acquire Optiva Inc. for an estimated
$256 million. Optiva provides cloud-native revenue management software to communication
service providers around the world. This acquisition adds to ESW Capital’s extensive portfolio
of mature software companies across a range of verticals with cloud capabilities

On July 20, 2020, Thoma Bravo announced a definitive agreement to acquire Majesco for
approximately $590 million. Majesco is a global leader of cloud insurance software solutions
for insurance business transformation. Thoma Bravo has a history of acquiring and working
with cloud-based platforms, and this acquisition will add to their large portfolio of technology
companies.

In mid-July, L&T Technology Services (LTTS) announced the acquisition of Orchestra
Technology for $25 million. Orchestra Technology develops a cloud-based platform for
wireless telecommunications network engineering, testing, and automation applications. This
acquisition comes as LTTS looks to expand its technology suite and widen its reach into the
telecom OEM and service provider space.

In early July, Damstra Holdings announced a takeover bid of Vault Intelligence for
approximately $58 million. Vault Intelligence is a workforce SaaS provider that offers cloudbased
and mobile software products. Damstra, a fellow workforce SaaS provider, aims to
leverage Vault’s unique cloud technologies and product suite to grow its capabilities and
create a larger, more diversified workplace management company.