Micro Focus Fixed Income Presentation Deck
Serena Acquisition
What was
acquired?
Background and timeline
.
Founded: 1980. Headquarters: San Mateo, CA
Key events:
.
1999 - Nasdaq IPO
2004 - Merger Of Equals with Marani
2006 - Take Private by Silver Lake Partners
2014 - Secondary Buy-Out by HGGC
2016 - Acquisition by Micro Focus International plc
Source Code Change Management (SCCM) Market Position
• Serena is the number 2 to IBM, and ahead or Microsoft, Perforce, Dell, CA
Technologies
Source: Gertner March 2014
Sticky products
.
.
.
.
Serena reported revenues of $162mm in the year to 31st January 2016 and Underlying Adjusted EBITDA ("UAE") of $80mm, generated by ~426 employees
Serena develops and markets Change Management software, used by software engineers to manage development
Combination would extend Micro Focus' footprint in both the mainframe and distributed computing segments, where Serena has a blue chip customer set
Change Man
ZMF & SSM
Dimensions
CM
Serena
Business
Manager
Tracks and manages application developments & release
changes
Change management across distributed global teams using
common processes
Business Process Management (BPM) platform
¹ Financial numbers for Serena are prepared under US GAAP; FY16 numbers are preliminary and unaudited
2 Unaudited management accounts information for the Serena; Group's YE 31st January 2016
3 Customer numbers per Serena website
* By total FY15 revenue, from Serena customer analysis
47
3 year financial track record ($mm)
▪ Revenue - UAE
176
183
Blue chip customer base
Banking
Insurance
Info/Telco
77
FY2014
FY2015
FY2016²
When comparing FY16 performance with FY15-c.$8m of the reduction in revenues
and $3m of the decrease in UAE 1s attributable to foreign exchange movements
Mfg. & retail
Healthcare
Government
UBSPMorgan Chase CA Bank of America Com
Swiss Re
SUNGARD TELECOM
87
atat
AMSUNG gordmans Ups
MANY BAE STATE WorkSafe
Nationwide
Systems D&B
163
Pratt & Whitney
CAREXAetna EXIDANT WELLPOINT
CMS
80
Serena has
more than
2,5003
customers
. Low
concentration:
top 30
customers
have only 22%
of revenue
MICRO
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