1. India Technology M&A Activity Review 2013 May 2013 This report is solely for the use of Zinnov and Ispirt Client/Personnel. No Part of it may be quoted, circulated or reproduced for distribution outside the client organization without prior written approval from Zinnov and Ispirt Supported by Knowledge Partner

2. Key Trends Cross border Tech M&A activity is witnessing increased momentum Start-up ecosystem is rapidly growing to position India as a hub of technology innovation An evolving ecosystem of VCs/ Accelerators/ Incubators is further supporting the growth A B C Key trends in Indian Technology M&A landscape.. Source: Zinnov Analysis Copyright (c) Zinnov/iSPIRT All Rights Reserved

3. A A Cross border Tech M&A activity is witnessing increased momentum 44 56 36% Outbound 16% 48% Inbound Domestic 15% Outbound 46% 39% Inbound Domestic Note: 1 USA not considered in the list At an average of US$ 37 Mn, India is witnessing 30 times increase in median deal size since 2009 At an average of US$ 37 Mn, India is witnessing 30 times increase in median deal size since 2009 Total Tech M&A Deals 2009 2012 Key Inbound M&A Deals Over The Years Acquired stake in for $ 75 Mn Acquired stake in for $ 100 Mn Source: Zinnov Analysis Copyright (c) Zinnov/iSPIRT All Rights Reserved

4. Total Number Of Start-ups 1 (2012) Start-up ecosystem is rapidly growing to position India as a hub of technology innovation B B Note: 1 According Angel List 25,883 USA 1,646 Canada 2,128 U.K. 600 Germany 1,326 India 492 Israel 231 China 152 Japan Number Of Start-ups growing in India at a CAGR ~15% Famous Indian Start-ups have been nurtured by MNC Talent Founded by ex Amazon employees Founded by ex IBM, TI and Honeywell employees Founded by ex Yahoo employee R&D Talent Pool Across 1,033 MNCs in India = ~235,000 Region% Start-ups % MNC R&D Centres % MNC R&D Talent Bangalore27 %40 %53 % Mumbai Region22 %21 %17 % Delhi NCR24 %16 %10 % Hyderabad Region13 %11 %13 % Source: Zinnov Analysis Copyright (c) Zinnov/iSPIRT All Rights Reserved

5. C C An evolving ecosystem of VCs/ Accelerators/ Incubators is further supporting the growth No. of technology incubators 10x 120+ No. of angel networks >20 No. of jobs created 25x 400,000+ ~ 20 Incubators/ Accelerators added in 2012 alone ~ $25 Mn early stage annual funding provided to start-ups in 2012 VC Funding has grown 2X between 2009 and 2011 to reach ~$1.1 Bn Technology Start-ups funded annually Technology Start-ups funded annually 60x >250 Source: Zinnov Analysis Copyright (c) Zinnov/iSPIRT All Rights Reserved

6. Cloud/ Big Data Education Mobile Social Media Productivity E-Commerce Healthcare 32% 29% 21% 18% 14% 11% Focus Area Of Indian Start-ups 49% of all tech M&A deals in India in 2012-13 focused on CLAMS 1 The drivers are further converging towards a promising Indian tech M&A landscape Software and Internet now account for 68% of all M&A Tech Deals in India Note: 1 Cloud, Analytics, Mobility and Social Source: VCC edge, Zinnov Analysis Copyright (c) Zinnov/iSPIRT All Rights Reserved

7. Conclusion India is likely to emerge as a hub of technology innovations India to witness tremendous growth in number of tech companies of value to global brands Ecosystem collaboration & community engagement required to nurture the growth M&A activity to gain continuous traction Source: Zinnov Analysis Copyright (c) Zinnov/iSPIRT All Rights Reserved

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9. Note: 1 Till 10 th May, 2013 Total Tech M&A Deals 20092010201120122013 1 44 555956 16 Deal Split By M&A Activity 20092010201120122013 1 44 555956 16 Tech M&A Deal Trends Source: Zinnov Analysis Copyright (c) Zinnov/iSPIRT All Rights Reserved

10. Software industry emerging as key category for M&A Tech M&A Deal Split By Industry 2009 44 Deals 2 Deals26 Deals12 Deals4 Deals 28 Deals11 Deals12 Deals1 Deal 2012 56 Deals IT services industry giants like Wipro now exploring M&A route to enter new markets/service lines rather than looking to add topline revenue Top Software Deals in 2012 Acquired 100% stake in for $ 202 Mn Acquired 100% stake in for $ 176 Mn Source: Zinnov Analysis Copyright (c) Zinnov/iSPIRT All Rights Reserved

11. Bangalore, Mumbai and NCR, top Tech M&A destinations Tech M&A Deal 1 Split By Location (2009 -2012) Note: 1 Only Inbound and Domestic M&A Deals considered. Bangalore Mumbai Region Hyderabad Delhi NCR 22 10 12 22 10 12 38 22 16 38 22 16 33 19 14 33 19 14 19 13 6 19 13 6 17 15 2 17 15 2 Chennai Total Deals Domestic Inbound Deals Top Outbound Deal Destinations (2009-2012) LocationNumber of Deals California6 Singapore5 San Francisco3 London3 New York3 Texas2 Source: Zinnov Analysis Copyright (c) Zinnov/iSPIRT All Rights Reserved

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