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18%
29%
28%
22%
23%
23%
19%
22%
30%
31%
-
10%
20%
30%
40%
50%
60%
FY21
FY22
FY23
FY24
FY25
Revenue growth
EBITDA margin
Tech Insights #372
Xero 2025
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
19 May 2025
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Overview
NZ accounting software provider Xero recently published its financial results for FY25. Revenue growth of 23% and an EBITDA margin of 31% maintain Xero’s status as a top performing tech company. It’s also notable that Xero posted NZD $2b in revenue for the first time and is the highest valued New Zealand company that is listed. On page two we compare Xero to a group of global accounting software providers.
Xero valuation multiple
Xero revenue (NZD $m)
-
1
2
3
4
FY21
FY22
FY23
FY24
FY25
RoW
North America
UK
NZ
AUS
-
500
1,000
1,500
2,000
FY21
FY22
FY23
FY24
FY25
Xero subscribers (millions)
Xero rule of 40
-
10x
20x
30x
Jan 20
Jan 21
Jan 22
Jan 23
Jan 24
Jan 25
EV/Revenue
March year end
56% of FY25 revenue is from ANZ
-
50%
100%
150%
200%
250%
2020
2021
2022
2023
2024
2025
Tech Insights #372
Xero 2025
Page 2 of 2
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
19 May 2025
Share price index for listed accounting software providers
Comparator metrics for listed accounting software providers (NZD $m)
Company
Based
Description
EV
Revenue
5 yr revenue growth
LTM revenue growth
LTM EBITDA
EV/LTM Revenue
EV/LTM EBITDA
Intuit
USA
Financial management and accounting software (QuickBooks).
330,579
28,610
164%
16%
28%
12x
41x
Workday
USA
Cloud-based financial and HR management software.
116,811
14,026
155%
19%
10%
8x
86x
Sage
UK
Cloud-based financial and HR management software.
30,543
5,205
36%
12%
25%
6x
23x
Xero
NZ
Cloud-based accounting for small businesses.
29,304
2,103
193%
23%
31%
14x
45x
Median
73,677
9,616
159%
18%
27%
10x
43x
EV = Enterprise Value, LTM = Last 12 months, EBITDA= Earnings Before Interest, Taxes, Depreciation & Amortisation
Overview
The 'Rule of X' is emerging as a modern adaptation of the widely recognised 'Rule of 40' for SaaS businesses, offering an updated approach to assess performance. The Ruleof 40 is a benchmark where the sum of a company's revenue growth rate and free cash flow margin should equal or exceed 40%. Developed by Bessemer Venture Partners (BVP), the Rule of X adopts a more nuanced evaluation, emphasising growth over profitability.
The tables below show how the Rule of X and Rule of 40 are calculated for selected US-listed cloud companies, along with average values for the top, middle, and bottom 28 companies (by EV / NTM revenue) out of a group of 84 US-listed cloud companies.
Tech Insights #371
The Rule of X
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
12 May 2025
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Rule of X = (annual revenue growth x multiplier) + free cash flow margin
Rule of 40 = annual revenue growth + free cash flow margin
Selected company
Revenue growth (LTM)
FCF margin (LTM)
Rule of 40
Rule of X multiplier
Rule of X
EV / NTM revenue
Autodesk
13%
22%
35%
2.0
48%
9.5x
Gitlab
32%
(15%)
17%
2.0
49%
9.3x
Smartsheet
19%
20%
39%
2.0
57%
5.7x
Braze
28%
1%
29%
2.0
58%
5.7x
Zoom Communications
3%
37%
40%
2.0
43%
3.8x
Sprout Social
22%
6%
27%
2.0
49%
3.7x
All companies (n=84)
Revenue growth (LTM)
FCF margin (LTM)
Rule of 40
Rule of X multiplier
Rule of X
EV / NTM revenue
Top 28 companies (average)
24%
20%
44%
2.0
67%
11.0x
Middle 28 companies (average)
17%
18%
35%
2.0
51%
6.2x
Bottom 28 companies (average)
11%
12%
23%
2.0
33%
2.8x
Average
17%
16%
34%
2.0
51%
6.6x
vs
Rule of X: BVP good, better, best framework
Best
~70%
Better
~50%
Good
~40%
Note: FCF = Free cash flow, EV = Enterprise value, LTM = Last 12 months, NTM = Next 12 months.
R² = 0.4758
R² = 0.398
0x
2x
4x
6x
8x
10x
12x
14x
16x
18x
-
20%
40%
60%
80%
100%
EV / NTM revenue
X value = (revenue growth rate x multiplier) + free cash flow margin
Comparing the correlation of the Rule of X against the Rule of 40 as at 31 December 2024
Calculating the Rule of X by applying a 2.0 multiplier to the LTM revenue growth of US-listed cloud companies resulted in a higher R2 correlation compared to using no multiplier (i.e. the Rule of 40) as at 31 December 2024. However, it should also be noted that both correlations are below 0.5, and performing the same analysis for different historical periods shows this relationship can (and does) move around over time.
Tech Insights #371
The Rule of X
Page 2 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
12 May 2025
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Rule of X
Rule of 40
Rule of 40
40%+ is good
Rule of X
70%+ is best
using a 2.0 multiplier
Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Note: We have removed certain outliers from the calculations: where revenue growth is above 100%, the revenue multiple is above 40x, or the Rule of 40 is negative.
17%
43%
12%
-
200
400
600
Amazon
Microsoft
Alphabet
USD $b
Tech Insights #370
Cloud infrastructure platforms
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
5 May 2025
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This Tech Insights report looks into market leading cloud infrastructure platforms: AWS, Azure and Google Cloud. These platforms are operated by tech giants Amazon, Microsoft and Alphabet. AWS (Amazon Web Services) was the first to enter the market in 2006. Although Amazon and Microsoft began as an online bookstore and a software company respectively, their cloud platforms now account for a substantial share of their operating profits. Complementary cloud services and enterprise support services are included in the financials presented below.
Overview
Cloud platform contribution to total operating profit (Dec 24)
Cloud platform contribution to total revenue (Dec 24)
Annual cloud platform revenue
Cloud platform operating profit margins
58%
45%
5%
-
40
80
120
Amazon
Microsoft
Alphabet
USD $b
-
40
80
120
Dec 21
Dec 22
Dec 23
Dec 24
USD $b
AWS(Amazon)
Azure(Microsoft)
Google Cloud(Alphabet)
(20%)
-
20%
40%
60%
Dec 21
Dec 22
Dec 23
Dec 24
AWS(Amazon)
Azure(Microsoft)
Google Cloud(Alphabet)
Tech Insights #370
Cloud infrastructure platforms
Page 2 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
5 May 2025
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Disclaimer The information provided in this report has been sourced from FactSet and other sources. Clare Capital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Leading cloud platform company metrics (USD $b)
Count of cloud platform related acquisitions by parent
Company
Ticker
Cloud product
Cloud launch year
Enterprise value
LTM total
revenue
LTM revenue growth
EBITDA margin
Revenue multiple
EBITDA multiple
LTM share price Δ
Amazon
AMZN-US
AWS
2006
2,068
650
10%
20%
3.2x
16.2x
3%
Microsoft
MSFT-US
Azure
2010
3,261
270
14%
56%
12.1x
21.5x
9%
Alphabet
GOOGL-US
Google Cloud
2008
1,924
359
13%
37%
5.4x
14.4x
(2%)
Oracle
ORCL-US
Oracle Cloud
2016
502
56
6%
43%
9.0x
21.1x
31%
IBM
IBM-US
IBM Cloud
2011
278
63
1%
25%
4.4x
17.5x
49%
Alibaba
BABA-US
Alibaba Cloud
2009
268
136
4%
17%
2.0x
11.5x
57%
Median
1,213
203
8%
31%
4.9x
16.8x
20%
Aggregate market capitalisation
-
2
4
6
8
10
Apr 16
Oct 17
Apr 19
Oct 20
Apr 22
Oct 23
Apr 25
USD $tn
IBM
Oracle
Alibaba
Alphabet
Microsoft
Amazon
-
2
4
6
2020
2021
2022
2023
2024
Amazon
Microsoft
Alphabet
-
500
1,000
Services
Semiconductor USD $b
2015 (10 years ago)
2020 (5 years ago)
Now
-
1,000
2,000
3,000
4,000
5,000
Internet Semiconductor Communications USD $b
2015 (10 years ago)
2020 (5 years ago)
Now
Tech Insights #369
Listed tech industries – US vs Europe
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
28 April 2025
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This Tech Insights report compares the market capitalisation and share price returns of listed major technology industries in the United States (US) and Europe, including the UK. Company regions are determined by the location of their headquarters (legal domicile), rather than by their exchange listing, and industries are classified according to RBICSsub-sectors. The data includes currently listed companies in each of the two regions. All analysis is presented in USD.
Overview
United States: Aggregate market capitalisation of selected tech industries (USD $b)
Industry
Software
Internet and Data Services
Semiconductor Manufacturing
Communications Equipment
Largest company (now)
Microsoft (55%)
Alphabet (42%)
NVIDIA (60%)
Apple (87%)
# companies (now)
246
104
49
42
Europe: Aggregate market capitalisation of selected tech industries (USD $b)
Industry
Software
Internet and Data Services
Semiconductor Manufacturing
Communications Equipment
Largest company (now)
SAP (68%)
Spotify (29%)
Arm (48%)
Garmin (35%)
# companies (now)
309
93
26
44
Tech Insights #369
Listed tech industries – US vs Europe
Page 2 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
28 April 2025
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Disclaimer The information provided in this report has been sourced from FactSet. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
LTM Software returns (top 15)
LTM Semiconductor Manufacturing returns (top 15)
LTM Internet and Data Services returns (top 15)
LTM Communications Equipment returns (top 15)
The industry returns below are calculated as weekly, market capitalisation-weighted total returns, using the 15 largest companies (as at the beginning of the period) in both the United States and Europe.
LTM market capitalisation-weighted total returns
United States
Europe
Key:
(40%)
(20%)
-
20%
40%
60%
Apr 24
Jun 24
Aug 24
Oct 24
Dec 24
Feb 25
Apr 25
(40%)
(20%)
-
20%
40%
60%
Apr 24
Jun 24
Aug 24
Oct 24
Dec 24
Feb 25
Apr 25
(40%)
(20%)
-
20%
40%
60%
Apr 24
Jun 24
Aug 24
Oct 24
Dec 24
Feb 25
Apr 25
(40%)
(20%)
-
20%
40%
60%
Apr 24
Jun 24
Aug 24
Oct 24
Dec 24
Feb 25
Apr 25
-
50
100
150
200
250
300
350
400
2019
2020
2021
2022
2023
2024
Other
Marketplaces
Jobs
Property
Motors
Tech Insights #368
Potential Trade Me relisting
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
14 April 2025
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Overview
Trade Me was taken private by Apax Partners in 2019, with average annual EBITDA growth since the acquisition of 6.5%. There has recently been rumours of Apax Partners’ intention to divest, which raises the possibility of a public listing (among other exit options). This Tech Insights report highlights Trade Me’s growth since the 2019 acquisition and looks at how Trade Me could be positioned relative to comparator NZX and ASX companies were it to list. Note, Trade Me has a June financial year end.
Trade Me revenue - NZD $m
% of revenue by segment
29%
34%
17%
29%
11%
10%
28%
20%
15%
7%
-
20%
40%
60%
80%
100%
2020
2024
Other
Marketplaces
Jobs
Property
Motors
Revenue growth rate
EBITDA
-
10%
20%
30%
40%
50%
60%
70%
-
50
100
150
200
250
300
2019
2020
2021
2022
2023
2024
EBITDA margin
EBITDA – NZD $m
classifieds
58%
73%
*Split of classifieds based on half year results
*
(5%)
-
5%
10%
15%
2019
2020
2021
2022
2023
2024
-
5,000
10,000
15,000
20,000
25,000
30,000
REA
Xero
CAR
TechnologyOne
Seek
Trade Me
Trade Me
HUB24
Trade Me
Domain
SiteMinder
Vista
Tech Insights #368
Potential Trade Me relisting
Page 2 of 2
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Disclaimer The information provided in this report has been sourced and calculated from FactSet and the NZ Companies Office. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
14 April 2025
Company
Description
EV
Revenue
5yr revenue growth
LTM rev growth
LTM EBITDA margin
EV/LTM Revenue
EV/LTM EBITDA
REA
Online real estate advertising platform.
33,488
1,977
106%
21%
47%
17x
36x
Xero
Cloud-based accounting software provider.
24,945
1,909
201%
24%
33%
13x
39x
CAR
Automotive research and review marketplace.
14,402
1,251
199%
18%
52%
12x
22x
Technology One
Enterprise software solutions provider.
9,536
549
82%
18%
43%
17x
41x
Seek
Online job search and employment platform.
9,304
1,116
(36%)
(14%)
38%
8x
22x
HUB24
Investment and superannuation platform.
5,738
399
267%
24%
33%
14x
44x
Domain
Real estate listings and property website.
2,946
443
42%
13%
36%
7x
18x
SiteMinder
Hotel booking and management system.
1,009
222
117%
20%
2%
5x
283x
Vista
Film industry software solutions and analytics.
830
150
4%
5%
16%
6x
35x
Median
9,304
549
106%
18%
36%
12x
36x
Trade Me*
NZ's largest online marketplace and auction site.
370
38%
3%
65%
Trade Me listed comparators on ASX/NZX – NZD $m
Potential Trade Me valuation - NZD $m
35x EBITDA multiple
Note: Trade Me was acquired by Apax Partners at a 15.3x EBITDA multiple.
25x EBITDA multiple
15x EBITDA multiple
*Trade Me financials are as at June 2024
Graph provides three valuations for Trade Me using different EBITDA multiples.
-
2.5x
5.0x
7.5x
10.0x
12.5x
15.0x
17.5x
20.0x
22.5x
25.0x
Mar 20
Sept 20
Mar 21
Sept 21
Mar 22
Sept 22
Mar 23
Sept 23
Mar 24
Sept 24
Mar 25
Tech Insights #367
Cloud Index as at 31 March 2025
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
7 April 2025
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Overview
This report looks at valuation multiples for cloud companies publicly listed in the United States, Australia and New Zealand. Although the March quarter began with an uplift in revenue multiples, by the end of the quarter the, US Cloud Index fell to 6.1x EV/NTM revenue, while the ANZ Cloud Index declined to 6.8x — representing a 13% and 9% drop respectively over the quarter. Both indices remain below their five-year average.
NTM revenue multiple for cloud companies listed in the US and ANZ (EV / NTM revenue)
ANZ Cloud Index
Average
12MMA
Mar 25
6.8x
7.0x
Dec 24
7.5x
6.7x
Change
10%)
4%
Mar 24
7.1x
6.0x
Change
(5%)
18%
US Cloud Index
Average
12MMA
Mar 25
6.1x
6.4x
Dec 24
7.0x
6.3x
Change
(13%)
1%
Mar 25
6.7x
6.3x
Change
(9%)
2%
Note: Indices are calculated using a simple average (equal weighting), with the ANZ index (25 companies) comprising of companies that have a minimum NZD $250m market capitalisation versus NZD $500m for the US Index (89 companies). Avg = Average, NTM = Next 12 months, 12MMA = 12 month moving average.
Key:
US
ANZ
Average
12MMA
5yr avg
6.8x
6.1x
7.4x
10.6x
-
5.0x
10.0x
15.0x
20.0x
Mar 20
Mar 21
Mar 22
Mar 23
Mar 24
Mar 25
-
10.0x
20.0x
30.0x
40.0x
Mar 20
Mar 21
Mar 22
Mar 23
Mar 24
Mar 25
75th percentile
Median
25th percentile
Tech Insights #367
Cloud Index as at 31 March 2025
Page 2 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
7 April 2025
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US cloud companies NTM revenue multiple
ANZ cloud companies NTM revenue multiple
7.6x
5.0x
2.9x
10.0x
5.1x
3.2x
US cloud companies
25th
75th
31 Mar 2025
Average
percentile
Median
percentile
EV (NZD $m)
39,309
4,090
9,105
27,182
EV / NTM rev
6.1x
2.9x
5.0x
7.6x
Revenue growth (NTM)
13%
5%
12%
21%
EV / LTM rev
7.5x
3.3x
5.9x
9.4x
Revenue growth (LTM)
17%
9%
16%
24%
Operating margin
(2%)
(10%)
(0%)
11%
ANZ cloud companies
25th
75th
31 Mar 2025
Average
percentile
Median
percentile
EV (NZD $m)
7,017
732
1,518
9,744
EV / NTM rev
6.8x
3.2x
5.1x
10.0x
Revenue growth (NTM)
16%
6%
16%
25%
EV / LTM rev
8.4x
3.8x
6.0x
11.6x
Revenue growth (LTM)
16%
8%
17%
26%
Operating margin
24%
13%
28%
38%
Note: The percentiles for each metric are calculated individually. Companies added or removed from each index take effect from the first day of the reported quarter.
EV = Enterprise Value, LTM = Last 12 months, NTM = Next 12 months.
Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. ClareCapital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
158
146
111
19
25
27
0
100
200
2016
2020
2024
Tech Insights #366
The Warehouse vs Kmart
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
31 March 2025
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The Warehouse and Kmart are two of New Zealand’s largest bargain retail chains. This Tech Insights report compares the performance of these two chains. Kmart, owned by ASX-listed Wesfarmers, has been performing strongly against The Warehouse, supported by the success of the Anko brand. Anko products represent ~85% of Kmart products sold, which supports Kmart’s high gross profit margins and operating profit margins (44% and 16% in FY24). The analysis on page 1 compares The Warehouse (excluding Noel Leeming and TheMarket.com) and Kmart New Zealand only. The financial year-end is July for The Warehouse and June for Kmart.
Overview
Revenue comparison (NZD $m)
Revenue per store (NZD $m)
-
500
1,000
1,500
2,000
2,500
FY20
FY21
FY22
FY23
FY24
Operating profit comparison (margin RHS)
41 co-located stores
Store count
Due to a shift in strategy, many Warehouse Stationery stores have now been integrated into The Warehouse, resulting in a reduced number of stores.
-
10
20
30
40
2016
2020
2024
Operating profit is equal to EBIT pre IFRS 16 (leases).
The Warehouse
Warehouse Stationery
Kmart NZ
Key:
2016
2020
2024
Operating profit (NZD $m)
2016
2020
2024
6%
11%
5%
4%
2%
8%
13%
9%
11%
16%
-
10%
20%
-
50
100
150
200
FY20
FY21
FY22
FY23
FY24
Operating profit margin
The Warehouse
Noel Leeming
$3.0b
-
25%
50%
75%
100%
Warehouse Group
Tech Insights #366
The Warehouse vs Kmart
Page 2 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
31 March 2025
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Disclaimer The information provided in this report has been sourced from FactSet and company annual reports. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Annual parent segment revenue (NZD $b)
Share price index (total return)
Selected comparable company metrics (NZD $m)
Company
Exchange
Description and brands
Enterprise Value
LTM
revenue
LTM rev growth
LTM EBITDA
margin %
EV / EBITDA
1 yr share price Δ
Wesfarmers
ASX
Kmart, Target, Bunnings and others
101,993
48,931
3%
13%
15.8x
6%
JB Hi-Fi
ASX
Consumer electronics and home appliances
11,585
11,016
6%
10%
10.5x
48%
Harvey Norman
ASX
Consumer electronics, furniture and home appliances
9,196
4,330
2%
21%
10.0x
(1%)
Super Retail Group
ASX
Macpac, Rebel Sport (AU), Supercheap Auto and others
4,295
4,329
3%
18%
5.4x
(19%)
Myer Holdings
ASX
Department store
2,676
2,871
(2%)
13%
7.1x
(18%)
Briscoe Group
NZX
Briscoes and Rebel Sport (NZ)
1,081
791
(0%)
18%
7.7x
(7%)
Warehouse Group
NZX
The Warehouse, Warehouse Stationery and Noel Leeming
1,009
3,012
(4%)
7%
5.1x
(42%)
KMD Brands
NZX
Kathmandu, Rip Curl and other brands
617
982
(4%)
14%
4.6x
(38%)
Kogan.com
ASX
Online retail marketplace (Kogan.com and Mighty Ape)
470
527
5%
9%
10.5x
(40%)
Median
2,676
3,012
2%
13%
7.7x
(18%)
Kmart NZ
Kmart AU
Bunnings (AU & NZ)
Health
Other
$47.6b
-
25%
50%
75%
100%
Wesfarmers
-
50%
100%
150%
200%
250%
Jan 20
Jan 21
Jan 22
Jan 23
Jan 24
Jan 25
Wesfarmers (Kmart parent)
Warehouse Group
Wesfarmers
(Kmart parent)
-
20
40
60
80
100
120
FY20
FY21
FY22
FY23
FY24
Gross profit
EBITDA
26% gross profit margins, 12% EBITDA margins.
Tech Insights #365
Hellers – New Zealand’s Butcher
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Mergers & acquisitionsCorporate finance advisoryCapital raising
24 March 2025
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Overview
Christchurch-based butcher Hellers has grown into a large Trans-Tasman business with a major supermarket presence and iconic Leigh Hart commercials. In 2019, Hellers was acquired by a group lead by Australian private equity firm Adamantem Capital from majority owner Rangatira. Adamantem Capital aim for holding periods of three to five years for businesses, driving media speculation around potential exit opportunities. Page 2 explores the performance of their investment and what an exit might look like.
Profitability (NZD $m)
Revenue by geography (NZD $m)
-
100
200
300
400
FY20
FY21
FY22
FY23
FY24
Australia
New Zealand
A mix of organic growth and Canon Foods acquisition.
Debt funding profile (NZD $m)
-
2x
4x
6x
8x
10x
12x
14x
-
50
100
150
200
250
300
350
FY20
FY21
FY22
FY23
FY24
Net debt / EBITDA
Total debt
Bank debt
Shareholder loan
Net debt to EBITDA
Investment behaviour (NZD $m)
-
100
200
300
400
500
-
10
20
30
40
50
FY20
FY21
FY22
FY23
FY24
Book value
Cash invested
Investment in PPE
Acquisitions
Total assets (RHS)
Major investment in production capability has driven growth.
*June financial year
Tech Insights #365
Hellers – New Zealand’s Butcher
Page 2 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
24 March 2025
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Listed A/NZ comparable companies (NZD $m)
Equity outflows / (inflows) (NZD $m)
Company
Sector
EV / EBITDA
EV
Revenue
(LTM)
EV / Revenue
Revenue growth
Gross profit margin
EBITDA margin
Inghams
Poultry processor
8.3x
3,861
3,524
1.1x
2%
18%
13%
Scales
Horticulture & petfood
7.9x
704
592
1.2x
3%
22%
15%
Ricegrowers
Rice processor
5.9x
957
2,031
0.5x
4%
13%
8%
Sanford
Seafood farming & processing
5.8x
705
583
1.2x
5%
22%
21%
Tegel
Poultry processor
8.0x
578
620
0.9x
4%
24%
12%
Hellers
Meat & poultry processor
419
5%
27%
12%
While not perfect comparisons, listed A/NZ comps with similar growth and profitability profiles give a reference point for a potential exit multiple. Tegel was acquired via a takeover by Bounty Foods in 2018 and shows similar metrics, scale and geographies to Hellers. Note: Tegel financials LTM as at 2018 acquisition.
Disclaimer The information provided in this report has been sourced and calculated from FactSet, Hellers’ financials and other information. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions, you should seek appropriate personalised financial advice.
EV uplift – Adamantem investment to potential exit
This profile of cash flows from Hellers’ cash flow statements are combined with illustrations of exit returns if Hellers is sold at a 6x, 8x, and 10x EV / EBITDA.
(100)
(50)
-
50
100
150
200
250
Acquisition
FY19
FY20
FY21
FY22
FY23
FY24
Exit (6x)
Exit (8x)
Exit (10x)
Equity investment
Buyback / dividend
Shareholder loan
Exit
Hellers has grown from the $212m EV when Adamantem acquired it. Exits at 6x, 8x, and 10x EV / EBITDA show materially different outcomes for the equity owners (equity IRRs based on cash flows highlighted in right chart).
-
100
200
300
400
500
Initial investment
6x EBITDA
8x EBITDA
10x EBITDA
Bank debt
Shareholder loan
Equity
-6% IRR
16% IRR
25% IRR
Note: EBITDA adjusted for IFRS-16 impacts.
Potential
Potential
Tech Insights #364
Advertising revenue
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Mergers & acquisitionsCorporate finance advisoryCapital raising
17 March 2025
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Overview
This Tech Insights report looks at the advertising revenue generated by tech companies. Of particular note is Alphabet (Google and YouTube) which generates more revenue from advertising than New Zealand’s GDP. It’s also interesting to compare smaller tech companies that have advertising heavy business models (Reddit, Yelp, Snap and Pinterest) to a traditional player in the advertising market (Fox). The second page tracks share price performance and comparator metrics for a selection of these companies.
Major tech companies - advertising revenue
Other companies - advertising revenue
-
100
200
300
400
500
600
Alphabet
Meta
Amazon
Microsoft
Revenue USD $b
Other revenue
Advertising revenue
-
2
4
6
8
10
12
14
16
Fox
Snap
Spotify
Yelp
Revenue USD $b
Other revenue
Advertising revenue
Tech Insights #364
Advertising revenue
Page 2 of 2
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
17 March 2025
Comparator metrics for tech companies that generate a majority of revenue from advertising (USD $b)
Company
Description
EV
Revenue
Advertising revenue %
5yr revenue growth (2024 vs 2019)
LTM EBITDA margin
EV/LTM Revenue
EV/LTM EBITDA
Alphabet
Operates Google and YouTube
1,992
350
76%
117%
36%
6x
16x
Meta
Facebook, Instagram, WhatsApp
1,560
165
98%
133%
52%
9x
18x
Online forum for discussion
21
1
91%
No data
(42%)
16x
nm
Pinboard-style photo-sharing website
20
4
100%
219%
6%
5x
99x
Snap
Snapchat (text and photo based messaging)
15
5
100%
213%
(12%)
3x
nm
Yelp
User generated reviews of local businesses
2
1
96%
39%
15%
2x
10x
Median
21
5
97%
133%
10%
6x
17x
Share price index - tech companies that generate a majority of revenue from advertising
-
100%
200%
300%
400%
2020
2021
2022
2023
2024
2025
Snap
Yelp
Alphabet
Reddit*
Meta
*Publicly listed in 2024
Tech Insights #363
Revenue multiples and growth rates
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Mergers & acquisitionsCorporate finance advisoryCapital raising
10 March 2025
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This Tech Insights report looks at drivers of revenue multiples (EV / LTM revenue). Revenue growth rate is a key determinant of a revenue multiple however profitability and scale are also important factors. This report analyses a universe of 35 selected ASX and NZX-listed technology companies.
Overview
Revenue multiple vs LTM revenue growth for technology companies
EROAD
Bravura
CAR Group
Computershare
HUB24
Infomedia
Nuix
Netwealth
Objective Corporation
ReadyTech
Seek
Technology One
Domain
REA
WEB Travel
Wisetech
Xero
Gentrack Group
Serko
Enprise Group
ikeGPS
Life360
Dropsuite
DUG
Hansen
IRESS
Megaport
Praemium
Qoria
SiteMinder
Straker
Gumtree
3P Learning
Bigtincan
Vista Group
5x
10x
15x
20x
25x
30x
35x
(20%)
(10%)
-
10%
20%
30%
40%
EV / LTM revenue multiple
LTM revenue growth
>25% EBITDA margin
<25% EBITDA margin
Bubble size represents current EV (NZD)
<$2b
$10b
$30b
Key:
Wisetech is currently valued on a 32x revenue multiple (EV of $32b). LTM revenue growth was 20% and LTM EBITDA margin was 50%.
All companies trading on a multiple higher than 10x have an EBITDA margin greater than 25%.
Tech Insights #363
Revenue multiples and growth rates
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Mergers & acquisitionsCorporate finance advisoryCapital raising
10 March 2025
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Revenue multiples by LTM revenue growth
Disclaimer The information provided in this report has been solely sourced from FactSet and company annual reports. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Comparison of selected companies (now vs Mar 2020)
n = 15
n = 11
n = 9
-
5x
10x
15x
20x
<10%
10% - 20%
20%+
LTM revenue growth
Upper quartile (50% - 75%)
Lower quartile (25% - 50%)
EV (NZD $m)
LTM revenue growth
EBITDA margin (%)
Revenue multiple
2020
Now
2020
Now
2020
Now
2020
Now
REA
10,721
▲
35,069
(3%)
▲
21%
54%
▼
47%
11.1x
▲
17.7x
Wisetech
5,397
▲
32,428
40%
▼
20%
30%
▲
50%
12.9x
▲
32.2x
Xero
9,882
▲
27,300
37%
▼
24%
19%
▲
33%
13.8x
▲
14.3x
Computershare
8,002
▲
26,666
10%
▼
6%
26%
▲
38%
2.3x
▲
5.4x
CAR Group
3,432
▲
16,052
12%
▲
17%
51%
▲
52%
7.6x
▲
12.8x
Seek
7,091
▲
10,447
16%
▼
(12%)
26%
▲
39%
4.1x
▲
9.4x
Technology One
2,576
▲
10,182
13%
▲
18%
31%
▲
43%
8.3x
▲
18.5x
Netwealth
1,578
▲
7,373
20%
▲
23%
52%
▼
49%
14.0x
▲
24.2x
HUB24
483
▲
6,627
12%
▲
23%
17%
▲
33%
4.4x
▲
16.6x
Domain
1,430
▲
3,279
(17%)
▲
12%
31%
▲
36%
4.6x
▲
7.4x
14
7
19
23
12
20
23
21
9
33
29
21
42
14
34
36
40
40
35
40
46
52
60
77
84
90
-
20
40
60
80
100
120
140
Dec 21
Mar 22
Jun 22
Sept 22
Dec 22
Mar 23
Jun 23
Sept 23
Dec 23
Mar 24
Jun 24
Sept 24
Dec 24
Spacesystems
Launchservices
Mar 2020
Acquired satellite hardware company Sinclair Interplanetary for USD $17m
Jan 2022
Acquired space solar power technology company SolAero for USD $80m
-
50
100
150
200
250
Nov 20
Feb 21
May 21
Aug 21
Nov 21
Feb 22
May 22
Aug 22
Nov 22
Feb 23
May 23
Aug 23
Nov 23
Feb 24
May 24
Aug 24
Nov 24
Feb 25
Tech Insights #362
Rocket Lab: from Māhia to the moon
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Mergers & acquisitionsCorporate finance advisoryCapital raising
3 March 2025
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Quarterly revenue by segment (USD $m)
Indexed share price since IPO via SPAC merger
Timeline of notable events
2025
Medium-lift rocket Neutron (compete with SpaceX’s Falcon 9) is planned to debut in 2025
Jun 2006
Founded in Auckland,
New Zealand
by Sir Peter Beck
Nov 2009
Launched sounding rocket Ātea-1 (first private company in the Southern Hemisphere to reach space)
2013
HQ moved from Auckland, NZ to California, US
May 2017
Small rocket Electron ‘It’s a Test’ flight successfully makes it to space
Acquired space software and mission simulation company Advanced Solutions for USD $46m
Oct 2021
Acquired satellite hardware company Planetary Systems for USD $80m
Dec 2021
Rocket Lab goes public via a SPAC merger, gross proceeds to Rocket Lab totalled USD $777m
Aug 2021
Rocket Lab, founded in 2006 by Sir Peter Beck, provides launch services, and space systems, which includes the design and manufacturing of satellites and spacecraft parts. The company’s Electron rocket, designed for small satellite launches, was the fastest commercially developed rocket to surpass 60 successful missions, outpacing SpaceX’s Falcon 9. It operates from launch sites in New Zealand and the US, serving commercial and government clients. Rocket Lab is currently developing its Neutron rocket to compete with Falcon 9 on cost per kilogram to low earth orbit (LEO).
Overview
Entered and grown space systems segment via acquisitions (see timeline below).
The share price fell by 10% after short seller Bleecker Street’s Research report claiming Rocket Lab’s 2025 Neutron launch was 'impossible’.
28 Feb EV = $10.4bn
5.5
8.1
6.7
7.1
7.8
6.5
9.2
7.5
7.0
5.7
-
2
4
6
8
10
2020
2021
2022
2023
2024
FY23
FY24
Tech Insights #362
Rocket Lab: from Māhia to the moon
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Disclaimer The information provided in this report has been sourced and calculated from company reports, FactSet, and Space.com. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
3 March 2025
High-level profit & loss (USD $m)
Rocket Lab revenue per launch and cost per launch (USD $m)
0.3
13
18
-
5
10
15
20
Tonnes
Cost per launch: Rocket Lab versus SpaceX
Number of launches per calendar year: Rocket Lab versus SpaceX
Target price per launch
Payload to LEO
Cost per tonne to LEO
Electron (Rocket Lab)
Neutron (Rocket Lab)
Falcon 9 (SpaceX)
7
6
9
10
16
26
31
61
98
138
-
40
80
120
160
2020
2021
2022
2023
2024
28
4
4
-
5
10
15
20
25
30
USD 000s
8
53
70
-
20
40
60
80
USD $m
(189)
(174)
(132)
(229)
(91)
311
125
(179)
(119)
(110)
(129)
(64)
173
72
Loss before tax
R&D
SG&A
Space systems COS
Launch services COS
Space systems revenue
Launch services revenue
-
100
200
300
400
Feb 17
Feb 18
Feb 19
Feb 20
Feb 21
Feb 22
Feb 23
Feb 24
Feb 25
-
20%
40%
60%
80%
100%
FY22
FY23
FY24
FY25*
Subscriptions
Total grossmargin
Hardware andother
Transactions
Tech Insights #361
ikeGPS: an eye on the poles
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
24 February 2025
Overview
This week’s Tech Insights report looks at ikeGPS (IKE), which listed on the NZX in 2014. IKE provides data collection, analysis, and management solutions for utility poles and overhead infrastructure, serving utilities, engineering firms, and communications companies. IKE’s revenue primarily comes from subscriptions to its platform and billable transactions based on how much customers use the software to engineer network assets. On 7 February, IKE announced it received an acquisition approach from a private equity group in late 2024 for NZD $1.00 per share. This presented a 62% premium to IKE’s closing price on 6 February. Its share price closed on 7 February at $0.82.
Revenue by segment (NZD $m)
Gross margin by segment
Products and services
*includes three quarters of actuals for 2025 annualised
Indexed weekly share price since February 2017
7 Feb
post $1.00 offer announced
share price NZD $0.82
5 Feb
pre $1.00 offer announced
share price NZD $0.62
Hardware
IKE device
Sale of IKE device and related accessories.
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Transactions
IKE Analyse
Back-end analysis to accelerate engineering processes.
IKE Insight
AI predictive analytics for network distribution planning.
Subscriptions
IKE Office Pro
Cloud software that interprets pole data from the IKE Device.
IKE PoleForeman
Structural analysis for pole loading and design.
7%
55%
31%
93%
14%
-
5
10
15
20
25
30
35
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
FY25*
Hardware andother
Transactions
Subscriptions
Tech Insights #361
ikeGPS: an eye on the poles
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Disclaimer The information provided in this report has been solely sourced and calculated from company annual reports and FactSet. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
24 February 2025
Comparable engineering and geospatial software and solutions companies
$1.00 acquisition approach in late 2024
Pre- and post- offer announcement valuation
Description
Location
EV
21 Feb 2025
(NZD $m)
LTM
revenue
(NZD)
LTM
revenue growth (%)
LTM
EBITDA
(NZD)
EV /
Revenue
(x)
EV /
EBITDA
(x)
EBITDA margin
(%)
Autodesk
Engineering design software
US
109,001
9,750
9.7%
2,125
11.2x
51.3x
21.8%
Dassault Systems
3D design solutions
France
93,621
11,113
6.0%
3,462
8.4x
27.0x
31.2%
Hexagon AB
Industrial technology software
Sweden
62,047
9,660
0.8%
3,564
6.4x
17.4x
36.9%
ANSYS
Engineering simulation software
US
49,955
4,208
13.7%
1,274
11.9x
39.2x
30.3%
Trimble
Geospatial tech solutions
US
32,107
6,090
(1.6%)
1,199
5.3x
26.8x
19.7%
Bentley Systems
Infrastructure engineering software
US
28,644
2,162
8.0%
566
13.3x
50.6x
26.2%
Altair Engineering
Software and engineering solutions
US
16,674
1,101
10.2%
90
15.1x
184.9x
8.2%
ikeGPS
Utility pole software and tools
NZ
119
23
(12.1%)
(11)
5.2x
NM
(46.2%)
Median
41,031
5,149
7.0%
1,236
9.8x
33.1x
24.0%
Overview
•
On 7 February 2025, IKE announced that in late 2024, it received an unsolicited, non-binding acquisition approach from a North American private equity group.
•
The bidder was granted a brief exclusivity period for due diligence to form an offer compelling enough to put before all IKE shareholders.
Offer price
•
In late January, the bidder presented a firm offer of NZD $1.00 per share.
Outcome
•
After discussions with key shareholders, IKE’s Board determined that the proposed price was unlikely to secure sufficient support. As a result, the Board ceased acquisition discussions with the potential acquirer.
Date
Share price
(NZD)
Description
Market cap
(NZD $m)
EV
(NZD $m)
EV /
Revenue
(x)
5 Feb 25
0.62
Pre-announcement
100
90
4.0x
Late 2024
1.00
Offer
161
152
6.6x
21 Feb 25
0.80
Current
129
119
5.2x
Tech Insights #360
NZDX
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Mergers & acquisitionsCorporate finance advisoryCapital raising
17 February 2025
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Overview
This Tech Insights report explores the listed debt market (NZDX). Forming an important part of the wider New Zealand debt market, the NZDX offers access to debt funding from institutional and retail investors.
NZDX and government bond overview
-
1
2
3
4
5
6
7
8
9
10
-
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
Yield (%)
Time to maturity (years)
Government
Council
Banking
Infrastructure
Property
Other
The graph below provides an overview of the NZDX market by yield (%), time to maturity (years), and category of issuer. The wholesale traded Government bonds are included as a common ‘risk-free’ benchmark. NZDX listed securities take on different structures e.g. resetting rates, options to call/redeem, convertible features, and perpetuals. The graph below adopts the common practice of pricing until the next significant date (maturity, reset, or call).
Auckland Council has the longest term issue on the NZDX, a vanilla bond maturing in 2050.
Councils and other senior lending show relatively consistent spreads.
Debt trading at wide credit spreads can be due to issuer creditworthiness, lack of liquidity and subordinated features of some notes.
A slight inversion indicates expectations for further rate cuts.
Tech Insights #360
NZDX
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Disclaimer The information provided in this report has been sourced and calculated from NZX, FactSet and other public information. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions, you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
17 February 2025
Amount outstanding by issuer
Amount outstanding by maturity profile
-
1
2
3
4
5
LGFA
BNZ
ANZ
ASB
Infratil
Westpac
Auckland Council
Mercury
Transpower
Auckland Airport
NZD $b
Amount outstanding by sector
# of securities on issue
-
4
8
12
16
20
24
Council
Banking
Infrastructure
Other
Property
NZD $b
$21.2b
-
4
8
12
16
20
0-2
2-4
4-6
6-8
8-10
10-30
NZD $b
Years to maturity/reset/call
-
2
4
6
8
10
12
Infratil
LGFA
BNZ
Wellington Airport
Auckland Airport
Auckland Council
Fletcher Building
Mercury
Transpower
# of securities
>
LGFA = Local Government Funding Agency
-
2.5x
5.0x
7.5x
10.0x
12.5x
15.0x
17.5x
20.0x
22.5x
25.0x
Dec 19
Jun 20
Dec 20
Jun 21
Dec 21
Jun 22
Dec 22
Jun 23
Dec 23
Jun 24
Dec 24
Tech Insights #359
Cloud Index as at 31 December 2024
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Mergers & acquisitionsCorporate finance advisoryCapital raising
10 February 2025
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Overview
This report looks at valuation multiples for cloud companies publicly listed in the United States, Australia and New Zealand. Over the December quarter, the US Cloud Index rose over 7.5x EV / NTM revenue for the first time since August 2022 and then pulled back to 7.0x as at 31 December 2024. The ANZ Cloud Index also rose above 7.5x to 8.0x before ending the quarter at 7.5x, an 8% increase over the quarter and 25% over the last 12 months.
NTM revenue multiple for cloud companies listed in the US and ANZ (EV / NTM revenue)
7.5x
ANZ Cloud Index
Average
12MMA
Dec 24
7.5x
6.7x
Sep 24
6.9x
6.3x
Change
8%
7%
Dec 23
6.0x
5.6x
Change
25%
19%
US Cloud Index
Average
12MMA
Dec 24
7.0x
6.3x
Sep 24
5.8x
6.2x
Change
19%
2%
Dec 23
6.8x
6.0x
Change
2%
5%
Note: Indices are calculated using a simple average (equal weighting), with the ANZ index (23 companies) comprising of companies that have a minimum NZD $250m market capitalisation versus NZD $500m for the US Index (84 companies). Avg = Average, NTM = Next 12 months, 12MMA = 12 month moving average.
10.8x
7.5x
7.0x
Key:
US
ANZ
Average
12MMA
5yr avg
-
5.0x
10.0x
15.0x
20.0x
Dec 19
Dec 20
Dec 21
Dec 22
Dec 23
Dec 24
-
10.0x
20.0x
30.0x
40.0x
Dec 19
Dec 20
Dec 21
Dec 22
Dec 23
Dec 24
75th percentile
Median
25th percentile
Tech Insights #359
Cloud Index as at 31 December 2024
Page 2 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
10 February 2025
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US cloud companies NTM revenue multiple
ANZ cloud companies NTM revenue multiple
8.8x
5.7x
3.2x
10.9x
5.5x
3.5x
US cloud companies
25th
75th
31 Dec 2024
Average
percentile
Median
percentile
EV (NZD $m)
47,988
5,031
12,214
33,093
EV / NTM rev
7.0x
3.2x
5.7x
8.8x
Revenue growth (NTM)
12%
6%
13%
21%
EV / LTM rev
8.5x
3.5x
6.9x
11.2x
Revenue growth (LTM)
19%
11%
17%
25%
Operating margin
(7%)
(16%)
(4%)
6%
ANZ cloud companies
25th
75th
31 Dec 2024
Average
percentile
Median
percentile
EV (NZD $m)
7,011
647
1,605
10,179
EV / NTM rev
7.5x
3.5x
5.5x
10.9x
Revenue growth (NTM)
17%
6%
20%
27%
EV / LTM rev
9.5x
4.0x
6.5x
12.9x
Revenue growth (LTM)
18%
8%
18%
26%
Operating margin
22%
9%
26%
38%
Note: The percentiles for each metric are calculated individually. Companies added or removed from each index take effect from the first day of the reported quarter.
EV = Enterprise Value, LTM = Last 12 months, NTM = Next 12 months.
Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. ClareCapital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Tech Insights #358
Clare Capital’s naughty or nice list
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
16 December 2024
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Overview
In this year’s Christmas Tech Insights report, we present our light-hearted Naughty or Nice list for 2024. On page 2 we have created two quick puzzles, a Strands word search and a crossword. Happy holidays!
NICE
Raglan Roast
(The Terrace)
Great coffee, across from our office (and only $20 for 6 coffees).
Kimchi scones at Astoria & Tipple
Team favourite for the best take on the classic Wellington cheese scone.
Mango
(office dog)
Miss September in the 2025 Wellington Dogs of the Cable Car Calendar.
OpenStar Technologies
Achieving a fusion energy milestone, creating superheated plasma.
11 Woodward Wine Bar
The new cozy wine bar under the ClareCapital office (the old Beaujolais).
Lego Team New Zealand AC75 Yacht
A great addition to Clare Capital’s office Lego collection.
Happy greyhounds
Greyhound racing is to be banned in NZ over the next 20 months.
NAUGHTY
Autopilot
A rough year for the NZ ferries & boats, losing power and being ‘beached az’.
Commerce Commission
Declining AlphaTheta’s acquisition of Serato (with an 8-month delay).
Du Val Group
In statutory management, owing ~$240m to creditors and investors.
SkyCity
5-day casino closure following breaches of the Gambling Act.
Wellington City Council
Crown Observer appointed to address financial and other challenges.
SolarZero
Liquidating only months after receiving debt-funding from NZGIF and others.
CrowdStrike
Causing millions of ‘blue screens of death’ globally following a faulty update.
list
CLARE CAPITAL’S CHRISTMAS NAUGHTY or NICE
Answers | Strands word search: Acquisition, Finance, Deal, Value, Tech, Advise, Transaction | Mini: 1. SCHED, 6. ALIVE, 7. TAKEN, 8. ARENT, 9. NESTS, 1. SATAN, 2. CLARE, 3. HIKES, 4. EVENT, 5. DENTS
Tech Insights #358
Clare Capital’s naughty or nice list
Page 2 of 2
Disclaimer This report has been informed by correspondence with the North Pole. Clare Capital assumes no responsibility over the imaginative nature of the content, as well
as allocations on the ‘naughty or nice’ list. Clare Capital is not an Authorised Financial Advisor.
Mergers & acquisitionsCorporate finance advisoryCapital raising
16 December 2024
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Strands word search
Find words hidden within the grid below. Connect letters vertically, horizontally and diagonally to form words related to the theme. Every letter in the grid is in a word only once and words do not appear in a straight line.
T
I
O
N
F
I
I
S
C
A
N
N
N
I
U
Q
C
A
L
O
I
E
D
E
U
A
V
T
A
T
E
A
H
C
L
R
V
D
C
A
S
A
I
S
E
E
T
N
M&A
TODAY’S THEME
Mini crossword
1
2
3
4
5
6
7
8
9
DOWN
1
Figure associated with evil
2
The name on the door
3
Long walks in nature
4
Cinema chain
5
Damage to a car's exterior
ACROSS
1
Plan or timetable (abbreviated)
6
Full of life, not dead
7
No longer available
8
Opposite of are (contraction)
9
Homes built by birds
Tech Insights #357
Tech stocks 2024 wrap up
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
9 December 2024
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Overview
With the year coming to a close this Tech Insights report wraps up the performance, size and valuations for tech stocks local and abroad. NZX listed Gentrack Group doubled its share price in 2024 with its 1H24 and FY24 result announcements contributing big one-off share price movements. Large US tech companies played leapfrog for the title of world’s most valuable business with Apple (currently the largest), Nvidia and Microsoft all spending time at number one.
Largest NZX tech stocks: indexed share price
Largest NZX tech stocks EV (bar) and revenue multiple (dot)
Largest ASX tech stocks: indexed share price
Largest ASX tech stocks EV (bar) and revenue multiple (dot)
-
50
100
150
200
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Gentrack
Vista
Serko
EROAD
-
2x
4x
6x
8x
-
0.5
1.0
1.5
2.0
Gentrack
Vista
Serko
EROAD
EV/Revenue multiple
Enterprise Value (NZ $b)
-
25
50
75
100
125
150
175
200
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Wisetech
REA
Xero
Computershare
-
10x
20x
30x
40x
50x
-
10
20
30
40
50
EV/Revenue multiple
Enterprise Value (AU $b)
Tech Insights #357
Tech stocks 2024 wrap up
Page 2 of 2
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
9 December 2024
Largest global tech stocks: indexed share price
Largest global tech stocks EV (bar) and revenue multiple (dot)
Select global SaaS stocks: indexed share price
Select global SaaS stocks EV (bar) and revenue multiple (dot)
-
50
100
150
200
250
300
350
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Apple
Nvidia
Microsoft
Amazon
-
5x
10x
15x
20x
25x
30x
35x
40x
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Apple
Nvidia
Microsoft
Amazon
EV/Revenue multiple
Enterprise Value (US $b)
-
25
50
75
100
125
150
175
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Salesforce
Adobe
Shopify
Atlassian
-
5x
10x
15x
20x
-
100
200
300
400
Salesforce
Adobe
Shopify
Atlassian
EV/Revenue multiple
Enterprise Value (US $b)
Tech Insights #356
Cross-border M&A
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
2 December 2024
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Overview
This report looks at three sets of transactions over the last 10 years; acquisitions of private companies in New Zealand (page 1), acquisitions of private tech companies (page 1), and acquisitions of public companies (page 2). The insights focus on the origin of the buyers in these deals and how long deals take to complete. Note: tech is defined as ‘packaged software’ in FactSet.
-
10%
20%
30%
NZ
AUS
USA
UK
Other
% of deals
Location of buyer
-
20
40
60
80
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
# of deals
Year
Overseas
Local
Private New Zealand deals: overseas buyer vs local buyer
Private New Zealand deals (all deals): location of buyer
Private tech deals: overseas buyer vs local buyer
Private New Zealand tech deals: location of buyer
-
10%
20%
30%
40%
50%
60%
70%
80%
NZ
AUS
USA
UK
Overseas buyer %
Location of acquired companies
Most acquisitions of private NZ companies are from overseas buyers
Nearly 80% of acquisitions of private NZ tech companies are by overseas buyers
Nearly 30% of acquisitions of private NZ tech companies are by US buyers
-
10%
20%
30%
40%
NZ
AUS
USA
UK
Other
% of deals
Location of buyer
Tech Insights #356
Cross-border M&A
Page 2 of 2
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
2 December 2024
-
500
1,000
1,500
2,000
2,500
USA
AUS
UK
NZ
# of deals
Location of acquired companies
Complete
Withdrawn
Public-to-private deals: overseas buyer participation
Public-to-private deals: split of completed and withdrawn deals
-
10%
20%
30%
40%
50%
60%
70%
USA
AUS
UK
NZ
Overseas buyer
Location of acquired companies
Public-to-private deals: days from announcement to completion
22
14
Overseas buyer:
-
20
40
60
80
100
120
140
160
USA
AUS
UK
NZ
Average days
Location of acquired companies
Yes
No
Comments
Top left: Almost 70% of acquirers of listed NZ companies are from overseas.
Top right: 85% of acquisitions of public companies that are announced in the US complete, 61% complete in New Zealand
Bottom right: On average, having an overseas buyer increases the time from announcement to completion by 47 days in New Zealand public-to-private deals. This is likely due in part to OIO requirements.
-
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
AUM (NZD $t)
SPY
IVV
VOO
Combined % S&P 500 (RHS)
Tech Insights #355
Exchange Traded Funds (ETFs)
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
25 November 2024
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Overview
This Tech Insights report examines the growing global ETF market. ETF offerings have grown in both popularity and range, with more investors adopting ETFs within their portfolios. Page one highlights ETFs tracking the world’s most popular index (the S&P 500) and a range of notable ETF providers. Page two highlights the breakdown of global offerings as well as ETFs from NZ’s largest ETF provider Smart (formerly Smartshares).
Major S&P 500 ETFs
Notable ETF providers
State Street’s S&P 500 index ETF SPY remains the largest ETF in the world by assets under management (AUM) since its launch back in 1993. Vanguard’s VOO and BlackRock’s IVV have emerged as popular alternatives with more competitive expense ratios than SPY.
Provider
AUM of 10 largest ETFs (NZD $b)
First ETF launched
Significant ETF
Ticker/index
Fee
Exchange
3,285
2001
VOO
S&P 500
0.03%
NYSE
2,380
1996
IVV
S&P 500
0.03%
NYSE
1,818
1993
SPY
S&P 500
0.09%
NYSE
816
1999
QQQ
NASDAQ 100
0.20%
NASDAQ
31
2010
A200
ASX 200
0.04%
ASX
5
1996
NZG
NZX 50
0.20%
NZX
ETF providers typically create a mix of low-cost index tracking funds with a mix of alternative or more specialised options, such as Blackrock’s BTC (bitcoin) ETF.
The NZD $3t invested in VOO + SPY + IVV now constitutes 3.5% of the S&P 500’s NZD $87t market cap.
-
0.2
0.4
0.6
0.8
1.0
1.2
SPY
VOO
IVV
VTI
QQQ
VUG
VEA
VTV
IEFA
AGG
BND
IWF
IJH
IJR
VIG
VWO
VGT
IEMG
IWM
VXUS
VO
GLD
XLK
RSP
SCHD
AUM (NZD $t)
-
0.2
0.4
0.6
0.8
NZG
USF
GGB
FNZ
NZC
USG
NZB
TWH
NGB
ESG
AUS
AGG
OZY
MZY
TWF
GBF
EMF
MDZ
USH
TNZ
NPF
AUE
EMG
EUF
APA
AUM (NZD $b)
Tech Insights #355
Exchange Traded Funds (ETFs)
Page 2 of 2
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet and other public sources. Clare Capital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
25 November 2024
Top 25 Global ETFs by AUM
Top 100 Global ETFs asset class breakdown
The global ETF market is highly concentrated with 57% of the AUM of the top 25 held by just 5 names: SPY, IVV, VOO, VTI (global stock market tracker) and QQQ.
Top 100 Global ETFs index & strategy breakdown
The most popular ETFs are broad market index trackers. More specific ETFs that offer satellite strategies are growing in popularity to supplement core portfolios. Value, growth, and dividend focused are the most common strategies for equities and target duration or credit rating are the most popular for fixed income.
Top 25 Smart ETFs by AUM
NZX owned Smart (formerly Smartshares) provide 44 NZX listed ETFs across various equity, fixed income, gold, and bitcoin exposures.
Equities
Fixed income
Gold
Strategy
Market index
Asset Class
Approach
-
20%
40%
60%
80%
100%
# of ETFs
AUM
Strategy
Index
-
20%
40%
60%
80%
100%
# of ETFs
AUM
Derivatives
Bitcoin
Gold
Fixed income
Equities
S&P 500
NZX 50
Global government bonds
243%
-
40%
80%
120%
-2yr
-1yr
LTM
-2yr
-1yr
LTM
-2yr
-1yr
LTM
-2yr
-1yr
LTM
-2yr
-1yr
LTM
-2yr
-1yr
LTM
-2yr
-1yr
LTM
-2yr
-1yr
LTM
Revenuegrowth
Free CashFlow margin
Magnificent 7 deal activity* (last 10 years)
Tech Insights #354
Magnificent 7 (and Broadcom)
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
18 November 2024
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Overview
The seven largest listed tech stocks globally (NVIDIA, Apple, Microsoft, Amazon, Alphabet, Meta, and Tesla) have been coined the Magnificent 7. Broadcom has been growing rapidly, nearly doubling its market capitalisation over the last year to USD $770bn and is currently the 8th largest company listed on the NASDAQ. This Tech Insights report spotlights these companies and their performance over time.
Annual revenue split by geography
Rule of 40
The Rule of 40 metric combines annual revenue growth and Free Cash Flow (FCF) margin. While the metric is primarily used to evaluate SaaS companies, in this context it also serves as a useful benchmark to assess performance. NVIDIA and Broadcom are the only two companies that achieved the Rule of 40 benchmark every year over the last three years. We note there are different variations of the Rule of 40, including using EBIT or EBITDA instead of FCF as a measure of profitability.
*Includes acquisitions, mergers and majority stakes by parent and subsidiaries.
-
20%
40%
60%
80%
100%
Amazon
Microsoft
Alphabet
Tesla
NVIDIA
Meta
Apple
Broadcom
United States
Rest of World
120%+
-
20
40
60
'15
'16
'17
'18
'19
'20
'21
'22
'23
'24
Deal count
Broadcom
Tesla
Meta
Alphabet
Amazon
Microsoft
Apple
NVIDIA
-
5
10
15
20
Jan 16
Sep 16
May 17
Jan 18
Sep 18
May 19
Jan 20
Sep 20
May 21
Jan 22
Sep 22
May 23
Jan 24
Sep 24
Market capitalisation (USD $tn)
Broadcom
Tesla
Meta
Alphabet
Amazon
Microsoft
Apple
NVIDIA
Tech Insights #354
Magnificent 7 (and Broadcom)
Page 2 of 2
Disclaimer The information provided in this report has been solely sourced from FactSet and company annual reports. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
18 November 2024
Largest listed tech companies - key metrics (USD $b)
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Market capitalisation (USD $tn)
Company
Description
Market capitalisation
Enterprise value
LTM
revenue
LTM rev growth
FCF margin
EBITDA margin
EV / Revenue
EV / EBITDA
LTM share price Δ
NVIDIA
Semiconductors
3,483
3,458
96
195%
49%
64%
35.9x
56.5x
187%
Apple
Consumer electronics
3,401
3,455
391
2%
28%
34%
8.8x
25.7x
19%
Microsoft
Cloud services and computer software
3,085
3,104
254
16%
29%
55%
12.2x
22.4x
10%
Amazon
Cloud services and e-commerce
2,130
2,189
620
12%
7%
18%
3.5x
19.5x
42%
Alphabet
Cloud services
2,119
2,048
340
15%
16%
36%
6.0x
17.0x
26%
Meta
Social media platforms
1,398
1,377
156
23%
33%
50%
8.8x
17.6x
66%
Tesla
Electric vehicles
1,030
1,009
97
1%
4%
14%
10.4x
75.6x
37%
Broadcom
Semiconductors
770
830
47
32%
40%
49%
17.7x
36.2x
72%
Median
2,125
2,118
205
15%
28%
42%
9.6x
24.0x
40%
The combined market capitalisation of the Magnificent 7 and Broadcom currently accounts for 35% of the S&P 500 Index.
Tech Insights #353
Tech M&A deal structures
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
11 November 2024
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Overview
This Tech Insights report covers the structure of technology M&A deals over the last 10 years as available from FactSet. Page one highlights regional differences in structure and acquisition behaviour, illustrating how deal activity has progressed through time. Page two highlights how some of the world’s most acquisitive tech companies structure their M&A deals. Note: this report only looks at acquisitions of private companies.
Average tech deal structure by acquirer region
Transaction value (% of acquirer’s EV)
-
5%
10%
15%
20%
25%
NorthAmerica
AU/NZ
Europe
UK
Asia
Other
25th percentile
Median
75th percentile
-
20%
40%
60%
80%
100%
NorthAmerica
AU/NZ
Europe
UK
Asia
Other
Cash up front
Stock up front
Other
The median transaction value in AU/NZ was 5.9% of the acquirer’s EV.
Number of tech M&A deals by year
Transaction size (US $m)
-
200
400
600
800
1,000
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
North America
AU/NZ
Europe
UK
Asia
Other
-
10
20
30
40
NorthAmerica
AU/NZ
Europe
UK
Asia
Other
25th percentile
Median
75th percentile
2024
as at 15 Oct
>89
49
-
20%
40%
60%
80%
100%
Monchilla
Hubdoc
Instafile
Waddle Loans
Planday
Tickstar
Locate Inventory
Cash up front
Stock up front
Other
Tech Insights #353
Tech M&A deal structures
Page 2 of 2
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
11 November 2024
Selected Lightspeed deal structures (transaction size, US $m)
Selected Xero deal structures (transaction size, US $m)
-
20%
40%
60%
80%
100%
Chronogolf
GastroFix
ShopKeep
Upserve
Vend
Ecwid
NuORDER
Cash up front
Stock up front
Other
$12m
$120m
$500m
$421m
$354m
$643m
$386m
-
20%
40%
60%
80%
100%
IBM (12 deals)
Accenture (9)
Oracle (8)
Spotify (6)
Microsoft (19)
Tech Mahindra (19)
Atlassian (6)
Alphabet (15)
Citadel Group (6)
BigTinCan (12)
ReadyTech (8)
RPMGlobal (6)
Altium (7)
Salesforce (11)
Wisetech (27)
ELMO (7)
Lightspeed (7)
Xero (7)
Xero’s average deal structure contains 30% cash up front.
Average % of transaction value in up front cash
AU/NZ acquirers
Large global acquirers
$7.2m
$70m
$6.8m
$57m
$221m
$18m
$14m
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