Marketplace Apps Industry Summer Report 2024

MARKETPLACE APPS SEMI-ANNUAL REPORT

Summer 2024

Index

Macroeconomic Outlook

Marketplace Apps Industry Overview

Applications Segment Breakdown

Enterprise Apps Overview

MarketplaceAppsFunding and M&A

Looking Ahead

Case Studies

Behind this Report

About FE International

Macroeconomic Overview

The global economy is expected to settle into a pattern of "steady" growth. Despite recent challenges such as high interest rates, inflation, and geopolitical tensions, the 3.2% growth rate for 2024 and 2025 indicates resilience as we settle into a new normal after the pandemic. The economic pick-up is not uniform. Developed economies will likely see a slight acceleration from 1.7% growth in 2024 to 1.8% in 2025, while emerging markets and developing economies' growth rates are anticipated to remain stable. There's a sense of optimism emerging among business leaders. In the US, CEO confidence has risen for two quarters in a row, with recession fears fading significantly. European CEOs and China-based CEOs of US and European companies are also slightly more optimistic, with a more positive outlook on the short-term economic situation. However, cautious optimism in encouraged – market projections could shift notably depending on the outcome of the upcoming US presidential elections. Global Economy Settles Into Cautious Growth Pattern

Real GDP Growth (% YoY)

Forecast

4.2%

3.6% 2.3% 4.7%

3.2% 1.8% 4.2%

3.2%

1.7%

2018 2019 2020 2021

2022 2023 2024E 2025F

World

Advanced economies

Emerging market and developing economies

The Conference Board Measure of CEO Confidence

Q4 2023

Q2 2024

H2 2023

H1 2024

H2 2023

H1 2024

United States

Europe

China

Source: IMF World Economic Outlook, July 2024. The Conference Board. Note: Measure of CEO Confidence is a barometer of the health of the US economy from the perspective of US chief executives.

To combat inflation, central banks raised interest rates to levels considered restrictive to economic growth. However, with global inflation rates falling and projected to reach 4.4% by 2025, the IMF suggests these interest rates are nearing their peak. This normalization in interest rates and inflation eases the financial burden on businesses and consumers, potentially spurring an uptick in consumer activity and further investments from businesses. Leading economists are forecasting that advanced economies will achieve their inflation targets sooner than emerging markets. This recovery could be due to a combination of factors, such as stronger economic fundamentals and more robust policy responses. In recent months, the Swiss National Bank (SNB) and European Central Bank (ECB) lowered their interest rates. This is a positive sign for further cuts, with other markets following the impact of these rates closely. Inflation & Interest Rates Stabilizing

CPI Inflation Rate (%)

Forecast

8.2%

4.4% 6.0%

3.6% 2.0% 5.0%

5.9%

2.1%

2.7%

2018 2019 2020 2021

2022 2023 2024E 2025F

World

Advanced economies

Emerging market and developing economies

Interest Rate (%)

5.4% 4.3% 5.3%

Recent rate cuts by SNB & ECB

0.1% 1.3%

Jan-20 Nov-20

Oct-21

Aug-22

Jul-23

Jun-24

US (Fed)

Euro Area (ECB)

United Kingdom (BoE)

Japan (Bank of Japan)

Switzerland (SNB policy rate)

Source: IMF World Economic Outlook, July 2024, Interest rates as per central bank data of respective regions. Note: ECB = European Central Bank, SNB = Swiss National Bank.

Venture Capital & Private Equity Investment Outlook

VC Dry Powder ($B) by Vintage

PE Dry Powder ($B) by Vintage

$0 B $100 B $200 B $300 B $400 B $500 B $600 B $700 B $800 B 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

$0 B $200 B $400 B $600 B $800 B $1,000 B $1,200 B $1,400 B $1,600 B $1,800 B

2023 2022 2021 2020 2019 2018 2017 2016

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Dry powder for VC and PE has reached record levels, exceeding $700 billion for VCs and $1.5 trillion for PEs. This abundance of available capital is particularly appealing for apps, offering the potential for substantial investment. Additionally, app-focused VCs are on the rise, with several significant fundraising rounds targeting various segments. However, converting this dry powder into actual investments may rely on the resurgence of strong exit opportunities for VCs through IPOs or M&A activity. Overall, the current environment presents a potential advantage for VCs to invest in promising ecommerce at potentially lower valuations.

Source: Pitchbook as of March 2024.

Marketplace Apps Industry Overview

The State of Marketplace Apps Mobile internet accounts for nearly 60% of global traffic. Smartphone domination prompteda new generation of digital customers and workers alike, who demand flexible solutions for their unique needs — and that’s why apps became so popular. Of course, apps and their marketplaces span beyond mobile — this market model has become the standard for desktop users as well. The Marketplace Apps sector contains both the application marketplaces, like Salesforce or the Apple App Store, as well as the in- house and third-party software tools available within those marketplaces. For example, a checkout tool for Shopify, a cloud storage plugin for Amazon Web Services, or a payment processing service for Etsy. The popularity of these markets among consumers had a ripple effect on B2B and enterprise application marketplaces, like Salesforce, which have seen equally tremendous growth in the last decade. Both app marketplaces and the apps they host have blossomed into unique, deeply-interconnectedeconomic powerhouses. The sector has attracted considerable interest from major corporations and financial institutions, who are strategically acquiring multiple applications within an ecosystem in order to leverage their combined capabilities across various platforms. By doing so, they can capitalize on synergies, enhance operational efficiencies, and achieve scalability across the board. This comprehensive approach not only maximizes their investment potential but also fosters innovation and growth within the evergreen sector.

Source: Statista 2024.

GlobalApplication Market toDouble by2030 The global mobile application market size is estimated to be $254.9 billion in 2024 and is projected to grow at a CAGR of 14.3% from 2024 to 2030 to $567.2 billion — more than double. This includes applications across various sectors, like retail, health and fitness, gaming, music and entertainment, and social networking. Smartphone adoption is becoming universal. Internet usage is becoming more accessible. And so, the marketplace apps industry cements itself as indispensable. With the increased integration of AI technologies in mobile apps, we're seeing the emergence of previously unseen opportunities in operational efficiencies from automated storefronts to dynamically, instantly generated content. These fundamental changes continue to propel the market. Businesses have responded by improving their online presence through user-friendly mobile apps and robust digital marketing strategies made to accommodate the on- the-go customer.

Global Mobile Application Market Size

(In Billions of USD)

CAGR 14.3%

567.2

254.9

2024E

2030F

Source: Statista2024

Consumer Marketplaces

Top 5 Players

Dominating Global Markets

Apple App Store 1,727,204 apps

App Developers

Apps

Google, Meta, Microsoft, WhatsApp, Motorola Mobility

Amazon Prime Video, TikTok, Filto, WhatsApp, CashApp

United States

Google Play 3,612,796 apps

Xiaomi, Huawei Internet Services, Shalltry Group, UCWeb, Mi Music

Twitter, Telegram, YouTube, Instagram, Google

China

Amazon Appstore 778,654 apps

Samsung, Smart Media4U Technology, Jio Platforms Limited, Truecaller, Airtel

Flipkart, Meesho, Amazon, Instagram, Shopsy

India

Amazon FireTV 16,376 apps

ASDA Rewards, McDonald’s, Google Wallet, Disney+, Microsoft Teams

United Kingdom SwiftKey, Badoo, Wasabi, IMDb, Piriform

TikTok, PENNY Angebote & Coupons, VR Banking - Deine mobile Bank, Takko Friends, PayPal

SoundCloud, upday GmbH & Co., TeaCapps, RARLAB, TeamViewer

Germany

Apple TV OS App Store 19,298 apps

Source: 42matters.

Regulatory News In 2024, several new regulations could impact digital marketplaces:

• Digital Markets Act (DMA): This EU legislation designates large online platforms as "digital gatekeepers" based on their size and market impact. These gatekeepers, including companies like Alphabet, Amazon, and Meta, must adhere to rules ensuring fair competition, such as prohibiting unfair practices and ensuring data access and portability. The DMA also empowers the European Commission to investigate and impose fines for non-compliance. • California Privacy Protection Agency (CPPA) Regulations: In the US, the CPPA drafted new regulations for automated decision-making technology (ADMT) under the California Consumer Privacy Act (CCPA). These regulations require businesses to notify consumers about the use of ADMT and allow them to opt- out of certain automated decision-making processes. • OECD Reporting Rules: From January 1, 2024, OECD rules mandate online marketplaces to report details and income of sellers, aiming to enhance transparency and tax compliance. This includes collecting information about sellers' transactions and reporting them annually. • Cybersecurity and Privacy: US federal and state laws continue to evolve, requiring digital marketplaces to implement robust cybersecurity measures. This includes adhering to the "reasonable security" standard and complying with specific regulations like the Gramm-Leach-Bliley Act for financial institutions and HIPAA for healthcare entities. • SEC AI Rules: The US Securities and Exchange Commission (SEC) has proposed new rules addressing conflicts of interest related to the use of AI by broker-dealers and investment advisers. These rules, expected to be finalized in 2024, aim to ensure transparency and fairness in AI-driven financial services. These regulations reflect a global trend towards tighter controls on digital marketplaces, aiming to enhance competition, transparency, and consumer protection. Source:Skadden,ICLG, Android Central,ICAEW2024

The State of Applications

Applications Market Value by Segment

(In Billions of USD)

700

612

600

580

541

500

488

428

400

398

317

300

253

216

200

177

100

2017

2018

2019

2020

2021

2022

2023

2024E

2025F

2026F

Travel

Photo & Video

Lifestyle

Entertainment

Sports

News&Magazines

Health & Fitness

Education

Social Networking

Navigation

Weather

Business

Games Medical

Shopping

Music

Food & Drink

Book & Reference

Utilities

Productivity

Finance

Source: Vlinkinfo

Average Revenue per Download

(In USD)

Business

Medical

News & Magazines

Social Networking

Shopping

32.23

31.25

27.92

26.71

25.3

23.99

26.63

22.95

21.55

21.08

19.95

9.73 12.93

12.5

8.96 12.03

8.44 11.96

11.88

11.68

11.58

9.7 7.51

9.5

9.49 9.45

9.34

0.87 3.04 6.26 8.75 2017

7.96

7.58

7.52

7.1

3.91

1.02 3.84 2018

0.81 3.25

0.78 3.13

0.75 3.01

0.75 2.99 2021

0.72 2.89

0.73 2.88

0.71 2.88

0.69 2.79 2023

0.98 2019

2020

2022

2024E

2025F

2026F

2027F

30% of the total revenue in the sector comes from shopping applications. This substantial contribution showcases the critical importance of ecommerce within the digital economy. Consequently, there has been a marked increase in the development and deployment of ecommerce-oriented marketplace apps. These applications encompass a broad spectrum of functionalities, from advanced marketing analytics solutions to sophisticated inventory management software, catering to the diverse needs of online retailers.

Source: Statistica 2024.

Enterprise Apps

State of Enterprise Apps Enterprise apps, which are primarily designed for corporate use, are a subset of the overall app market. It was valued at $294.7 billion in 2023 and expected to reach $551 billion by 2032 representing. a CAGR of 7.2%. Enterprise App Categories: Business Applications: ERP, CRM, HCM, and other enterprise software. Development Tools: Tools for application development, integration, and DevOps. Security: Security solutions to protect applications and data. Infrastructure: Applications for managing and optimizing cloud infrastructure. Analytics: Data analysis, business intelligence, and reporting tools. Growth Drivers in the Market: A customer-centric approach: Apps that clearly target the end user's needs. Demonstrated, personalized solutions show greater returns. Automation and eliminating inefficiencies: Automation expands operations and reduces error, thus boosting profit margins. Plus, automated enterprises are better prepared for the dynamic global customer. Global Operations: With ease of trade over the world, businesses are expanding into other geographies across countries. This creates more demand for apps and seamless, 24/7 business functions along with central monitoring and reporting systems.

Enterprise Apps Future Growth

(In Billions of USD)

551

514

479

447

417

389

363

339

315.92

294.70

2023 2024E 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F

Source: Allied Market Research, IMARC Group

The Evolution of Enterprise Marketplaces A timeline of marketplace launches and expansions

CrowdStrike Store

Atlassian Marketplace

Slack App Directory

Zapier App Integration

ServiceNow Store

Stripe App Marketplace

Salesforce AppExchange

Shopify App Store

AWS Marketplace

Microsoft AppSource

Okta Integration Network

Snowflake Marketplace

Azure Marketplace

Auth0 Marketplace

Zoom App Marketplace

PANW Cortex Marketplace

2005 2006 2007 2008 2009 2010 2011

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

2022 2023

Extend core Product

Integrate with other products

Serve as core product functionality

Provide ecommerce experience

Source: Okta.

Salesforce, the First Enterprise Marketplace

Salesforce AppExchange was the first enterprise app marketplace of its kind. The cloud-based platform offers a suite of software tools that focus on sales, customer service, marketing automation, ecommerce, analytics, and application development. Since its founding in 1999, the company has grown to a market cap of $245 billion — the 44th most valuable in the world. Its hallmark features set a new precedent for global ecommerce solutions; examples include ready-to- install third-party apps, API and open infrastructure to create apps, automated workflow management and other tools to accommodate common operational challenges, data solutions like data management and mining, and real-time integration assistance from Salesforce experts. Since its creation, Salesforce AppExchange has shown consistent success. As of 2024, estimates show: • 13 million installs • 142,000+ peer reviews • $1.2 trillion worth of new business and 4.2 million jobs generated by 2024 Sales apps, typically used to generate and manage leads, account for 25% of available apps — the most common category on the marketplace. They're followed by productivity at 16% and IT at 12%. The wide array of apps available on the marketplace has led to popularity of AppExchange among Fortune 500 companies. 90% of Fortune 500 companies and 91% of Salesforce users visit the AppExchange for tackling business challenges and bringing about digital transformation. This support proves Salesforce AppExchange to be both the founder of marketplace enterprise apps and consistently one of the most sought after.

Source: Salesforce.

Shopify's Impact on Digital Marketplaces

(In Trillions of USD) Global Ecommerce Sales (2021-2027)

8.0

A notable catalyst in ecommerce app proliferation is the remarkable success of Shopify, a leading ecommerce platform. Shopify facilitates a vibrant ecosystem of platform-specific applications that allow merchants to create and customize ecommerce stores. Its tools help automate operations, drive sales, and generally improve the customer experience. These features enhance the appeal of Shopify for merchants while spurring a significant influx of developers and innovative solutions tailored to the Shopify environment. As of 2023, Shopify's impressive operational scale is evident in its employment of over 8,000 individuals and its hosting of more than 13,000 ecommerce applications available for download by merchants. Shopify's pioneering marketplace approach created a ripple effect, catalyzing broader industry trends of personalized customer experiences and enhanced platform versatility. The success of the Shopify App Marketplace and the burgeoning ecommerce app market has significantly contributed to the growth of similar marketplace platforms, like Salesforce, Atlassian, Intuit, and others.

7.4

6.9

6.3

5.8

5.3

5.0

2021

2022 2023 2024 2025 2026 2027

Source: eMarketer

Mapping Enterprise Marketplaces

Target audience

Number of apps listed

App categories

Platform founded date

Admin tools, CRM, dashboard gadgets, project management, charts & diagramming, design tools, messaging, IT & helpdesk, and more

Customer management and project management

5,300+ apps – free and paid

2012

Medium to larger-sized businesses

800+ apps on its app marketplace

Analytics, intelligence and reporting, automation, customer service and more

2015

Blogging consumers to large businesses and even ecommerce sites

70,000+ plugins available for WordPress

Marketing, ecommerce, events, media, design elements, communication, and content

2003

Small merchants through to large enterprises

8,000+ apps and integrations on its marketplace

Finding products, orders & shipping, marketing & conversion, selling & products, store design, and store management

2009

Businesses of all sizes, but it tends to be used by small to medium-sized corporations

1,000+ apps available on Zoho Marketplace

CRM, recruitment, sales, analytics, projects, campaigns, inventory, invoicing, and more

2005

Business owners, marketing, and digital

300+ apps, including social media and design tools

Marketing, ecommerce, services & events, media & content, design elements, communication

2006

Customer-facing roles, such as customer service, customer success, and community management

Productivity & time-tracking, ecommerce & CRM, analytics & reporting, email & social media, marketing & lead generation, quoting & billing, and more

1,200+ apps are available

2007

1000+ apps, including payment gateways, shipping providers, marketing tools, and more

Mid-large-sized ecommerce businesses

Customer support, payments & security, marketing, accounting & finance, shipping & fulfillment, site optimization

2008

Source: Wpzoom.

Mapping Enterprise Marketplaces

Target audience

Number of apps listed

App categories

Platform founded date

WordPress developers and agencies that build ecommerce sites for clients Ecommerce enterprises, business owners, founders, and marketing Large enterprises across sectors. Sales, marketing, customer service, finance and HR

5000+ apps like marketing and payment tools

Themes, payment solutions, marketing, customer service, merchandising, and more

2008

1000+ apps – like marketing tools, accounting software, and fulfillment services

Accounting, analytics, B2B/wholesale, catalog/order management,

2009

7,000+Salesforce-native and third-party apps

Salesforce has 150,000 and 91% of its customers use AppExchange apps

2006

Accounting & invoicing, analytics, bots & messaging, contacts & calendar sync, customer support, data management, email marketing, marketing automation – and more

Small to medium-sized businesses. Sales and marketing

400+ apps – free and paid.

2010

200+ apps Google Analytics, Salesforce, and GitHub.

Insights, performance, security, special & communication, UI & design, and widgets & plugins

Businesses of all sizes. Technical

2010

100+ apps in its marketplace. anti-fraud, analytics, and accounting

Ecommerce businesses and mobile payment clients

Accounting, billing, climate, compliance, data & analytics, financial services, marketing & sales, and productivity

2011

CRM, marketing, project management, software development, team management, productivity & efficiency, reporting & analytics, and more

Marketing, product management, business owners, and HR teams

250+ apps – free and paid

2014

Funding and M&A

B2B Marketplace Funding

B2B Marketplace Global VC Funding (In Billions of USD)

B2B Share of Marketplaces VC Funding

B2B Rest of Marketplaces

$19.4

80%

90% 89%

92% 95%

92% 88% 88%

$9.9

97% 96% 96%

$8.4

$8.3

$6.3

$5.8

3% 4% 4% 8% 5% 10% 11% 8% 12% 12% 20%

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

2018

2019

2020

2021

2022

2023

Marketplace applications are typically monetized through recurring revenue streams. This makes them highly valuable and increasingly sought-after assets in the tech industry. As a result, a significant influx of investment capital has funneled into this expanding sector. In 2023 alone, 20% of all marketplace funding was allocated to B2B marketplaces, marking the highest share ever recorded. Historically, these investments show high growth potential and lucrative returns.

These acquisitions and investments illustrate the power of PE and VC firms in creating impactful applications and services. Many financial sponsors now own application developers that act as standalone platforms — which constantly seek add-ons to improve scalability. Often these platform companies have no minimum EBITDA threshold and, therefore, more flexibility for developers of all types to achieve a successful exit. These shifts highlight the growing importance of app marketplaces and cross- industry growth — trends that will only continue as investments fuels the continued development of new marketplace applications.

Source: Dealroom

Factors Driving Valuations

Multiple

Age

Time

Trends

EBITDA Margin

Reviews

>3 years

< 5 hrs/week

Growing

➢ 50%

➢ 1000

<2 years

> 15 hrs/week

Flat

< 30%

< 500

Established applications, consistent growth, low operational cost, solutions for niche customer demands – these are the values driving strategic acquisitions and PE interest. Buyers will want to see the following:

• Solid user metrics, like high engagement and consistent session intervals • High retention and relatively low customer churn • Guaranteed in-house product development team

• Popularity, demonstrated by high review quality and growing volume • Strong revenue streams and stable cash flows • Niche solutions and overall uniqueness within the enterprise ecosystem

Source: FE Internal Analysis, Eqvista

Factors Driving the M&A Activity in App Space

(In Millions of USD)

140

20 25 30 35 40 45

119

120

110

100

10 15

0 5

Q1 2023

Q1 2024

Q2 2023

Q2 2024

Q3 2023

Q4 2023

Avg deal value in $(M)

No. of Deals

• An average of 88.8% of the total deal volume was in the lower market segment, where the deal value was less than $100 million, each quarter since 2023. • Q1 of 2023 and 2024 saw the highest number of deals across all the quarters.

• The average deal value Q2 2023 was higher on account of two substantial deals – acquisitions of an event management software for $1.2 billion and a survey platform for $1.6 billion. • The average deal value in Q3 2023 was high on account of two deals: acquisition of an IT management software for $1.1 billion and acquisition of a social media intelligence company or $0.7 billion. Source: Pitchbook as of June 2024.

Historic Marketplace Transactions

Acquisition of

$15.7 Billion

$2.1 Billion

Undisclosed

$750 Million

2019

2020 2021

2022

2023

Acquisition of

Acquisition of Bungalow

Acquisition of

Undisclosed

$28.3 Billion

Undisclosed

$27.7 Billion

Notable Transactions from 2024

Rover, the world’s largest online marketplace for pet care, was acquired by Blackstone in an all-cash transaction valued at approximately $2.3 billion.

Salesforce buys Spiff, a developer of software for tracking sales commissions, to enhance the performance management functionality of its Sales cloud platform.

Shopify acquired Checkout Blocks, a low-code application that lets merchants customize their checkout process.

Checkout Blocks

Shopify acquired the analytics startup Peel Insights. Its AI-powered tools help online sellers analyze their sales data and improve customer retention.

Source: CIQ and Pitchbook

Top 10 Lower Middle Market M&A Deals

Deal Size ($M)

Target

Buyer

Date

Target

Buyer

Date

25-Jan-23

100

03-Aug-23

03-May-23

100

16-May-23

11-Aug-23

100

31-May-23

16-Aug-23

31-Jul-23

Global Illumination

03-Mar-23

3-Aug-23

Source: Appsruntheworld

Looking Ahead The marketplace apps sector has demonstrated remarkable growth, drawing sustained interest from multinational strategic acquirers, private equity, and some of the most prominent venture capital firms alike. Central to this optimism are overarching consumer trends that prioritize convenience and personalization coupled with corporate strategies aimed at enhancing efficiency and sustainability. Other factors that will shape the landscape of marketplace apps in 2024 include: • Augmented Reality – Augmented reality will enable consumers to engage in interactive experiences before purchasing a product or service. This technology can facilitate virtual demos and trials, thereby ensuring customer satisfaction. • Voice Commerce – Marketplace apps can leverage voice recognition to revolutionize the way users can access their platforms. It can assist in browsing, searching and purchasing any product or service. • Artificial Intelligence – AI-driven applications like chatbots and recommendation algorithms can simplify the decision-making process for users, ensuring increased customer satisfaction. • Sustainability – A significant shift in consumer consciousness is driving online marketplaces to prioritize sustainability as a core value. The alignment of these consumer and corporate trends creates a fertile environment for the continued growth of the marketplace apps sector. Strategic acquirers recognize the potential for market expansion through the acquisition of high-performing apps, while private equity and venture capital firms are eager to capitalize on the sector's promising returns through the consolidation of competing tools through roll-ups and add-ons. Investors are both fueling immediate growth and positioning the market for sustained expansion The continuous deployment of capital into this sector underscores its perceived value and long-term viability.

Case Studies

PE Competes for Salesforce Solution FE International represented Asperato, a Salesforce payment orchestration solution, which was sold to a Salesforce focused private equity firm

Asperato is an embedded Salesforce payment orchestration solution with a gross merchandise value (GMV) run rate of over $1.1 billion. The company helps businesses securely collect and process payments around the world with its fully tokenized PCI-DSS Level 1 compliant solutions, which have been audited and certified to meet the highest standards of security. By providing a variety of payment options and interfacing with 18 payment service providers, Asperato allows its customers to use their preferred method of payment on the Salesforce platform. Company Overview:

Sold to

Key Value Drivers:

• Opportunity presented to 500 buyers with the majority of outreach focused on strategic acquirers Buyer Interest:

Process Results:

Salesforce Payment Solution

• Revenue has grown 33% year over year between 2021-2022 • 87% gross margins

• Received three competitive offers for the business from private equity firms

• Offers received exceeded

• £1.6M ARR as of date went under offer • Net revenue retention of 111% (2022)

sellers’ expectations, achieving favorable deal terms

One Perfect Buyer Leads to a Done Deal FE International knew exactly who to contact for Website on Demand to have a successful acquisition

Website on Demand is a leading provider of tailored digital solutions, specializing in website design and development. With a commitment to creativity and functionality, they offer customizable services to meet the unique needs of businesses across various industries. From stunning website designs to robust ecommerce platforms, Website on Demand empowers brands to establish a strong online presence and drive meaningful engagement with their audience, ultimately fostering growth and success in the digital landscape. Company Overview:

Sold to

• Portfolio of three well renowned Shopify apps with the ability to cross sell their feature sets • Top ratings and high number of reviews, representing an established foothold within the Shopify B2B Applications • Large active customer base with potential for growth Key Value Drivers:

• 1 Party contacted • 1 offer received from a Shopify focused private equity firm Buyer Interest:

• FE International ran a private sale with one buyer due to established relationships, showcasing our outstanding negotiating skills and ability to maximize offers Process Results:

B2B SaaS Shopify Apps

iOS Aggregator Preempts Data Privacy Deal FE International creates competitive tension for Lockdown Privacy through expert negotiation

Lockdown Privacy is a trusted online resource dedicated to empowering individuals with essential knowledge and tools to enhance their digital security and privacy. Through expert guides, reviews, and practical tips the company help users navigate the complexities of online privacy, ensuring they can safeguard their personal information effectively. Whether a customer is seeking VPN recommendations, insights into encryption technologies, or strategies to protect online presence, Lockdown Privacy is the go-to destination for staying safe in the digital age. Company Overview:

Sold to

Key Value Drivers:

Buyer Interest:

Process Results:

iOS App Data Privacy

• 70% Revenue CAGR (2017-2021) • Top rating on iOS and Android with an average rating of 4.4/5-stars

• 150 Parties contacted • 1 offer received ahead of an

• With concerns over data privacy being prevalent in today’s environment, FE International garnered a lot of interest. • This led to a competitive process where 1 party pre-empted the process with an offer that maximized the founders desired outcome for structure and a quick close

LOI deadline from a private iOS app aggregator.

• Over 426K installs over the LTM

Selective Search Results in Strategic Acquisition FE professionals reached out to a tailored list of buyers for Stocky, ultimately leading to its acquisition by Shopify

Stocky delivers a comprehensive platform for businesses looking to optimize their inventory management using Shopify POS Pro.Boasting an array of powerful tools, from creating and managing purchase orders to seamless communication with suppliers, Stocky ensures efficientand strategic stock handling. Coupled with product recommendations based on profitability and in-depth stock analytics. Company Overview:

Sold to

NYSE: SHOP

Key Value Drivers:

Buyer Interest:

Process Results:

B2B SaaS Shopify App Inventory Management

• Impressive reach within a vast addressable target market comprising hundreds of thousands of potential users • Consistent revenue acceleration observed over the past three years, indicating a promising trajectory • Outstanding product reputation underlined by stellar user reviews and top-tier ratings • Operational prowess demonstrated by lean processes, facilitating enviable high margins

• 48 Parties Contacted.

• FE International garnered significant attention from strategic entities.

3 offers received, all from strategics

•

• This led to 3 competitive bids for the company, ensuring not only the perfect buyer but also two additional backup offers, showcasing our commitment to exceeding client expectations

Behind this Report

Zack Chudry Associate

Ismael Wrixen Executive Chairman

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Zack Chudry has successfully executed 25 transactions across FE International’s verticals. He was previously in private client services at Ernst & Young.

Ismael Wrixen is Executive Chairman of FE International. Before FE, Wrixen was in large-cap M&A investment banking, where he executed several high-profile public deals, namely in the technology sector. He is a member of the Forbes Finance Council and a NACVA 2018 40 Under 40 Award winner.

Thomas Smale Chief Executive Officer

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Thomas Smale dedicates his career to helping founders get acquired on their terms. He built FE into the leading advisor for lower middle market technology businesses. Thomas offers invaluable technical, diligence, and negotiation advice to early-stage and seasoned business owners alike.

Devang Chandak, CA Associate

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Devang Chandak has 5 years of experience in valuation and modelling. He runs provides data- driven valuations as well as financial and valuation analysis. He has worked with Deloitte, Kroll, and Duff and Phelps.

Randal Stephenson Head of Investment Banking

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Randal Stephenson has over 25 years of experience in both M&A advisory and debt and equity capital raising. Before FE, he held senior investment banking positions at Merrill Lynch, Jefferies, CIT Group, and Duff & Phelps. He has closed over 300 transactions valued at $44 billion across 22 countries.

About FE International Founded in 2010, FE International is an award-winning strategic advisor for technology businesses.

Sector Expertise

1,500 + Transactions completed on behalf of clients 1

Consumer Product Ecommerce Over 100 Successfully Closed Deals

Artificial Intelligence Over 15 Successfully Closed Deals

Agency & Marketing Solutions Over 50 Successfully Closed Deals

$48M Average Transaction Value

Percentage Completed Transactions 2 94.1% 70% +

Percentage of Sell-Side Transactions

Education Technology and Online Training Over 50 Successfully Closed Deals

Cybersecurity & FinTech Over 40 Successfully Closed Deals

Marketplace Apps Over 50 Successfully Closed Deals

Source: Company data. 1. Includes approximately 300 transactions completed by FE professionals while at other firms. 2. Sell-Side transactions, measured from the date of launch of buyer outreach and marketing.

London, UK

Warsaw, Poland

New York, USA

San Francisco, USA

Miami, USA

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