Potential Acquisitions

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 Potential Acquisitions
• Given Aardvark’s large cash balance, it could make a wide variety of
acquisitions – ranging from small “tuck-in” deals to acquire technology
and IP to larger deals driven by customer or market share acquisition
• Tier 1 Potential Acquisitions
– “Tier 1” acquisition candidates are worth over $1 billion and would
significantly boost Aardvark’s market share or result in substantial revenue or
cost synergies
– Leading candidates include ARM, for its chipset technology and integration
with Aardvark’s existing products, and Research in Motion – to capture
additional share in the corporate smartphone market
• Tier 2 Potential Acquisitions
– “Tier 2” acquisition candidates are worth less than $1 billion and would
enhance Aardvark’s core technology and fill in gaps in existing products
– Potential acquisitions include specialized chipset and semiconductor
companies as well as Web 2.0, social media, and mobile software companies

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 Potential Acquisition
Candidates
Tier 1 Acquisition Candidates

Tier 2 Acquisition Candidates

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 Company Profile: ARM
Management Team:

Warren East CEO

Tudor Brown President
Graham Budd COO
Mike Muller CTO
ARM Holdings Tim Score CFO
Headquarters: Cambridge, UK
John Cornish EVP, Systems
Employees: 1700 Ian Drew EVP, Marketing
Founded: 1990 ARM Holdings is a supplier of semiconductor Antonio Viana EVP, Sales
intellectual property and components of digital
electronic products. It designs and licenses intellectual
Financial Information: Key Partners:
property rather than manufacturing and selling
semiconductor chips, and it licenses its IP to a wide
Market Cap: $2.5B Electronic Arts, LSI Logic, Microsoft,
Cash: $204M network of hardware, mobile, and networking
National Semiconductor, Nokia,
2009 Revenue: $490M companies. It also provides tools to optimize system-
NVIDIA, Rambus, Real Networks,
2009 EPS: $7.85 on-chip designs.
2010E Revenue: $531M Samsung,Products:
and Toshiba.
2010E EPS: $10.97
•Processors – ARM provides 32-bit embedded
microprocessors based on a common architecture that
delivers high-performance, power efficiency, and
reduced system cost.
•System IP – Serves as the connection between
processors, memory, and peripherals to ensure
optimum performance.
•Multimedia – ARM provides graphics processors that
enable embedded graphics, audio, and video
applications.
•Physical IP – Provides SoC integrated circuits and logic,
embedded memory, and interface IP.
•Tools – ARM subsidiaries provide compilers, 4
debuggers, simulators, and other optimization tools for
 Company Profile: Research In Motion
Management Team:
Research In Motion designs the BlackBerry smartphone
and creates solutions for the worldwide mobile Jim Balsillie Co-CEO
Research In Motion communications market, including a variety of software Mike Lazaridis Co-CEO
for the BlackBerry device. In addition to its line of Don Morrison COO
Headquarters: Waterloo, ON Robin Bienfait CIO
BlackBerry devices, the company also provides
Employees: 12,000 Brian Bidulka CFO
Founded: 1984 enterprise server software to support businesses using
the device. David Yach CTO

Financial Information:
Products:
Market Cap: $36B Key Partners:
Cash: $2.5B •BlackBerry Pearl 3G – Provides Trackpad and dedicated
2009 Revenue: $13B media keys as well as SureType technology and 3G
2009 EPS: $3.70
AT&T, Brightstar, Digital China, GPXS,
network support. Hewlett-Packard, IBM, Skype, Sprint,
2010E Revenue: $17B
2010E EPS: $5.03 •BlackBerry Bold – Provides extended battery life as Tata Indicom, T-Mobile, Verizon,
well as GPS, Wi-Fi, and 3G network support. Virgin, and Vodafone,
•BlackBerry Curve 8500 – Includes Trackpad and
dedicated media keys, easy media sharing, and 2.0 MP
camera.
•BlackBerry Tour 9630 – Provides GPS, worldwide
compatibility, and 3.2 MP camera.
•BlackBerry Storm – Features Wi-Fi, SurePress
technology, and 3G network support.
•BlackBerry Curve 8900 – Features thin, lightweight
design as well as GPS and Wi-Fi support and 3.2 MP
camera.

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Process Recommendations

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 Key Recommendations
• We recommend engaging in targeted discussions with the Tier 1 acquisition
candidates and assessing their receptiveness to M&A discussions
• At the same time, Goldman Stanley will reach out to Tier 2 candidates and
introduce Aardvark as a potential acquirer
• M&A process with Tier 1 candidates will take significantly longer due to the scale
of the companies, so we recommend conducting both processes simultaneously
• Depending on responses from Tier 1 and Tier 2 candidates, Goldman Stanley and
Aardvark may do additional research to determine other potential acquisitions and
then approach them

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Process Recommendation

Broad
Marketing
Appendix

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Aardvark Projected Income Statement

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Aardvark Comparable Public
Companies

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Aardvark DCF Analysis – WACC
Calculation

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