M&A and Capital Markets Practice Leader Paren Knadjian recently published an article for our newest KROST Quarterly Magazine: The Financial Services Issue titled “FinTech M&A and Market Report H1 2019”.
The Financial Technology market (FinTech) continues to grow and flourish in 2019 with Venture Capital (VC) aggressively funding start-ups, Private Equity (PE) firms active in buyouts and growth investments, and incumbent financial institutions stepping up their M&A activity. Transactions remain robust with 1,212 deals announced in 2019 so far (as of June 30, 2019) amounting to $100 billion in capital deployed. That’s only 31% of deals announced in 2018 by deal count, but 54% of the capital deployed.
52% of the activity was corporate deals including divestitures.
32% was PE growth and buyout activity including buyout/leveraged buyouts (LBOs), management buy-ins, add-ons, growth/expansion, asset acquisitions, and dividend recapitalizations. 10% by volume was VC and angel activity (all stages) and 6% was public market activities including Initial Public Offerings (IPOs), Private Investment in Public Equity (PIPEs), and reverse mergers.
The main blockbuster deal in 2019 was the $22 billion acquisition of merchant services provider First Data (NYS: FDC) by banking technology provider Fiserv (NAS: FISV). Fiserv has been very active in the last 3 years booking 14 transactions in total.
The early months of 2019 saw the most activity. In February 2019, Dunn & Bradstreet was acquired by CC Capital, Thomas H. Lee Partners, and others through a $6.9 billion public-to-private LBO. In January 2019, payment services provider Concardis was acquired by Nets via its financial sponsors Advent International, Bain Capital, and others for $6 billion.
Transaction valuations have also risen in 2019, valuation/revenue multiples are…Continue »
Source: Pitchbook Data