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Nov 14, 2019

Staying Focused on the Prize: Our November Report on M&A in the FinTech, Data and Analytics Industry

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Dear Clients and Friends, The report found here shows recent m&a transactions, trends, and valuations in the seven segments of the FinTech, and Data and Analytics world that we follow and sometimes lead. As you will see, valuations and m&a trends in our industry remain strong, particularly for those who know how to stay focused on a clear long term strategic objective. See, for example, recent transactions involving our UK client StatPro and our Australian client GBST. (For the hard numbers, click here.) There is a well-accepted maxim in economics that rational people will do what is in their own economic…

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Oct 9, 2019

It’s a Global Industry – Embrace It. Our October Report on M&A in the FinTech, Data and Analytics Industry

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Dear Clients and Friends, The FinTech, Data and Analytics world in which we live is not defined by national borders and neither are we. It always amazes us how many people have difficulty accepting this fairly simple concept. A few recent examples include Deutsche Börse’s acquisition of Axioma (we advised Goldman Sachs on its minority investment in Axioma); the Hong Kong Exchange’s recent (now aborted) attempt to acquire the London Stock Exchange (LSE); LSE’s agreement to acquire Refinitiv and our work advising UK-based StatPro Group (LSE: SOG) on its sale to Confluence Technologies in a $230 million transaction with backing…

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Sep 16, 2019

Intellectual Honesty, Our September Report on M&A in the FinTech, Enterprise Data & Analytics Industry

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Dear Clients and Friends, The report found here shows recent m&a transactions, trends, and valuations in the seven segments of the FinTech, Data and Analytics world that we follow and sometimes lead. As you will see, valuations and m&a trends in our industry remain very strong, but that’s not our subject this month. Recently, a friend sent us a 2016 investor letter by Lead Edge Capital, a New York-based growth equity venture firm that has invested in companies such as Uber, Spotify and TransferWise. The letter discussed the importance of “intellectual honesty“ in the m&a world. We endorse the philosophy wholeheartedly.…

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Aug 16, 2019

More Evidence that the Second Wave Is Coming. Our August Report on M&A in the FinTech, Enterprise Data and Analytics Industry

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Dear Clients and Friends, Our August 2019 report on recent m&a transactions, trends, and valuations in the seven segments of the FinTech, Data and Analytics world that we follow and sometimes lead can be found here. According to Deloitte’s annual study of M&A activity, 73 percent of tech sector executives expect more and bigger deals this year – the highest percentage of any industry. A lot of these deals bear little relevance to our world. Sure, IBM is acquiring RedHat, the open-source enterprise software company for $33 billion; Capgemini is paying $4 billion for Altran; and Broadcom is buying CA…

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Jun 28, 2019

What Is a Business Worth? Our June Report on M&A in the FinTech, Enterprise Data and Analytics Industry

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Dear Clients and Friends, A buyer’s rationale on the price paid for a business isn’t always so obvious. In January, Fiserv acquired First Data Corporation for around $22 billion, 2x revenue; in March, Fidelity National bought WorldPay for around $43 billion, 10x revenue. In April, Deutsche Börse and General Atlantic teamed up to acquire Axioma for around 8x revenue. It’s clear that FinTech, data and analytics companies trade at widely divergent valuation multiples. And yet, we keep hearing bankers try to apply the multiples achieved by one company to estimate the value of another. Many factors impact value, but, for…

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