Fintech: It’s All About the Cloud – Our June 2016 Fintech Market Update

Jun 23, 2016

Fintech: It’s All About the Cloud – Our June 2016 Fintech Market Update

Fintech, Market Update, Newsletter, Valuation , , 2 Comments

Dear Clients and Friends:

Our latest M&A update on the recent transactions and values in the seven separate sectors of the fintech market that we follow and sometimes lead is HERE.

It’s all about the cloud. One of the larger deals this past month was the sale of Vertafore to Bain Capital and Vista Equity Partners for a reported $2.7 billion. Not a bad return for TPG, Hellman & Friedman, and JMI Equity, which bought it in 2010 for $1.4 billion. And that’s becoming the new normal. It’s all about using cloud and SaaS to provide leading edge services to insurance providers. And that’s a recurring theme for us. Not only is the license and maintenance revenue model rapidly disappearing, we’re on the bleeding edge of the disappearance of deployed software for many applications. Certainly, that’s what an increasing number of buyers and investors are looking for. Computer rooms are going the way of stables for most corporations, large and small. Growth is in the cloud.

The report that follows is intended to bring a focus to the m&a values and trends in the seven discreet sectors of the fintech industry that we have followed and sometimes led for more than 14 years. You can see the details on sector performance as well as details on some of the more notable recent transactions HERE. A few of the transactions of note include:

  • Bain Capital (Boston, MA) and Vista Equity Partners (San Francisco, CA) agreed to acquire Vertafore for $2.7bn;
  • A consortium including Advent (New York, NY), Bain Capital (Boston, MA) and Clessidra (Milan, Italy) agreed to acquire Intesa Sanpaolo Card and Setefi Services for approximately €1.04bn ($1.18bn);
  • Asset International (New York, NY) agreed to acquire Market Metrics and Matrix Solutions from FactSet Research Systems for approximately $175mm;
  • Tech Mahindra (NSEI:TECHM) agreed to acquire Target Group for $164mm, valuing the company at an implied 2.2x LTM revenue;
  • Black Knight Financial Services (NYSE:BKFS) acquired eLynx for $115mm;
  • Daewoo Securities (KOSE:A006800) agreed to acquire Mirae Asset Securities for KRW 2,585bn (~$2.2bn).

We are here to advise the participants in this industry as they seek to buy, sell, or raise capital. No one knows it better.  Please let us know how we can help you.

In case you missed it my latest blog post is HERE

Sincerely,

Ken

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