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Fintech: It’s Changing Everything – M&A April Fintech Market Update

Apr 18, 2016

Fintech: It’s Changing Everything – M&A April Fintech Market Update

Award, Blockchain, Fintech, International, Newsletter, Startup , 0 Comments

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 a busy time for fintech dealmakers. Not only are people investing in disruptive fintech companies in the US and the UK, but entrepreneurs with new approaches in China, Germany, Sweden, Singapore, India and a dozen other countries are also seeing massive action. We’ve always taken a global approach to advising clients and this week we were pleased that the M&A Advisor named us as the Boutique Investment Bank of the Year at their 8th Annual International M&A Awards fete. More on that HERE.

Disruptive fintech this year has broken out around the world in at least a dozen sectors. It’s no longer just about the many firms trying to disrupt the way consumers pay for goods and services – although that sector certainly is seeing a lot of action. Investors and strategics are looking for the best Blockchain based companies that can bring efficiency to the exchange of data, assets, and currencies in a wide range of b2b transactions; they are picking up firms that are using SaaS, the cloud and other newer technologies to disrupt the way wealth managers, brokers, and others manage retirement accounts and other investable assets. They are seeking ways to bring new levels of convenience to a wide range of human resource services such as benefits management and payroll services and to offer better ways for companies to manage cash flow, or to lend or borrow money in amounts large and small.

It’s a challenging time too – not only for the old guard, but also for the many firms trying to stand out in a crowded marketplace. Some have what it takes to succeed. Some had it – and got passed. Some companies should not be businesses, not even products really – they should be features of a product. But for the few that have what it takes  and can continue to build on it, these are heady times.

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. Read on for details on many of the more notable recent transactions.

  • Deutsche Börse (Eschborn, Germany) and the London Stock Exchange (London, United Kingdom) agreed to merge in an all-stock deal for $30bn;
  • Broadridge (NYSE:BR) has made a strategic investment and entered into a referral, sales and marketing alliance with LiquidX for an undisclosed sum;
  • Markit (NYSE:MRKT) agreed to merge with IHS (NYSE:IHS), implying an enterprise value of $6.2bn for Markit and valuing Markit at an implied 5.6x 2015 revenue and 12.4x 2015 adjusted EBITDA;
  • Nasdaq (NASDAQ:NDAQ) agreed to acquire the International Securities Exchange (ISE) for $1.1bn from Deutsche Börse;
  • FinTech Acquisition Corp. (NASDAQ:FNTC) agreed to acquire CardConnect through a reverse merger transaction for $438mm.

We are here to advise the participants in this industry as they seek to buy, sell, or raise capital. Please let us know how we can help you.

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