Dear Clients and Friends:
Spring is supposed to bring an end to the long, cold, dark, nights of winter. That seems to be an apt metaphor for what is happening now – as this abysmal pandemic begins to wane in our part of the world. Like most, we’re tired of mask wearing, social distancing, remote living, and watching friends close businesses, lose jobs, and suffer. We see green shoots of spring.
As you will see in this month’s report, m&a activity among companies in the sectors of the Fintech, Data and Analytics world that we follow – and sometimes lead – has been strong. Public company values in nearly every sector we follow have more than recovered. The volume of m&a transactions among mid-market and lower mid-market companies has come roaring back. And, as the number of people vaccinated for Covid begins to increase, and the numbers of those hospitalized – and worse – declines, we see the possibility of blue sky and warm days ahead. Let’s not let the politicians mess it up.
We know that spring doesn’t come to all parts of the world at the same time. We know that there are many parts of the world yet to see a single dose of vaccine. We know that while some tech companies are well positioned for remote work, many of their clients are not. It’s tough to install on premises, when pandemic concern is pervasive. We know that many firms are working in the face of continued uncertainty. We know that we’re not out of the cold COVID darkness yet. And we know that there is huge demand to relax prematurely. Fortunately many central banks, legislatures, VCs, PE firms and industry participants are doing their parts – keeping interest rates low, providing fiscal stimulus and relief; investing as opportunities arise, and not allowing a relapse. As long as they all stay the course, we will see those green shoots blossom into spring.
Spring is not quite here yet. But we feel it coming. As you will see in our latest report, m&a values among the mid-sized FinTech, Data and Analytics companies are strong. Some of the more interesting recent transactions include:
- Earnix announced a $75mm pre-IPO round of financing led by Insight Partners, catapulting the firm into unicorn status (InsurTech)
- UiPath announced it closed a $750mm Series F round of financing at a post-money valuation of $35bn (Digital Tech)
- Wells Fargo agreed to sell its Asset Management Division to GTCR and Reverence Capital Partners for $2.1bn (WealthTech)
- Equifax has acquired long-term open banking partner AccountScore for an undisclosed amount (Real Estate Tech)
- CrowdStrike has agreed to acquire Humio for $400mm (Data Analytics – Financial Services)
- MoneyLion announced it has entered into a definitive agreement to merge with Fusion Acquisition Corp; the combined entity will have a post-transaction enterprise value of $2.4bn (Capital Markets Tech)