Dear Clients and Friends:
Our latest report on the M&A values among the 11 sectors of the FinTech, Data and Analytics world that we follow is HERE. And as we have been saying, it looks very good.
We advise others that, when opportunity knocks, they should listen carefully. We took that advice. On Monday, we agreed to combine with the technology investment banking group of D.A. Davidson & Co to create the 5th largest (and fastest-growing) middle-market investment banking group in the US (we expect the deal to close in a few months – following FINRA review). We are excited. Our whole team has signed on (me too).
We know that these are never easy decisions. Opportunities like this can be life-changing. They should be thoroughly vetted – and not rushed. That’s what we help clients do – develop opportunities, thoroughly vet them, and pick the right partner, not just any partner. It took us a long time to confirm a common view of roles, goals, and cultural fit. Negotiations are about more than money. Due diligence reviews should be thorough – for both sides. That way, as with us, both sides can feel confident that the combination will work. We are.
We advise clients on the best ways to buy, sell or raise capital for fintech, data and analytics companies. It is a consultative process that takes time and needs to be done right. D. A. Davidson shares that view and the opportunity to combine with Davidson’s fast-growing tech banking practice exhilarates us. Together, we’ll be 40 tech banking professionals. Add a dozen in their research group, plus a strategic partnership in Europe and we get a team we will be pleased to be part of.
This is a great time to be in this industry. As you will see in our latest REPORT, the m&a market in fintech, data and analytics is strong; buyers and sellers are active; opportunities abound. When opportunity knocks on your door, we will be here to help. A few of the more interesting recent transactions include:
- Francisco Partners acquired Boomi for $4bn (Information Services)
- Realtime Electronics Payments acquired BillingTree for $503mm (Payments Tech)
- SnapDocs raised $150mm in a deal led by Tiger Global Management (Real Estate Tech)
- Bill.com acquired Divvy for $2.5bn (Digital Tech)
- Collective Health raised $280mm in a deal led by Health Care Service Corporation (InsurTech)
- Shift Technology raised $220mm in a deal led by Advent International (InsurTech)
See more in our REPORT. We live in interesting times.