November 23, 2015 – Solganick & Co. has issued its latest M&A update on the Financial Technology (FinTech) sector for November 2015.
Here are some of the highlights:
- Within the Financial Technology sector, high-growth areas like mobile payments, personal wealth management and marketplace lenders continued to attract attention from investors and strategics.
- IPO activity within the FinTech industry sector slowed in Q3 2015 but M&A activity was up 7% in the first three quarters of 2015 compared to 2014.
- Total transaction volume in Q3 2015 increased approximately 9% over Q2 2015, and total transaction value within the sector more than doubled.
- For Q3, 2015 the median revenue and EBITDA multiples for the sector stood at 3.2x and 15.2x respectively.
- The largest transaction to date in 2015 was Fidelity National’s acquisition of Sungard Data Systems Inc., a software maker for financial institutions. The deal was valued at $9.1 billion.
M&A Activity: Financial Technology
|Deal Activity||First Nine Months 2015||First Nine Months 2014||% Increase|
|# of Deals||140||131||7%|
|Total Reported Deal Value ($ mil)||34,930||13,200||165%|
|Median Reported Deal Value ($ mil)||64||45||42%|
Global M&A Update
Global M&A volume surpassed $4.2 tr for the first time on record, the highest volume since 2007 ($3.59 tr). Third quarter M&A alone was over $1tr, marking the first consecutive trillion-dollar plus quarter for worldwide M&A in fifteen years.
- Technology is the most targeted sector in 2015 with YTD high volume of $631.7bn, 53% higher than the previous record high of $412.8bn set in 2000. Healthcare is second with a YTD record high volume of $549.4bn and a YTD record share of total M&A at 14%.
- 10bn+ deals accounted for 37% of global M&A volume, almost double the five year average share of 21%, and was the highest market share on record.
U.S. M&A Update
U.S M&A volume has reached $2.03tr for 2015 YTD, a 55% increase from 2014. This accounts for 48% of the total global M&A of $4.22bn, the highest share since 1999. Despite expectations of an impending Federal Rate increase in late 2015 or early 2016, 2015 is already the biggest year for US targeted M&A deals.
- For the second consecutive period, Healthcare is the top industry for volume, with $454.9bn announced so far in 2015. Technology ranks second with $424.5bn, a more than double increase from 2014 YTD and also an annual record high volume. Dell’s $65.7bn pending acquisition of EMC Corp, announced in October, 2015 is the largest deal in this sector.
- U.S inbound M&A totals $371.5bn in 2015, the highest on record. The highest inbound acquiring nation is Canada, with a record high of $85.5bn, followed by the U.K with $72.9bn, the highest volume since 2000 YTD ($77.6bn).
You can download the complete report here: Solganick & Co – FinTech MnA Update (Nov 2015)
Solganick & Co. provides M&A advisory and investment banking exclusively to the software, IT services and digital media industry sectors. Its professionals have completed over $20 billion in transactions to date. The company was founded in 2009 (originally as Generation Equity Advisors, LLC) and has landed a number of successful engagements within the sectors it covers. With offices located in Los Angeles (West Hollywood) and San Francisco, CA, Solganick & Co. provides both l0cal and global support to buy-side and sell-side M&A transactions. For more information go to: solganick.com