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Herd Immunity is coming – and that helps M&A in FinTech, Data and Analytics

Apr 19, 2021

Herd Immunity is coming – and that helps M&A in FinTech, Data and Analytics

Fintech, Market Update, Newsletter 0 Comments

Dear Clients and Friends:

Our latest report on M&A values among the 11 sectors of the FinTech, Data and Analytics world that we follow, and sometimes lead, is here. We continue to live in interesting times.

We work in a business that thrives on communication and collaboration. We know that our approach works extremely well when there are multiple, daily, impromptu, informal conversations that complement scheduled calls and meetings. When the pandemic hit, we railed against the constraints of remote working, social distancing, and going from Zoom call to Zoom call. And yet, more than a year into this pandemic, we have to admit that we’re busy. Contrary to our fears, we’re still signing new clients, closing deals and going strong – as are our clients. We wouldn’t have predicted it.

We’re not sure that businesses like ours can thrive forever in this Zoom-led world. But we may not have to wait forever. The US has administered almost 200 million COVID-19 vaccine doses – ahead of schedule. 23% of the population is fully vaccinated. 35% of the US population has now had at least one COVID shot – and another 30% say that they plan to get one as soon as possible. Pandemic-related deaths and hospitalizations have finally started to come down; and many (not all) shuttered businesses have begun to re-open. The Mayor of New York City (where we are headquartered) now aims to re-open schools, restaurants and Broadway shows in September – assuming we can get 75% or more of the regional population immunized by then. Google, Microsoft and other tech firms are also aiming for a full return to the office in September – with the same assumptions – “herd immunity”. We’re hopeful – even if almost 30% of the US population is still taking a wait-and-see attitude towards immunization. 

As you will see in our latest report, buyers and sellers in our world are not “waiting-and-seeing”. They are acting. Transaction values among the mid-sized FinTech, Data and Analytics companies are strong; with luck – and herd immunity, they will stay strong. Some of the more interesting recent transactions include:

  • Calypso Technology agreed to be acquired by Thoma Bravo for $3.75bn (Capital Markets Tech)
  • Dataminr raised $475mm in a Series F round of financing at a $4.1bn valuation (Data & Analytics – Financial Services)
  • Dropbox announced it has acquired DocSend for $165mm (Information Services)
  • Okta announced it has entered into a definitive agreement to acquire Auth0 for $6.5bn (Regulatory Tech)
  • Itiviti Group agreed to be acquired by Broadridge for $2.6bn (Securities Exchanges)
  • Square announced it has entered into a definitive agreement to acquire a majority stake in TIDAL for $297mm (Payments Tech)

See more in our report. There is a lot going on.

Ken 

Ken Marlin

Ken Marlin

Ken Marlin is Managing Partner and Founder of Marlin & Associates and the author of "The Marine Corps Way to Win on Wall Street: 11 Key Principles from Battlefield to Boardroom" (St. Martin's Press 2016).

Over the course of more than 30 years Ken has advised scores of U.S. and international middle-market technology enabled firms on the best ways to buy, sell, grow and thrive. Along the way, he's been an entrepreneur (three times), a tech company CEO (twice), a senior corporate executive (twice) and an investment banker.

Seventeen years ago, Ken embarked on a journey to create a different sort of investment bank - one that would meld the investment banking skills he learned over 20 years on Wall Street with lessons he learned as a tech entrepreneur and the principles he learned during the decade he spent on active duty as a U.S. Marine Corps infantry officer. Today, Marlin & Associates is one of the most active M&A advisers in the information technology arena.

Institutional Investor Magazine has five times named Ken as one of II’s “Tech 50” and the II “FinTech 35” - both of which honor the most influential figures in the financial technology data and analytics sector.

Outside the office, Ken is a trustee of the Madison Square Boys and Girls Club, which serves underprivileged kids throughout the five counties of New York City; and an active supporter of the Phoenix House Foundation, The Wall Street Warriors Foundation, The Marine Corps Heritage Foundation, University of the People, the Hurricane Island Outward Bound School, and Outward Bound Peacekeeping.

Ken’s book has garnered strong reviews and is consistently ranked among the top in governance, finance and leadership. One reviewer called it a compelling vision to improve Wall Street by returning to solid core values like taking the long view, behaving with honor, delivering excellence and working for a cause greater than money.

Ken earned a BA from the University of California (Irvine), an MBA from UCLA, and a post-MBA Advanced Professional Certificate in Corporate Strategy from New York University. He lives in New York City with his wife, daughter, a dog, a cat and turtle.

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