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Fintech: It’s All About the Cloud – Our June 2016 Fintech Market Update

Jun 23, 2016

Fintech: It’s All About the Cloud – Our June 2016 Fintech Market Update

Fintech, Market Update, Newsletter, Valuation , , 2 Comments

Dear Clients and Friends:

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 all about the cloud. One of the larger deals this past month was the sale of Vertafore to Bain Capital and Vista Equity Partners for a reported $2.7 billion. Not a bad return for TPG, Hellman & Friedman, and JMI Equity, which bought it in 2010 for $1.4 billion. And that’s becoming the new normal. It’s all about using cloud and SaaS to provide leading edge services to insurance providers. And that’s a recurring theme for us. Not only is the license and maintenance revenue model rapidly disappearing, we’re on the bleeding edge of the disappearance of deployed software for many applications. Certainly, that’s what an increasing number of buyers and investors are looking for. Computer rooms are going the way of stables for most corporations, large and small. Growth is in the cloud.

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. You can see the details on sector performance as well as details on some of the more notable recent transactions HERE. A few of the transactions of note include:

  • Bain Capital (Boston, MA) and Vista Equity Partners (San Francisco, CA) agreed to acquire Vertafore for $2.7bn;
  • A consortium including Advent (New York, NY), Bain Capital (Boston, MA) and Clessidra (Milan, Italy) agreed to acquire Intesa Sanpaolo Card and Setefi Services for approximately €1.04bn ($1.18bn);
  • Asset International (New York, NY) agreed to acquire Market Metrics and Matrix Solutions from FactSet Research Systems for approximately $175mm;
  • Tech Mahindra (NSEI:TECHM) agreed to acquire Target Group for $164mm, valuing the company at an implied 2.2x LTM revenue;
  • Black Knight Financial Services (NYSE:BKFS) acquired eLynx for $115mm;
  • Daewoo Securities (KOSE:A006800) agreed to acquire Mirae Asset Securities for KRW 2,585bn (~$2.2bn).

We are here to advise the participants in this industry as they seek to buy, sell, or raise capital. No one knows it better.  Please let us know how we can help you.

In case you missed it my latest blog post is HERE

Sincerely,

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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