Financial Technology, Data, and Analytics

Dear Clients and Friends,

The report found here shows recent m&a transactions, trends, and valuations in the seven segments of the FinTech, and Data and Analytics world that we follow and sometimes lead. As you will see, valuations and m&a trends in our industry remain strong, particularly for those who know how to stay focused on a clear long term strategic objective.  See, for example, recent transactions involving our UK client StatPro and our Australian client GBST.  (For the hard numbers, click here.)

There is a well-accepted maxim in economics that rational people will do what is in their own economic best interest. There is a well-accepted maxim in psychology that most people choose to avoid short term pain – even if it is clearly in their long-term best interests. We regularly see that conflict come into play among business leaders and their m&a advisors – and sometimes among politicians and voters.

It would be nice if more leaders were willing to make the hard choices that move us closer to some of the longer-term objectives we all would like – peace and prosperity in a society with a strong safety net, a strong defense, just courts, educated children, balanced budgets, full employment, fair pay, clean air and water, customer privacy, ethical leadership, and companies that build value for employees, customers, shareholders and communities with equal fervor.

Focus on clearly defined, long-term objectives is a key theme of my book.  But short-term pains for long term gain are tough for business leaders who are measured on short term results – and for politicians for whom re-election is the primary objective.  

So we’ll just keep reminding them that we all win when we stay focused on the prize – the long-term strategic objective – and do the right things for the right reasons every time – no exceptions.

As you will see from our report found here, the m&a market is strong for those companies that are making the right decisions – staying focused, growing the top line, achieving scale, building on strengths, and working hard for the benefit of employees, customers and shareholders, and the communities within which they operate. 

A few of the more interesting recent FinTech, Data, and Analytics transactions include:

• Ellie Mae agreed to acquire Capsilon Corp. (SaaS based Mortgage Solutions)
• Morningstar agreed to acquire Firstlinks (Market Data Content)
• Splunk agreed to acquire SignalFX (Data and Analytics) for $1.05bn
• CoStar Group agreed to acquire STR (Benchmarking Services)
• Lightspeed agreed to acquire Kounta (POS Provider) fro $61.9mm
• Next Insurance (InsurTech) raised $250mm in a series C funding round led by Munich RE
• Tradegate Exchange completed an asset deal to acquire 100% of the shares in Borse Berlin (Exchanges)
• FNZ completed the acquisition of GBST (Australian based) for $182mm (M&A Client)