Capital markets sector leads fintech M&A activity

Capital markets sector leads fintech M&A activity

There were 427 fintech mergers and acquisitions in 2015, worth a combined $64 billion, double the value of deals the previous year, according to figures pulled together by Berkery Noyes.

The number of fintech M&A deals last year was up 14%, from 376 in 2014, with the capital markets segment dominating, accounting for 150, up 42% on the year and including Intercontinental Exchange’s $7.45 billion acquisitions of Interactive Data and SS&C Technologies’ $2.55 billion buyout of Advent Software.

Peter Ognibene, MD, Berkery Noyes, says: "Significantly, the median revenue and Ebitda multiples in the capital markets sector during 2015 have trended well above those of the entire financial technology industry. While it took this sector the longest to recover from the financial crisis, buyers are piling in now and really driving up prices."

In contrast, the payments sector saw a 21% fall in the number of deals, although it still accounted for more than 100 and five of the 10 most valuable agreements, including Global Payments' $4.31 billion takeover of Heartland Payment Systems.

Elsewhere, the banking segment, saw a 35% rise in the number of deals, to 85, including the $1.8 billion Diebold acquisition of Wincor Nixdorf. The insurance segment, saw 62 deals, up 22% on 2014.

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