FinTech M&A Shows No Sign of Slowing

2018 was a huge year in FinTech M&A. Adoption of new technologies, security concerns, and new regulations are all driving increased deal flow.  Additionally, investors are pouring in record levels of funding. And so far in 2019 there have already been 9 transactions announced – 5 in North America and 3 in Western Europe.  Mastercard’s acquisition of Earthport plc, a provider of cross-border payment software and services to businesses and financial institutions was valued at 6.4x TTM revenue of $41.9K.

The numbers from 451 Research for announced transactions in Insurance , Investment and Finance , Banking , and Payments tech M&A show a spike in valuation in 2018, even though the number of transactions was slightly lower than 2017.

The most active acquirers last year were:

One of the areas where we are starting to see increased interest and acquisitions is Blockchain and Crypto Currency. The financial industry is almost certainly the furthest along in experimenting with and implementing blockchain and distributed ledger technology but adoption will be slower than previously predicted. Many financial institutions still rely on decades old systems that make the integration of new, disruptive technologies difficult.

Other areas driving deal-making here include SRC (secure remote commerce), which aims to bring a secure and consistent checkout experience to every merchant selling online; adoption of Biometrics as the financial services industry moves toward stronger forms of user authentication; commerce enablement applications as more transactions are executed via mobile devices and web browsers; and digital identity and identity as a service.

One thing is certain however: this market will continue to see high levels of deal activity throughout the coming year. If you get approached or are contemplating your options, we can help. Let’s talk.

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