FinTech Monthly

Transcription

FinTech Monthly

SEPTEMBER 2016
IN THIS ISSUE
About Us
2
Recent Transactions & Case Studies 7
FinTech Trading Analysis
17
Recent FinTech Transaction Activity 31
FINTECH MONTHLY
PREMIER FINTECH INVESTMENT BANKING TEAM
SENIOR BANKING TEAM
Jim Bunn
Senior Managing Director,
Head of Investment Banking
Jon Steele
Managing Director,
Group Co-Head
Brendan Ryan
Managing Director,
Group Co-Head
Steve Hufford
Managing Director
jon.steele@
raymondjames.com
617.624.7020
brendan.ryan@
raymondjames.com
617.624.7019
steve.hufford@
raymondjames.com
404.442.5807
Harald Maehrle
Managing Director,
Raymond James Europe
Prior
Experience
Education
Contact
Information
jim.bunn@
raymondjames.com
727.567.5203
Sean Martin
Managing Director,
Raymond James Canada
Chip Kelso
Managing Director
Kate Crespo
Senior Vice President
harald.maehrle@
raymondjames.com
49.89.23.23.77.20
Ian O’Neal
Senior Vice President
Japhet Wuensch
Senior Vice President,
Raymond James Europe
Prior
Experience
Education
Contact
Information
sean.martin@
raymond james.ca
416.777.6375
chip.kelso@
raymondjames.com
404.442.5835
Leslie Ann B. Curry
Vice President
kate.m.crespo@
raymondjames.com
617.624.7012
Garrett DeNinno
Vice President
ian.oneal@
raymondjames.com
617.624.7011
Paul Fricilone
Vice President
japhet.wuensch@
raymond james.com
49.89.23.23.77.38
David Atkinson
Vice President,
Raymond James Canada
Prior
Experience
Education
Contact
Information
leslieannb.curry@
raymondjames.com
404.442.5890
garrett.deninno@
raymondjames.com
617.624.7018
INVESTMENT BANKING
paul.fricilone@
raymondjames.com
617.624.7033
david.atkinson@
raymond james.ca
416.777.1111
2
FINTECH MONTHLY
BROADEST AND DEEPEST FINTECH PRACTICE
Raymond James has built the leading FinTech franchise on Wall Street.
DEEP & EXPERIENCED
RJ TEAM
+23
SECTOR COVERAGE
BLUE-CHIP
CORPORATE CLIENTS
Payments
Advisory
Senior Bankers
Bank Technology
Insurance Technology
+11
Equity Research Analysts
Capital Markets Technology
Equities
Investment Management Technology
+4
Financial SaaS
Dedicated Equity Capital
Markets Professionals
Transactional Marketing Services
Financial Data and Information Services
EXTENSIVE TRANSACTION
EXPERIENCE
+115
Private Equity
Outsourced Solutions
Benefits / Payroll
transactions since 2010
Technology-Enabled Lending Platforms
+35
+80
Real Estate Solutions
public offering
transactions raising $8+
billion since 2010
M&A / private
placement transactions
with $12+ billion in total
deal value since 2010
BUSINESS MODEL COVERAGE
SaaS and
Enterprise
Software
INVESTMENT BANKING
Internet /
Online /
Mobile
Transaction
Processing
Tech-Enabled
Solutions
Venture Capital
BPO /
IT Services
3
FINTECH MONTHLY
#1 FINTECH INVESTMENT BANKING PRACTICE
Our FinTech practice is the premier investment banking platform for companies seeking unmatched industry knowledge,
buyer relationships and execution capabilities.
2010-2015 U.S. DEAL RANKINGS
All Deals
Advisory Deals
Advisory Deals
<$1bn
Rank
Deals
Rank
Deals
Rank
Deals
1
1
105
1
78
1
75
2
2
65
4
32
7
19
3
3
56
6
30
3
28
4
3
56
5
31
5
20
5
3
56
7
28
5
20
6
6
55
3
37
4
27
7
7
54
8
26
8
17
8
8
52
2
52
2
48
9
9
40
9
22
9
12
10
10
39
10
21
9
12
INVESTMENT BANKING Note: Represents transactions involving U.S.-based targets
4
FINTECH MONTHLY
RECENT AWARDS AND ACCOLADES
+ 2015 Corporate & Strategic Acquisition of the Year (Over $100mm to $500mm) – Sale of PayChoice, Inc.
to Sage Group Plc
+ 2015 Financial Tech & Services Deal of the Year – Sale of Columbus Data Services to Cardtronics
+ 2015 Financial Services Deal of the Year – Sale of Cardiff Holdings Corp.’s subsidiaries Shoreline and
Source One Direct to Gemalto
+ 2015 Financial Tech & Services Deal of the Year – M&A Atlas Awards
+ 2015 Distressed M&A Deal of the Year (Over $25mm to $100mm) – Sale of Phoenix Payment Systems
(EPX) to North American Bancard
+ 2014 International M&A Deal of the Year (Over $100mm to $500mm) – Sale of PayChoice, Inc. to Sage
Group Plc
+ 2014 Professional Services Deal of the Year (B-to-B, Up to $100mm) – Growth Equity Financing of
hyperWALLET from Primus Capital
+ 2016 Investment Banking Firm of the Year – M&A Advisor Turnaround Awards
+ 2015 “40 Under 40” Dealmaker of the Year – Jon Steele
+ 2014 “40 Under 40” Dealmaker of the Year – Brendan T. Ryan
+ 2014 Investment Service Provider of the Year (United States) – Acquisition International
+ 2013 Investment Banking Team of the Year – M&A Atlas Awards
+ 2015 Investment Banking Firm of the Year – M&A Advisor Turnaround Awards
INVESTMENT BANKING
5
FINTECH MONTHLY
FINTECH COVERAGE UNIVERSE
BANK TECHNOLOGY
PAYMENTS
FINANCIAL SAAS
INSURANCE
TECHNOLOGY
OUTSOURCED
SOLUTIONS
RAYMOND JAMES CAPABILITIES
TRANSACTIONAL
MARKETING
SERVICES
ADVISORY
Sales / Recaps
Acquisitions
Divestitures
Strategic Advisory
Fairness Opinions
BENEFITS / PAYROLL
INVESTMENT BANKING
CAPITAL RAISING
Private Placements
Initial Public
Offerings
Follow-On Offerings
Debt Capital
Restructuring
TECHNOLOGYENABLED LENDING
PLATFORMS
CAPITAL MARKETS
TECHNOLOGY
INVESTMENT MGMT
TECHNOLOGY
FINANCIAL DATA AND
INFORMATION SERVICES
6
FINTECH MONTHLY
RECENT TRANSACTIONS
& CASE STUDIES
INVESTMENT BANKING
7
FINTECH MONTHLY
MORE FINTECH TRANSACTIONS COMPLETED SINCE 2010 THAN ANY OTHER FIRM
September 2016
September 2016
September 2016
Sale to
Sale to
Sale to
September 2016
August 2016
July 2016
$260,000,000
Sale to
Sale to
$329,906,250
Follow-On Offering
Co-Manager
Outsourced billing solutions
and consulting services
Data analytics
software and services
RIA and financial advisor
distribution platform
Real property data and
information solutions
Cloud-based
commerce solutions
Higher education payments
technology provider
July 2016
July 2016
June 2016
May 2016
May 2016
April 2016
Growth Investment in
$330,000,000
Sale to
$33,000,000
Investment by
$780,000,000
Sale to
Sale to
$53,200,000
Senior Credit
Facility
Payment processing and
content management solutions
Residential real estate
services
Mortgage document and
data management solutions
Compliance, information
and education solutions
Digital wealth
management solutions
Asset management
solutions
April 2016
March 2016
December 2015
December 2015
October 2015
September 2015
A division of
Disbursements Business
$37,000,000
Sale to
Sale to
Sale to
Sale to
$172,500,000
Initial Public Offering
Co-Manager
$122,000,000
Sale to
Deposit automation
Solutions
HR outsourcing and
software
Financial aid
refund disbursements
Residential mortgage
outsourced solutions
Financial payment cards
and card services
SaaS-based loan
risk software
September 2015
September 2015
September 2015
August 2015
August 2015
August 2015
$190,000,000
Sale to
Sale to
Education payment
software and services
Accounts receivable
Baker Hill Business
$100,000,000
Sale to
$111,300,000
Follow-On Offering
Co-Manager
$96,900,000
Follow-On Offering
Co-Manager
Payroll / HR
software
Digital banking
solutions
$62,000,000
Senior Credit
Facility
Loan management and
compliance software
INVESTMENT BANKING
Payments-as-a-Service
solutions
8
FINTECH MONTHLY
MORE FINTECH TRANSACTIONS COMPLETED SINCE 2010 THAN ANY OTHER FIRM
August 2015
$73,500,000
Follow-On Offering
Co-Manager
Benefits administration
software
May 2015
July 2015
July 2015
July 2015
June 2015
May 2015
Majority Recapitalization
by
$80,000,000
Sale to
$64,000,000
Sale to
$38,000,000
Term Loan
Financing
$115,000,000
Follow-On Offering
Co-Manager
GRC software solutions
ATM management
solutions
IRA rollover and advisor
solutions
Business services and
financial products for SMBs
Healthcare plan
management technology
February 2015
February 2015
January 2015
December 2014
December 2014
by
Sale to
by
Sale to
Payment and Communication
Services (PCS) Business
$150,535,000
Co-Manager
$116,000,000
Follow-On Offering
Co-Manager
Cloud-based
commerce solutions
Digital banking
solutions
Wealth management
technology
SaaS-based wealth
Commercial real estate
outsourced solutions
Payment and
communication services
December 2014
December 2014
November 2014
October 2014
September 2014
September 2014
Sale to
Sale to
$157,800,000
Sale to
$291,000,000
Sale to
$230,000,000
Co-Manager
$121,000,000
Follow-On Offering
Co-Manager
Tech-enabled small
business lending
Payroll / HR
software
Merchant payment
processing
Merchant payment
processing
Payroll solutions
Corporate and
consumer incentives
September 2014
August 2014
July 2014
July 2014
July 2014
July 2014
Sale to
$375,000,000
Sale to
Sale to
Sale to
Card personalization
solutions
Specialty finance
solutions
INVESTMENT BANKING
Education software
and payments
Billing solutions
$110,000,000
$146,510,000
Follow-On Offering
Co-Manager
Senior Co-Manager
Benefits administration
software
Healthcare plan
management technology
9
FINTECH MONTHLY
RAYMOND JAMES ADVISORY CASE STUDY: TRANSCENTRA, INC.
September 2016
Relevant Statistics
• On September 28, 2016, SourceHOV, LLC (“SourceHOV”) announced that it had completed its acquisition of TransCentra, Inc.
(“TransCentra“ or the “Company”) for an undisclosed amount
Sale to
Company Background
• TransCentra is an established provider of integrated outsourced billing, remittance processing and imaging software and
consulting services
Raymond James
acted as the
exclusive financial
advisor to
TransCentra in
connection with this
transaction.
• The Company serves approximately 300 clients, primarily in the financial service, insurance, utilities, healthcare and telecom
industries
• TransCentra delivers 300 million bills, processes 525 million remittances and over 1.5 billion transactions per year
• The Company has 13 locations across the United States and approximately 1,400 employees
• Founded in 2011, TransCentra is headquartered in Norcross, GA and backed by Cerberus Capital
Investment Banking Role
• Raymond James served as the exclusive financial advisor to TransCentra in this transaction
• Conducted a broad sale process involving both strategic and financial buyers
Successful Outcome
• The Company ultimately consummated a transaction with SourceHOV, announced on September 28, 2016
• The strategic move increases the combined company’s footprint in remittance transaction processing and presentment space
and expands its mobile banking offering while enabling TransCentra to leverage SourceHOV’s global presence to capture further
revenue streams
• The transaction represents a premium outcome for TransCentra shareholders and its management team
INVESTMENT BANKING
10
FINTECH MONTHLY
RAYMOND JAMES ADVISORY CASE STUDY: MARQUIS SOFTWARE SOLUTIONS
September 2016
Relevant Statistics
• On September 29, 2016, Falfurrias Capital Partners announced that it had entered into a definitive agreement to purchase a
majority interest in Marquis Software Solutions Inc. (“Marquis“ or the “Company”) for an undisclosed amount
Sale to
Company Background
• Marquis is a pioneer and leader in unique data analytics software and services that help financial institutions – primarily mid-tier
banks and credit unions – identify marketing opportunities and monitor complex and ever-evolving compliance requirements
Raymond James
acted as the
exclusive financial
advisor to Marquis in
transaction.
• Marquis provides to its clients expertise in data analytics, MCIF, CRM, strategic consulting, profitability and direct marketing –
along with CRA, HMDA & Fair Lending compliance
• Marquis partners with over 400 clients nationwide to realize provable results with its software, services and consulting
• Founded in 1987 by Les Kassing and based in Plano, Texas, Marquis has been managed since Kassing’s retirement by his sons
Jay, John, Jud and Jeff
• Raymond James served as the exclusive financial advisor to Marquis in this transaction
Successful Outcome
• The Company ultimately consummated a transaction with Falfurrias, announced on September 29, 2016
• The transaction produced favorable results for Marquis’ shareholders – in addition to achieving liquidity, one of the brothers
desired to remain in a management position under Falfurrias’ ownership while the other three will exit the business entirely
INVESTMENT BANKING
11
FINTECH MONTHLY
RAYMOND JAMES ADVISORY CASE STUDY: JEFFERSON NATIONAL
September 2016
Relevant Statistics
• On September 28, 2016, Jefferson National Financial Corp. (“Jefferson National” or the “Company”) announced it had entered
into a definitive agreement to be acquired by Nationwide Life Insurance Company (“Nationwide”)
Sale to
Company Background
• Jefferson National is a leading independent provider of tax advantaged investment solutions to registered investment advisors
(“RIAs”) and fee-based advisors
Raymond James
acted as the
exclusive financial
advisor to Jefferson
National in
transaction.
• The Company serves over 4,000 RIAs and fee-based advisors via its innovative Monument Advisor product, the industry’s first
Flat-Fee Investment Only Annuity solution
• Jefferson National has built an expansive distribution network in the RIA and fee-based advisor channel leveraging its
sophisticated technology and marketing capabilities
• Nearly $5 billion of assets are managed on the Company’s investment platform
• Founded in 2001, Jefferson National is headquartered in Louisville, KY and owned by private investors and management
• Raymond James served as the exclusive financial advisor to Jefferson National in this transaction
• Conducted a highly competitive and targeted sale process involving strategic buyers
Successful Outcome
• The transaction was announced on September 28, 2016 and is expected to close in early 2017
• Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest diversified insurance and financial services
organizations in the U.S.
• The acquisition will expand Nationwide’s distribution footprint in the RIA and fee-based advisor channel and offer Jefferson
National’s clients access to Nationwide’s comprehensive array of innovative investment solutions
• The transaction represents a premium outcome for Jefferson National shareholders
INVESTMENT BANKING
12
FINTECH MONTHLY
RAYMOND JAMES ADVISORY CASE STUDY: REDVISION
September 2016
Relevant Statistics
• On September 6, 2016, RedVision Systems, Inc. (“RedVision” or the “Company”) announced it had entered into a definitive
agreement to be acquired by First American Financial Corporation (NYSE:FAF)
Sale to
Company Background
• RedVision is the largest independent national provider of title and real property research and title evidence solutions, including
data, technology and managed services focused on the procurement and processing of title information
Raymond James
acted as the
exclusive financial
advisor to RedVision
in connection with
this transaction.
• The company is recognized throughout the industry for its proprietary technology, which includes its production platform,
TitleVision2, and Nova®, which offers a customizable and scalable solution for title research and production
• Since 2006, RedVision has delivered more than 7.5 million title reports to 1,600+ client organizations, including financial
institutions, title underwriters, settlement service providers, national agents, local agents, lenders, attorneys and
foreclosure/default processing firms
• Founded in 2001; headquartered in Parsippany, NJ
• Raymond James served as the exclusive financial advisor to RedVision in this transaction
• Conducted a highly competitive and targeted sale process involving strategic and financial buyers
Successful Outcome
• The transaction closed on September 20, 2016
• RedVision’s brand and management team will operate as a business unit of FAF’s Data and Mortgage Solutions division, and the
transaction creates the leading full-service provider of title evidence to the marketplace
• RedVision’s data, technology and services complement First American’s existing title search and title evidence production and
will further expand First American’s industry-leading position in title and property data
• The acquisition will allow First American’s Data Trace group to leverage RedVision data to quickly and efficiently build additional
title plants and will offer its customers unmatched quality, coverage and operational flexibility
INVESTMENT BANKING
13
FINTECH MONTHLY
RAYMOND JAMES ADVISORY CASE STUDY: HIGHER ONE
July 2016
Relevant Statistics
• On June 30, 2016, Blackboard Inc. (“Blackboard”) announced that an affiliate of the company had entered into a definitive
agreement to purchase Higher One Holdings, Inc. (NYSE: ONE) ("Higher One“ or the “Company”) for $5.15 in cash per share
$260,000,000
Sale to
• The all-cash sale price represents a 37.3% premium over the closing price of the Higher One Holdings shares on June 29, 2016
and an equity value of $260 million
Company Background
• Higher One, Inc., which is a wholly-owned subsidiary of Higher One Holdings, Inc. and doing business as CASHNet, is a leading
Raymond James
acted as the
exclusive financial
advisor to Higher
One Holdings, Inc. in
transaction.
payments technology provider for higher education headquartered in New Haven, Connecticut with offices in Oakland, California;
Atlanta, Georgia and Chennai, India
• The Company’s CASHNet Payment Platform, which has been trusted for nearly 30 years, has helped college and university
campuses implement PCI-compliant processes for simplifying electronic billing, accepting payments all over campus, offering
flexible tuition payment plans and creating online storefronts
• Higher One supports more than 700 college and university campuses and millions of students across the U.S.
• Raymond James served as the exclusive financial advisor to Higher One Holdings, Inc. in this transaction
• Conducted a highly competitive and targeted sale process involving a select group of strategic and financial buyers
Successful Outcome
• The transaction was signed on June 29, 2016, announced on June 30, 2016 and closed on August 4, 2016
• Under the terms of the merger agreement, which has been unanimously approved by the boards of directors of Winchester
Acquisition Corp., a newly formed subsidiary of Blackboard Inc.’s ultimate parent company, and Higher One. Winchester
Acquisition Corp. will commence a tender offer for all outstanding shares of common stock of Higher One at a price of $5.15 in
cash per share of Higher One
• The closing of the tender offer and the second-step merger are subject to customary conditions, including the valid tender of a
majority of outstanding shares of common stock of Higher One and receipt of antitrust clearance, and is expected to occur in the
third quarter of 2016
• The acquisition will allow for future integration of Higher One’s CASHNet platform providing secure bill presentment, online and
in-person payments, and student payment plan services with the Blackboard Transact business line
INVESTMENT BANKING
14
FINTECH MONTHLY
RAYMOND JAMES ADVISORY CASE STUDY: BLUEPOINT SOLUTIONS
July 2016
Company Background
• Bluepoint Solutions is the leading provider of deposit capture and enterprise content management solutions
• The Company focuses on providing payment processing and document imaging solutions to credit unions in the United States
Sale to
• Differentiated solution set includes seven forms of deposit capture (including fast growing remote and teller), item processing and
ECM of all bank-related paper items
• Majority owned by Founder and CEO Hal Tilbury
• Founded in 2000 and headquartered in Henderson, Nevada
Raymond James
acted as the
exclusive financial
advisor to Bluepoint
Solutions in
transaction.
• Raymond James had a multi-year engagement with Bluepoint Solutions during which we assisted on a number of strategic
assignments
Successful Outcome
• The Company ultimately consummated a transaction with Battery Ventures, being combined with Battery’s portfolio company,
Alogent
• The transaction produced a highly favorable economic outcome for Bluepoint’s shareholders, as well as an ongoing role for
Bluepoint’s management in the newly combined Alogent business
INVESTMENT BANKING
15
FINTECH MONTHLY
RAYMOND JAMES ADVISORY CASE STUDY: CHRONOS
July 2016
Relevant Statistics
• On July 27, 2016, Chronos Solutions LLC (“Chronos” or the “Company”) closed on a $53.2 million senior secured credit facility
(the “Credit Facility”) consisting of a $7.0 million revolving credit facility and a $46.2 million term loan
Company Background
$53,200,000
Senior Credit Facility
Raymond James
acted as the
exclusive financial
advisor to Chronos in
transaction.
• Chronos is a technology-enabled real estate services provider delivering customized transactional and business process
management services to private sector and government clients, including federal agencies, top-five national lenders, leading
mortgage servicers and real estate investment firms
• The Company is a proven leader in title and settlement services; valuations; tailored credit and verification services; HOA
solutions; accelerated asset liquidation and marketing; REO asset management and disposition; field services; asset acquisition
and investor services and innovative technology applications and systems
• Raymond James served as exclusive financial advisor to Chronos in this transaction
• The transaction represented the culmination of a long-term strategic advisory relationship with the Company
Successful Outcome
• The Credit Facility provided permanent financing for a series of three transformational acquisitions, diversifying the Company’s
customer base, expanding the product portfolio and deepening the management team
• The transaction brought in the Company’s first institutional investor, positioning Chronos for continued growth
• The Credit Facility also provided a dividend for the Company’s sole shareholder
INVESTMENT BANKING
16
FINTECH MONTHLY
FINTECH TRADING ANALYSIS
INVESTMENT BANKING
17
FINTECH MONTHLY
TRADING ANALYSIS BY SECTOR
(USD in millions)
Sector (1)
Capitalization
Equity Enterprise
Value
Value
YTD
Trading Performance
1 Year 3 Year 5 Year
Enterprise Value /
Revenue
LTM 2016E 2017E
Enterprise Value /
EBITDA
LTM 2016E 2017E
P/E
2016E 2017E
Revenue
Growth
2016E 2017E
EBITDA
Margin
2016E 2017E
LongTerm
EPS
Growth
Price/
Earnings
to Growth
Ratio
$11,174.7
$13,420.1
5.1%
15.3%
22.8% 112.1%
9.6x
9.2x
8.8x
15.4x
14.7x
13.6x
22.5x
20.1x
7.2%
9.3%
60.0% 61.6%
11.3%
2.4
Information Services
6,011.4
6,531.4
16.4%
27.1%
26.9% 133.8%
4.7x
4.5x
4.4x
15.8x
14.1x
12.6x
23.9x
21.7x
6.1%
5.9%
31.4% 33.7%
12.4%
2.1
Payments
4,205.2
4,884.1
5.5%
6.9%
7.8% 148.8%
4.4x
3.3x
3.0x
14.5x
12.0x
10.9x
16.5x
14.7x
9.5%
9.2%
25.3% 26.5%
14.7%
1.4
Bank Technology
3,816.8
4,702.5
9.2%
17.5%
38.9% 211.6%
4.9x
4.2x
4.0x
14.7x
12.2x
11.2x
22.4x
20.0x
6.4%
6.6%
31.1% 32.5%
12.8%
2.1
Trading Technology (2)
1,032.6
3,891.9
(2.9%)
10.3%
3.0%
81.1%
1.3x
1.3x
1.2x
12.8x
12.3x
11.0x
16.0x
16.3x
0.7%
8.0%
26.6% 26.0%
13.9%
1.5
2,917.5
2,972.9
3.9%
5.6%
15.9%
94.5%
1.9x
1.9x
1.7x
10.1x
9.4x
8.4x
16.4x
15.2x
5.2%
5.8%
17.9% 18.3%
12.8%
1.4
Benefits / Payroll
2,999.1
2,947.5
11.8%
30.7%
21.6% 119.5%
6.1x
5.3x
4.9x
18.7x
16.0x
13.9x
26.4x
25.1x 14.1% 14.0%
25.0% 25.0%
20.0%
2.3
Real Estate / Mortgage Services
2,317.5
2,769.9
3.0%
4.0%
(4.2%) 143.1%
1.5x
1.3x
1.2x
9.6x
8.9x
8.1x
15.7x
15.0x
5.5%
16.6% 18.3%
14.4%
1.0
Financial SaaS
2,274.5
2,188.0
14.0%
27.0%
19.3% 173.6%
6.3x
5.7x
5.0x
21.1x
16.3x
15.4x
27.1x
23.0x 24.3% 19.7%
27.5% 27.5%
22.5%
1.8
Investment Technology
2,959.4
1,813.2
4.2%
10.6%
2.7% 128.1%
3.4x
3.1x
2.8x
16.0x
12.9x
11.0x
23.9x
20.2x 10.3%
6.4%
28.3% 29.8%
13.7%
1.6
Marketing Services
1,129.6
1,067.2
(6.3%)
(5.1%) (25.0%)
64.1%
1.8x
1.4x
1.3x
14.2x
10.5x
9.3x
16.6x
17.7x
6.0%
15.6% 18.2%
15.3%
1.5
752.6
815.0
12.3%
20.7%
97.2%
2.9x
2.8x
2.4x
15.5x
15.8x
15.7x
21.7x
24.4x 16.6% 14.8%
15.2% 14.7%
11.1%
2.2
$2,938.5
$2,960.2
3.9x
3.2x
2.9x
15.1x
12.6x
11.1x
22.1x
20.0x
25.9% 26.2%
13.8%
1.7
Liquidity Venues
Insurance Technology
Overall Median
5.3%
12.9%
15.2%
15.6% 123.8%
8.9%
4.6%
8.1%
7.3%
Source: Capital IQ as of market close on September 30th, 2016.
Note: Sectors sorted by Enterprise Value.
(1)
Denotes sector median value.
(2)
Market Capitalization used in place of Enterprise Value.
INVESTMENT BANKING
18
FINTECH MONTHLY
RELATIVE STOCK PRICE PERFORMANCE BY SECTOR
YEAR-TO-DATE PERFORMANCE
ONE-YEAR PERFORMANCE
THREE-YEAR PERFORMANCE
FIVE-YEAR PERFORMANCE
Data represents median performance for each sector.
(1) Market Capitalization used in place of Enterprise Value
INVESTMENT BANKING
19
FINTECH MONTHLY
VALUATION MULTIPLE ANALYSIS BY SECTOR
ENTERPRISE VALUE / 2016E REVENUE
ENTERPRISE VALUE / 2017E REVENUE
ENTERPRISE VALUE / 2016E EBITDA
ENTERPRISE VALUE / 2017E EBITDA
INVESTMENT BANKING
20
FINTECH MONTHLY
VALUATION MULTIPLE ANALYSIS BY SECTOR (CONT’D)
2016E P / E
2017E P / E
PRICE / EARNINGS TO GROWTH RATIO
INVESTMENT BANKING
21
FINTECH MONTHLY
GROWTH AND MARGIN ANALYSIS BY SECTOR
2016E REVENUE GROWTH
2017E REVENUE GROWTH
2016E EBITDA MARGIN
2017E EBITDA MARGIN
INVESTMENT BANKING
22
FINTECH MONTHLY
COMPANY TRADING ANALYSIS
PAYMENTS
(USD in millions)
Company
Visa Inc.
Mastercard Incorporated
PayPal Holdings, Inc.
Discover Financial Services
First Data Corporation
Alliance Data Systems Corporation
Cielo S.A.
FleetCor Technologies, Inc.
Global Payments Inc.
The Western Union Company
Vantiv, Inc.
Total System Services, Inc.
Sage Group plc
Worldpay Group plc
Ingenico Group
Nets A/S
WEX Inc.
Wirecard AG
Euronet Worldwide, Inc.
Paysafe Group Plc
Square, Inc.
VeriFone Systems, Inc.
Cardtronics plc
Blackhawk Network Holdings, Inc.
EVERTEC, Inc.
Moneygram International Inc.
Everi Holdings Inc.
Bottomline Technologies (de), Inc.
Green Dot Corporation
Qiwi plc
MINDBODY, Inc.
Newtek Business Services Corp.
Cass Information Systems, Inc.
DirectCash Payments Inc.
Net 1 Ueps Technologies Inc.
eServGlobal Ltd.
Earthport plc
Payments Median
Capitalization
Equity
Enterprise
Value
Value
$195,239.0
111,717.4
49,447.4
22,825.1
11,975.8
12,556.2
22,630.2
16,082.8
11,800.6
10,154.6
8,805.2
8,668.1
10,378.2
7,713.9
5,351.4
4,147.4
4,617.6
6,423.8
4,262.9
2,825.7
3,587.3
1,746.7
2,017.3
1,699.1
1,257.9
379.5
163.1
867.3
1,123.0
884.6
625.5
206.6
632.9
170.1
449.6
54.0
90.4
$4,205.2
$208,083.0
108,608.4
44,490.4
37,478.1
33,851.8
29,821.4
26,710.2
18,421.8
15,780.5
12,201.1
11,953.3
11,875.3
10,730.9
9,491.8
5,602.1
5,590.4
5,570.1
5,560.1
4,208.1
3,189.6
3,183.9
2,604.0
2,488.9
1,967.9
1,881.8
1,353.8
1,193.3
906.5
762.6
617.6
549.9
359.4
358.8
325.8
280.2
67.7
59.0
$4,884.1
YTD
6.6%
4.5%
13.2%
5.5%
(17.9%)
(22.4%)
16.1%
21.5%
19.0%
16.2%
18.7%
(5.3%)
22.3%
(3.6%)
(33.2%)
NA
22.3%
(0.5%)
13.0%
20.0%
(10.9%)
(43.8%)
32.5%
(31.8%)
0.2%
13.2%
(43.7%)
(21.6%)
40.4%
(18.4%)
29.9%
(0.4%)
10.1%
3.1%
(36.6%)
57.1%
(41.4%)
5.5%
Trading Performance
1 Year
3 Year
5 Year
17.0%
10.5%
24.8%
8.4%
NA
(20.4%)
0.7%
23.3%
29.6%
12.2%
21.4%
2.0%
46.3%
NA
(24.9%)
NA
20.4%
5.5%
9.3%
32.2%
NA
(44.3%)
36.9%
(29.9%)
(10.0%)
(15.5%)
(50.2%)
(5.3%)
34.7%
(11.1%)
28.7%
(24.6%)
15.8%
1.2%
(49.0%)
(38.9%)
(64.2%)
6.9%
26.2%
18.1%
NA
(13.7%)
NA
(25.0%)
12.3%
16.8%
90.2%
16.2%
65.9%
38.8%
58.5%
NA
(10.9%)
NA
9.3%
26.9%
49.1%
30.2%
NA
(57.7%)
15.6%
(22.2%)
(24.2%)
(21.9%)
(65.5%)
(7.8%)
12.5%
(27.5%)
NA
(3.4%)
6.4%
(34.0%)
(24.9%)
(80.4%)
(66.9%)
7.8%
292.6%
227.4%
NA
154.0%
NA
143.6%
223.4%
573.9%
290.3%
39.8%
NA
178.2%
172.9%
NA
177.3%
NA
197.3%
320.1%
457.0%
875.1%
NA
(51.3%)
116.7%
NA
NA
(57.5%)
5.6%
20.7%
(21.7%)
NA
NA
116.1%
124.2%
(34.2%)
38.1%
(73.2%)
(9.4%)
148.8%
Enterprise Value /
Revenue
LTM 2016E 2017E
14.5x
10.7x
4.4x
5.2x
4.3x
4.4x
7.2x
12.1x
8.3x
2.2x
8.2x
3.6x
5.6x
6.9x
2.2x
5.3x
6.3x
5.4x
2.3x
4.7x
6.2x
1.3x
2.0x
1.1x
4.9x
0.9x
1.7x
2.6x
1.1x
3.3x
4.6x
2.8x
2.9x
1.5x
0.5x
4.1x
2.2x
4.4x
13.3x 11.4x
10.2x 9.2x
4.1x 3.5x
4.2x 4.0x
2.9x 2.8x
4.1x 3.7x
6.9x 6.4x
10.0x 8.6x
7.5x 6.9x
2.2x 2.2x
6.4x 5.9x
2.8x 2.4x
5.3x 4.7x
6.5x 5.9x
2.2x 2.0x
3.7x 3.5x
5.6x 4.7x
4.9x 3.9x
2.1x 1.9x
3.3x 2.9x
4.7x 3.7x
1.3x 1.3x
2.0x 2.0x
1.0x 0.9x
4.9x 4.8x
0.9x 0.8x
1.4x 1.4x
2.6x 2.5x
1.1x 1.0x
3.2x 2.9x
4.0x 3.1x
2.5x 2.4x
NA
NA
1.5x 1.5x
0.4x 0.4x
2.9x
NA
1.7x 1.2x
3.3x 3.0x
Enterprise Value /
EBITDA
LTM 2016E 2017E
21.2x
18.8x
19.3x
7.0x
14.2x
19.2x
16.0x
21.7x
23.8x
8.8x
15.3x
15.5x
21.1x
17.8x
10.8x
19.3x
20.0x
19.9x
13.9x
26.6x
NM
9.4x
8.6x
13.2x
13.0x
6.0x
6.6x
14.9x
8.4x
7.2x
NM
NM
9.9x
6.4x
1.8x
NM
NM
14.5x
19.4x
16.7x
16.0x
6.8x
11.6x
14.8x
15.4x
19.0x
18.3x
9.1x
13.3x
11.7x
17.9x
16.3x
10.8x
14.8x
15.5x
16.3x
12.0x
22.5x
NM
6.8x
7.8x
9.4x
10.1x
5.1x
6.0x
12.1x
4.8x
7.5x
NM
17.1x
NA
6.1x
1.6x
NM
NM
12.0x
16.5x
15.9x
14.0x
6.4x
11.1x
13.5x
14.1x
15.9x
13.9x
8.6x
12.2x
10.3x
16.0x
14.3x
9.6x
13.4x
11.6x
12.9x
10.4x
11.0x
36.6x
7.9x
7.4x
7.9x
9.9x
4.8x
5.8x
10.4x
4.4x
6.4x
NM
10.9x
NA
5.9x
1.6x
NA
11.8x
10.9x
P/E
2016E 2017E
28.7x
28.1x
27.4x
9.9x
10.0x
12.7x
18.1x
25.3x
24.8x
12.5x
21.2x
16.8x
26.6x
24.8x
18.2x
NA
25.1x
24.7x
20.1x
14.5x
NA
10.1x
13.7x
11.7x
10.1x
9.0x
3.7x
23.0x
16.2x
12.4x
NA
8.9x
NA
NA
5.0x
NA
NA
16.5x
23.8x
24.3x
23.7x
9.3x
8.7x
11.3x
16.2x
21.4x
20.1x
12.0x
18.6x
14.8x
23.0x
22.7x
16.0x
NA
20.7x
21.8x
17.8x
12.9x
NA
9.6x
14.5x
13.0x
9.7x
7.0x
3.2x
22.3x
13.4x
11.4x
NA
7.6x
NA
NA
4.8x
NA
63.1x
14.7x
Revenue
Growth
2016E
2017E
13.1%
9.5%
17.6%
3.1%
2.6%
10.8%
13.1%
23.1%
7.4%
(0.8%)
12.3%
27.6%
11.9%
16.0%
4.4%
NA
17.5%
32.0%
9.3%
20.3%
26.3%
(4.8%)
5.9%
11.0%
3.7%
6.9%
7.7%
NA
2.6%
7.7%
37.2%
8.5%
NA
2.7%
8.3%
12.6%
26.9%
9.5%
16.7%
10.7%
16.2%
3.6%
4.1%
11.4%
8.6%
16.4%
9.0%
2.1%
7.9%
16.4%
13.0%
10.4%
9.3%
5.6%
19.6%
25.9%
9.9%
11.2%
28.7%
(0.6%)
(1.2%)
14.4%
2.4%
6.8%
3.3%
6.1%
4.9%
10.5%
27.9%
6.3%
NA
0.3%
1.7%
NA
36.4%
9.2%
EBITDA
Margin
2016E
2017E
68.2%
61.2%
25.8%
61.5%
24.7%
28.1%
44.7%
52.6%
41.2%
24.5%
48.0%
24.0%
29.5%
39.7%
20.2%
25.3%
36.3%
29.8%
17.9%
14.5%
3.5%
19.4%
25.3%
10.5%
48.2%
17.2%
23.4%
21.7%
22.3%
42.8%
NM
14.7%
NA
24.3%
27.8%
5.3%
NM
25.3%
68.8%
58.2%
25.3%
63.0%
24.9%
27.7%
45.1%
54.0%
49.6%
25.4%
48.3%
23.4%
29.2%
40.8%
20.7%
26.4%
40.3%
30.1%
18.7%
26.6%
10.1%
16.9%
26.8%
11.0%
48.0%
17.1%
23.7%
23.7%
23.4%
45.8%
1.5%
21.7%
NA
25.1%
28.1%
NA
10.5%
26.5%
LongTerm
EPS
Growth
16.8%
15.4%
15.3%
7.2%
16.7%
15.1%
13.2%
16.5%
13.9%
7.4%
14.3%
11.4%
13.4%
29.9%
9.8%
NA
15.0%
28.1%
14.7%
NA
20.0%
NA
13.5%
14.8%
10.5%
13.8%
20.0%
17.3%
12.5%
14.5%
15.0%
3.0%
NA
NA
NA
NA
NA
14.7%
PEG
Ratio
1.7
1.8
1.8
1.4
0.6
0.8
1.4
1.5
1.8
1.7
1.5
1.5
2.0
0.8
1.9
NA
1.7
0.9
1.4
NA
NA
NA
1.0
0.8
1.0
0.7
0.2
1.3
1.3
0.9
NA
3.0
NA
NA
NA
NA
NA
1.4
INVESTMENT BANKING
23
FINTECH MONTHLY
INSURANCE TECHNOLOGY
(USD in millions)
Company
Capitalization
Equity
Enterprise
Value
Value
Verisk Analytics, Inc.
Guidewire Software, Inc.
HealthEquity, Inc.
Ebix Inc.
Crawford & Company
CorVel Corporation
Majesco
eHealth, Inc.
Symbility Solutions Inc.
Insurance Technology Median
$13,733.9
4,382.6
2,219.6
1,846.6
631.3
752.6
185.7
205.4
76.4
$752.6
$15,809.4
3,754.4
2,070.1
2,009.3
815.0
716.4
188.7
138.7
71.4
$815.0
YTD
5.7%
(0.3%)
51.0%
73.4%
113.7%
(12.6%)
(15.2%)
12.3%
50.0%
12.3%
Trading Performance
1 Year
3 Year
5 Year
4.0%
13.9%
30.7%
128.0%
123.4%
20.7%
8.3%
(12.4%)
50.0%
20.7%
26.9%
18.5%
48.7%
234.6%
10.4%
3.2%
NA
(55.0%)
12.0%
15.2%
133.8%
NA
NA
286.7%
111.8%
80.7%
NA
(17.9%)
82.6%
97.2%
Enterprise Value /
Revenue
LTM 2016E 2017E
7.0x
8.8x
13.4x
7.2x
0.7x
1.5x
1.5x
0.7x
2.9x
2.9x
7.9x
8.5x
11.6x
6.9x
0.7x
1.3x
1.4x
0.7x
2.8x
2.8x
7.5x
7.4x
9.3x
6.3x
0.7x
1.2x
1.2x
0.7x
2.4x
2.4x
Enterprise Value /
EBITDA
LTM 2016E 2017E
15.5x
NM
43.4x
19.2x
7.9x
9.8x
NM
15.4x
NM
15.5x
15.8x
49.4x
33.3x
18.1x
6.7x
8.8x
NM
11.6x
NM
15.8x
14.7x
48.8x
26.0x
16.7x
6.1x
8.0x
21.0x
9.9x
NM
15.7x
P/E
2016E 2017E
27.1x
NM
73.7x
21.7x
16.5x
NA
NA
17.2x
NA
21.7x
24.4x
62.8x
57.0x
20.8x
13.8x
NA
39.2x
20.0x
NA
24.4x
Revenue
Growth
2016E
2017E
(3.4%)
NA
69.3%
21.6%
(6.8%)
11.5%
30.4%
8.5%
30.7%
16.6%
5.9%
14.8%
25.5%
9.3%
1.7%
15.0%
17.2%
1.2%
14.9%
14.8%
EBITDA
Margin
2016E
2017E
50.1%
17.2%
34.9%
38.0%
10.9%
15.2%
2.5%
6.1%
0.3%
15.2%
LongTerm
EPS
Growth
50.9%
15.2%
35.7%
37.8%
11.8%
14.7%
5.6%
7.0%
3.3%
14.7%
PEG
Ratio
12.2%
17.7%
32.5%
10.0%
10.0%
NA
NA
10.0%
NA
11.1%
2.2
NA
2.3
2.2
1.7
NA
NA
1.7
NA
2.2
INVESTMENT TECHNOLOGY
(USD in millions)
Company
Capitalization
Equity
Enterprise
Value
Value
The Bank of New York Mellon Corporation⁽¹⁾
The Charles Schwab Corporation⁽¹⁾
State Street Corporation⁽¹⁾
TD Ameritrade Holding Corporation⁽¹⁾
Northern Trust Corporation⁽¹⁾
Broadridge Financial Solutions, Inc.
SEI Investments Co.
SS&C Technologies Holdings, Inc.
Computershare Limited
DST Systems Inc.
SimCorp A/S
Financial Engines, Inc.
Envestnet, Inc.
IRESS Limited
Fidessa group plc
Equiniti Group plc
Sanne Group plc
First Derivatives plc
Blucora, Inc.
StatPro Group plc
Investment Technology Median
$42,578.9
41,767.2
27,156.8
18,548.8
15,405.9
8,018.1
7,358.1
6,466.7
4,321.6
3,846.6
2,072.2
1,835.7
1,560.5
1,438.6
1,198.8
778.4
653.6
632.1
465.0
93.5
$2,959.4
NM
19,738.2
NM
11,068.8
NM
8,312.8
6,763.3
8,972.3
5,651.0
4,506.6
2,040.6
1,734.5
1,813.2
1,561.2
1,111.6
1,142.4
657.7
651.8
889.5
105.9
$1,813.2
YTD
(3.3%)
(4.1%)
4.9%
1.5%
(5.7%)
26.2%
(13.0%)
(5.8%)
(11.2%)
3.4%
(0.8%)
(11.8%)
22.1%
18.0%
20.0%
9.4%
25.3%
30.5%
14.3%
44.2%
4.2%
Trading Performance
1 Year
3 Year
5 Year
1.3%
10.6%
3.8%
10.0%
(0.3%)
23.3%
(6.3%)
(10.3%)
(2.1%)
11.9%
12.7%
1.0%
23.3%
22.8%
36.7%
NA
56.4%
40.2%
(16.2%)
50.5%
10.6%
(1.7%)
4.6%
(11.3%)
(1.5%)
0.9%
46.8%
13.9%
9.9%
(12.5%)
25.2%
136.9%
(18.7%)
(25.8%)
10.2%
0.5%
NA
NA
54.8%
(19.1%)
53.1%
2.7%
114.5%
180.1%
116.5%
139.6%
94.4%
236.6%
196.6%
350.0%
38.2%
169.0%
381.9%
64.1%
264.5%
68.6%
53.1%
NA
NA
328.3%
34.0%
31.4%
128.1%
Enterprise Value /
Revenue
LTM 2016E 2017E
2.9x
6.1x
2.7x
3.4x
3.3x
2.9x
5.0x
5.6x
2.9x
2.2x
6.4x
4.9x
3.7x
5.3x
2.8x
2.3x
9.8x
4.3x
0.6x
2.5x
3.4x
2.8x
5.3x
2.5x
3.3x
3.1x
2.4x
4.9x
4.9x
2.8x
2.2x
6.2x
4.1x
3.1x
5.2x
2.6x
2.2x
8.8x
3.9x
0.5x
2.3x
3.1x
2.7x
4.7x
2.4x
3.1x
3.0x
2.0x
4.4x
4.7x
2.6x
2.1x
5.9x
3.6x
2.6x
4.7x
2.5x
2.2x
7.4x
3.6x
0.5x
2.2x
2.8x
Enterprise Value /
EBITDA
LTM 2016E 2017E
9.7x
15.7x
8.4x
7.9x
12.1x
13.6x
17.7x
17.2x
13.2x
10.9x
26.0x
25.3x
24.2x
21.5x
16.3x
12.0x
27.9x
33.6x
1.7x
19.3x
16.0x
9.7x
14.0x
8.4x
7.1x
11.2x
12.5x
13.6x
15.7x
10.6x
11.7x
25.4x
13.3x
18.1x
17.1x
9.8x
9.7x
22.3x
26.1x
1.6x
16.5x
12.9x
9.0x
13.4x
7.5x
6.5x
10.0x
10.8x
11.8x
14.7x
10.5x
10.6x
24.2x
11.2x
13.4x
15.2x
9.2x
9.2x
18.9x
19.8x
1.5x
14.6x
11.0x
P/E
2016E 2017E
13.2x
25.1x
13.8x
22.7x
16.0x
24.1x
23.7x
19.9x
14.7x
20.5x
40.1x
27.1x
36.6x
25.3x
28.2x
13.3x
29.2x
37.9x
12.4x
37.4x
23.9x
11.9x
21.3x
12.6x
19.9x
14.9x
20.3x
20.1x
16.6x
14.1x
16.9x
37.5x
22.9x
25.6x
22.0x
26.3x
12.3x
24.7x
32.3x
9.2x
30.0x
20.2x
Revenue
Growth
2016E
2017E
(0.1%)
22.6%
0.2%
4.1%
6.2%
25.6%
4.2%
10.3%
5.0%
(0.4%)
5.6%
18.1%
22.3%
11.4%
12.8%
5.4%
28.1%
22.4%
10.3%
17.3%
10.3%
4.6%
13.1%
4.6%
6.8%
4.7%
22.2%
10.0%
5.1%
6.7%
6.1%
4.4%
15.1%
18.4%
11.4%
3.3%
4.0%
18.6%
8.6%
5.1%
3.8%
6.4%
EBITDA
Margin
2016E
2017E
28.9%
37.8%
30.1%
46.2%
27.7%
19.1%
35.7%
31.3%
26.2%
18.9%
24.2%
31.1%
17.3%
30.4%
26.6%
23.2%
39.5%
14.9%
31.3%
14.0%
28.3%
29.8%
35.0%
32.2%
47.0%
29.7%
18.1%
37.5%
32.0%
24.6%
19.7%
24.4%
31.9%
19.7%
30.8%
27.4%
23.3%
39.4%
18.1%
32.0%
15.3%
29.8%
LongTerm
EPS
Growth
NA
18.9%
NA
13.9%
11.0%
13.0%
13.7%
15.0%
6.4%
10.0%
NA
25.0%
20.0%
13.2%
NA
8.3%
NA
NA
18.5%
NA
13.7%
PEG
Ratio
NA
1.3
NA
1.6
1.5
1.9
1.7
1.3
2.3
2.0
NA
1.1
1.8
1.9
NA
1.6
NA
NA
0.7
NA
1.6
(1) Equity value used for multiples in place of enterprise value.
INVESTMENT BANKING
24
FINTECH MONTHLY
BENEFITS / PAYROLL
(USD in millions)
Company
Capitalization
Equity
Enterprise
Value
Value
YTD
Automatic Data Processing, Inc.
Aon plc
Paychex, Inc.
Edenred SA
The Ultimate Software Group, Inc.
Paycom Software, Inc.
Paylocity Holding Corporation
HealthEquity, Inc.
TriNet Group, Inc.
WageWorks, Inc.
Benefitfocus, Inc.
Morneau Shepell Inc.
Benefits / Payroll Median
$40,075.9
29,877.3
20,931.6
5,417.9
5,914.6
2,999.1
2,274.5
2,219.6
1,519.5
2,229.1
1,183.7
768.3
$2,999.1
4.1%
22.0%
9.4%
19.3%
4.5%
33.2%
9.6%
51.0%
11.8%
34.3%
9.7%
31.1%
11.8%
$38,869.0
35,495.3
20,485.2
6,775.8
5,826.3
2,947.5
2,188.0
2,070.1
1,825.2
1,739.1
1,191.0
973.4
$2,947.5
Trading Performance
1 Year
3 Year
5 Year
9.0%
27.0%
20.2%
37.4%
13.2%
39.3%
49.3%
30.7%
28.8%
37.4%
33.5%
22.5%
30.7%
5.8%
18.6%
25.3%
(9.3%)
39.2%
90.4%
70.3%
48.7%
(30.9%)
(5.7%)
21.6%
8.7%
21.6%
87.1%
168.0%
119.5%
16.0%
337.5%
NA
NA
NA
NA
NA
NA
98.8%
119.5%
Enterprise Value /
Revenue
LTM 2016E 2017E
3.3x
3.1x
6.8x
6.1x
8.3x
10.4x
9.5x
13.4x
0.8x
5.1x
5.6x
2.2x
6.1x
3.2x
3.0x
6.7x
5.3x
7.5x
9.0x
8.3x
11.6x
0.6x
4.8x
5.1x
2.1x
5.3x
3.0x
2.9x
6.2x
4.9x
6.1x
7.0x
6.6x
9.3x
0.5x
4.3x
4.1x
2.0x
4.9x
Enterprise Value /
EBITDA
LTM 2016E 2017E
15.3x
14.3x
15.9x
18.7x
49.0x
43.9x
NM
43.4x
13.9x
24.2x
NM
14.5x
18.7x
16.2x
13.5x
15.6x
14.5x
30.8x
34.9x
NM
33.3x
10.2x
16.0x
NM
11.3x
16.0x
13.9x
12.7x
14.5x
12.9x
24.5x
27.1x
NM
26.0x
9.0x
13.6x
NM
10.5x
13.9x
P/E
2016E 2017E
25.6x
17.3x
27.2x
23.4x
62.1x
NM
NA
73.7x
18.6x
43.6x
NA
26.1x
26.4x
23.1x
15.7x
25.1x
20.5x
50.0x
52.3x
NA
57.0x
15.6x
36.6x
NA
19.7x
25.1x
Revenue
Growth
2016E
2017E
3.6%
0.5%
4.0%
6.4%
26.5%
48.0%
24.3%
69.3%
14.1%
8.3%
28.9%
6.2%
14.1%
7.3%
3.9%
7.0%
8.5%
22.2%
28.9%
25.5%
25.5%
14.0%
11.3%
24.7%
8.5%
14.0%
EBITDA
Margin
2016E
2017E
19.8%
22.4%
42.7%
36.8%
24.2%
25.8%
11.3%
34.9%
5.8%
30.1%
NM
18.9%
25.0%
21.6%
22.9%
43.1%
38.0%
25.0%
25.8%
12.7%
35.7%
5.8%
31.9%
3.3%
18.8%
25.0%
LongTerm
EPS
Growth
PEG
Ratio
10.8%
10.8%
9.2%
10.9%
26.2%
30.0%
25.0%
32.5%
20.0%
15.0%
29.0%
NA
20.0%
2.4
1.6
3.0
2.2
2.4
NA
NA
2.3
0.9
2.9
NA
NA
2.3
MARKETING SERVICES
(USD in millions)
Company
Capitalization
Equity
Enterprise
Value
Value
Alliance Data Systems Corporation
Experian plc
Groupon, Inc.
Acxiom Corporation
Blackhawk Network Holdings, Inc.
Aimia Inc.
Quotient Technology Inc.
LendingTree, Inc.
Bankrate, Inc.
RetailMeNot, Inc.
QuinStreet, Inc.
Points International Ltd.
Marketing Services Median
$11,975.8
18,977.5
2,959.1
2,063.0
1,699.1
958.5
1,117.2
1,142.0
765.5
481.4
138.2
136.4
$1,129.6
$33,851.8
22,074.5
2,407.1
2,095.3
1,967.9
1,152.1
960.7
982.4
938.0
302.9
99.5
81.0
$1,067.2
YTD
(17.9%)
28.6%
67.8%
27.4%
(31.8%)
(12.2%)
95.2%
8.5%
(36.2%)
(0.3%)
(29.6%)
(12.9%)
(6.3%)
Trading Performance
1 Year
3 Year
5 Year
(18.2%)
43.6%
58.5%
35.4%
(29.4%)
(27.8%)
47.9%
7.6%
(18.0%)
20.3%
(45.8%)
(17.9%)
(5.1%)
(25.0%)
41.9%
(37.7%)
31.5%
(22.2%)
(43.5%)
(25.0%)
100.5%
(31.8%)
(32.4%)
(50.2%)
(21.3%)
(25.0%)
131.4%
113.0%
NA
150.5%
NA
(30.8%)
NA
1838.2%
(44.2%)
NA
(70.8%)
15.3%
64.1%
Enterprise Value /
Revenue
LTM 2016E 2017E
4.3x
4.9x
0.8x
2.6x
1.1x
0.6x
4.3x
5.9x
2.4x
1.2x
0.3x
0.3x
1.8x
2.9x
4.7x
0.8x
2.5x
1.1x
0.7x
3.6x
2.6x
1.7x
1.0x
0.3x
0.2x
1.4x
2.8x
4.6x
0.7x
2.4x
1.0x
0.6x
3.1x
2.1x
1.6x
1.0x
0.3x
0.2x
1.3x
Enterprise Value /
EBITDA
LTM 2016E 2017E
14.2x
15.7x
NM
16.1x
13.2x
14.5x
25.3x
39.3x
10.6x
8.3x
8.3x
9.1x
14.2x
11.6x
14.2x
15.6x
15.0x
9.4x
6.9x
24.6x
15.0x
6.2x
5.3x
5.2x
5.8x
10.5x
11.1x
13.2x
10.8x
12.8x
7.9x
6.5x
15.0x
11.6x
5.9x
5.1x
4.3x
5.0x
9.3x
P/E
2016E 2017E
10.0x
22.3x
NA
44.5x
11.7x
10.1x
NA
30.9x
15.9x
16.6x
NA
20.6x
16.6x
8.7x
20.2x
53.8x
38.3x
13.0x
10.6x
57.5x
24.5x
13.3x
17.7x
NA
16.0x
17.7x
Revenue
Growth
2016E
2017E
2.6%
3.3%
1.6%
4.4%
4.7%
(6.6%)
18.5%
52.0%
0.4%
9.6%
11.2%
15.0%
4.6%
4.1%
1.5%
3.9%
6.0%
11.0%
2.8%
14.7%
22.2%
3.8%
8.7%
6.0%
7.4%
6.0%
EBITDA
Margin
2016E
2017E
24.7%
33.0%
5.0%
16.7%
11.7%
9.5%
14.4%
17.1%
27.7%
19.8%
5.9%
4.1%
15.6%
24.9%
35.2%
6.9%
18.4%
12.6%
9.9%
20.7%
18.0%
28.1%
18.8%
6.7%
4.4%
18.2%
LongTerm
EPS
Growth
PEG
Ratio
16.7%
11.0%
26.5%
15.3%
14.8%
NA
50.9%
4.3%
17.5%
NA
2.3%
NA
15.3%
0.6
2.0
NA
2.9
0.8
NA
NA
7.2
0.9
NA
NA
NA
1.5
INVESTMENT BANKING
25
FINTECH MONTHLY
LIQUIDITY VENUES
(USD in millions)
Company
Capitalization
Equity
Enterprise
Value
Value
YTD
Intercontinental Exchange, Inc.
CME Group Inc.
$32,095.4
35,417.1
$38,282.4
36,406.4
5.1%
15.4%
Hong Kong Exchanges & Clearing
32,136.6
30,413.1
Deutsche Boerse AG
14,580.7
15,843.8
11,174.7
12,758.0
9,320.9
7,139.7
6,231.2
5,271.4
5,824.8
2,968.9
$11,174.7
14,475.7
13,420.1
9,294.2
6,439.8
6,005.5
5,231.8
5,188.5
2,919.3
$13,420.1
16.1%
2.0%
55.4%
13.4%
48.4%
(0.1%)
(3.8%)
(19.7%)
5.1%
Nasdaq, Inc.
London Stock Exchange Group plc
BM&FBOVESPA S.A.
ASX Limited
MarketAxess Holdings Inc.
CBOE Holdings, Inc.
Singapore Exchange Limited
Euronext N.V.
Liquidity Venues Median
Trading Performance
1 Year
3 Year
5 Year
Enterprise Value /
Revenue
LTM 2016E 2017E
Enterprise Value /
EBITDA
LTM 2016E 2017E
P/E
2016E 2017E
Revenue
Growth
2016E
2017E
EBITDA
Margin
2016E
2017E
15.3%
11.5%
22.8%
17.9%
127.8% 9.6x
112.1% 10.4x
11.2x 10.4x
10.2x 9.7x
15.3x
15.4x
16.5x
14.7x
12.6x
13.7x
19.5x
23.8x
17.4x
22.1x
9.8%
7.2%
7.9%
5.6%
67.9%
69.6%
82.1%
70.5%
2.7%
15.3%
18.7%
77.7% 20.3x
20.7x 18.5x
(14.6%)
(10.8%)
17.3%
83.3%
28.4%
11.7%
48.7%
24.3%
76.1%
(3.6%)
3.6%
(2.8%)
15.3%
40.8%
26.1%
71.8%
31.1%
130.9%
2.3%
(5.1%)
41.8%
22.8%
6.1x
191.9% 7.0x
243.6% 6.8x
92.5% 13.2x
58.8% 9.2x
536.4% 17.9x
165.0% 8.7x
11.8% 10.2x
NA 5.2x
112.1% 9.6x
LongTerm
EPS
Growth
14.4%
12.4%
PEG
Ratio
1.4
1.9
29.8x
29.4x
25.8x
40.3x
34.8x
(5.8%)
12.0%
70.6%
71.7%
NA
NA
5.1x
16.7x
14.4x
13.9x
15.9x
14.5x
2.1%
13.8%
40.4%
36.8%
6.0%
2.7
6.3x 5.9x
5.1x 4.6x
12.9x 11.7x
9.2x 8.8x
16.3x 14.5x
8.0x 7.6x
9.2x 8.4x
5.1x 4.9x
9.2x 8.8x
12.6x
12.3x
20.3x
12.8x
32.6x
13.7x
16.5x
9.0x
15.4x
12.5x
13.7x
19.1x
11.9x
29.3x
13.4x
16.2x
9.2x
14.7x
11.5x
12.1x
16.6x
11.4x
25.5x
12.5x
13.6x
8.7x
13.6x
18.2x
24.0x
16.2x
21.8x
51.4x
26.9x
22.5x
14.6x
22.5x
16.0x
20.1x
14.0x
20.9x
44.1x
24.0x
19.9x
13.8x
20.1x
9.8%
7.6%
5.5%
6.5%
9.5%
4.1%
10.2%
0.4%
7.2%
7.8%
9.3%
10.5%
4.4%
12.5%
6.5%
10.3%
4.0%
9.3%
50.5%
37.1%
67.8%
77.2%
55.7%
60.0%
56.9%
55.7%
60.0%
50.9%
38.2%
70.5%
77.0%
56.9%
60.5%
61.6%
56.5%
61.6%
10.3%
18.0%
NA
4.6%
18.5%
11.3%
1.5%
4.6%
11.3%
1.8
1.3
NA
4.7
2.8
2.4
15.0
3.2
2.4
5.8x
(1)
TRADING TECHNOLOGY
(USD in millions)
Company
YTD
The Charles Schwab Corporation
$41,767.2
$19,738.2
(4.1%)
10.6%
4.6%
180.1%
6.1x
5.6x
5.1x
19.6x
13.1x
11.0x
25.1x
21.3x
17.5%
10.8%
43.1%
46.2%
18.9%
1.3
18,548.8
11,068.8
1.5%
10.0%
(1.5%)
139.6%
5.7x
5.5x
5.1x
13.2x
11.9x
10.9x
22.7x
19.9x
4.1%
6.8%
46.2%
47.0%
13.9%
1.6
E*TRADE Financial Corporation
7,968.0
5,349.0
(1.8%)
11.1%
20.1%
219.6%
4.0x
4.2x
3.9x
12.8x
10.6x
10.3x
17.2x
16.8x
8.0%
9.1%
39.9%
37.5%
17.8%
1.0
ICAP plc
3,934.6
4,564.8
(8.5%)
0.8%
3.0%
13.0%
7.0x
2.5x
2.4x
10.6x
12.7x
13.0x
18.4x
15.9x
(5.3%)
2.3%
19.6%
18.6%
12.5%
1.5
KCG Holdings, Inc.
INTL FCStone Inc.
Virtu Financial, Inc.
Investment Technology Group, Inc.
GAIN Capital Holdings, Inc.
1,349.9
715.4
589.1
564.0
300.6
3,218.9
NM
2,364.4
521.9
NM
26.2%
16.1%
(33.9%)
0.7%
(23.8%)
38.2%
54.5%
(34.9%)
29.4%
(16.5%)
33.3%
88.9%
NA
(17.7%)
(31.5%)
NA
87.1%
NA
75.1%
(1.7%)
1.1x
1.3x
1.3x
1.0x
0.7x
1.1x
1.2x
1.4x
1.2x
0.7x
1.1x
1.1x
1.2x
1.1x
0.7x
18.0x
29.8x
2.6x
4.4x
NA
16.3x
28.6x
2.0x
4.1x
NA
14.2x
28.6x
1.9x
3.9x
NA
14.6x
11.7x
14.9x
NA
9.2x
12.1x
NA
12.6x
32.5x
7.8x
(7.7%)
9.3%
(10.8%)
(9.9%)
(6.6%)
(3.3%)
6.6%
11.7%
9.5%
(3.0%)
6.8%
4.3%
69.0%
26.6%
18.5%
8.1%
4.0%
65.6%
26.0%
17.8%
10.0%
NA
NA
NA
NA
1.5
NA
NA
NA
NA
49.1
$1,032.6
198.6
$3,891.9
(47.6%)
(2.9%)
9.5%
10.3%
(94.7%)
3.0%
(93.7%)
81.1%
0.2x
1.3x
0.2x
1.3x
0.1x
1.2x
2.1x
12.8x
NA
12.3x
NA
11.0x
NM
16.0x
NA
16.3x
19.6%
0.7%
18.0%
8.0%
NA
26.6%
NA
26.0%
NA
13.9%
NA
1.5
TD Ameritrade Holding Corporation
FXCM Inc.
Trading Technology Median
Trading Performance
1 Year
3 Year
5 Year
Enterprise Value /
Revenue
LTM 2016E 2017E
Enterprise Value /
EBITDA
LTM 2016E 2017E
P/E
2016E 2017E
Revenue
Growth
2016E
2017E
EBITDA
Margin
2016E
2017E
LongTerm
EPS
Growth
Capitalization
Equity
Enterprise
Value
Value
PEG
Ratio
INVESTMENT BANKING
26
FINTECH MONTHLY
BANK TECHNOLOGY
(USD in millions)
Company
Capitalization
Equity
Enterprise
Value
Value
First Data Corporation
Fidelity National Information Services, Inc.
Fiserv, Inc.
Wolters Kluwer N.V.
Jack Henry & Associates Inc.
Black Knight Financial Services, Inc.
Temenos Group AG
DH Corporation
Ellie Mae, Inc.
ACI Worldwide, Inc.
Q2 Holdings, Inc.
Computer Services, Inc.
Bank Technology Median
$13,633.8
25,252.4
21,865.0
12,482.1
6,718.7
2,449.5
4,120.8
2,308.2
3,512.9
2,270.8
1,140.1
534.4
$3,816.8
$37,539.8
35,727.4
26,156.0
14,560.4
6,648.6
4,998.2
4,406.7
3,754.6
3,423.9
2,953.4
1,044.4
506.7
$4,702.5
YTD
(17.9%)
27.1%
8.8%
23.0%
9.6%
23.7%
17.8%
(10.3%)
74.8%
(9.4%)
8.7%
(4.8%)
9.2%
Trading Performance
1 Year
3 Year
5 Year
NA
14.0%
13.7%
38.7%
22.8%
26.4%
50.2%
(28.6%)
62.9%
(7.5%)
17.5%
(7.1%)
17.5%
NA
23.8%
40.2%
50.3%
37.7%
NA
72.4%
(22.7%)
161.2%
(3.9%)
52.1%
(4.8%)
38.9%
NA
216.7%
291.8%
211.6%
195.2%
NA
393.5%
70.3%
1793.9%
111.1%
NA
38.5%
211.6%
Enterprise Value /
Revenue
LTM 2016E 2017E
4.9x
4.5x
4.9x
3.1x
4.9x
6.2x
7.4x
2.5x
11.5x
3.0x
8.1x
2.3x
4.9x
3.3x
3.8x
4.7x
3.0x
5.2x
5.8x
7.1x
2.3x
10.0x
2.9x
7.0x
2.2x
4.2x
3.1x
3.6x
4.4x
2.9x
4.9x
5.5x
6.5x
2.1x
8.1x
2.8x
5.5x
2.0x
4.0x
Enterprise Value /
EBITDA
LTM 2016E 2017E
13.0x
17.9x
15.7x
11.5x
14.1x
14.7x
25.8x
7.9x
NM
28.4x
NM
NA
14.7x
12.9x
12.2x
13.7x
11.7x
13.2x
10.8x
21.9x
6.7x
33.5x
11.6x
NM
7.5x
12.2x
12.8x
11.2x
12.7x
11.2x
12.9x
9.7x
20.0x
6.3x
24.1x
10.5x
NM
6.6x
11.2x
P/E
2016E 2017E
18.2x
20.2x
22.4x
18.4x
28.8x
NA
31.0x
12.3x
51.4x
35.7x
NA
NA
22.4x
10.6x
17.5x
20.0x
17.1x
26.7x
NA
27.2x
10.9x
40.1x
30.0x
NA
NA
20.0x
Revenue
Growth
2016E
2017E
2.6%
1.2%
5.6%
8.6%
6.6%
7.9%
14.4%
6.0%
36.3%
(3.1%)
37.4%
6.1%
6.4%
4.1%
3.6%
6.1%
3.5%
4.9%
7.0%
9.5%
10.2%
24.3%
4.1%
28.2%
9.7%
6.6%
EBITDA
Margin
2016E
2017E
25.4%
31.1%
34.3%
25.7%
39.0%
54.1%
32.6%
34.8%
29.9%
25.2%
NM
29.1%
31.1%
24.6%
32.5%
34.8%
26.0%
38.2%
56.1%
32.6%
33.4%
33.5%
26.8%
3.7%
30.1%
32.5%
LongTerm
EPS
Growth
16.7%
12.0%
11.7%
8.1%
11.0%
NA
16.4%
NA
22.2%
13.5%
NA
NA
12.8%
PEG
Ratio
1.1
1.7
1.9
2.3
2.6
NA
1.9
NA
2.3
2.6
NA
NA
2.1
FINANCIAL SAAS
(USD in millions)
Company
Capitalization
Equity
Enterprise
Value
Value
Intuit Inc.
Workday, Inc.
Sage Group plc
SS&C Technologies Holdings, Inc.
Paycom Software, Inc.
Paylocity Holding Corporation
Xero Limited.
Envestnet, Inc.
Financial Engines, Inc.
Benefitfocus, Inc.
Blucora, Inc.
Financial SaaS Median
$28,375.8
18,338.0
10,378.2
6,466.7
2,999.1
2,274.5
1,923.1
1,560.5
1,835.7
1,183.7
465.0
$2,274.5
$28,295.8
16,790.9
10,730.9
9,351.4
2,947.5
2,188.0
1,789.0
1,813.2
1,734.5
1,191.0
889.5
$2,188.0
YTD
14.0%
15.1%
22.3%
(5.8%)
33.2%
9.6%
(2.3%)
22.1%
(11.8%)
9.7%
14.3%
14.0%
Trading Performance
1 Year
3 Year
5 Year
23.8%
27.0%
45.8%
(10.3%)
39.3%
49.3%
29.1%
23.3%
1.0%
33.5%
(16.2%)
27.0%
19.3%
12.4%
58.5%
9.9%
90.4%
70.3%
19.8%
(25.8%)
(18.7%)
21.6%
(19.1%)
19.3%
131.9%
NA
173.6%
350.0%
NA
NA
616.7%
264.5%
64.1%
NA
34.0%
173.6%
Enterprise Value /
Revenue
LTM 2016E 2017E
6.3x
12.4x
5.6x
7.6x
10.4x
9.5x
11.8x
3.7x
4.9x
5.6x
0.7x
6.3x
5.7x
10.8x
4.9x
7.3x
9.0x
8.3x
8.6x
4.3x
4.1x
5.1x
0.7x
5.7x
5.0x
8.2x
4.7x
6.9x
7.0x
6.6x
6.1x
3.6x
3.6x
4.1x
0.7x
5.0x
Enterprise Value /
EBITDA
LTM 2016E 2017E
19.4x
NM
21.1x
17.5x
43.9x
NM
NM
33.0x
25.3x
NM
1.7x
21.1x
16.2x
NM
17.9x
16.3x
34.9x
NM
NM
24.1x
13.3x
NM
1.5x
16.3x
13.9x
NM
16.0x
15.4x
27.1x
NM
NM
18.3x
11.2x
NM
1.5x
15.4x
P/E
2016E 2017E
28.4x
NA
26.6x
19.9x
65.2x
NM
NA
36.6x
27.1x
NA
12.4x
27.1x
24.4x
NA
23.0x
16.6x
52.3x
NA
NA
25.6x
22.9x
NA
9.2x
23.0x
Revenue
Growth
2016E
2017E
15.2%
34.4%
13.2%
3.8%
48.0%
24.3%
52.1%
(0.7%)
35.3%
28.9%
3.8%
24.3%
14.0%
31.0%
5.2%
5.7%
28.9%
25.5%
41.7%
19.7%
15.1%
24.7%
5.7%
19.7%
EBITDA
Margin
2016E
2017E
34.9%
8.1%
27.5%
44.9%
25.8%
11.3%
NM
18.1%
31.1%
NM
44.9%
27.5%
35.6%
11.2%
29.2%
45.1%
25.8%
12.7%
NM
19.8%
31.9%
3.3%
45.1%
27.5%
LongTerm
EPS
Growth
16.1%
37.0%
13.4%
15.0%
30.0%
25.0%
NA
20.0%
25.0%
29.0%
18.5%
22.5%
PEG
Ratio
1.8
NA
2.0
1.3
2.2
NA
NA
1.8
1.1
NA
0.7
1.8
INVESTMENT BANKING
27
FINTECH MONTHLY
INFORMATION SERVICES
(USD in millions)
Company
Capitalization
Equity
Enterprise
Value
Value
RELX PLC
Thomson Reuters Corporation
S&P Global, Inc.
Moody's Corporation
Experian plc
Equifax Inc.
IHS Markit Ltd.
Verisk Analytics, Inc.
Wolters Kluwer N.V.
MSCI Inc.
TransUnion
Informa plc
CoStar Group Inc.
FactSet Research Systems Inc.
The Dun & Bradstreet Corporation
CoreLogic, Inc.
Fair Isaac Corporation
NICE Ltd.
Morningstar Inc.
F. Marc de Lacharrière (Fimalac) S.A.
Acxiom Corporation
LifeLock, Inc.
Bankrate, Inc.
Reis, Inc.
Value Line, Inc.
Intersections Inc.
Creditriskmonitor.com Inc.
Information Services Median
$38,947.8
30,633.7
33,411.8
20,822.2
18,977.5
16,060.2
15,788.3
13,733.9
12,482.1
7,943.1
6,311.3
6,011.4
7,059.5
6,484.0
4,960.3
2,826.0
3,463.0
3,844.2
4,038.1
3,413.3
2,873.9
2,063.0
1,566.7
765.5
231.7
157.9
42.9
34.2
$6,011.4
$44,994.9
39,399.7
36,592.8
22,446.3
22,074.5
18,951.5
16,477.6
15,809.4
14,560.4
9,119.0
8,717.0
7,388.2
6,930.9
6,531.4
6,329.9
5,451.4
5,006.2
4,327.0
3,648.6
3,242.4
2,999.0
2,095.3
1,410.7
938.0
205.2
132.6
40.9
24.6
$6,531.4
YTD
22.2%
3.5%
28.4%
7.9%
28.6%
20.8%
24.5%
5.7%
23.0%
16.4%
25.1%
16.2%
4.8%
(0.3%)
31.5%
23.7%
15.8%
32.3%
11.8%
(1.4%)
31.1%
27.4%
17.9%
(36.2%)
(13.8%)
14.4%
(36.9%)
64.6%
16.4%
Trading Performance
1 Year
3 Year
5 Year
30.7%
1.5%
43.2%
11.1%
43.6%
36.8%
28.9%
4.0%
38.7%
44.8%
40.6%
27.1%
27.3%
1.3%
28.9%
26.4%
5.4%
46.7%
13.6%
(0.9%)
20.8%
35.4%
93.2%
(18.0%)
(9.5%)
6.1%
(11.3%)
(17.1%)
27.1%
33.0%
15.7%
42.2%
13.0%
41.9%
66.4%
42.1%
26.9%
50.3%
76.9%
NA
51.2%
17.9%
15.2%
12.9%
NA
24.2%
72.3%
27.9%
22.5%
62.8%
31.5%
(8.6%)
(31.8%)
(21.8%)
(0.4%)
(53.7%)
65.9%
26.9%
195.9%
91.0%
208.7%
255.6%
113.0%
337.8%
NA
133.8%
211.6%
176.8%
NA
117.3%
316.6%
82.2%
123.0%
NA
267.6%
470.7%
113.4%
40.5%
269.5%
150.5%
NA
(44.2%)
130.9%
41.3%
(85.9%)
(1.3%)
133.8%
Enterprise Value /
Revenue
LTM 2016E 2017E
5.5x
3.2x
6.6x
6.5x
4.7x
6.6x
14.6x
7.0x
3.1x
8.2x
5.4x
4.6x
8.8x
5.8x
3.8x
5.6x
3.2x
4.9x
4.3x
4.1x
25.2x
2.2x
2.2x
2.4x
4.0x
3.9x
0.2x
2.0x
4.7x
3.5x 3.4x
3.5x 3.4x
6.5x 6.3x
6.3x 5.9x
4.6x 4.6x
6.0x 5.5x
14.8x 6.0x
7.9x 7.5x
3.0x 2.9x
7.9x 7.4x
5.2x 4.8x
4.3x 4.0x
8.3x 7.3x
5.7x 5.4x
3.7x 3.6x
5.3x 4.9x
2.8x 2.6x
4.9x 4.6x
3.6x 3.1x
4.1x 3.8x
18.9x 18.0x
2.3x 2.3x
2.1x 1.9x
2.2x 1.9x
4.2x 4.1x
3.5x 3.2x
NA
NA
NA
NA
4.5x 4.4x
Enterprise Value /
EBITDA
LTM 2016E 2017E
11.7x
15.3x
15.7x
14.8x
15.7x
19.4x
44.3x
15.5x
11.5x
17.0x
17.1x
14.7x
40.6x
16.8x
16.1x
16.1x
13.9x
20.3x
16.0x
13.0x
NM
24.5x
37.0x
10.6x
13.9x
NM
NM
39.8x
15.8x
11.6x
12.5x
15.2x
13.6x
14.1x
17.1x
16.7x
15.8x
11.7x
16.4x
14.3x
13.0x
27.8x
15.9x
12.7x
11.8x
10.2x
21.0x
13.0x
12.7x
NM
14.2x
15.8x
7.2x
13.5x
26.5x
NA
NA
14.1x
11.3x
11.8x
14.1x
13.1x
13.2x
15.3x
11.8x
14.7x
11.2x
14.8x
12.9x
12.0x
21.2x
14.8x
12.0x
10.6x
9.5x
16.1x
11.3x
11.6x
NM
12.6x
12.7x
9.2x
10.3x
22.1x
NA
NA
12.6x
P/E
2016E 2017E
21.0x
20.4x
24.4x
23.6x
22.3x
25.0x
21.4x
27.1x
18.4x
28.8x
24.9x
15.4x
52.7x
23.9x
18.5x
35.6x
17.2x
26.2x
18.9x
26.1x
46.5x
44.5x
22.1x
15.9x
49.5x
NA
NA
NA
23.9x
19.2x
18.0x
21.7x
21.0x
20.2x
22.5x
18.4x
24.4x
17.1x
24.2x
22.4x
14.5x
39.3x
22.5x
17.5x
31.2x
15.7x
22.7x
17.1x
23.7x
44.3x
38.3x
18.0x
13.3x
33.0x
NA
NA
NA
21.7x
Revenue
Growth
2016E
2017E
10.1%
(7.8%)
5.1%
2.0%
2.2%
18.2%
4.7%
(3.4%)
3.3%
7.0%
12.4%
9.2%
18.0%
4.0%
3.8%
9.6%
11.5%
3.8%
18.3%
1.0%
4.4%
(5.8%)
25.3%
24.8%
20.4%
8.6%
NA
NA
6.1%
4.8%
2.2%
3.4%
6.6%
0.4%
9.5%
NM
5.9%
3.5%
7.8%
7.6%
7.5%
13.6%
6.5%
2.9%
9.1%
5.0%
5.8%
15.7%
5.5%
5.0%
1.1%
12.5%
16.0%
1.5%
7.9%
NA
NA
5.9%
EBITDA
Margin
2016E
2017E
34.7%
27.9%
43.1%
46.5%
33.1%
35.2%
88.4%
50.1%
25.7%
48.4%
36.5%
32.8%
29.7%
35.8%
29.1%
45.0%
27.3%
23.4%
28.0%
32.0%
12.1%
16.5%
13.4%
30.6%
30.8%
13.2%
NA
NA
31.4%
37.7%
28.9%
44.8%
45.4%
35.2%
35.9%
50.6%
50.9%
26.0%
49.6%
37.4%
33.1%
34.3%
36.2%
29.9%
45.8%
27.8%
28.9%
27.8%
33.2%
13.5%
18.4%
14.8%
20.7%
39.7%
14.6%
NA
NA
33.7%
LongTerm
EPS
Growth
PEG
Ratio
8.4%
2.5
8.0%
2.6
12.9%
1.9
11.2%
2.1
11.0%
2.0
12.7%
2.0
14.9% 143.8%
12.2%
2.2
8.1%
2.3
14.3%
2.0
12.0%
2.1
NA
NA
19.0%
2.8
10.1%
2.4
6.3%
3.0
13.7%
2.6
11.8%
1.5
15.7%
1.7
12.0%
1.6
14.0%
1.9
NA
NA
15.3%
2.9
22.7%
1.0
17.5%
0.9
NA
NA
NA
NA
NA
NA
NA
NA
12.4%
2.1
INVESTMENT BANKING
28
FINTECH MONTHLY
OUTSOURCED SOLUTIONS
(USD in millions)
Company
Capitalization
Equity
Enterprise
Value
Value
Tata Consultancy Services Limited
Infosys Limited
Cognizant Technology Solutions Corporation
Xerox Corporation
CGI Group Inc.
HCL Technologies Ltd.
Wipro Ltd.
Computer Sciences Corporation
Amdocs Limited
Genpact Limited
Deluxe Corp.
Convergys Corporation
FTI Consulting, Inc.
Exlservice Holdings, Inc.
CSG Systems International Inc.
TeleTech Holdings Inc.
WNS (Holdings) Ltd.
Sykes Enterprises, Incorporated
MphasiS Limited
Navigant Consulting Inc.
Epiq Systems, Inc.
Virtusa Corporation
Firstsource Solutions Limited
Outsourced Solutions Median
$71,901.5
35,548.0
28,957.2
10,264.8
14,362.4
16,942.0
17,610.0
7,331.7
8,663.9
4,964.7
3,258.6
2,917.5
1,811.8
1,669.6
1,337.0
1,369.6
1,522.0
1,189.6
1,645.1
958.4
628.7
737.2
410.8
$2,917.5
$67,894.1
30,867.0
25,384.8
16,832.8
15,637.1
15,511.3
14,741.0
9,835.7
7,539.0
5,379.2
3,803.7
2,972.9
2,124.3
1,514.6
1,470.0
1,456.7
1,375.5
1,188.4
1,173.6
1,144.9
1,007.2
806.5
529.9
$2,972.9
YTD
0.6%
(6.3%)
(20.5%)
(4.7%)
12.8%
(5.4%)
(14.2%)
59.8%
6.0%
(4.1%)
22.5%
22.2%
28.6%
10.9%
14.9%
3.9%
(4.0%)
(8.6%)
5.3%
25.9%
26.2%
(40.3%)
(6.7%)
3.9%
Trading Performance
1 Year
3 Year
5 Year
(8.1%)
(11.7%)
(24.6%)
5.1%
31.1%
(6.7%)
(20.3%)
(15.0%)
2.3%
1.0%
21.0%
32.3%
5.6%
36.6%
32.9%
8.3%
4.9%
10.8%
27.1%
23.4%
32.0%
(51.9%)
52.8%
5.6%
(4.5%)
4.9%
(9.4%)
(26.9%)
41.1%
(0.4%)
(13.5%)
(17.2%)
24.0%
26.5%
7.3%
49.3%
15.4%
73.6%
64.9%
22.4%
45.0%
19.9%
33.0%
31.6%
(3.5%)
(40.8%)
15.9%
15.9%
134.3%
63.6%
52.2%
45.3%
217.0%
291.0%
40.2%
94.5%
113.3%
66.4%
259.2%
224.3%
21.1%
126.5%
227.0%
90.2%
150.6%
88.2%
52.4%
118.1%
31.6%
87.0%
259.7%
94.5%
Enterprise Value /
Revenue
LTM 2016E 2017E
4.0x
3.2x
2.0x
1.0x
1.9x
2.4x
1.9x
1.4x
2.0x
2.1x
2.1x
1.0x
1.2x
2.3x
1.9x
1.1x
2.4x
0.9x
1.3x
1.3x
1.9x
1.2x
1.0x
1.9x
3.8x
3.0x
1.9x
0.9x
1.9x
2.3x
1.8x
0.9x
2.0x
2.1x
2.0x
1.0x
1.2x
2.2x
1.9x
1.1x
2.5x
0.8x
1.2x
1.2x
1.9x
1.4x
1.0x
1.9x
3.5x
2.7x
1.7x
0.8x
1.9x
2.0x
1.7x
0.8x
1.9x
1.9x
2.0x
0.9x
1.1x
1.9x
1.9x
1.1x
2.3x
0.8x
1.2x
1.1x
1.8x
1.2x
0.9x
1.7x
Enterprise Value /
EBITDA
LTM 2016E 2017E
14.5x
14.0x
9.8x
9.9x
11.3x
12.9x
9.0x
10.6x
10.4x
13.4x
9.0x
7.7x
10.1x
17.6x
8.9x
9.6x
13.9x
7.8x
8.3x
8.8x
11.6x
16.1x
8.4x
10.1x
13.9x
11.0x
9.0x
6.1x
10.3x
10.1x
8.7x
7.9x
10.1x
12.4x
7.6x
7.6x
9.6x
12.6x
8.0x
8.6x
12.5x
7.4x
8.1x
9.2x
9.5x
18.8x
NA
9.4x
12.9x
10.0x
8.2x
6.4x
9.8x
9.6x
7.9x
7.4x
9.6x
11.3x
7.7x
7.1x
9.0x
10.6x
8.0x
8.4x
11.5x
6.5x
7.2x
7.9x
8.8x
9.2x
7.6x
8.4x
P/E
2016E 2017E
18.6x
16.6x
14.2x
9.0x
17.5x
14.3x
13.7x
20.7x
15.9x
16.9x
13.6x
15.9x
18.9x
21.5x
15.7x
18.0x
27.7x
15.3x
13.9x
17.6x
18.5x
16.4x
9.1x
16.4x
17.1x
15.4x
13.0x
8.8x
16.4x
13.3x
12.7x
15.8x
15.1x
15.2x
12.8x
14.6x
17.4x
19.0x
15.3x
16.2x
21.7x
13.7x
12.3x
15.9x
16.5x
11.0x
7.7x
15.2x
Revenue
Growth
2016E
2017E
5.9%
5.5%
9.2%
3.6%
1.0%
8.2%
4.7%
1.3%
1.3%
5.7%
4.9%
1.3%
3.7%
11.6%
0.8%
(0.7%)
(2.8%)
14.7%
NA
14.1%
5.9%
13.5%
11.2%
5.2%
9.3%
10.0%
10.7%
5.4%
1.9%
11.7%
5.6%
5.5%
4.3%
9.1%
4.1%
5.5%
4.1%
11.6%
3.6%
4.0%
6.7%
6.6%
6.8%
5.4%
5.8%
10.2%
11.7%
5.8%
EBITDA
Margin
2016E
2017E
27.6%
27.2%
20.8%
14.3%
18.5%
22.4%
20.6%
10.8%
20.0%
16.7%
26.9%
13.1%
12.1%
17.2%
24.5%
13.2%
19.6%
10.9%
15.4%
13.1%
19.9%
7.3%
NA
17.9%
27.2%
27.2%
20.7%
13.0%
19.1%
21.3%
21.5%
11.0%
20.0%
16.8%
25.6%
13.3%
12.4%
18.3%
23.4%
12.9%
20.0%
11.6%
16.1%
14.5%
20.3%
13.4%
11.6%
18.3%
LongTerm
EPS
Growth
15.2%
13.4%
15.5%
NA
16.6%
9.3%
11.3%
8.0%
9.3%
13.0%
8.5%
10.0%
13.0%
14.4%
9.0%
12.5%
14.3%
10.0%
12.6%
13.7%
10.0%
15.8%
17.0%
12.8%
PEG
Ratio
1.2
1.2
0.9
NA
1.1
1.5
1.2
2.6
1.7
1.3
1.6
1.6
1.5
1.5
1.7
1.4
1.9
1.5
1.1
1.3
1.9
1.0
0.5
1.4
INVESTMENT BANKING
29
FINTECH MONTHLY
REAL ESTATE AND MORTGAGE SERVICES
(USD in millions)
Company
Nationstar Mortgage Holdings (1)
Fidelity National Financial, Inc.
CBRE Group, Inc.
Realogy Holdings Corp.
CoStar Group Inc.
Jones Lang LaSalle Incorporated
CoreLogic, Inc.
First American Financial Corporation
MGIC Investment Corp.
BGC Partners, Inc.
ABM Industries Incorporated
Radian Group Inc.
RealPage, Inc.
FirstService Corporation
Savills plc
Stewart Information Services Corporation
HFF, Inc.
Altisource Portfolio Solutions S.A.
Marcus & Millichap, Inc.
UGL Limited
Reis, Inc.
Real Estate / Mortgage Services Median
Capitalization
Equity
Enterprise
Value
Value
YTD
Trading Performance
1 Year
3 Year
5 Year
Enterprise Value /
Revenue
LTM 2016E 2017E
Enterprise Value /
EBITDA
LTM 2016E 2017E
P/E
2016E 2017E
Revenue
Growth
2016E
2017E
EBITDA
Margin
2016E
2017E
LongTerm
EPS
Growth
PEG
Ratio
$1,442.6
10,062.9
9,143.2
3,751.9
7,059.5
$14,691.6
13,020.9
12,445.7
7,426.9
6,930.9
10.8%
6.5%
(19.1%)
(29.5%)
4.8%
8.9%
2.6%
(12.1%)
(31.2%)
27.3%
(47.5%)
7.1%
(18.3%)
(41.9%)
17.9%
NA
143.1%
107.9%
NA
316.6%
1.6x
1.8x
1.0x
1.3x
8.8x
0.7x
1.6x
1.0x
1.3x
8.3x
0.7x
1.6x
0.9x
1.2x
7.3x
2.9x
9.6x
11.1x
9.5x
40.6x
2.2x
8.7x
8.0x
9.4x
27.8x
2.2x
8.5x
7.7x
9.0x
21.2x
NA
17.2x
13.7x
18.0x
NA
NA
15.0x
12.6x
15.4x
52.7x
6.8%
8.5%
13.2%
0.3%
18.0%
4.3%
1.3%
15.2%
3.5%
13.6%
31.8%
18.4%
12.8%
13.7%
29.7%
30.6%
18.6%
11.5%
13.9%
34.3%
15.0%
NA
12.5%
20.0%
19.0%
NA
NA
1.1
0.9
NA
5,141.0
2,826.0
3,463.0
4,309.7
2,725.1
2,421.5
2,213.5
2,904.6
2,062.8
6,327.8
5,451.4
5,006.2
3,650.3
3,472.4
3,152.7
2,387.2
2,204.1
2,140.3
(28.8%)
23.7%
15.8%
9.4%
(9.4%)
(10.8%)
39.4%
1.2%
14.5%
(20.8%)
26.4%
5.4%
1.4%
(13.8%)
7.4%
45.9%
(14.8%)
55.1%
(24.1%)
NA
24.2%
15.9%
(14.2%)
(4.4%)
38.6%
(19.0%)
17.0%
119.6%
NA
267.6%
206.9%
327.8%
45.1%
108.3%
518.7%
25.7%
1.0x
5.6x
2.9x
0.7x
3.3x
1.5x
0.5x
1.8x
4.2x
1.0x
5.3x
2.6x
0.2x
3.3x
1.4x
0.5x
1.8x
3.8x
0.9x
4.9x
2.6x
0.2x
3.2x
1.3x
0.4x
1.8x
3.3x
9.2x
16.1x
13.9x
6.2x
5.5x
10.5x
14.2x
1.8x
31.3x
9.2x
11.8x
10.2x
6.3x
NA
9.0x
11.6x
NA
17.8x
8.9x
10.6x
9.5x
5.6x
NA
6.2x
9.8x
NA
14.7x
11.1x
43.0x
21.1x
15.4x
7.5x
11.8x
NA
9.9x
48.5x
12.1x
35.6x
17.2x
13.1x
9.2x
10.7x
23.7x
8.7x
35.3x
10.4%
9.6%
9.4%
3.6%
0.4%
12.5%
2.9%
2.6%
22.2%
7.5%
9.1%
1.5%
5.4%
2.8%
12.9%
3.7%
(0.1%)
14.7%
10.4%
45.0%
25.7%
3.0%
NA
15.8%
3.9%
NA
21.1%
10.0%
45.8%
27.0%
3.2%
NA
20.2%
4.5%
NA
22.3%
13.0%
13.7%
11.8%
NA
10.0%
12.7%
16.0%
10.0%
20.0%
0.9
3.1
1.8
NA
0.7
0.9
NA
1.0
2.4
1,673.1
1,262.7
1,058.8
1,054.5
594.5
983.4
267.2
231.7
$2,317.5
1,986.3
1,219.1
1,033.2
1,028.6
916.6
818.9
321.0
205.2
$2,769.9
9.2%
(19.2%)
19.1%
(10.9%)
16.5%
(10.3%)
(11.9%)
(13.8%)
3.0%
38.7%
(21.8%)
8.9%
(17.8%)
41.3%
(43.0%)
8.6%
(9.5%)
4.0%
NA
5.3%
20.0%
(22.9%)
(4.1%)
(21.4%)
(2.3%)
(21.8%)
(4.2%)
NA
151.0%
402.8%
216.8%
(8.4%)
NA
(81.3%)
130.9%
143.1%
1.5x
0.7x
0.5x
2.0x
0.9x
1.1x
0.2x
4.0x
1.5x
1.3x
0.7x
0.1x
2.0x
0.9x
1.1x
0.2x
4.1x
1.3x
1.2x
0.7x
0.1x
1.8x
1.1x
1.1x
0.2x
3.7x
1.2x
17.8x
7.3x
8.5x
NA
6.5x
6.9x
NM
13.9x
9.6x
15.6x
7.3x
7.4x
7.5x
5.2x
6.5x
4.1x
13.5x
8.9x
13.4x
6.6x
5.8x
6.6x
4.7x
5.9x
3.6x
10.3x
8.1x
38.5x
11.6x
22.0x
13.8x
5.9x
16.0x
NA
33.0x
15.7x
31.8x
11.5x
18.9x
13.8x
9.2x
15.0x
9.1x
49.5x
15.0x
16.5%
10.8%
10.4%
4.3%
1.3%
5.5%
11.3%
8.9%
(2.1%) (13.7%)
8.3%
5.6%
9.8%
13.7%
1.5%
10.9%
8.9%
5.5%
8.7%
9.4%
1.2%
26.1%
17.7%
17.4%
4.7%
30.3%
16.6%
9.1%
10.0%
1.5%
27.5%
22.9%
17.9%
4.7%
35.8%
18.3%
19.1%
NA
NA
15.0%
NA
25.0%
2.0%
NA
14.4%
2.0
NA
NA
0.9
NA
0.6
NA
NA
1.0
INVESTMENT BANKING
30
FINTECH MONTHLY
RECENT FINTECH TRANSACTION
ACTIVITY
INVESTMENT BANKING
31
FINTECH MONTHLY
SELECTED RECENT STRATEGIC BUYER M&A ACTIVITY
Announced
Date
Buyer
Target
Sector
Transaction
Size ($MM)
Comments
•
Sep-16
Information
Services
Sep-16
Information
Services
Sep-16
Information
Services
$40
•
•
$10
•
•
Legal &
Professional
NA
•
•
Sep-16
Information
Services
Sep-16
Insurance
Technology
NA
Sep-16
Insurance
Technology
NA
Sep-16
Investment
Technology
$90
Sep-16
Investment
Technology
$135
Sep-16
Investment
Technology
NA
NA
•
•
eTrading for Personal
Lines Platform
•
•
•
•
•
•
•
•
INVESTMENT BANKING
•
DailyFX is a research firm providing weekly foreign exchange market reports and
news, strategy reports, technical analysis reports and real time trading news
This purchase will significantly enhance IG’s ability to acquire new clients and to
engage with and improve the retention rates of its current clients
INET BFA is a provider of market data, analysis tools and financial data feeds
covering pricing and company financial information and research
The addition of INET BFA’s team will bring long-standing and far-reaching
knowledge of local market data to IRESS in South Africa
Intelligize develops a Web-based platform that provides resources for compliance
and regulatory information for a variety of industries
The acquisition will expand the LexisNexis securities and M&A offering, while
complementing the capabilities of the company’s existing securities solution
Redbird develops cloud-based analysis and processing solutions for aerial data
acquired by drones that monitors, optimizes and surveys construction sites
The deal allows Airware to concentrate on the insurance vertical where it helps with
inspecting roofs, residential claims management and commercial underwriting
IS2’s Personal Lines Platform provides brokers with an end-to-end platform for
customers to quote, buy and manage policies through online channels
The acquisition extends Applied Systems’ product portfolio breadth and enhances
brokers and insurers value proposition to better serve their customers
Kapia Solutions provides knowledge asset solutions for professional insurance
applications in the life insurance, pensions and wealth management industries
The acquisition of Kapia is another milestone of RGI’s life insurance investment
strategy, structuring them to be a powerful player in the EMEA market
Financial Synergy develops and provides superannuation and investment software,
administration services and products for the wealth management industry
The transaction strongly complements IRESS’ existing capabilities and focus in
Australian financial services and is in line with their growth strategy
Inveshare operates as an outsourced provider of proxy delivery and voting services
for banks, brokerage firms and institutional investors
The acquisition is expected to accelerate Broadridge’s ability to adapt distributed
ledger technology capabilities to its proxy services
PriceMetrix develops software products for retail wealth management firms, offering
practice management and reporting solutions for financial advisors
The transaction will bring together two experienced teams’ knowledge and
capabilities to provide comprehensive advice to wealth managers
32
FINTECH MONTHLY
Announced
Date
Buyer
Target
Sector
Transaction
Size ($MM)
Comments
•
Sep-16
Global Fund
Services
Investment
Technology
NA
•
•
Sep-16
Liquidity
Venue
Sep-16
Outsourced
Solutions
$3,200
•
•
NA
•
•
Sep-16
Payments
NA
•
•
Sep-16
Payments
NA
Sep-16
Payments
NA
Sep-16
Payments
NA
Sep-16
Payments
NA
Sep-16
Payments
NA
•
•
•
•
•
•
•
•
INVESTMENT BANKING
•
Wells Fargo Global Fund Services provides fund administration, middle-office and
operations services to alternative investment managers
The transaction will expand SS&C’s capabilities in the global fund market and
extend their strong cloud-based platform for future growth
BATS Global Markets operates stock exchanges that serve as primary listings
venues for exchange-traded products facilitating to trade equities
The transaction will significantly expand CBOE Holdings' product line across asset
classes, broaden its geographic reach and diversify its business mix
RicePoint Administration provides legal settlement and case administration services
related to securities, price fixing, consumer and employment matters
This acquisition will position Computershare as a global leader in settlement
administration, allowing them to grow this new revenue stream across Canada
AceitaFacil provides solutions that allow small businesses to accept and manage
online payments featuring split payments, one stop checkout and APIs
The acquisition expands Vindi’s subscription and recurring billing payment solutions,
adding complementary features to their existing services
Brite:Bill offers an electronic bill and payment presentment platform, which serves
as an interactive paperless billing technology
This transaction augments Amdocs' rich offering and shortens their time to market
through the addition of Brite:Bill’s cloud-based technologies
Diamond Mind provides campus-wide payment processing software and solutions to
independent K-12 schools
The deal will combine Diamond Mind and TADS, forming a new division, Education
Brands, to accelerate product development
TADS offers cloud-based software, services and payment solutions to K-12 private
schools, including tuition management, online giving, purchase cards and more
The acquisition will combine TADS and DiamondMind, allowing for accelerated
product development and enhanced customer service
iCheque provides an online virtual payment solution aimed at providing greater
security, fraud prevention and privacy for online transactions
The acquisition broadens the product portfolio for CashFlows, while also improving
fraud prevention and reducing risk
Runkit operates an online tool for app development and prototyping services,
offering access to various node modules without needing to install them
The acquisition will enable Stripe to boost their developer offerings by providing all
the necessary tools — such as prototyping, analytics, monetization and more
33
FINTECH MONTHLY
Announced
Date
Buyer
Target
Sector
Transaction
Size ($MM)
Comments
•
Sep-16
Payments
Sep-16
Real Estate /
Mortgage Services
Sep-16
Trading
Technology
Sep-16
Trading
Technology
NA
•
•
NA
•
•
NA
•
•
INVESTMENT BANKING
NA
•
Vindicia is provider of software-as-a-service subscription management and
payment solutions for online merchants
This transaction expands Amdoc’s product offering and helps to position Amdocs as
the market leader to help communication and media providers with daily operations
Verisae provides cloud-based maintenance, energy and sustainability management
software solutions for retailers and manufacturing companies
The deal enables users to manage their complete facilities lifecycle from strategy to
execution by connecting real estate and facilities to assets and service teams
Albert Fried & Company provides trade execution and technology, prime brokerage
and clearing and commission management services
The acquisition enhances TD Securities’ capabilities and is expected to help drive
and expand their long-term, profitable U.S. growth
REDI Holdings develops and operates a financial execution management platform
that provides advanced cross-asset class trading capabilities to the buy-side
The acquisition is intended to help Thomson Reuters deliver an integrated workflow
solution to the buy-side trading community
34
FINTECH MONTHLY
SELECTED RECENT FINANCIAL BUYER M&A ACTIVITY
Announced
Date
Buyer
Target
Sector
Transaction
Size ($MM)
Comments
•
Sep-16
Financial
SaaS
Sep-16
Information
Services
Sep-16
Information
Services
NA
•
•
NA
•
•
$1,000
•
•
Sep-16
Australian Focused
Investment Capabilities
and Fund Platform
Investment
Technology
INVESTMENT BANKING
NA
•
Daxko provides SaaS solutions to manage scheduling and daily operations,
member management and engagement, accounting and payment services
The company intends to use the funds to invest in accelerated hiring efforts and
product development to further accelerate its growth
Regulatory DataCorp provides precise risk alerts and ongoing monitoring for
enhanced protection and performance across a range of industries
The acquisition will allow RDC to increase its investment in risk and compliance
software and data solutions to help prevent financial crime
SAI Global provides compliance, risk management and property services including
software to businesses, as well as company, personal and property information
The acquisition will allow SAI Global to grow into a recognized leader in risk
Goldman Sachs Asset Management is a leading Australian equities and fixed
income fund manager serving the Australian institutional and retail markets
The acquisition will allow Goldman Sachs Asset Management to continue to build
upon their strong foundation while further growing the business
35
FINTECH MONTHLY
SELECTED RECENT GROWTH EQUITY / VENTURE CAPITAL ACTIVITY
Announced
Date
Investor
Target
Sector
Transaction
Size ($MM)
Comments
•
Sep-16
Bank
Technology
Sep-16
Financial
SaaS
$3
•
•
$96
•
•
Sep-16
Private
Investors
Financial
SaaS
$8
•
•
Sep-16
Financial
SaaS
Sep-16
Information
Services
Sep-16
Information
Services
Sep-16
Information
Services
Sep-16
Information
Services
$40
Sep-16
Information
Services
$25
$23
•
•
$310
•
•
$40
•
•
$3
•
•
•
•
INVESTMENT BANKING
•
Zero develops a mobile banking application that displays debit card purchases,
deposits and withdrawals with a real time balance to help users manage finances
The company intends to use the round of funding to continue further development
of their platform
Avalara offers a cloud-based software platform that provides a suite of sales and
other transactional tax compliance solutions to businesses globally
The company intends to use the funds to fuel acquisitions and growth, as well as
repurchase shares from early investors
DueCourse offers cloud-based invoice financing services for small businesses that
creates and sends digital invoices to their customers
The financing will be used to support the company’s lending efforts for small
businesses in the U.K., as well as kick start the global expansion of their service
Kyriba provides a suite of SaaS solutions including risk management, supply chain
finance, payments, cash management and bank connectivity
The company will use the funds to deepen its product innovation, provide further
enhancements to its client success services and enter new geographies
U51.com operates an online platform for financial analysis of user behavior and
demand and data risk control through credit assessment and identity recognition
The company intends to use the funding to continue expanding its operations
outside of the United States
BitSight Technologies provides a platform that collects and analyzes data on
security behaviors, processes and technology to identify and quantify security risk
The company intends to use the round of funding to accelerate the growth of its
sales, hire 100 more people and invest more heavily in product development
Benzinga is an originator of actionable financial insights and data from the financial
community, providing real-time news, trading ideas and commentary for investors
The funding will be used to fuel an expansion of Benzinga’s original market-moving
content and data service infrastructure and to accelerate hiring efforts
Cyence develops and provides a platform for the economic modeling of cyber risk
that quantifies its financial impact
The company will use the round of funding to continue building an economic risk
model around cyberevents
Nav offers an online subscription service that enables SMBs to manage their entire
credit and financial profile and provides access to financing and business services
The transaction firmly positions Nav to expand its marketplace offerings and
continue to disrupt the credit and financing space
36
FINTECH MONTHLY
Announced
Date
Investor
Target
Sector
Transaction
Size ($MM)
Comments
•
Sep-16
Information
Services
Sep-16
Insurance
Technology
Sep-16
Insurance
Technology
Sep-16
Investment
Technology
Sep-16
Investment
Technology
Sep-16
Investment
Technology
Sep-16
Investment
Technology
Sep-16
Liquidity
Venues
NA
Sep-16
Marketing
Services
$32
NA
•
•
$5
•
•
$28
•
•
NA
•
•
NA
•
•
NA
•
•
$5
•
•
•
•
INVESTMENT BANKING
•
SavvyMoney offers an information technology program that provides users with a
credit report card and risk score, along with financial recommendations
The company intends to use the funds to expand its distribution in the financial
services industry
Big Cloud Analytics is a leader in predictive analytics solutions for the insurance
and healthcare industries
The company plans to use the funds to expand sales and marketing efforts, as well
as for accelerated product development
FinanceFox develops a smartphone application to handle insurance matters, such
as managing and requesting offers for and entering into insurance contracts
Funding will be used to further expand FinanceFox’s product, marketing and sales
activities in Switzerland and Germany, as well as expand into Austria
Capshare provides a comprehensive, web-based equity management platform for
managing, storing and analyzing capitalization table information
The investment will be used to continue to build momentum around Capshare and
scale the investor side of the business
InvestCloud offers a client portal service for advisors and asset managers, portfolio
management solutions and website design services
The funding will be used to expand Investcloud’s technology solutions and to
accelerate development of J.P. Morgan and Chase’s online investing dashboard
MoneyFarm offers an online wealth management platform that provides investment
advisory to small savers
The company intends to use the funds to accelerate growth in the U.K. and Europe,
as well as to provide an opportunity for the firm to expand its product capabilities
Vestwell provides investment services, trading, administration, custody,
recordkeeping and trustee services for the RIA community
The company intends to use the funds to continue to develop and launch their
platform, expanding the offering of automated investing for advisors
FastPay provides liquidity and financial workflow solutions to the global digital
media industry
The company intends to use the funds to grow its flexible lending and financial
solutions globally
Datorama, a marketing analytics company, provides a marketing integration engine
for enterprises, agencies, publishers and other platforms
The company intends to use the funds to accelerate research and development in
the artificial intelligence field, further elevating its machine learning capabilities
37
FINTECH MONTHLY
Announced
Date
Investor
Target
Sector
Transaction
Size ($MM)
Comments
•
Sep-16
Marketing
Services
Sep-16
Marketing
Services
Sep-16
Outsourced
Solutions
$7
•
•
$50
•
•
$500
•
•
Sep-16
Payments
$5
•
•
Sep-16
Payments
$50
•
•
Sep-16
Payments
$2
•
•
Sep-16
Payments
$38
•
•
Sep-16
Payments
$55
Sep-16
Payments
$5
•
•
INVESTMENT BANKING
•
Folloze provides an account based management sales platform that delivers
account specific content campaigns, content automation and account analytics
The company plans to use the funds to further accelerate their market traction and
grow its sales, marketing and customer success teams
Vlocity provides industry-specific cloud applications and mobile software solutions
to improve business’ omni-channel customer experience
The company intends to use the funding to continue expanding its operations
outside of the United States
Sedgwick Claims Management Services develops and operates a cloud-based
platform that provides technology-enabled risk and benefits solutions
The company intends to use the funds to fuel growth and continue their strong track
record of industry-leading innovation
DailyPay is a financial technology company that provides next day payments for
employees and contractors
The company intends to use the round of funding for accelerated product
development and increased hiring efforts
InstaMed Communications provides healthcare clearinghouse and payment
transaction solutions for healthcare providers and payers
The funds will be used to drive the growth of InstaMed Network, accelerate go-tomarket strategy and drive further innovation in healthcare payments technology
LumaTax develops a mobile application that automates sales tax reporting and
payments for small businesses
The company intends to use the funds to build out their software offerings and to
provide California-based small business with a cloud service to file sales tax returns
Remitly provides a mobile payments service that enables consumers to make
person-to-person international money transfers
The company intends to use the funds to improve its money transfer service,
making it faster and more affordable for consumers
Ripple Labs provides an open-source distributed payment network that enables
payments to merchants, consumers and developers
The company intends to use the capital for expansion projects in the areas of sales
and marketing, as well as to fuel new acquisitions
Sourcery operates a digital payments and commerce platform focusing on accounts
payable within the food and hospitality industry
The company intends to use the funds to expand its core digital invoice and
payments processing technologies
38
FINTECH MONTHLY
Announced
Date
Investor
Target
Sector
Transaction
Size ($MM)
Comments
•
Sep-16
Payments
Sep-16
Real Estate /
Mortgage Services
Sep-16
Real Estate /
Mortgage Services
Sep-16
Tech-Enabled
Lending Platform
$14
•
•
$2
•
•
$8
•
•
$3
•
•
Sep-16
Multiple
Investors
Tech-Enabled
Lending Platform
INVESTMENT BANKING
$72
•
Tipalti provides a payment automation platform addressing various phases of payouts, including payee registration, payment method selection and funds distribution
The company plans to use the funding to aggressively accelerate the company’s
growth, investing heavily in product development and customer support
Nested provides a platform that utilizes smart valuation technology and process
management techniques to ensure houses sell within a specified 90 day period
The investment will be used to launch the platform to the public and to continue
expanding operations
Point provides a fintech platform that allows homeowners to sell a fraction of their
home to investors
The company intends to use the funds to expand its geographical presence and
bolster marketing efforts
Divido provides a range of credit products and offers an online platform that
enables customers and retailers to track and query activities related to their account
The company will use the round of funding to continue to deliver transparency and
competitiveness to a larger client base
OurCrowd provides an equity-based crowdfunding platform for investors to provide
funding for seed stage companies and start-ups
The company will use the round of funding to grow both in Singapore and in other
Asian markets
39
FINTECH MONTHLY
SELECTED RECENT PUBLIC EQUITY ACTIVITY
Offer price to:
Pricing Date
Company
Sector
Offer Type
Offering Size
Offer Price
One-Day
One-Week
September 30, 2016
$2,371 MM
$22.58
(3.5%)
(8.4%)
(8.4%)
Sep-16
Payments
IPO
Aug-16
Real Estate & Mortgage
Follow-On
$248 MM
$90.00
7.0%
7.9%
17.0%
Aug-16
Payments
Follow-On
$330 MM
$38.25
2.2%
11.0%
9.4%
Apr-16
Liquidity Venues
IPO
$253 MM
$19.00
21.1%
20.3%
58.6%
Mar-16
Follow-On
$391 MM
$26.00
3.8%
4.0%
38.0%
Nov-15
Payments
IPO
$243 MM
$9.00
45.2%
32.2%
29.6%
Nov-15
Benefits / Payroll
Follow-On
$190 MM
$42.15
5.2%
1.1%
18.9%
Oct-15
IPO
$485 MM
$2.53
(8.6)%
(4.1)%
2.6%
Oct-15
Payments
IPO
$2,560 MM
$16.00
(1.6)%
0.1%
(17.8%)
Oct-15
IPO
$557 MM
$17.23
2.2%
6.2%
39.5%
Oct-15
Payments
IPO
$3,341MM
$3.71
8.6%
6.9%
4.0%
Sep-15
Benefits / Payroll
Follow-On
$111 MM
$29.75
3.0%
0.1%
49.4%
Sep-15
Bank Technology
Follow-On
$97 MM
$25.50
12.9%
(3.1%)
12.4%
Aug-15
Benefits / Payroll
Follow-On
$74 MM
$36.75
1.0%
5.7%
8.6%
Jun-15
IPO
$645 MM
$22.50
12.9%
11.1%
53.3%
Jun-15
Follow-On
$743 MM
$61.50
2.9%
4.1%
(47.7%)
May-15
Bank Technology
IPO
$441 MM
$24.50
13.2%
14.3%
66.9%
May-15
Benefits / Payroll
Follow-On
$115 MM
$25.90
2.7%
1.4%
46.1%
May-15
Payments
IPO
$151 MM
$17.00
51.1%
61.5%
152.5%
Apr-15
Trading Technology
IPO
$314 MM
$19.00
16.7%
18.9%
(21.2%)
Mar-15
IPO
$210 MM
$2.97
11.6%
18.1%
100.3%
Feb-15
Bank Technology
Follow-On
$116 MM
$19.75
6.4%
5.4%
45.1%
INVESTMENT BANKING
40
FINTECH MONTHLY
SELECTED RECENT DEBT FINANCINGS
Ratings
Announced Date
Company
Sector
Purpose
Moody’s
S&P
Size
Coupon
Sep-16
Liquidity Venues
Acquisition
NA
BBB+
$1,650MM
L+350
Jun-16
Real Estate & Mortgage
Acquisition
NA
NA
$53 MM
L+775
Jun-16
Liquidity Venues
Refinancing
B1
BB-
$650 MM
L+475
Jun-16
Marketing Services
Refinancing
B+
BB-
$800 MM
L+660
Jun-16
Refinancing
Baa1
BBB+
$500 MM
L+175
Mar-16
Payments
Acquisition
Ba2
BB+
$1,045 MM
L+350
Mar-16
Trading Technology
General Corporate Purposes
Baa3
BBB
$400 MM
L+150
Mar-16
Refinancing
B1
BB-
$150 MM
L+275
Mar-16
Payments
B2
B+
$3,700 MM
L+400
Nov-15
Acquisition
Baa1
BBB+
$2,500 MM
L+113
Nov-15
Acquisition
NA
NA
$160 MM
L+150
Nov-15
NA
BBB+
$300 MM
5.138%
Nov-15
Trading Technology
A2
A
$350 MM
T+47
Nov-15
Acquisition
NA
NA
$300 MM
L+275
Nov-15
Payments
Refinancing
B1
BB-
$1,000 MM
5.125%
Oct-15
Bank Technology
Acquisition
Baa3
BBB
$750 MM
2.85%
Oct-15
Payments
Acquisition
B1
BB-
$1,210 MM
L+750
Sep-15
Bank Technology
Acquisition
Baa3
BBB
$1,210 MM
L+100
Aug-15
Payments
Refinancing
B1
BB-
$1,210 MM
T+325
Aug-15
Refinancing
B3
B
$60 MM
L+300
Aug-15
Acquisition
Baa1
BBB+
$400 MM
T+150
Aug-15
Ba2
BB+
$800 MM
T+352
Jul-15
Refinancing
Ba1
BBB-
$1,150 MM
L+150
A credit rating of a security is not a recommendation to buy, sell or hold securities and may be subject to review, revisions, suspension, reduction or withdrawal at any time by the assigning rating agency.
INVESTMENT BANKING
41
FINTECH MONTHLY
DISCLOSURES
Sources of data include Capital IQ, FactSet and other news organizations. Information obtained from third-party sources is considered reliable,
but we do not guarantee that the information herein is accurate or complete. This report was prepared within Raymond James & Associates’
Investment Banking Department and is for information purposes only. This report is not a product of Raymond James & Associates’ Research
Department; recipients of this report should not interpret the information herein as sufficient grounds for an investment decision or any other
decision. The report shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities mentioned herein; past
performance does not guarantee future results.
This presentation includes logos or other words or devices that may be registered trademarks of their respective owners. Such use is solely for
purposes of convenience in referring to the trademark owners and their products/services. This presentation and its contents are not endorsed,
sponsored or affiliated with any trademark owner. Raymond James & Associates, Inc. and its affiliates are not affiliated with any trademark
owner but may provide certain financial services to one or more trademark owners or their affiliates.
Ent. Value = Enterprise Value
LTM = Last Twelve Months
EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization
Raymond James & Associates, Inc., member New York Stock Exchange/SIPC.
Additional information is available upon request.
INVESTMENT BANKING
42

FinTech Monthly

Transcription

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