1st Half 2016 Finance Industry Trends

1ST HALF 2016 KEY HIGHLIGHTS

• The largest deal in 1st Half 2016 was Deutsche Börse Group’s announced merger with London Stock Exchange Group plc for $14.68 billion. Deutsche Börse Group was involved in another notable transaction during this period with the announced sale of The International Securities Exchange to Nasdaq for $1.1 billion.
• The Capital Markets segment represented three of the industry’s top five highest value deals in 1st Half 2016.

1ST HALF 2016 KEY TRENDS

• Total transaction volume in 1st Half 2016 rose by 13 percent over 2nd Half 2015, from 219 to 247.
• Total transaction value in 1st Half 2016 declined by 14 percent over 2nd Half 2015, from $43.75 billion to $37.49 billion. When examined on a year-over-year basis, value almost doubled.
• The median revenue multiple decreased from 2.0x in 2nd Half 2015 to 1.7x in 1st Half 2016.
• The segment with the largest rise in volume in 1st Half 2016 over 2nd Half 2015 was Insurance with a 47 percent gain, from 32 to 47 deals. Insurance also surpassed the Banking segment as the industry’s third most active sector in 1st Half 2016.
• Transaction volume in the Payments segment increased 34 percent, from 56 to 75 deals. Payments was nearly tied with Capital Markets as the industry’s most active sector in 1st Half 2016.

M&A Market Overview

Berkery Noyes tracked 1,056 Financial Technology and Information transactions between 2014 and 1st Half 2016, of which 259 disclosed financial terms, and calculated the aggregate transaction value to be $109.36 billion. Based on known transaction values, we project values of 797 undisclosed transactions to be $19.82 billion, totaling $129.18 billion worth of transactions tracked over the past two and a half years.

Disclosed median enterprise value multiples for all segments combined in this report during the last 30 months were 2.6x revenue and 12.3x EBITDA.