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1st Half 2021 Finance Industry Trends
1ST HALF 2021 KEY HIGHLIGHTS
The highest value deal in 1st Half 2021 was Broadridge Financial Solutions’ acquisition of Itiviti, which offers electronic trading platforms and connectivity solutions, for $2.53 billion.
Nine of the industry’s top ten largest transactions year-to-date were completed by strategic acquirers. The sole private equity backed deal in the top ten list was Astorg and Bridgepoint’s acquisition of Fenergo, a provider of Know-Your-Customer (KYC) and Client Lifecycle Management (CLM) software solutions to financial institutions, for $1.10 billion.
1ST HALF 2021 KEY TRENDS
Total transaction volume in 1st Half 2021 increased by 14 percent over 2nd Half 2020, from 251 to 286.
Total transaction value in 1st Half 2021 declined by 60 percent over 2nd Half 2020, from $51.98 billion to $20.82 billion. This followed a 47 percent rise from 1st Half 2020 to 2nd Half 2020.
The median revenue multiple improved from 3.1x in 2nd Half 2020 to 3.8x in 1st Half 2021.
The segment with the largest rise in volume in 1st Half 2021 over 2nd Half 2020 was Capital Markets with a 58 percent gain, from 53 to 84 transactions.
M&A MARKET OVERVIEW
Berkery Noyes tracked 1,350 Financial Technology and Information transactions between 2019 and 1st Half 2021, of which 274 disclosed financial terms, and calculated the aggregate transaction value to be $264.40 billion. Based on known transaction values, we project values of 1,076 undisclosed transactions to be $24.04 billion, totaling $288.43 billion worth of transactions tracked over the past two and a half years.
Transactions from 1st Half 2019 to 1st Half 2021 with enterprise values above $80 million received a median revenue multiple of 4.6x, whereas those in the $20-$80 million range garnered a median revenue multiple of 2.7x and those in the $10-$20 million range had a median revenue multiple of 1.8x.